Accounting and Auditing

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Efect of Loan Portfolio on Financial Performance: evidence from Selected Private Commercial Banks in Ethiopia
(A.A.U, 2025-01-08) YezineYirga; Alem Hagos (PhD)
Lending portfolio means allocation of credit to different sectors, rather than focus on few sectors. Should banks and Micro finance institutions engage in diversification or concentrate (focus) their credit portfolio is a basic concern in banking industry. The objective of this research was to find out how Ethiopian commercial banks' lending portfolios affected their bottom lines. From 2013 to 2023, 11 Ethiopian commercial banks were sampled for the study's balanced panel data. The Ministry of Finance, each bank's website, and the National Bank of Ethiopia provided the data. Explanatory research design and a quantitative technique were used to accomplish the study's goals. The study's independent variables were loan diversification as determined by the diversification index, bank size, equity ratio, non-performing loan, loan to asset ratio, liquidity ratio, gross domestic product, and inflation rate, while the dependent variable was the financial performance of the banks as determined by return on asset (ROA) and risk adjusted return on asset (RAROA). The study employed a random effect model for risk-adjusted return on asset and a fixed effect model for return on asset for data analysis. The empirical finding shows that bank-specific factors (ROA and RAROA) play a significant role to affect Ethiopian banks’ financial performance. These factors, which have a statistically significant and favorable impact on Ethiopian commercial banks' financial performance, include the diversification index, bank size, equity ratio, and liquidity ratio. On the other hand, the loan to asset ratio and non-performing loans have a statistically significant negative impact. Macroeconomic variable such as GDP and inflation has insignificant positive effect. The study mainly recommends that, to improve credit quality it is better to diversify loan to various sectors, because, it minimized idiosyncratic risk and enhance financial performance. And,management bodies of commercial Banks try to monitor credit risk by economic sector.
Determinants of Financial Performance and Evaluation of Mohan Plc
(A.A.U, 2025-06-05) Alemeshet Girma; Sewale Abate(PhD)
The financial performance of firms is influenced by a complex interplay of internal and external factors, yet limited research examines these determinants holistically, particularly in the context of emerging markets. This study investigates the combined effects of firm-specific, industry specific, market, regulatory, and sustainability factors on the financial performance of Mohan plc, an Ethiopian firm operating in a dynamic and competitive environment. Addressing critical research gaps, this study applies a comprehensive analytical framework to explore how these variables interact to influence financial outcomes. Using quantitative methods, the study analyzes data from 302 respondents to identify significant predictors of financial performance. The findings reveal that firm-specific factors, regulatory environments, industry-specific factors, and sustainability practices significantly contribute to financial success, while market factors show a less pronounced impact. These results align with established theories, including the Resource-Based View and Institutional Theory, underscoring the importance of leveraging internal strengths, adhering to regulatory standards, and integrating sustainable practices. This research provides valuable insights for managers, policymakers, and academics seeking to enhance financial performance in emerging markets. By bridging theoretical and practical perspectives, the study contributes to a deeper understanding of the determinants of financial performance in resource-constrained and evolving economic contexts.
Effectiveness of performance Audit in Addis Ababa Audit office
(A.A.U, 2025-06-09) Bethel Haddis; AbebawKassie (PhD)
This project examines the effectiveness of performance auditing in the public sector, focusing on the Addis Ababa Audit Office General (AAAOG). Performance audits are instrumental in promoting transparency, accountability, and efficient public resource utilization. However, the effectiveness of these audits often depends on a range of organizational and operational factors. This research aims to identify the key factors influencing performance audit effectiveness, including auditor competency, audit criteria, management and supervisory support, cooperation from auditees, adherence to audit standards, and post-audit follow-up mechanisms. Using a descriptive research design, data were collected from performance auditors, auditees, through structured questionnaires. Quantitative data were analyzed using SPSS, applying descriptive statistics and frequency analysis. The findings revealed that while AAAOG has demonstrated strong performance in executing planned audits, challenges remain, predominantly concerning inadequate compensation, limited feedback mechanisms, and audit resource constraints. Nevertheless, high levels of auditor awareness, established audit standards, and strong cooperation from auditees have positively influenced audit outcomes. The study concludes that enhancing auditor training, improving managerial feedback systems, and addressing compensation gaps are critical for strengthening performance audit effectiveness. Recommendations include increased investment in auditor capacity, refinement of performance audit manuals, and institutional reforms to reinforce post-audit accountability. These findings contribute to the improvement of public sector governance and resource management in Ethiopia
The Role of an Internal Auditing in Achievement of Organizational Objectives in the Case of Commercial Bank of Ethiopia
(A.A.U, 2025-06-05) Edom Wubeshet; Takele Fufa (PhD)
This study was examined the role of internal auditing in achievement of organizational goals, in the case of the Commercial Bank of Ethiopia. This study focuses research questions related to the responsibilities of auditing, their contribution to risk management, corporate governance, and internal control processes, the effect of auditing independence on audit quality and organizational objectives, and the challenges faced in carrying out auditing their duties. The project research uses a descriptive research design, merging qualitative and quantitative approaches. The primary source of data collection was through questionnaires to employees of the Commercial Bank of Ethiopia, and from secondary sources such as current documents and reports. The sample size consists of 70 employees, determined using Israel’s formula. Both open-ended and close-ended questions, is questionnaires from primary data collection method. STATA was used to analyze the collected data, using descriptive analysis techniques. Internal auditing helps to identify the actual and potential risk, helps to fill the process of decision making and policy development etc. Respondent express their response from neutral to strongly agreed for role of internal auditing if there is internal auditing independence, overall internal control process, overall corporate governance and risk management process. This implies internal auditing have higher role for achievement of organizational objective of commercial bank of Ethiopia if there is internal auditing independence, overall internal control process, overall corporate governance and risk management process. Internal auditing is expected to find creative ways to cope up with dynamic environment that will add value to the organization. This is achieved mainly when there is internal auditing independence, overall internal control process, overall corporate governance, and Risk management process. Internal auditing have better role for achievement of organizational objective if there is internal auditing independence, overall internal control process, overall corporate governance and risk management process. Internal auditing independence has better value for achievement of organizational objectives in the case of the Commercial Bank of Ethiopia. Auditing in dependency helps to avoid misstatement, subjectivity of audit report, biased, conflict of interest, hide of important fact, deny of information and records etc. so commercial bank of Ethiopia should protect the in dependency of auditing to achieve organizational objective and improve their role. Commercial bank of Ethiopia should also improve internal control process of internal auditing, overall corporate governance and risk management process of internal auditing.
The Effect of Risk Management on Financial Performance of Commercial Banks in Ethiopia
(A.A.U, 2025-06-05) Abel Wassu; Takele Fufa (PhD)
The main aim of this study was to identify the effect of risk management on the financial performances of selected commercial banks in Ethiopia with a sample size of 16 commercial banks, covering the fiscal year of 2017/18-2023/24. To achieve this objective quantitative research approach were employed. Secondary data were gathered from NBE databases and annual audited financial statements of commercial banks. To comply with these objectives the study has used a panel data model with random effect generalized least squares regression (GLS). To test the hypotheses developed based on the literature review, the collected data were organized and assessed for the fulfillment of linear regression assumptions and apply the random effects linear regression model. The study's findings indicate that liquidity risk management, interest rate risk, and foreign exchange risk have a statistically significant and positive relationship with the return on asset of banks. In contrast, operational risk and bank size show a statistically significant and negative relationship with financial performance. However, the relationships of credit risk, capital risk, and the loan loss provision with financial performance were found to be statistically insignificant. Based on the findings of the study the researcher recommended that commercial banks in Ethiopia adopt a sound and effective management of risks mainly, liquidity risk, interest rate risk, foreign exchange risk, and operational risk to enhance their financial performance ensure sustainable growth, and boost investor confidence. Additionally, it is recommended that the regulatory body address the proper measurement of financial metrics among banks including mainly liquidity ratio, and efficiency ratio to comply with international standards as well as establish rules that will ensure effective disclosure of financial information of banks including, foreign currency-related data.
Performance, Challenges, and Prospects of the Lease Finance Sector in Ethiopia: the Case of Addis Capital Goods Finance Company, Oromia Capital Goods Finance Company, and Debub Capital Goods Finance Company
(A.A.U, 2025-06-22) Temesgen Menza; Temesgen Worku (PhD)
The lease finance sector plays a critical role in fostering economic development by providing financing for businesses, particularly in emerging markets like Ethiopia. Hence, the primary purpose of this study, titled Performance, Challenges, and Prospects of the Lease Finance Sector in Ethiopia: The Case of ACGFC, OCGFC, and DCGFC, is to evaluate the financial performance of three prominent capital finance companies while identifying the prevailing challenges and outlining future growth opportunities in the sector. This study employs a mixed-methods approach, employing both qualitative and quantitative data collection methods. Research design was descriptive. A combination of random and purposive sampling methods was employed to select respondents from the study population. The instruments were a questionnaire, interview and an Annual Audited data review. The data gathered was analyzed using descriptive statistics, which included tables, charts, frequency distributions, and percentages. A total of 76 questionnaires were analyzed alongside financial performance metrics from 2016 to 2023. Key financial ratios, Return on Assets (ROA) and Return on Equity (ROE), were utilized to assess the companies' profitability and operational efficiency. The data statistics were produced using the 25th version of the Statistical Package for Social Sciences (SPSS). The findings reveal that the Ethiopian lease finance sector, while possessing significant growth potential, faces numerous challenges: a lack of leasing expertise, absence of equipment valuers, and restrictions on product types. Further impediments include foreign currency shortages, lack of credit history, funding constraints, and a regulatory framework not conducive to business operations. Leasing companies also suffer from a limited number of domestic equipment suppliers, and a general lack of public awareness. Compounding these issues are political instability, rising machinery prices due to inflation, and fluctuating foreign exchange rates, which create financial strain for leasing companies and their SME clients. Despite these barriers, the research suggests substantial prospects for the lease finance sector in Ethiopia. Government commitment, fast economic growth and a high growing market, all together puts positive futurity or prospects of the business. This is supported by both the survey and interview findings. Conclusion and recommendations are given based on the survey and interview results.
The Role of Internal Audit Function in Promoting Effective Corporate Governance: the Case of National Bank of Ethiopia
(A.A.U, 2025-06-07) Berhanu Retta; Temesgen Worku(PhD)
This study examines the role of internal audit function in promoting effective corporate governance in the case of the National Bank of Ethiopia. Aware that sound governance mechanisms help ensure stability and accountability in financial institutions, the study examines how the prominent characteristics of the internal audit function, including independence, competence, auditing methodology, professional ethics, and support from management, impact governance effectiveness. Using a framework approach, the study applied a mixed-method approach, combining quantitative data gathered through structured questionnaires with qualitative information gathered through key informant interviews. The target population consisted of auditors, senior managers, and executive managers in the Bank. 72 usable questionnaires were received for analysis. Data were processed using SPSS 25, applying descriptive and inferential statistical methods, including linear regression analysis, to determine the relationship between internal audit characteristics and the outcomes of corporate governance. The findings indicate that support from management, auditor competence, and conformity with professional ethics significantly contribute towards the effectiveness of the internal audit function in augmenting sound governance practices. In addition, audit independence and the use of internationally accepted auditing methods emerge as the determinants for sound oversight and accountability. The study contributes to the academic literature through the provision of empirical insights drawn from the central banking scenario and the provision of pragmatic tips for the reinforcement of the internal auditing function in regulatory agencies. It highlights the need for the internal audit practices in the country to conform to international standards for it to be firm in ensuring sound governance and institutional integrity.
Effect of Risk-Based Auditing on Internal Control (Case Study on Ethio Telecom)
(A.A.U, 2025-06-17) Belete Gebru; Alem H. (PhD)
Scholars are noted that effective internal-auditing Control serving as guaranty and consulting activity to supports organizational goals by improving governance, oversight and risk mitigation. This study was conducted to achieve objective stated as investigate the impact of Risk-Focused Auditing of Internal Controls effectiveness in the case of Ethio Telecom. The research used qualitative and explanatory research methods and collected data through primary and secondary source by using survey method to collect data from 70 internal audit and management staff in the head office of Ethio telecom. The Study employed methods for census sampling. Multiple regression analysis uses descriptive statistics to identify the causal relationship between Risk based Auditing and internal audit activity. The finding indicates that internal audit department gap Lack of BOD support, resource, training and certify auditor, The scope of risk management and control systems implemented by internal auditors interferes with daily operations, No Audit committee establish, Limitation Publishing audit reports and recommendation. According to the regression output all independent variable effect the company performance and making of the contribution for company performance. The Board of Directors (BOD) of the organization is committed to enhancing development capacity through the provision of training and certification via short-term programs. This initiative aims to ensure there is an adequate number of officers while effectively mitigating resource constraints. The internal audit division of the firm plays a crucial role in the effective identification and analysis of risks, offering suitable risk recommendations, and implementing robust governance and internal control measures.
Factors Affecting Tax Assessment For Import/Export Companies in Ethiopia
(A.A.U, 2025-05-20) Fikirte Chebud; Temesgen Worku(PhD)
The purpose of this study is to analyze the difficulties that import and export enterprises in Addis Ababa, Ethiopia encounter when it comes to tax assessment. The study focuses on the interaction between the complexity of regulations, the inefficiency of administrative processes, and the restrictions placed on foreign exchange. The data was gathered through structured questionnaires distributed to 110 respondents, which included managers, tax officers, and customs officials from five different enterprises and three different tax administration offices. The study design utilized was classified as quantitative. Based on the results of a multiple regression analysis, it was found that foreign exchange restrictions (β = 0.295, p = 0.039) emerged as the sole statistically significant predictor of tax assessment challenges. This finding highlights the significant impact that currency shortages and exchange rate volatility have on compliance and valuation accuracy. Regulatory complexity (β = 0.075, p = 0.476) and administrative inefficiency (β = 0.122, p = 0.325) exhibited positive but minor effects. Approximately sixty seven percent of the variance was explained by the model (R = 0.67), with the remaining 67% likely being contributed by unmeasured factors such as informal trade practices. However, Ethiopia's specific institutional and macroeconomic restrictions highlighted, despite the fact that the findings are consistent with worldwide literature. One of the recommendations is to prioritize reforms to the foreign exchange policy, to speed up the digitization of tax systems, and to personalize support for small and medium-sized enterprises (SMEs) in order to reduce operational bottlenecks. A competitive trade environment may be fostered in Addis Ababa with the help of this study, which provides policymakers and tax authorities with practical insights that can be used to improve compliance, reduce revenue leakages, and enhance compliance.
The Role of Ethical Practices in Accounting in enhancing Public Trust and Economic Stability: evidence from Addis Ababa
(A.A.U, 2025-06-30) Mesfin Workie Tegegne; Kelifa Srmolo (PhD)
Accounting ethics consists of moral values and professional guidelines that shape accountants' responsibilities. It ensures honesty, transparency, and fairness in financial reporting and decision-making, it strengthens trust among businesses, investors, and the public. Maintaining ethical standards in accounting also enhances investor confidence and contributes to overall economic stability. This study aims to examine ethical practices in accounting and their role in enhancing public trust and assessing their broader role in economic stability. Using a descriptive research methodology, information was gathered from selected accounting and auditing firms’ through surveys and interviews. A survey was conducted among 124 accounting professionals who work in accounting auditing firms’ analysing how do accountants perceive the role of ethics in financial reporting, how unethical accounting practices erode public trust and destabilizes economies and the role of regulatory frameworks in promoting ethical behaviour among accounting professionals. Findings indicated that, lack of ethical training leading to ethical gaps in awareness and compliance, ethical financial reporting is a key factor in raising stakeholder trust and enhancing corporate reputation. The study also notes regulatory oversight plays a role in maintaining financial integrity but enforcement and effectiveness need improvement. Lack of public awareness and continuous ethical accountability efforts contribute to compliance challenges. Many accountants experience ethical conflicts due to pressure from management and clients further emphasizing the necessity of clear ethical frameworks and governance structure. In conclusion, this comprehensive analysis offers organizations with strong ethical policies empower professionals to maintain transparency and integrity. Training and awareness programmes are essential in preventing unethical practices and strengthening ethical financial reporting overall. Ultimately, this strengthens trust among stakeholders, regulators, and the public reinforcing the long-term credibility and sustainability of both the institution and the overall economy.
The Effect of Merger and Acquisition (M&A) on Financial Performance: a Mixed-Methods Analysis of Ethiopian Shipping and Logistics Service Enterprise.
(A.A.U, 2025-06-30) Selamawit Nigussie Hailu; Degefe Durresa (PhD)
This study investigates the financial impact of the 2016 merger of Ethiopian Shipping Lines Share Company, Maritime and Transit Services Enterprise, Dry Port Enterprise, and Comet Transport Share Company, forming the Ethiopian Shipping and Logistics Services Enterprise (ESLSE). Employing a mixed-methods approach, we analyzed pre-merger (2010–2011) and post-merger (2022–2023) financial data. Specifically, the study utilized ratio analysis to evaluate changes in profitability, liquidity, efficiency, and leverage ratios. Descriptive analysis was also applied to the pre-merger (2010–2011) and post-merger (2022–2023) financial data to highlight trends and key differences in financial performance over these periods. The study concludes that while the merger enhanced cost efficiency and reduced financial risk, it negatively impacted liquidity and shareholder profitability. We recommend urgent liquidity management, a thorough investigation into the ROE decline, optimized leverage strategies, and holistic performance monitoring. This research offers empirical insights into merger outcomes within Ethiopia's logistics sector, informing future consolidation strategies in emerging economies.
Analysis of Financial Risk Management Practices at Ethiopian Airlines: Fuel Price, Currency, and interest Rate Risks
(A.A.U, 2025-05-29) Temesgen Bireda; Abebe Yitayew (PhD)
This study Analyze the financial risk management practices of Ethiopian Airlines, focusing on liquidity, operational, credit, and market risks. The research employs mixed method approach with 140 employees’ surveys and documentary. Findings reveal that Ethiopian Airlines has robust risk management frameworks in place, with effective strategies for liquidity and operational risks, stringent credit evaluations, and proactive market risk mitigation through hedging. Summary of the top findings, vulnerabilities during economic downturns and over reliance on certain international partners suggest areas for improvement. Recommendations. Include adopting advanced forecasting tools, diversifying funding sources, enhancing training programs and refining hedging strategies. The study underscores the importance of continuous adaptation to global economic challenges to sustain the airline’s competitive edge and financial resilience.
Opportunities and Risk in Capital Markets: implications of the Commercial Bank of Ethiopia
(A.A.U, 2025-05-22) Nebiyat Gugsa; Degefe Duressa (PhD)
This study explores the dynamic landscape of capital markets in Ethiopia, emphasizing the role of the Commercial Bank of Ethiopia (CBE) in shaping investment opportunities and associated risks. As Ethiopia endeavors to enhance its economic growth through financial sector development, understanding the interplay between opportunities and risks in capital markets is crucial for policymakers, investors, and financial institutions. The research highlights that the expansion of the CBE, coupled with government initiatives to privatize state-owned enterprises and introduce new financial instruments, has created significant opportunities for local and foreign investors. These include increased access to diversified investment options, improved liquidity, and the mobilization of long-term capital essential for infrastructural development. Conversely, the study underscores various risks such as market volatility, regulatory uncertainties, macroeconomic instability, and currency fluctuations that can adversely impact investor confidence and market stability. The paper also discusses the implications of these risks for the sustainability of capital market growth and the importance of robust regulatory frameworks, risk management strategies, and institutional capacity building. The study employed a qualitative research approach, utilizing primary and secondary collected data. Furthermore, it emphasizes the need for enhanced financial literacy and transparency to foster a resilient investment environment. Overall, the paper concludes that while the Ethiopian capital market presents promising opportunities driven by the strategic initiatives of the CBE, addressing inherent risks is vital for sustainable economic development. Effective policy measures, investor protection mechanisms, and continuous market reforms are essential to maximize benefits and mitigate potential downsides. This research contributes valuable insights into the evolving Ethiopian capital market landscape, offering guidance for stakeholders aiming to capitalize on opportunities while safeguarding against risks.
Determinants of Commercial Bank Performance: A Case Study in Selected East African Countries
(A.A.U, 2024-06-24) Yonas Gashaw; Temesgen W. (PhD)
The main objective of commercial banks is profit maximization because commercial banks are Business institutions established for generating profit. Hence, this study examines determinants of commercial banks performance case study in selected east African commercial banks. The data covered the period from 2018-2022 G.C. for the sample of selected fifty commercial banks. Quantitative research approach and explanatory research design were adopted in carrying out this research. Secondary data were collected from the selected fifty commercial banks using a purposive sampling technique and macro- economic data were collected from NBE and World Bank report while internal factor data were collected from audited financial statements. The study used both descriptive and inferential statistics. Mean and standard deviation were used as descriptive statistics, whereas correlation and panel regressions were used from inferential statistics using stata. The results of the regression analysis demonstrate that, while liquidity and bank size have considerable negative effects on NIM, inflation, the loan to deposit ratio, and income diversification have significant positive effects. This study suggests that banks can enhance their stability and performance by implementing several key strategies. Enhancing the loan-to-deposit ratio can improve asset utilization and profitability. Promoting income diversification allows banks to mitigate risks associated with reliance on a single income source. Prudent liquidity management ensures banks can meet short-term obligations without compromising financial health. Optimizing bank size can lead to economies of scale and better resource allocation. Monitoring inflation trends helps in adjusting interest rates and maintaining purchasing power. Lastly, policy support for economic stability, such as regulatory measures and fiscal policies, creates a conducive environment for sustainable banking operations.
Determinants of Commercial Bank Performance: a Case Study in Selected East African Countries
(A.A.U, 2024-05-24) Yonas Gashaw; Temesgen W. (PhD)
The main objective of commercial banks is profit maximization because commercial banks are Business institutions established for generating profit. Hence, this study examines determinants of commercial banks performance case study in selected east African commercial banks. The data covered the period from 2018-2022 G.C. for the sample of selected fifty commercial banks. Quantitative research approach and explanatory research design were adopted in carrying out this research. Secondary data were collected from the selected fifty commercial banks using a purposive sampling technique and macro- economic data were collected from NBE and World Bank report while internal factor data were collected from audited financial statements. The study used both descriptive and inferential statistics. Mean and standard deviation were used as descriptive statistics, whereas correlation and panel regressions were used from inferential statistics using stata. The results of the regression analysis demonstrate that, while liquidity and bank size have considerable negative effects on NIM, inflation, the loan to deposit ratio, and income diversification have significant positive effects. This study suggests that banks can enhance their stability and performance by implementing several key strategies. Enhancing the loan-to-deposit ratio can improve asset utilization and profitability. Promoting income diversification allows banks to mitigate risks associated with reliance on a single income source. Prudent liquidity management ensures banks can meet short-term obligations without compromising financial health. Optimizing bank size can lead to economies of scale and better resource allocation. Monitoring inflation trends helps in adjusting interest rates and maintaining purchasing power. Lastly, policy support for economic stability, such as regulatory measures and fiscal policies, creates a conducive environment for sustainable banking operations.
The Effects of Electronic Tax Payment System on Voluntary Tax Compliance in Ethiopia: the Case of Easter Addis Ababa Small Taxpayers’ Branch Office
(A.A.U, 2023-01-06) Frehiwot Getachew; Abebe Y.A (Dr)
The objective of the study is to identify the effects of electronic tax payment system on tax compliance: the case of Easter Addis Ababa small taxpayers ’branch office. The study prepared five scale based questionnaires and distributed to 350 taxpayers and 18 tax officials sample populations and was analyzed using descriptive statistics, correlation and regression analysis. The descriptive analysis showed that the electronic payment system improved the taxpayer time, job performance, accuracy, reduced costs and tax payment on timely manner. There are still existing challenges like lack of skills of the taxpayers, network fluctuation, the involvement of stakeholders, banks failure to transfer the tax paid to the Ethiopian Revenue and Customs Authority, errors of e-filling by tax payers and tripartite challenges. The correlation analysis also showed that tax compliance is strongly correlated to credibility and relatively weakly correlated to ease of use and usefulness. The regression analysis on the other hand implied that credibility has high effect on tax compliance whereas ease of use and usefulness has significant effect. Finally, the study recommends extensive training on how electronic payment could be made starting from e-filling. The ministry of revenue should enforce the banks to act according to the agreement and electronic tax payment system should include zero reporting and refund by redesigning the system.
Determinants of Effective income tax Collection Practice: a Case Study in Nifas Silk Lafto Sub City Revenue Administration office
(A.A.U, 2025-03-04) Azmera Getachew; Kelifa Sermolo(PhD)
The effective collection of income tax is crucial for the financial sustainability of local governments and the overall economic development of a region. This study investigates the determinants of effective income tax collection practices, focusing on the case of the Nifas Silk Lafto Sub City Revenue Administration Office. Through a comprehensive analysis of factors influencing income tax collection, including taxpayer compliance, complexity of the tax system, administrative efficiency, and enforcement mechanisms, this research aims to provide valuable insights for improving revenue collection strategies. The methodology employed in this study includes a combination of quantitative analysis, qualitative research, and case study approaches. Data was collected through surveys, interviews, and document analysis to assess the current practices and challenges faced by the revenue administration office. The findings of this study shows the complexity of the tax system and other factors such as tax rate, tax knowledge and education, probability of detection, perceptions on the role of the government and peer influence can significantly impact effective income tax collection. The findings highlight the importance of taxpayer education, simplified tax procedures, and effective enforcement measures in enhancing income tax collection efficiency. The results of this study have significant implications for policymakers, tax administrators, and researchers in the field of public finance. By identifying the key determinants of effective income tax collection practices, this research contributes to the development of targeted interventions and policy recommendations to strengthen revenue mobilization efforts in Nifas Silk LaftoSub City and beyond.
The Effect of Leverage on Airlines Profitability; the case of some selected African Airlines
(A.A.U, 2024-01-03) Bona Gutu; Degefa Duressa (PhD)
The study's goal was to find out how leverage affected the profitability of a few African airlines. Thus, using the EVIEWS 10 software program, secondary data from the audited annual reports of eight airlines that were purposefully chosen for the 2010–2020 time frame were examined using a fixed effect panel regression model. The research design and approach used in the study were explanatory and quantitative, respectively. To isolate the effect of leverage on airlines' profitability and to capture the influence of variables other than the study's primary objective variables (degree of operating and financial leverage), the effect of both operating and financial leverage on airlines' profitability (ROA) was examined by introducing control variables (operating efficiency, airline size, and exchange rate). The degree of operating leverage used by airlines has a positive and statistically significant impact on profitability (ROA), according to the results of the fixed effect regression model. Conversely, certain airlines' profitability (ROA) is negatively and significantly impacted by their level of financial leverage, operating efficiency, size, and exchange rate. Considering the findings, airlines are recommended to update their capital structure and operating costs by increasing the amount of operating leverage (using fixed operating costs), which maximizes their profitability, and optimize debt financing to levels that are easily manageable.
Assessment of Cost Accounting Practice: The Case of Segon Marill International Movers Plc in Ethiopia.
(A.A.U, 2024-07-02) Goytom G/egziabher; Kelifa Sromolo (PhD)
This study aimed to assess the cost management practices of Segon Marill International Movers P.L.C. The sample size of this study is 12 employees of the company. The researcher used both open-ended and closeended Questionnaires and interviews to collect data from the company's employees and top management. The findings revealed that the company has a separate cost accounting department with professionally Qualified and efficient staff, although the department lacks adequate personnel. The company utilizes Marginal, Standard, and Job Order costing approaches, but the current costing method is perceived to be complex, lacking in transparency, and in need of better integration and automation. The study found that the company extensively uses cost accounting information to support operational efficiency, control, and strategic decision-making, but there are opportunities to further optimize its application. The company has a strong focus on cost reduction and control through strategies such as operational efficiency, inventory management, employee engagement, and supplier negotiation. Based on the findings, the study recommends that the company should ensure the cost accounting department has sufficient staff, empower the department to collaborate across the organization, regularly review and streamline the costing approaches, invest in robust cost accounting systems, and foster cross-functional collaboration. Additionally, the company should simplify the costing processes and optimize the system's structure to improve transparency and ease of use.
Factors Affecting the Performance of insurance Companies in Ethiopia
(A.AU, 2024-06-03) Natnael Hailu; Habtamu Berhanu(PhD)
This study aimed to identify the factors that impact the performance of insurance companies in Ethiopia. The researchers employed a causal research design using a mixed research approach, as quantitative data was required for the report's preparation. The study's target population was 18 general insurance companies in Ethiopia, but the researchers selected 10 experienced composite insurance companies with 10 years' worth of audited financial statements from 2014 to 2023. The secondary data was collected by closely reviewing financial statements and other published materials. The study utilized the Ordinary Least Square model to analyze the data through Stata version 14.2. The results demonstrated that explanatory variables incorporated in the model - such as retention ratio, combined ratio, company size, the tangibility of assets, inflation rate, GDP, and awareness of the society - affected Ethiopia's insurance companies' performance. However, premium growth and Leadership quality had no significant effect on the performance of insurance companies in Ethiopia. The study's findings provide insights into the performance of insurance companies in Ethiopia. Insurers must prioritize innovation and develop new products and services to meet evolving customer needs. This includes creating tailored insurance products for underserved demographic segments. Insurance companies should operate in a competitive environment, avoid price-cutting and risky investments, and implement robust underwriting and risk management practices to foster industry growth and economic development in Ethiopia.

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