International Business

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Assessment of The Influence of Employee Training on the Organization Performance: In Case of Ethiopian Shipping and Logistics, Addis Ababa)
(A.A.U, 2024-06-27) Mareshet Shemeles Desta; Tewodros Wuhib (Ass. Professor
The aim of this research was to explore the assessment of the influence of employee training on the organization's performance at the Ethiopian Shipping and Logistics. The investigator assessed the impact of training factors on the organization performance: training need assessment, training program design, and training methods. For this analysis, 86 questionnaires were distributed to 86 Addis Ababa main office staff members. A Stratified random sampling techniques was used, and 72 questionnaires could collect for analysis; the rest of 14 questionnaires couldn’t collect from the respondent. The data had been analyzed using Version 21 SPSS. The researcher used descriptive and inferential method for analysis. This study could show that the significant relationship between the variables training and development and organization performance. The Enterprise should give an opportunity for their workers to attend with the activities of HRM in the training needs assessment and training program design. Training feedback should be collected after the training.
The Effect of Bank Lending and Private Equity Investment Criteria on Smes Access To Finance: A Demand and Supply Side Syntheses
(A.A.U, 2022-03-02) Meraf Girma; Yitbarek Takele(PhD)
This study analyzed the effect of bank lending and private equity (PE) firm investment criteria on SMEs' access to finance. The study followed a deductive approach, both explanatory and descriptive designs, survey method, and questionnaire as data collection instrument. A total of 270 bank managers and credit officers and 8 PE investment and business analysts as well as 200 SMEs owners and managers established the study setting. Hayes logistics regression was used to analyze the direct and indirect effects of lending criteria on manufacturing SMEs access to Bank finance and descriptive statistics to rank PEs’ SME investment criteria. The study found a full mediation role of adverse selection in the relationship between SMEs access to finance and 4 aspects of bank lending criteria. However, moral hazard partially mediated the relationship between SMEs access to finance and the other 2 aspects of bank lending criteria. Regardless of having significant mediation effects, the logistics regression indicated SMEs access to finance didn’t increase compared to the previous year. On the other hand, the descriptive analysis of PE’s response indicated SMEs’ managerial, product, market, and financial considerations influence their investment decisions on SMEs. The relative importance index showed that both PEs and Banks give priority to entrepreneurial character in screening SMEs for financing. Besides, the demandside analysis showed that collateral and capital requirements, and financial consideration are the most important criteria influencing access to Bank and PE finance, respectively. The study concludes SMEs access to finance doesn’t show improvement as a result of not-fulfilling mainly Banks' non-performance-related criteria and the lifestyle entrepreneurship nature of manufacturing SMEs in Ethiopia to attract PE investment. The study also concludes that while the existing collateral and capital related criteria directly influence Bank SME financing decisions, character, activity, condition, and capacity do not. This implicates the need for revising the existing Bank SME lending criteria.
Determinants of Mobile Brand Preference on Customer Buying Decision: Evidence From Techno Mobile Shop Owners and Employees in Addis Ababa
(A.A.U, 2024-02-04) Gashaw Kibru; Habtomu Edris (PhD)
The main objective of the study was to investigate determinants of customer buying decision in the field of mobile manufacturing, with a particular focus on Tecno Mobile Company in Addis Ababa. Both descriptive and explanatory research designs as well as a quantitative research approach were used to conduct the study. Convenience sampling was used to seleca sample of 285 respondents from Addis Ababa and a structured questionnaire with response rate of 95% was used to collect 270 valid data points. The Statistical Process for Social Sciences (SPSS version 27) was used to conduct statistical analyses. The results were interpreted through descriptive analysis using metrics such as mean and standard deviation.Additionally, regression analyzes and correlations were carried out. The validity and reliability of the instrument were confirmed during the research process. In addition, the basic assumptions for regression and correlation analysis are met. The results of the multiple regression analysis also showed that globalization, personal history, social networks and the symbolic meaning of products all positively influence consumers' purchasing decisions. The two factors that had the largest positive and significant influence on consumers' mobile phone buying decisions were personal history and symbolic meaning of the products, respectively. This study adds to the small body of research on Ethiopia's sectors. How eve the study was limited to Addis Ababa; future research should attempt to examine a wide range of Ethiopian regions. Such studies can help mobile manufacturing companies and neinvestors assess the value of their products and those of their competitors, create marketing plans and strategies, and successfully develop and bring their products to market.
Prospectes and Challenges of Entering into international Market; The Case of Exporting Edibale Oil Manufacturing Companies in Ethiopia
(A.A.U., 2024-07-01) Alayu Tesfaye; Ethiopia Legesse (PhD)
The study aims at identifying the prospects and challenges of entering in to international market by exporting in case Ethiopia edible oil manufacturing companies. Data collected through primary source through interview. 12 respondents were participated in the survey based on purposive sampling method of sample. The interview question concern on firm’s performance on domestic market, competitive advantage on international market, challenges engaged on international market and strategies used to overcome challenges and exploited opportunities in order to effectively perform in abroad market. As finding, Ethiopian edible oil manufacturing companies have unique advantages, for reason unique oilseeds, potential for organic production, fair trade opportunities, proximity to growing markets and lower labor cost. On other hand Ethiopian edible oil manufacturing companies have challenges to engage in international market by limited access to fiancé, raw material dependence, complex trade regulations, high costs, uncertain political climate, limited processing capacity and completion from established players. And also as findings, Firms can exploits’ their opportunities and overcome the challenges to entering abroad market by using target strategic market, partner with experienced players, build brand recognition, address internal weakness, seek government support and highlight unique selling pointes. On this basis, it is recommended that Ethiopian edible oil manufacturing firms shall capitalizing opportunities through focus on specialty oils, target regional market, invest in oil seed production and also addressing challenges implement strict quality control measures, develop strong brand identity, increased processing capacity, partner with international logistics companies, explore duty free incentives, conduct through market research and participate in international trade shows.
Internationalization of Small and Medium-sized Manufacturing Enterprises: Exploring Determinant Factors
(A.A.U, 2022-02-03) Hassen Awel; Amare Abawa(PhD)
The objective of the study is to explore determinants on internationalization of SMEs in Ethiopia. Given that a survey-based approach was used. The target population was small and medium size manufacturing enterprises in Ababa, Ethiopia. The choice of Addis Ababa for the study was based on size and concentration of SMEs. The study used both primary and secondary data. The primary data was collected from SME Managers (owners) and other senior managers through dispatching standard questionnaire. Secondary data was gathered from information publications such as, thesis and dissertations which were relevant to prepare literature review. Cluster random sampling technique has been used for selection of respondents. The data collected were analyzed using appropriate descriptive statistics multiple linear regression analysis. Moreover, the data have been analyzed with the help of Statistical Package for Social Science (SPSS). The empirical study presented major determinates that affect internationalization SMEs. According to the participants’ perception, the study revealed that the most important determinant affecting on internationalization of SMEs was financial resource. Government and other stockholders should facilitate the financing.
Factors Affecting Air Cargo Export Trade: Insights based on the perception of employees in Ethiopian International Air Cargo Service.
(A.A.U, 2024-07-13) Hikma Miftah; Yohannes Workaferahu (PhD)
This thesis investigates the challenges and opportunities within the air cargo trade, focusing on insights gathered from employees in Ethiopian international air cargo services. A comprehensive analysis of the current industry landscape revealed several key issues: insufficient focus on cargo infrastructure development, inadequate stakeholder collaboration, inefficiencies in ground handling processes, the need for research and innovation, and challenges in customs clearance procedures. Based on these findings, recommendations are proposed to enhance export cargo performance. These include prioritizing cargo infrastructure development, improving stakeholder collaboration, enhancing ground handling efficiency through technological integration and training, fostering research and innovation initiatives, streamlining customs clearance processes, and ensuring prompt implementation of improvement measures. Implementing these recommendations is expected to lead to improved efficiency, increased throughput, and enhanced global competitiveness for Ethiopia's air cargo industry.
Assessment of Foreign Direct Investment Entry Performances at Early Stages of Firm Establishments in Ethiopia
(A.A.U, 2022-04-03) Kutiyo Gutema; Amare Abawa (PhD)
This study tries to assess Foreign Direct Investment Entry Performances at Early Stages of Firm Establishments in Ethiopia. The study used annual data of New FDI inflows and FDI entry performances firms at establishment periods and data employed for the variables are from period of 2011 to 2020. To analysis the Data, study used descriptive statistics. The study employed five variables including dependent variable of new FDI entry performance and four independent variables such as FDI under pre-implementation stage, FDI under implementation stage, FDI under operational stage and FDI permits cancelled. The study concludes that from the employed independent variables; highest mean registered by Foreign direct investment entries under pre-implementation stage by Birr 27.12billion and followed by Foreign direct investment entry permits cancelled Birr 12.4billion and highest standard deviation was registered by Foreign direct investment entries under pre-implementation stage by Birr 30.27billion and followed by Foreign direct investment entry permits cancelled Birr 15.56billion respectively. In the light of this, critical improvements are required in the areas of investment statuses, particularly FDI implementation, operational stage and FDI permits cancellations. The result of this paper demands policy intervention of government to make new FDI firms achievements in reaching operational and production stages in order to improve entering FDI firms’ performances and contribute for economic growth of the country.
The Influence of Cultural Intelligence on Employee Job Performance in intercultural Organizations: The Case of International Non-Governmental Organizations in Addis Ababa
(A.A.U, 2024-06-03) Nurayni Adem; Tsegabrhan Mekonen (PhD)
This study examines how cultural intelligence (CQ) influences job performance among employees of international non-governmental organizations (INGOs) in Addis Ababa. Employing a quantitative approach, the research used a cross-sectional survey design. Out of 309 questionnaires handed out, 263 were filled out and included in the analysis. The data was gathered through self-administered surveys, and the analysis was performed using descriptive and inferential statistics with SPSS 27.0. and SmartPLS 4 software. The model was evaluated using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings revealed that motivational and behavioral CQ have a significant positive influence on both task and contextual performance. However, metacognitive and cognitive CQ did not show a significant influence on these performance metrics. These insights emphasize the importance of certain cultural intelligence components in improving job performance among INGO employees, offering valuable guidance for organizational development and employee training programs.
The Assessment of Marketing Mix Strategy on Business Performance: The Case of Moha Soft Drink S.C Teklehaymanot Plant
(A.A.U, 2024-06-03) Silesh Eniyew; Tewodros Wuhib(PhD)
In the case of the MOHA soft drink S.C. Teklehaymanot branch, the study attempted to determine the assessment of marketing mix strategies on organization performance. To explain the relationship between the company's business performance and its marketing mix strategies, the researcher used descriptive research designs. By using a stratified sampling technique to each stratum, the sample size of 170 (one hundred seventy) employees was selected. A total of 170 copies of the questionnaires were produced by the researcher and sent to the six target departments of MOHA soft drink S.C. Teklehaymanot Branch: marketing, sales, production, finance, human resources, and other departments. Of these, 152 were returned, resulting in an appropriate response rate of 89.41% for analysis, conclusion, and recommendation. For a variety of reasons, 18 questionnaires have no response. The data sources combine both primary (structured questionnaires) and secondary data (HR record and internet). An organized, closedended questionnaire with a five-point Likert scale is used to collect the information. The data was analyzed using SPSS Version 22, and the results were presented in the form of tables and figures. In order to obtain insight into how respondents' characteristics might affect the study's conclusions, the researchers gathered demographic data from them and examined it. The research's reliability analysis revealed very good internal consistency for the set of items used in the questionnaire. The grand Cornbrash’s alpha coefficient result shows that result of 0.928. Based on the conclusions of this research, the 4Ps marketing strategies possess significant effects on the organization's business performance, while from all marketing mix strategies price, and promotion strategy have a large impact.
Thesis on Determinants of Ground Handling Service Performance: Empirical Evidence From Ethiopian Airlines Group
(A.A.U, 2024-06-17) Dereje Kuma; YitbarekTakele (PhD)
This study has been conducted on Determinants of ground handling service performance with the special emphasis on Ethiopian airlines group (EAG). The major objective of the study was to assess the factors affecting ground handling service and the performance of ground handling service of EAG .Specifically, the study focused on assessing how Infrastructure and facility, supplier relationship, availability of skilled manpower, Integration and communication, passenger, cargo and ramp handling service, Regulation and communication and safety and security affect the ground service performance of EAG. To realize these objectives, the researcher adopted a mixed research approach with descriptive research design. Both primary and secondary sources and types of data were utilized for the study. As primary data collection tools, self-administered survey questionnaires that were measured by Likert scale were used. Semi-structured interviews were also held with six interviewees of each unit representative. The questionnaires were sent for 118 respondents via outlook of which 91questionnaire were successfully received/collected. Moreover 384 questioners were distributed for premium passengers and 336 questioners were collected successfully. Document analysis was also done to collect secondary data. The collected primary data were presented in tables and analyzed using SPSS version 26. The findings of the study indicate thatall variables of the study which includesupplier relationship, integration and communication, infrastructure and facility, skilled manpower have positive and significant effects oncompetitiveness of EAG. But data obtained from the interview indicates that a critical issues both infrastructure and skilled manpower and negatively affecting the ground handling service performance of EAG where the infrastructure layout both inside airport and air side negatively affecting the passenger, cargo and ramp handling processes that in turn affects customer satisfaction and on time performance of ground handling service. The study concluded and recommended that since the airline existence, profitability and competitiveness are highly affected by punctuality of the ground handling service, Infrastructure and facility, skilled manpower, Supplier relationship, integration and communication, safety and security, all stakeholders of EAGneed to provide special attentions in the long run by implementing special supplier relationship management practice tools, reevaluating the integration and communication tool, creating and bundling more better airport infrastructure and facilities, working more on skilled manpower and human capital management and advancing safety and security management using modern technology etc.
The Effect of Service Quality on Customer Satisfaction in The Case of Bunna Bank S.C
(A.A.U, 2024-05-05) Alemnew Fenta; Demeke Chimdessa
This study looked at the link between overall service quality and customer satisfaction at Bunna Bank (BB) at the chosen branches and the gap between customer perception and expectations on service dimensions. Customers of Bunna Bank S.C. at four specific Addis Ababa branches made up the respondents. 150 BB customer respondents completed a selfadministered questionnaire to collect primary data. We then selected 150 valid questionnaires using a stratified random sample technique for statistical analysis. IBM SPSS version 25 was used to process the data, and descriptive statistics (such as frequencies, percentages, mean scores, pie charts, and bar graphs), as well as chi-square testing, binary logistic regression analysis, and Spearman correlation analysis, were used to evaluate the results. This study looked at how aspects of service quality impacted customer satisfaction at Bunna Bank in Addis Abeba. The characteristics of service quality were assurance, responsiveness, empathy, tangibility, and dependability. At the 5% significance level, the findings demonstrated that every aspect of service quality had a favorable and substantial influence on customer satisfaction. The survey also revealed that clients were pleased with the bank's physical spaces, prompt and accurate service, polite and informed employees, and personalized attention. The study included suggestions for future research paths as well as recommendations for the bank's management to enhance customer happiness and service quality.
Antecedents of Participation in Collective Marketing and its Impact on Farmers’ Income: In the Case of Avocado Producers of Selam Fruit and Vegetable Development and Marketing Cooperative, Amhara Regional State, Ethiopia
(A.A.U, 2024-10-27) Aschalew Lemma Woldearegay; Yitbarek Tekle (Phd)
The agricultural sector is vital for economic development in Sub-Saharan Africa, particularly in Ethiopia, where smallholder farmers face significant challenges such as limited access to quality inputs and inadequate infrastructure. This study addresses the problem of smallholder avocado farmers' inability to penetrate high-value markets due to weak institutional frameworks and fragmented supply chains. Utilizing a sample of 115 farmers selected through non-probability sampling from four kebeles in the Amhara Regional State, both probit regression and endogenous switching regression analyses were employed to examine the relationship between farmers' participation in collective marketing and their income outcomes. The findings reveal that participation in collective marketing significantly enhances farmers' avocado income share. The Average Treatment Effect on the Treated (ATT) shows that farmers engaged in collective marketing enjoyed an average avocado income share of 34.985%. In contrast, if they had opted out, their income share would have dropped to 26.410%, resulting in an ATT of 8.574%, significant at the 1% level. This positive impact implies that collective marketing participation provides advantages such as improved market access, better pricing, and economies of scale. Furthermore, the Average Treatment Effect on the Untreated (ATU) indicates that non-participants currently have an avocado income share of 25.490%, but this could rise to 34.952% if they participated, leading to an ATU of 9.462%. The statistically insignificant heterogeneity effect (HE) of 0.033% suggests that income variations between participants and non-participants are not driven by unobservable factors but are primarily attributed to the structural advantages of the collective marketing system itself. Overall, these results underscore the importance of collective marketing in enhancing the economic outcomes of smallholder farmers by facilitating better market access and pricing. To bolster collective marketing participation, the study recommends promoting educational programs for farmers, enhancing infrastructure, strengthening cooperative benefits, increasing access to inputs, and improving marketing channels. These strategies aim to improve the economic outcomes for smallholder farmers and promote sustainable income growth within the avocado supply chain.
Factors affecting the coffee export competitiveness of Ethiopia- time series analysis
(AAU, 2024-06-05) Biftu Mohammed; Abera Legesse (PhD)
The aim of this study involves Ethiopia’s competitiveness on coffee export and the factors affecting it through the period of 1993-2022 observation. In this study Revealed comparative advantage were employed to explain the level of comparative advantage and Revealed symmetric comparative advantage were employed to assess the level of Ethiopia’s competitiveness on exporting of coffee. To capture the factors and determinants of coffee the approach used is ARDL model with Johansen co-integration test to investigate the long run and short relationship between the coffee export competitiveness with domestic production of coffee, world production of coffee, world price of coffee, foreign direct investment inflow stock, the real effective exchange rate, and the total volume of coffee export. As a result, the approach explains that there is both short run and long run relationship between the competitiveness and the explanatory independent variables. The analysis pointed out that in the long run the extent of domestic production of coffee and total export volume is significant and positively affecting the competitiveness. However, world price of coffee, and the real exchange rate have significant and negative effect to the competitiveness. But the FDI and world production of coffee is insignificant and negative effect to the competitiveness. On the other hand, in the short run the domestic production of coffee has a significant and positive effect to the competitiveness. And world production of coffee, world price of coffee, and the real effective exchange rate has significant and negative effect to the competitiveness. The FDI has negative and total export volume has positive effect but insignificant effect on the short run
The Effect of Exchange Control on the Performance of Commercial Banks in Ethiopia
(A.A.U, 2024-06-26) Dereje Bayissa; Jemal Mohammed (Phd)
This study investigated the impact of the foreign exchange control directive, implemented in Ethiopia since 2016 G.C, on the performance of commercial banks. The directive requires banks to allocate at least 50 percent of foreign exchange to priority imports, potentially affecting their financial performance. The study used five years of data from 2019 to 2023 or 80 observations from 16 commercial banks. This study assessed the distribution of foreign exchange to both priority and non-priority sectors, as well as its impact on bank performance metrics such as Return on Assets (ROA) and Return on Equity (ROE). The study used a quantitative research design to obtain a complete understanding using secondary data and a purposive sampling technique. Descriptive and Regression analyses were used to evaluate the data. In this study, Random effect model was selected to be suitable for panel data. The aim is to answer critical questions regarding the allocation practices of foreign currency by commercial banks in Ethiopia and to evaluate the consequent effects on their performance. The study's objectives include assessing the allocation of foreign currency to priority and non-priority sectors, examining its impact on bank performance and exploring the operational efficiency, assets of the bank and sources of income as control variables. The study's finding suggested that, operational efficiency and bank assets are important determinants of bank performance, and also allocation of at least 50 percent of foreign currency to priority products has both positive and negative effects on bank performance. The findings of this research provided valuable information for policymakers, banking regulators, and financial institutions and can also serve as a basis for further studies.
Assessment of Factors Affecting Tax Collection:The Case of Ministry of Revenues of Ethiopia Federal Large Taxpayers Branch
(A.A.U, 2023-06-07) Abiy Ayenachew; Habtamu Endris (PhD)
The goal of this study was to look at the elements that influenced favorably and adversely tax collection in Ministry of revenues of Ethiopia, Federal large taxpayers. Particularly, it investigated the effects of the prevailing political situation on revenue collection, the implications of tax policies implemented by incumbent politicians, and the effects of ICT infrastructure and qualified workforce on revenue collection. A descriptive research design has been selected due to the way it addressed the study areas empirically through numerical measurement and statistical analysis. The target population consisted of federal taxpayers who were classified as ‘large taxpayers’. Despite there were 794 taxpayers who fit this description, a sample of these was chosen for the study. A sample of 266 taxpayers was chosen using a simple random sampling technique. A total sample of 240 was obtained after 266 questionnaires were distributed, with 26 of them—or 10%—not being returned and as secondary data five years revenue collection of the federal large taxpayer’s branch data was taken. SPSS, a statistical tool for social scientists, was used to analyze the data. The associations between the independent and dependent variables were investigated using descriptive statistics. The analysis results demonstrated that the prevailing political climate actually, have an impact on business operations, people's security, resource availability and distribution, and, as a result, tax collection and tax compliance have been hindered. It also indicated that the rule and regulations that were in effect at that particular point had an impact on tax collection and, was difficult to understand and analyze. The study claims that the MoR support system, which included, among other things, information technology systems like Electronic taxation (E-tax), the workforce, and major stakeholders, all played an important part in the Revenue Collection process in MoR. The study suggests additional investigation to figure out the level of independence or interdependence of the political situation and revenue collection. It also suggests more research into existing tax laws and regulations, as well as how appropriate those who they rule. Additionally the study suggests more research on taxpayers as MoR’s stakeholders in order to devise methods of assuring adherence to rules and contentment for stakeholders
Factors Affecting Export Performance of Textile and Garment Industry: The Case of Hawassa & Bole Lemi Industrial Park.
(A.A.U, 2022-01-08) Hawani Eshetu; Asres Abitie Kebede (PhD)
The objective of this study was to examine the factors Affecting Export Performance of Textile and Garment Industry in Ethiopia by focusing on the industrial parks with regard to Infrastructure, Foreign Direct Investment (FDI), Trade Openness/Market access and Policy and regulatory situation in the import export business. In the study both quantitative and qualitative research design approaches were used. Data were collected from primary sources and secondary sources. The primary data were collected through questionnaire and analyzed by using Statistical Package for the Social Sciences (SPSS) version 20. To achieve the objectives of the study conceptual model was formulated by reviewing previous related literatures. The mean shows that the independent variables have positive and significant effect on the performance of export with mean value of 4.1. Correlation between the independent and dependent variables indicates a degree of less multi-collinearity. According to the findings, Infrastructure, Foreign Direct Investment (FDI), Trade Openness/Market access and Policy and regulatory situation have positive effect on export performance. From all the variables FDI has the highest positive relation on export performance of the garment and textile industry. The qualitative data also supports the result of the quantitative data. Export performance was mainly influenced by FDI and Infrastructure with very high statistical significance. Furthermore, trade openness and policy environment has also significant impact for the growth of textile and garment export. Thus, the research recommends that to improve the textile and garment export, the government need to work on securing dependable market access through WTO rather than AGOA and work hard to attract quality foreign investors in the sector.
The Effect of Branch Expansion on Bank Financial Performance: The Case of Addis International Bank S.C
(AAU, 2024-02-24) Esmael Yaregal; Amare Abawa (PhD)
This study is aimed to evaluate branch expansion’s effect on bank’s financial performance in case of Addis International Bank S.C. For this purpose explanatory research design was employed and quantitative approach was used. Branch expansion was measured by number of branches and financial performance of bank was measured by NIM, ROA and ROE. Secondary data was collected from annual reports, yearly magazines, departmental reports and various journals of the bank for a period 2012-2023. The stationary, coitegration, autocorrelation and normality tests were deployed and linear regression is conducted for the purpose of examining the effect of independent variable on each dependent variables. As regression result shows number of branch has insignificant positive effect on ROA while it is significant positive effect on ROE and NIM. In general, the result of this study indicates that branch expansion’s effect on AdIB’s financial performance is significant as well as positive. Based on this, the researcher recommend managers and stakeholders of AdIB to open more branches and the bank’s return on its equity and asset as well as net interest margin will increase. The researcher also recommends other research performers to study branch expansion’s effect on non-financial performance of the bank.
The Effect of Income Diversification on Bank Performance: In Case of Selected Commercial Banks in Ethiopia
(AAU, 2024-01-10) Dessalegn Munach; Yohannes Workaferahu (PhD)
This thesis investigates the relationship between income diversification and bank performance based on financial performances of 17 commercial banks. Income diversification is the practice of raising a bank's proportion of fee, net trading profits and other non-interest income within its net operating income, in other words it is an expansion into new revenue-generating financial services, with the exception of conventional intermediation activities. The study sampled the financial performances of 17 commercial banks during the period of 2014 to 2021 and used explanatory research design, quantitative research approach and secondary data sources that were gained from National Bank of Ethiopia like annual reports, financial statements and company information. The model that employed in this thesis was Random Effect model. The panel data was presented by using inferential statistics. The proxy (dependent variable) is return on assets (ROA) that measures performance of the banks and the independent variables are Herfindahl Hirschman Index (HHI), Herfindahl Hirschman Index for non-interest income (HHINONII), ratio of non-interest income to total asset (NONIITA), Share of Fees and Commission over Noninterest income (SHFC), the ratio of loan to total asset(LOANTA)and exchange rate (EXR). The econometric results have shown positive and significant association between ratio of non-interest income to total asset (NONIITA) and bank performance (ROA) while Herfindahl Hirschman Index for net operating income (HHI) indicated negative and significant impact on bank performance this in part justifies policy actions to promote diversification. The coefficients of the remaining variables have shown positive but insignificant association with bank performance except HHINONII. From a policy point of view the finding suggests that bank regulations which might tend to increase the level of income diversification (non-interest income) should be evaluated carefully. Generally, the major findings reveal that income diversification has impact on return on asset of the banks i.e. an increase in income diversification leads to an increase in return on asset (ROA), which implies that banks are benefited from diversification of their activities beyond the traditional lending activities. Finally, the study recommends that Ethiopian commercial banks to diversify their income across non-interest income and to use it wisely by considering the right areas of diversification.
Determinants of Export Performance of Ethiopia's Top Export Commodities: A Time Series Analysis
(AAU, 2023-06-09) Tesfatsion Dejene Mersha; Yohannes Workaferahu (PhD)
Assessment of the Challenges of Ethiopian Livestock Export Performance
(A.A.U, 2024-01-07) Mekdem Kassaye; Desalegn Amlaku (PhD)
The purpose of this research is to describe the challenges the Ethiopian livestock export performance face in the context of the exporting companies. The study employed a mixed methodological approach that included both quantitative and qualitative methods. Primary data was collected and cross-checked with secondary data from 2011 to 2021. Four challenges were assessed in this study: government policy, political stability, infrastructure, and market accessibility. According to the Ministry of Trade, there are over 110 registered live animal exporters, but only 13 operating in the export. To analyse the export market of the operating companies, a descriptive analytic method was utilized, and 5 of each company's top leaders were chosen. To further investigate and comprehend, a qualitative approach thematic analysis method was used for the former companies’ owners. The long procedure to get certification and finance, low amount of loans, lack of protocol policy, lack of enforcement of contractual agreement are the main government policy problems. Inconsistent supply, unable to make on time delivery’s, possibility of losing 100% export are main political stability problems. Increasing death rate because of quality of roads, lack of coordination, administration and capability quarantine station are main problems of infrastructure. Export market being dependant on holiday bases requirement of importing countries, unable to make competitive and uniform pricing strategies, unpredictable and continuous changes of requirement from importing countries and high competition from illegal export are the barriers from market accessibility. Ethiopian companies’ livestock export has been gradually dropping. The sector is becoming no longer profitable for them.

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