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Item Factors Affecting the Performance of Insurance Companies of Ethiopia(A.A.U, 2024-01-17) Meraf Tegest; Takele Fufa (PhD)This study sought to determine the variables influencing the performance of selected insurance companies in Ethiopia, Nyala Insurance Company S.C., and Abay Insurance Company S.C. In this study, a descriptive and explanatory research design was used. A combination of qualitative and quantitative research methods was applied. Participants' information was obtained through the use of a questionnaire. Out of the 350 employees, 168 employees were chosen as a sample using Yamane’s formula. The empirical data were analyzed using regression analysis and descriptive and inferential statistics of correlation. An analysis was conducted on the quantitative data obtained via questionnaires. Five questionnaires with a point Likert scale were used to gather primary data. 168 correctly completed and returned questionnaires were received. The results of the study showed that the average customer satisfaction score for insurance companies. An excellent insurance company demands error-free records. This suggested that there were issues with the implementation of compensation and communication of the insurance's discussed variables. The increase in insurance premiums had a negative impact on the performance of insurance companies. Based on statistical analysis, it was found that operating methods have a significant positive relationship with the performance of insurance companies in Ethiopia. All of the independent factors and the dependent variable had positive relationships, according to the correlation. According to the regression analysis's beta values, any increase in the independent variables will also likely result in a commensurate change in the performance-affecting variables of three specific insurance companies in Ethiopia (Nyala Insurance Company S.C., and Abay Insurance Company S.C.) Furthermore, it was discovered that the independent variables influenced the dependent variable and some others expected to be influenced by factors outside the scope of this investigation. Therefore, it is recommended that the three insurance companies in Ethiopia (Nyala Insurance Company S.C., and Abay Insurance Company S.C.) that were chosen for this purpose periodically evaluate their staffing practices. These three companies were chosen because they demonstrated genuine interest in hiring quality employees. As such, the chosen insurance companies Ethiopian Insurance Corporation, Nyala Insurance Company S.C., and Abay Insurance Company S.C. must address client concerns; they must provide exceptional, timely service; and their understanding of insurance companies needs to be enhanced in order to address increasingly complex inquiries. Keywords: Insurance, Factor, PerformanceItem The Viability of Agricultural Development Banking in Ethiopia(AAU, 2023-06-30) Abdulkadir Nureddin; P. Laxmikantham (PhD)The fundamental issue with agricultural development banks is their long-term viability. This study found that there are many viable agricultural banks worldwide. In Ethiopia, there was agricultural banking. But currently, there are none. The study identified four factors that determine the viability of an agricultural development bank: organizational competence, economic feasibility, technological readiness, and societal factors. Quantitative data was collected from central, development, and commercial banks in Ethiopia and analyzed using a statistical model. All four variables were found to significantly and positively support the dependent variable (viability). A dichotomous question further assessed the viability issues, with overwhelming responses indicating a need for reform in the current agricultural-related finances. Therefore, reforming the current commercial and development banks is recommended along with the full-fledged agricultural bank. Organizational competences for agricultural development banking can be achieved through government support, skilled manpower, diversified portfolios, corporate social responsibilities, product value chain, and security measures. It is recommended that if an agricultural development bank is implemented, all four determinant factors be considered due to their significant and positive effects. However, it should be noted that only 58.6% of the viability is explained by these four variables, with the remaining 41.4% attributed to other factors not covered in this study. The study used the Fit-Viability Model (FVM) by Liang (2007), focusing solely on the viability aspect while leaving the fit part for future research. The study only employed quantitative data and could benefit from the inclusion of qualitative data. Additionally, the Ministry of Agriculture of Ethiopia was not included in this study but will be considered in future studies as another stakeholder for the agricultural development bank.Item Determinants of Insurance Companies Profitability: The Case of Ethiopian Insurance Industry(AAU, 2024-03-09) Geleta Haso Bame; Abebaw Kassie (PhD)The development of social and financial stability, the growth of commerce and industry, and economic progress all depend critically on the presence and survival of powerful insurance companies. For several years, academics connected to the finance literature have been interested in profitability. But in the context of Ethiopia, the insurance industry received little attention. In order to determine the factors that affects the insurance businesses' profitability in Ethiopia, this study looks into the industry-specific, macroeconomic, and company-specific factors that were taken into account in the regression model. The study used secondary panel data covering the period 2018-2022 and out of the 18 insurance companies operating in the country, a sample of 17 insurers were selected by non-probability purposive sampling technique. To identify the relationship between the ROA and independent factors, a quantitative research technique and an explanatory way of research design were employed. Descriptive statistics, correlation analysis and fixed effect regression analysis were performed using the statistical software "Stata 14.2." to analyze profitability of the insurance companies in Ethiopia. Fixed Effect model regression results, suggest that industry-specific variables like market share and firm-specific variables like loss ratio, investment income ratio, and business age are significantly affects the profitability. The results also showed a positive correlation between market share, inflation, premium growth, reinsurance dependency, GDP growth, and investment income and profitability. The loss ratio, leverage, and age of the company were found to be negatively correlated with ROE. Ultimately, in order to keep their business profitable, managers should place a greater focus on investment opportunities, potential client, customer happiness, and pre-risk evaluation and selection, and claim handling.Item Challenges And Prospects of Interest Free Banking: Case Study on Bank of Abyssinia(AAU, 2023-12-28) Frehiwot Astatke; Abebaw Kasse (PhD)This research explores the challenges and prospects of interest-free banking services in Ethiopia, specifically focusing on the Bank of Abyssinia East Addis Ababa District. Employing descriptive research through a survey, the study gathered data from a total sample of 355 interest-free banking customers and 60 bank staff. The collected data underwent analysis using descriptive statistics, including mean, frequency, and percentage, through SPSS version 26 software. The study identifies challenges such as awareness, manpower, legal framework, social beliefs, and resource needs. In contrast, economic progress, attraction of investors, and fostering investment are highlighted as potential prospects for the banks. The analysis reveals that the prospects of interest-free banking lie in the presence of potential customers and diplomatic advantages. To achieve the study's objectives, respondents were selected through multistage sampling. The study concludes that interest-free banking services have the potential to enhance the economy by providing additional resources for banks, investment opportunities, reaching unbanked customers, and creating employment opportunities through effective mobilization. Based on these conclusions, recommendations include creating awareness for public acceptance, providing training for staff, employing effective marketing techniques, establishing a clear legal framework, and ensuring compliance with Sharia law. The researcher suggests aggressive promotion and marketing campaigns for interest-free banking products, continuous training to enhance manpower capacity, focused attention on the business, transparent operations in interest-free banking, and the government's preparation of a compatible regulatory framework.Item Opportunity and Challenges of Foreign Investor Entry in Ethiopia Banking Sector(AAU, 2024-03-21) Yohannes Worku; Abebaw (PhD)This study aims to evaluate the opportunities and challenges associated with foreign investor entering Ethiopia’s banking market. The research’s goal was to pinpoint the various advantages that investor would present as well as the obstacles to their entry for domestic banks. A combination of qualitative and quantitative research method were used. Ten experts and professionals were specifically chosen for the study were interviewed in-depth, and thirty commercial banks in Ethiopia as well as higher officials from the national bank of Ethiopia provided quantitative date. STATA 14 was used to examine the gathered data and produce summery on results. The findings of the research demonstrate that introduction of international investor in to Ethiopia has the potential to strengthen the nation financial infrastructure and expand loan availability to a wide range of local businesses, regardless of size. In addition, the study’s findings show that the entry of foreign investor improves local banks efficiency because of the intense competition they will face. Furthermore, by allowing those financial institution to transfer new banking technologies, they help to advance and develop local financial systems. However, because those foreign investor have the potential and power to drive domestic banks out of the market due to their superior expertise, talent and strategy, they also pose a threat to the stability of the nation’s financial system. In addition to these, these investor occasionally share their knowledge of global problems with the host nation. The financial industry should be liberalized gradually as recommended for policy. These is because allowing the investor to operate freely could hurt domestic bank and make the situation harder to manage as it is unclear how these bank operate. Thus, they should progressively permit the government to look at and comprehended how they do business.Item The Effect of Corporate Governance on the Financial Performance of Firms (Case of Insurance Companies in Ethiopia)(AAU, 2023-11-13) Melkamu Getachew Demeke; Takele Fufa (PhD)The main objective of the study is to examine the effect of corporate governance on financial performance of firms (case of insurance companies in Ethiopia). The study employed explanatory research design and quantitative research approach with an econometric panel data of 10 sampled insurance companies purposely chosen based on work experience and data availability that covers the period 2018 to 2022. Board size, board remuneration, debt financing, firm size, meeting frequency, executives’ compensation and product market competition as corporate governance variables and return on equity as financial performance measurement variable. It found that board size, board remuneration and debt financing have positive but insignificant effect on the performance of insurance companies while firm size and frequency of board meetings have negative but insignificant effect on the performance of insurance companies in Ethiopia. Whereas executives’ compensation and product market competition have positive and significant effect on the performance of insurance companies. Concluded board size, board remuneration, debt financing, firm size and frequency of board meetings have insignificant relationship with performance of insurance companies in Ethiopia. However, executives’ compensation and product market competition have positive and significant effect on the performance of insurance companies.Item The Impact of Foreign Exchange Rate on The Financial Performance of Private Commercial Banks in Ethiopia(AAU, 2023-10-10) Fetish G/hiwot; Takele (PHD)The purpose of this study is to investigate the impact of foreign exchange rates on the financial performance of private commercial banks in Ethiopia, with Return on Equity (ROE) as the dependent variable. The independent variables include foreign exchange rates, interest rate spread, inflation rate, and GDP. The data for this research was collected from audited financial reports of national bank of Ethiopia over a specific time period. The data was tested and analyzed using random effect regression analysis to determine the relationship between foreign exchange rates and ROE and tested for using the assumption of CLRM. Quantitative research methods were employed, and data from eight private commercial banks were collected over a 22-year period from 2001 to 2022 for the analysis. The research utilized Stata 14.2 econometric software to assist in analyzing the data. The finding of this study was providing insights into how foreign exchange rates influence the financial performance of private commercial banks in Ethiopia. The results of this research contribute to the existing literature on the effects of foreign exchange rates on bank profitability and financial performance. the study found a negative relationship between foreign exchange rates and bank performance, as well as a positive relationship between inflation and performance. There was no significant relationship observed between inflation rates and financial performance and also significant relationship between interest rate spread and financial performance. Recommendations include increasing exports and foreign direct investment to stabilize the value of the domestic currency, as well as implementing strategies to manage foreign exchange risks in the banking sector in Ethiopia. Some phrases commonly used to discuss this topic include:- Currency exchange rates, economic evaluations, and the banking sector in Ethiopia.Item Factors Affecting the Implementation of Integrated Financial Management Information System in Ethiopian Public Institutions: The Case of Ministry of Agriculture and Ministry of Finance, Integrated Financial Management Information System Project Office.(A.A.U, 2024-03-15) Daniel Seifu; Takele Fufa (PhD)Gov’t around the world aim at having efficient public financial management in order to efficiently manage the resources. Government of Ethiopia realized the importance of IFMIS towards efficient and effective service delivery to the public. This study examines the factors affecting the effective implementation of IFMIS in the public sector, specifically at the Ministry of Finance (MOF), the IFMIS implementation project office, and the Ministry of Agriculture. The research design is mixed, using both qualitative and quantitative approaches. The target population includes the IFMIS project implementation office at MOF and all IFMIS users at the Ministry of Agriculture. Probability and purposeful sampling are used to identify relevant population members. Data was collected through questionnaires and analyzed using descriptive statistics like mean, standard deviation, and percentages using SPSS software version 25. The study analyzed data from Ethiopian public institutions, focusing on the implementation of integrated financial management information systems (IFMIS). The results showed that staff resistance, user capacity and technical skills, ICT infrastructure, top management awareness and support, and support provided by the IFMIS project office were significant factors affecting the performance of the two ministry offices. The normality test, multicollinearity test, and heteroscedasticity test were used to determine the correlation between the independent variables and the dependent variable. Multiple-linear regression was used to determine the factors affecting the implementation of IFMIS. The results showed that staff resistance, user capacity and technical skills, ICT infrastructure, top management awareness and support, and support provided by the IFMIS project office positively predicted the effective implementation of IFMIS on the performance of the two ministry offices. Keywords: Integrated Financial Management System Public Sectors, Staff Resistance, User Capacity, Technical Skills, ICT Infrastructure, Top Management Awareness, And Support.Item Determinants of Capital Adequacy: An Empirical Study on Selected Commercial Banks in Ethiopia(A.A.U, 2019-11-03) Deribew Micheal; Tekalegn Nega (PhD)The main objective of the study is to investigate empirically the determinants of CAR in Ethiopian commercial banks and assess the effectiveness of stress testing as an instrument of risk mitigation in selected commercial banks in Ethiopia. The researcher collected secondary sources of panel data over the period 2009-2018 from eight senior commercial banks in Ethiopia selected based on purposive sampling. As the study was conducted at institutional level, purposive sampling technique has been used to select the banks. Hence, eight commercial banks have been selected. Besides, the study is interested in banks that have been operational and whose ages are above 10 years .As it includes quantitative research aspect, it mainly rely on secondary data, therefore, appropriate instruments need to be employed. The research finding revealed that Bank size (SIZE), liquidity (LQR) and Non-Performing Loan (NPL) ratio had positive whereas Inflation (INF) had negative, but insignificant effect on CAR of commercial banks in Ethiopia. The share of deposit (DAR), Loan(LAR), Loan provision (LPR), Bank risk (RAR),Return on equity and Economic growth (GDP) had negative and statistically significant effect on Capital Adequacy ratios of commercial banks in Ethiopia. Furthermore, Return on Asset (ROA) and Net interest Margin (NIM) had positive and statistically significant effect on CAR of commercial banks in Ethiopia. The finding of this study is significant as it revealed to bank managers the relevant factors to take into consideration when they make financial policies to maintain at least the expected required level of CAR. Based on the findings, the study recommends to the management of National Bank of Ethiopia to revise the existing minimum requirement based on Basel III accord and also to influence commercial banks in order to disclose all component of CAR in detail in their annual financial statement. Key words: Capital adequacy ratio, Basel norms, Tier capital, Ethiopian commercial banks.Item The Effect of Tax Digitalization on Large Taxpayers’ Compliance in The Case of Ethiopia(A.A.U, 2024-06-22) Diana Gashaw; Alem Hagos (PhD)The objective of this study is to assess the effect of tax digitalization on tax compliance among large taxpayers in the case of Ethiopia. To achieve this main goal of the study the researcher developed specific objectives. These specific objectives are evaluate and identify the e-tax system perceived usefulness, perceived ease of use and perceived risk of use, analyzing their effect of on compliance behavior. The study adopted an explanatory research design. Data collected through structured questionnaires from 150 sample large taxpayers. A quantitative research approach was utilized. The data collected were analysis systematically using SPSS 23. The study found that tax compliance behavior was positively affected by the e-tax system's perceived usefulness and ease of use. However, certain risks were noted, including data processing errors, delays from system hang-ups, and concerns about financial data security. These perceived risks negatively affected tax compliance behavior. To address these issues, ERCA needs to invest in strengthening the e-tax system's security and reliability to reduce perceived risks and increase compliance. Highlighting the system's advantages and effectiveness can also improve taxpayers' perception and enhance compliance rates. Key Words: E-Tax System, Perceived Ease of Use, Tax Compliance, Perceived Usefulness, Perceived Risk of Use.Item Effect of liquidity risk on the performance of banks in Ethiopia: The case of selected private commercial banks.(A.A.U, 2024-06-19) Yisehak Hailemariam; Kelifa Srmolo (PhD)This study investigates the Effect of liquidity risk on the financial performance of commercial banks, with a specific focus on Ethiopian banks. The analysis employs data from Ethiopian commercial banks, encompassing financial statements and relevant economic indicators, ten commercial banks operating in Ethiopia over a period of ten years were selected based on their performance and years of establishment. The study analyzed seven variables that are known to influence the financial performance of commercial banks. Panel data analysis was conducted using data from 2013 to 2022, resulting in a total of one hundred observations. To indicate the effect of liquidity risk on the performance of banks financing gap ratio (FGR), liquid asset to total asset ratio (LATAR), loan-toasset ratio (TLA), cash reserve ratio (CRR), bank size, GDP growth rate, and inflation rate were used in this study while the financial performance of commercial banks was measured by the Net Interest Margin (NIM).The study employed descriptive statistics to present the data, followed by a correlation matrix and regression analysis. Before running the regression analysis, a model specification test was used to select an appropriate model that satisfied the assumptions of a classical linear regression model. Based on the results of the model specification test, a random effects model was chosen for the study. The multiple regression analysis revealed that the Financing Gap Ratio (FGR) has a positive and statistically significant effect on NIM. This suggests strategic management of financing gaps, a key liquidity risk variable, is associated with higher profitability for Ethiopian banks. However, other variables like Liquid Asset Ratio (LATAR), Loan-to-Asset Ratio (TLA), Cash Reserve Ratio (CRR), bank size, GDP growth, and inflation did not have significant individual effects on NIM. Additionally, the analysis identified significant variation in NIM across different bank groups. In Conclusion this study highlights the importance of strategic liquidity management for Ethiopian banks while maintaining adequate liquidity is crucial, actively managing financing gaps can contribute to higher profitability. Further research is needed to explore the reasons behind the non-significant effects of other variables and the observed group-level heterogeneity in NIM. Keywords: liquidity risk, financial performance, commercial banks, financing gap, panel data analysis, random effects model.Item The Effect of Capital Structure on The Financial Performance of Addis Ababa Large Food and Beverage Manufacturing Industry(AAU, 2025-02-17) Getachew Tilahun; Degefa Duressa (PhD)The effect of capital structure on firm value has been a contentious issue in corporate finance, with inconsistent and inconclusive findings across various industries and countries. This study aims to examine the effect of capital structure decisions on the financial performance of large food and beverage manufacturing companies in Addis Ababa, Ethiopia. The primary objective is to analyze the effect of debt ratio and long-term debt to equity ratio on profitability, as measured by Return on Assets (ROA), while considering other variables such as firm size, liquidity, asset tangibility, sales growth, age, and inflation rate. Using secondary panel data from the audited financial statements of 12 large food and beverage companies for the period 2017-2022, the study employs econometric analysis to investigate these relationships. The findings reveal that capital structure, particularly higher leverage or debit ratio has a significant negative impact on financial performance, with long-term debt to equity ratio also having a statistically significant negative relationship with ROA .this is because of the excessive costs associated with debt .additionally asset tangibility and age of firms having significant negative relationships with ROA. In contrast, some variables, such as firm size and sales growth shows positive effects on performance. Based on these results, the study recommends that financial managers in the food and beverage sector carefully balance their debt and equity financing by reducing their debt to optimize profitability. Additionally, it suggests that firms should consider the specific economic and industry context when making capital structure decisions, as the effects can vary significantly across different environmentsItem Challenges and Prospects of Full-Fledged Islamic Banking Operations in Ethiopia(A.A.U, 2024-02-22) Yonas Mulugeta; Abebaw Kassie (PhD)This research aims to examine the challenges and prospects of full-fledged Islamic banking operations in Ethiopia. To realize this objective descriptive research design was used Primary data is collected through a structured interviewing of purposely selected key informants including the banks’ management group, board members, shareholders and customers. Moreover, questionnaire on a form of both close–ended and open ended questions are used for the bank’s employees. Secondary data are journal articles, various post graduate studies, banks report and internal document, and web particularly Google scholar. The researcher apply a mixed (both qualitative and quantitative) research approaches. The data was analyzing via descriptive occurrence, statistics of mean and standard deviation using SPSS version 25 Software. The result shows that Islamic banking service has a potential to attract investors, have contribution to support and expand local businesses, creates employment opportunities and the service represents additional deposit to the banks. by way of, the communication imply that skilled concede possibility be vital public explanation programmers to build more consideration and to remove argument and changeableness between Muslim and non-Muslim; Shareholders, board of managers and the administration of the bank endure recognize the idea and be helpful accompanying interest free banking as a consequence, the following pieces of advice were forward apiece analyst established the results of the influence association accompanying research impression: create awareness by using the marketing tools, training employees about principles and practice of Islamic banking operations, create awareness in non Muslim societies service is based on non interest, not on religion. Key words: Full-fledged Islamic banking, Islamic Finance, Operational challenges of IFB, Prospects of IFBItem Assessment of Risk Management Practice of Dashen Bank(A.A.U, 2023-06-23) Hilina Girma; Abebaw Kassie (PhD)The aim of this paper is to analyze the effectiveness of risk management practice of dashen banks. Information was obtained from Dashen Bank risk management department staff by adopting quantitative method in a research design. Open and closed-ended questionnaires were administered to 100 respondents from risk management department. The questionnaires covered key aspects of risk management including the importance of risk management practice, risk identification, risk monitoring and nature of risk management practices. After the questionnaires were completed, the answers were analyzed using statistical processing software, SPSS . The main findings of this paper are: risk managers perceive risk management as critical to their banks performance; the types of risks causing the greatest exposures are credit risk, market risk, liquidity risk, interest rate risk and money laundry risk; and, banks are utilizing some of the approaches/techniques traditionally used to manage risks. Some recommendations were made and prominent amongst them were that Dashen Bank should give emphasis in staff training of the area of type of risk, identification of risk and management and they must make risk visible, measurable and manageable and ensure a meaningful risk culture throughout all processes and activities. Key words: Dashen Banks, Risk Management, and Risk Management PracticesItem An Assessment on Credit Management Practices of Commercial Banks in Ethiopia: /The Case of Six Selected Private Commercial Banks/(AAU, 2024-03-13) Kahsu Hluf; Abebaw Kassie (PhD)Now days, the need to take credit to do a business is getting increased. This is so because entrepreneurs and business men have good business ideas but do not have initial capital to make their business in to practice. Whenever lenders (banks) decide to grant a credit, they need to have credit management and method of collecting it. This research work, therefore, dealt with the `Credit Management practices’ of selected commercial banks. The general objective is, then, to assess the banks` credit management practices and method of collections by taking 2023 as a reference year. The research design of this paper work is descriptive. The sampling technique that the researcher used is that of non-probability using convenience and purposive sampling. Both qualitative and quantitative approaches were used. The data gathered from the field and document analysis were tabulated, organized and systematically demonstrated in the form of tables and graphs. The major research findings of this research work revealed that the overall mean score value of credit appraisal variable was very satisfactory that is most respondents strongly agree to the existing credit appraisal. Besides, the overall mean score value related to the variable collection policy andits strategy was satisfactory that is most respondents agree to the existing credit collection policy. Further, the overall mean score value of the variable credit lending policy and related strategies showed average level of satisfaction. The criteria to get a credit need to have either buildings or vehicles, with which the lower society could not afford. Thus, the researcher recommends original educational documents to be considered as collateral to get a loan. This piece of work could also open a way for further research works treating the topic in a very wide way by considering the views of credit customers.Item Enterprise Resource Planning (ERP) And Its Accounting/Financial Management Module Implementation Challenges: The Case of Ethio Telecom(AAU, 2024-05-21) Aweke Berhanu; Takele Fufa (PhD)Enterprise Resource Planning (ERP) is a software solution that integrates different functional areas of an organization process and data into a single system that is shared within the organization. From the fact that more than two decades of experience regarding the adoption and implementation of ERP system with its different functional components in organizations, ERP’s success is questionable. Though ERP success stories are published in past research studies, the failure rate of ERP systems is relatively high. The purpose of this study was to find issues and challenges and assess the degree of criticality of these issues during ERP in Ethio Telecom. The research carried out a descriptive study in evaluating the implementation challenges of ERP and its accounting/financial management process within Ethio Telecom. The evaluation was made based on the following eight Critical Success Factors which are Top Management support, Integration, Performance, Decision making, Employee Participation, Project Team Competency and Human Capability, Objective of ERP implementation, and IT infrastructure. The population of this study were employees and top- and low-level managers of Ethio Telecom. For the purpose of getting respondents who have good understanding of ERP a purposive sampling technique was used. Both primary and secondary data were collected. The study utilized both quantitative and qualitative data analysis techniques. Significant number of the respondents believed the implementation of an ERP system can be a complex and challenging undertaking. There are several technical problems that can arise during the implementation process, which can delay or even derail the project. Some of the most common technical problems that can occur during ERP implementation include incompatibility with existing systems, data migration, training, and user resistance. However, it is recommended that the following steps need to be taken to improve ERP implementation challenge. These steps include identify the root cause of the failure, developing a corrective action plan, implementing the corrective action plan, monitoring the implementation, and finally learning from the challenges.Item Capital Markets Integration in Developing Countries: Lessons for Ethiopia(A.A.U, 2022-11-09) Yabsira Dereje; Temesgen Worku (PhD)This study aimed at drawing lessons from the capital market integration experiences of East African Community (EAC) and Association of South East Asian Nations (ASEAN), and recommending to Ethiopia. To do so, the study raised research questions on the capital market integration experiences of the two Regional Economic Communities (RECs), the possible long run and short run relationship between stock traded value and other explanatory variables such as liberalization, macroeconomic factors, and regulatory qualities, and finally what lessons Ethiopia can learn from EAC and ASEAN experiences. To address these questions, the study used a convergent parallel mixed research design, which used both qualitative (document and audio visual data review) and quantitative (panel ARDL) methods. The data of the study were entirely secondary data. As such, the study found out that the regional capital market integration in EAC and ASEAN states is consolidating from time to time and amelioration in members’ financial system and crisis prevention capacity, especially in ASEAN, was observed; there is also a statistically significant long run relationship between stock traded value and macroeconomic variables and regulatory qualities, and lessons such as the necessity of capital market integration or cooperation, especially with RECs like Common Market for Eastern and Southern Africa (COMESA), prudent macroeconomic policies and regulatory frameworks were drawn for Ethiopia. Finally, the study wrapped up recommending the necessity of participating in regional cooperation and integration of stock markets and reconsidering the viability of Ethiopia’s macroeconomic policies and regulatory frameworks through the lenses of liberalized financial system.Item Role Of Budget And Budgetary Control System on the Effectiveness of Public Enterprise: The Case of Ethiopian Electric Utility(AAU, 2024-01-29) Hana G/Medhin; Degefe Duressa (PhD)This study focuses on the role of budget and budgetary control systems in the effectiveness of public enterprises, using the case of EEU. The study surveyed 110 experts from the Finance, procurement, Audit & planning department of EEU, using a census survey method. A mixed approach method was used, with primary data collected through questionnaires and interviews, and secondary data obtained through document analysis. The quantitative data was analyzed using SPSS-version 26, using descriptive statistics. The study found that budgeting and budgetary control systems play a vital role in aligning operational plans, resource allocation, risk identification, and progress tracking with the strategic plan. These systems also have positive effects on responsibility alignment, accountability, transparency, individual empowerment, and performance management within the organization. The study also highlights the positive influence of budgetary performance evaluation on employee motivation. Based on these findings, the study concludes that budget and budgetary control systems effectively support decision-making, resource allocation, and performance evaluation within public enterprises. The study recommends that EEU and other public enterprises recognize the importance of aligning operational plans with the strategic plan, coordinating activities among different budgetary control units, enhancing accountability and responsibility, and linking performance evaluation to employee motivation. The study also suggests integrating budgeting with strategic decision-making, continuous evaluation and improvement of the budgeting process, and improving the availability and accessibility of timely and accurate information for budgeting and budgetary control processes.Item Assessment of Factors Affecting the Value-Added Tax Collection Performance in the Case of Gullele Sub-city, Addis Ababa, Ethiopia(AAU, 2024-03-13) Mekbib Altaye; Alem Hagos (PhD)Recently, Value Added Tax (VAT) has become a major worldwide tax instrument which enhances economic growth, and it has a significant factor in increasing government revenue, which funds expenditures. However, governments have addressed many obstacles to ensure effective tax collection. The study aims to assess the factors affecting the Value-Added Tax (VAT) Collection Performance, in the case of the Gullele sub-city, Addis Ababa Ethiopia. In doing so, the study evaluates the VAT collection performance factor in more detail. Both qualitative and quantitative research methods were used to collect and analyze primary and secondary data for the study. Self-administered questionnaires to the branch office employees were used to collect primary data. The target populations of the study were the staff members of the Gullele sub city small scale taxpayer’s branch office. In the branch office there were 32 total workers in the taxation department who were directly involved in VAT collection and administration. The study used purposive and convenient nonprobability sampling technique. Accordingly, the total sample size considered by the researcher was 30. Descriptive Survey data analysis method used, and STATA 14 were used for the quantitative analysis. Furthermore, secondary data was gathered to assess the factors that affect the VAT collection performance. The lack of advanced technology, the low number of registered VAT payers and those who announced their VAT return with payment, the inadequate capacity-building and training programs for tax officials and staff, and other tax administrative practices are the main causes of the low performance of VAT collection. The study concluded by recommending the use of cutting-edge technology, ongoing staff capacity building, proper intention for the planning of VAT collection, hiring the necessary workforce, enhancing consumer and VAT payer awareness, and increasing the number of VAT payers to increase the performance of VAT in Ethiopia. It also needs the government’s and citizens' due attention, and the concerned body may take the findings worthwhile for corrective action.Item Assessment of Ethiopian leather industry performance (An Empirical study)(AAU, 2023-12-23) Yilkal Tadesse; Alem Hagos (PhD)The focus of the research is to assess the performance of Ethiopian leather industry in the case of the pittard, colba and batu tannery. mixed method design was employed. Both qualitative and quantitative re search approach were applied. Stratified, purposive and lottery method was used. Primary and secondary data were collected by questionnaires, interview and data review. To analyze the data, statistical package for social science (SPSS) which is statistical software package become applicable accordingly. The finding of the study revealed that the tanneries performance was lower due to lack of imported chemicals, mangers capacity and marketing linkage in running production and sales. The management of the tannery perceives lack of chemicals. In addition, that there are significant marketing managers who do not get op portunity for training globally about linkage with traders. The coordination between different tanneries in the standards of quality of leathers is weak. The LIDI gives more focus to the export targets, less main streaming of qualities. Lastly the study recommends; the tanneries should discuss with government and other stakeholders how to import chemicals frequently or produce chemicals locally so that the manufac turer will produce quality leathers and the performance will be higher. Secondly; the leather industry per formance of the sector will increase if the managers get training on global market Besides, the govern ment should support and fulfill infrastructure and skill development continuously through bench marking programs with different middle-income countries, The target population and sampling method commu nity, government body (LIDI), management and employees in production departmen