Accounting and Finance Dissertation
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Item The Impact of Fintech on Financial Performance of Banks in Ethiopia, the Case of Selected Commercial Banks(A.A.U, 2025-05-20) Gizachew Tefera; Abebe Y. (PhD)This study explores the impact of fintech adoption on the financial performance of selected Ethiopian commercial banks, focusing on profitability, operational efficiency, customer satisfaction, competitiveness, loyalty, and risk management. Based on financial and customer data from five medium-sized banks between 2019 and 2024, the findings reveal that internet banking adoption has the strongest positive effect on profitability (ROA and ROE), while mobile banking significantly expands customer reach and engagement, though it incurs short-term implementation costs. Operational efficiency improved modestly due to streamlined processes, reflected in a moderate reduction in the cost-to-income ratio. Fintech also enhanced customer satisfaction through improved accessibility and convenience, leading to stronger customer loyalty and retention. Market competitiveness showed slight gains, particularly among digitally active banks leveraging fintech for broader outreach. Importantly, fintech adoption improved risk management by supporting fraud detection, enhancing credit risk profiling, and enabling real-time data analysis. These results suggest that strategic fintech integration can significantly strengthen the financial and operational performance of banks in emerging markets like Ethiopia. Keywords: Fintech, financial performance, commercial banks, Ethiopia, mobile banking, internet banking, digital payments, financial inclusion.Item Assessment of Factors Affecting the Development of Capital Market in Ethiopia(A.A.U, 2025-06-18) Addis Molla; Temesgen Work (PhD)This study focused on the challenges affecting the development of the capital market in Ethiopia in line with its prospects for investors and government for economic development aiming to describe possible challenges related to the development and efficient operation of the market. The study applied a descriptive research design with qualitative data analysis method based on the data collected trough structured questionnaire from key participants like; National bank of Ethiopia, Ministry of Finance and Economic Commissions, Commercial banks board of directors, Insurance companies, Investors and other professionals. The study reveals that the effect of level of awareness, lack of adequate regulatory system, inflation, infrastructure and development of financial institutions, investors' business culture, and government privatization policy are the major challenging factors for the development of Capital market in Ethiopia. The study also forwarded recommendations like taking initiatives and cascading the responsibility of capital market development for different financial institutions. Furthermore, laws and regulations, technological infrastructure, and capacity of financial and non-financial institutions should be evaluated and provide support. Generally, government should accept financial support from different professionals and organizations either it be local or international, as long as the interest of the country is secured. Key Words: capital market, development, infrastructure, financial institutions, GDP.Item Efficiency-Risk Interplay in Banking: Theoretical Insights and Empirical Evidence from Ethiopia(AAU, 2025-09-25) Daniel Tolesa Agama; Shihong Li, (PhD), Associate ProfessorEfficiency-Risk Interplay in Banking: Theoretical Insights and Empirical Evidence from Ethiopia Daniel Tolesa Agama PhD Dissertation Addis Ababa University (2025) This study examines the interplay between technical efficiency and risk in 17 Ethiopian commercial banks over 2014–2022. Technical efficiency is measured using bias-corrected Data Envelopment Analysis under the Charnes–Cooper–Rhodes (CCR) constant returns to scale and Banker–Charnes–Cooper (BCC) variable returns to scale specifications. Efficiency differences by ownership and size are compared via Mann–Whitney U tests. Dynamic panel estimations—Difference Generalized Method of Moments and fixed- effects models—assess (a) the effects of credit risk and liquidity risk on efficiency, and (b) the effects of efficiency on subsequent credit and liquidity risks. Profitability (return on average assets), capital adequacy ratio, and bank size are included as additional efficiency determinants. Findings indicate that higher credit and liquidity risks significantly increase technical efficiency, while greater efficiency leads to elevated subsequent credit and liquidity risks. Profitability positively affects efficiency; capital adequacy has no significant effect; and larger banks exhibit slightly lower efficiency. Public banks underperform private peers in overall and scale efficiency yet exceed them in pure technical efficiency. These results support Financial Intermediation Theory and the Skimping and Moral Hazard hypotheses and reject the Bad Management hypothesis for public banks. Banks should integrate robust risk controls with efficiency initiatives, and regulators should consider these interplay effects when formulating policiesItem Evaluating the Effectiveness of Credit Risk Management Practices in Ethiopian Private Banks: A Case Study on Selected Banks(AAU, 2025-09-23) Yitbarek Esubalew; Abebe Yitayew (PhD)This study aims to evaluate the effectiveness of credit risk management (CRM) practices in Ethiopian private commercial banks, using the Basel II and Basel III frameworks as the theoretical foundation. CRM effectiveness refers to how well a bank’s risk management strategies specifically risk identification, risk measurement and analysis, risk mitigation, and risk monitoring prevent loan defaults, minimize financial loss, and maintain a sound credit portfolio. The Basel Accords, particularly the core principles outlined in Basel II and the enhanced regulatory standards in Basel III, provide a comprehensive structure for assessing these practices. The study employed a descriptive research design and a mixed-methods approach, incorporating both quantitative (survey) and qualitative (document analysis) methods. A sample of 164 participants was selected from a total population of 276 staff members working in credit and credit risk assessment departments of five major Ethiopian private commercial banks. Systematic and purposive sampling techniques were used to ensure relevance and representativeness. Data were collected through structured questionnaires and supplemented by secondary data from annual reports. Key performance indicators such as non-performing loan (NPL) ratios and loan loss provision (LLP) ratios were used to objectively assess CRM effectiveness. Data analysis was conducted using both descriptive and inferential statistics with the aid of SPSS version 26. The findings revealed that all four core components of CRM were highly implemented across the selected banks. Regression analysis showed that these practices have a significant positive effect on overall CRM effectiveness. The study concludes that aligning internal CRM practices with internationally recognized frameworks like Basel II and III enhances financial stability, credit performance, and risk governance. It recommends that Ethiopian private banks continuously assess and improve their CRM strategies in line with Basel principles and real-world credit performance indicatorsItem The Effect of Foreign Exchange Rate Fluctuation on The Financial Performance of Private Commercial Banks in Ethiopia(A.A.U, 2025-05-18) Biruktawit Yohannes; Degefe Duressa (PhD)In an increasingly volatile macroeconomic environment, understanding how foreign exchange rate fluctuations affect banking performance is essential for financial stability. This study examines the effect of foreign exchange rate fluctuations on the financial performance of private commercial banks in Ethiopia over the period from 2010 to 2024 using panel data. The analysis was conducted using STATA 16 software and employed a random effects regression model to analyze the effect of foreign exchange rate fluctuation alongside key macroeconomic (inflation, GDP) and bank-specific factors (bank size, capital adequacy ratio, net interest margin) on Return on Assets (ROA). The findings reveal that foreign exchange rate fluctuation had a negative and statistically significant effect on bank performance, indicating the risks posed by currency instability. Inflation and GDP were found to have a positive and significant effect on ROA, while capital adequacy and bank size also contributed positively. However, Net interest margin was found to be statistically insignificant. These results highlight the importance of effective foreign exchange risk management in mitigating external shocks. Regulatory measures and macroeconomic policies aimed at reducing foreign exchange rate fluctuation and strengthening financial supervision are therefore essential. Key Words: Foreign exchange rate fluctuations, financial performance, commercial banks, risk management.Item Financial Performance of Banking in Ethiopia: a Comparative Study of Interest-Free Banking and Conventional Banking(A.A.U, 2025-01-18) Zemzem Ahmed; Kelifa Srmolo (PhD)The main objective of the research was to analyze and compare the financial performance of conventional and interest-free banking systems in Ethiopia, focusing on key financial ratios. The study adopts a quantitative research methodology, using secondary data from the financial statements of selected banks over a period of three years (2021-2023). Key financial ratios such as profitability, liquidity, risk and solvency, leverage, and efficiency ratios are analyzed to evaluate the financial health and performance of the two banking systems. The findings of the study reveal that the majority of the differences in financial ratios between the two banking models were not statistically significant. However, Interest-free banks while more stable, faced higher operational costs relative to their income. The comparative analysis highlights relative strengths and weaknesses of each banking system, with conventional banks demonstrating greater resilience to economic shocks and interest-free banks showing higher efficiency in using assets and equity to generate profits. The study recommends that conventional banks focus on technological innovation and enhanced risk management practices to maintain competitiveness. Interest-free banks are suggested to optimize their debt management and improve cost efficiencies to ensure long-term sustainability. Additionally, the study suggests further research into the impact of regulatory frameworks on the performance of both banking systems and their role in promoting financial inclusion. This research contributes to the understanding of financial performance in Ethiopian banking and provides valuable insights for both policymakers and banking institutions looking to enhance the effectiveness and stability of their operations Key Words Interest-Free Banking, Conventional Banking, Financial Performance, Comparative Analysis, Financial RatiosItem The Effect of Selection and Recruitment on Organizational Performance in the Case of Bank of Abyssinia S.C(A.A.U, 2024-07-11) Mekides Yenealem; Kelifa Sermolo (PhD)This study aims to evaluate the impact of employee selection and recruitment practices on organizational performance at the Bank of Abyssinia S.C. The primary objective was to examine how the bank’s recruitment and selection strategies influence its operational efficiency, revenue growth, and profitability. An explanatory research design was employed to establish causal relationships between recruitment practices and organizational performance. Data was collected through structured questionnaires, complemented by secondary data from organizational documents and external sources. The analysis was conducted using descriptive statistics (mean and standard deviation) and inferential statistics (correlation and multiple regression analyses) through SPSS Version 29. The study’s major findings revealed that effective recruitment and selection practices have a significant positive impact on organizational performance. In particular, high-quality candidates and strategically aligned recruitment processes were found to enhance profitability, operational efficiency, and revenue growth. Based on these findings, the study concludes that aligning recruitment practices with organizational goals is essential for improving performance outcomes. The research recommends that the Bank of Abyssinia should enhance feedback mechanisms, refine selection criteria, strengthen strategic alignment, invest in recruitment technologies, and focus on employer branding. Future research is suggested to explore the long-term effects of recruitment practices and investigate their relevance across different organizational settings. Keywords: Recruitment and Selection, Organizational Performance, Strategic Alignment, Candidate Quality, Bank of Abyssinia S.C.Item Assessment of Credit Management Practices in the Case of Bank of Abyssinia(AAU, 2025-03-28) Abel Getu Abdisa; Takele Fufa (PhD)This study investigates the credit management practices of Bank of Abyssinia, aiming to understand its approach to responsible lending and risk mitigation. A mixed-method approach was employed, utilizing a questionnaire survey distributed to bank staff and in- depth interviews with bank management. The collected data was analyzed using descriptive statistics with the help of SPSS version 20. The analysis focused on current practices of bank, the efforts underway and internal challenges (staff training, technology investments), external influences (economic challenges, regulations), and transparency in communication. Key findings reveal a strong foundation for credit management at Bank of Abyssinia. The bank utilizes well-defined loan assessment processes, emphasizes staff training on responsible lending principles, and prioritizes loan quality through performance metrics. However, the study also identifies areas for improvement in resource allocation, with some respondents perceiving limitations in technology investments and staffing levels. The research highlights the significance of a comprehensive approach to credit management, emphasizing responsible lending practices alongside effective resource allocation and adaptation to external challenges. This study contributes to the field by providing valuable insights into the credit management practices of a leading Ethiopian bank, offering a framework for analysis applicable to other financial institutions. The recommendations presented, focusing on optimized resource allocation, technology utilization, and continuous improvement strategies, can benefit banks seeking to enhance their credit risk management capabilities.Item Factors Affecting Customer Satisfaction in Interest-Free Banking Services Offered by Private Banks: a Case Study of Dashen Bank in Ethiopia(AAU, 2024-03-11) Alemu Fithanegest; Abebaw Kassie (PhD)This study aims to examine the factors that influence customer satisfaction with interest-free banking (IFB) services offered by private banks in Ethiopia, with a specific focus on Dashen Bank. The study employed a quantitative research design and collected data through a survey questionnaire administered to Dashen Bank customers who have utilized IFB products and services. The study utilized both primary and secondary data, with the questionnaire designed to gather relevant information.The findings revealed that all respondents (100%) reported being knowledgeable about Wadiah Amanah, Mudarabah Saving Account, and Qard. For Financing (Loan) Products, the majority (90.2%) indicated being knowledgeable, while a smaller proportion (9.8%) reported not being knowledgeable about this product. The correlation analysis reveals strong positive associations between respondents' attitudes, perceptions, service quality, trust, and effective communication with their overall satisfaction. The multiple linear regression model indicated that approximately 65.8% of the variance in the dependent variable is explained by the independent variables (R2=0. 658). The ANOVA results demonstrate that the regression model is statistically significant, as indicated by a highly significant F- statistic (F = 58.733, p < 0.001). Age exhibited a negative and statistically significant relationship with satisfaction (β = -0.078, p = 0.014), indicating that as Age increases, satisfaction decreases (β = 0.026, p = 0.407). Sex and occupation status, income and education level did not show statistically significant effects on satisfaction (β = 0.033, p = 0.341, β = -0.007, p = 0.822, and β = 0.057, p = 0.107) respectivelyItem The Effects of Tax Incentives in Attracting Foreign Direct Investement in Ethiopia(A.A.U, 2025-01-19) Yikunoamlak Gebire Mariam; Temesgen Worku (PhD)Foreign direct investment plays a significant role in the development process of developing countries. Given this many developing countries particularly, Ethiopia made a number of attempt to attract FDI. Fiscal incentive was one among the attempts made to create investment friendly environment. This study examines the impacts of tax incentives in attracting FDI in Ethiopia from 2004-2022. The purpose of this research is to examine the inconsistent empirical evidence on the use of tax incentives in attracting FDI. The study adopts a mixed methods research where primary data is collected using unstructured interview with ECC and MOR officials in addition to this secondary data is also collected from various sources such as ECC, MOR, EIC, NBE, World Bank and Freedom House. Based on the Panel data analysis and the fixed effect model result the study found that custom duty & tax holiday has a positive and significant impact on FDI but GDP growth rate and political stability has insignificant in attracting FDI in Ethiopia. Hence the study suggests that reducing the corporate tax rate, custom duty and tax holiday exemptions. Considering non tax factors, the country should improve its macroeconomic stability using inflation rate and exchange rate. It is also recommend care should be taken when giving tax incentives since further reduction of tax rates and additional tax exemptions will erode the revenue base and increase revenue loss (forgone) of the country. Key words: Tax incentives, FDI, Corporate tax rate, Tax holiday, Custom duties, Revenue loss (forgone), Tax Expenditures.Item The Effect of Credit Risk Management Practice on Firm Performance: The Case of Selected Micro- Finance Institutions in Ethiopia(AAU, 2025-01-18) Enatfanta Teshome; Habtamu Berhanu (PhD)This study examines the effect of credit risk management practices on the performance of selected microfinance institutions (MFIs) in Ethiopia. The research focuses on three institutions: Vision Fund Microfinance Institution (VFMFI), Yegna Microfinance Share Company, and Nisir Microfinance Institution. Utilizing both primary and secondary data, the study evaluates how credit policies, risk assessment, and loan diversification strategies influence firm performance, specifically Return on Assets (ROA). The research employs an explanatory research design and statistical analysis tools, including regression and ANOVA, to investigate relationships between variables. Key findings reveal that effective credit policies, robust risk assessment practices, and strategic loan diversification significantly enhance financial performance. However, challenges such as poor implementation, insufficient borrower profiling, and limited loan diversification were identified as areas of concern. The study concludes that strengthening credit risk management practices is vital for the sustainability and profitability of MFIs. Recommendations include policy enhancements, staff training, and leveraging technology for improved risk assessment. This research provides valuable insights for policymakers, practitioners, and stakeholders in the microfinance sector, aiming to foster financial inclusion and economic developmentItem Determinants of Lease Financing Propensity by Manufacturing Small and Medium Enterprises: Evidence From Ethiopia(AAU, 2022-06-15) Alemu Ayalew; Abebaw Kassie (PhD)By using descriptive and explanatory research design and mixed approach, this study tried to identify and investigate the main determinant factors that affect propensity of lease financing by manufacturing small and medium enterprises in Ethiopia. Self-administered questionnaire were used to collect primary data and the secondary data was collected through reviewing proclamation, procedures, journals and various important literatures. The target population for this study was 1797 manufacturing small and medium sized enterprises located in Addis Ababa city administration. The sample size was determined by using the method appraised by Carvalho (1984) and a sample of 200 manufacturing SMEs was selected from Addis Ababa city administration using stratified proportional random sampling technique. The study were devised logistic regression model, where use of lease financing was regressed against enterprise related factors, institutional framework factors and leasing information and knowledge variable factors using STATA V14. The data collected was described using tables, bar charts, frequencies and percentages line with the objectives of the study. The variables selected were identified using stepwise regression method and presented as a final model using for analysis. The study revealed firm size, firm’s age, growth opportunity and leasing information, knowledge and awareness have positive and significant factors. In contrast availability of loan, collateral and institutional framework factors are negative and significant impact that determine the lease financing propensity of manufacturing SMEs.as recommendation, the government should, intuitively appreciate and assist leasing systems as well as SMEs to freely engaged on lease financing system for development of it in the country by formulating attractive tax schemes and simple regulationsItem The Effect of Credit Risk Management Practice on Firm Performance: The Case of Selected Micro- Finance Institutions in Ethiopia(AAU, 2025-01-18) Enatfanta Teshome; Habtamu Berhanu (PhD)This study examines the effect of credit risk management practices on the performance of selected microfinance institutions (MFIs) in Ethiopia. The research focuses on three institutions: Vision Fund Microfinance Institution (VFMFI), Yegna Microfinance Share Company, and Nisir Microfinance Institution. Utilizing both primary and secondary data, the study evaluates how credit policies, risk assessment, and loan diversification strategies influence firm performance, specifically Return on Assets (ROA). The research employs an explanatory research design and statistical analysis tools, including regression and ANOVA, to investigate relationships between variables. Key findings reveal that effective credit policies, robust risk assessment practices, and strategic loan diversification significantly enhance financial performance. However, challenges such as poor implementation, insufficient borrower profiling, and limited loan diversification were identified as areas of concern. The study concludes that strengthening credit risk management practices is vital for the sustainability and profitability of MFIs. Recommendations include policy enhancements, staff training, and leveraging technology for improved risk assessment. This research provides valuable insights for policymakers, practitioners, and stakeholders in the microfinance sector, aiming to foster financial inclusion and economic development.Item The Effect of Corporate Governance on Financial Performance of Insurance Companies in Ethiopia(AAU, 2025-02-27) Jemal Ahmed; Abebaw Kassie (PhD)Corporate governance refers to the system of rules, practise and processes by which a company is directed and controlled. It essentially involves the balancing of many interests. The objective of this study was to examine the connection between company governance instruments and the financial performance of Ethiopian insurers. Out of the entire of eighteen insurers which are functioning within Ethiopia, eight insurers were selected using purposive sampling. The study employed return on assets as a dependent variable including the size of the board, the frequency of board meetings, gender diversity in the board of directors, experience of the board of directors in the sector, their educational qualifications and the size of the audit committee are considered as independent variables. To attain stated objectives of the explanatory type and descriptive of research design with a mixed method employed. The primary data was gathered via designed surveys by using questionnaires tool filled by the executives as they were aware of the governance system in corporations. The secondary data was gathered from the National Bank of Ethiopia's annual performance Report. The study employed a panel data analysis procedure in drawing inferences. The results display that the size of the board, gender diversity in the board of directors and the size of the audit committee had significant and negative influences on the financial performance of Ethiopian insurers. Conversely, the frequency of board meetings, the prior exposure to the insurance sub-sector and the qualifications of board members regarding educational status had a significant and positive effect on Ethiopian insurers.Item Barriers to Access Micro-Finance by SMEs: a Survey of SMEs in Addis Ababa(A.A.U, 2024-06-02) Wondimenh Maru; Temesgen Worku (PhD)Microfinance is a type of financing that can be used to finance small and medium enterprises (SMEs). The objective of this study is to examine the barriers to accessing microfinancing by SMEs from the demand side perspective. The study aims to assess the barriers that SMEs face in obtaining access to finance from selected SMEs. The study used closed-ended questionnaires and it was analyzed using SPSS. A non-probability convenience sampling was used to select the 150 SMEs based on their experience relevant to the study and their willingness to participate. Similarly, a descriptive study was used to analyze data collected from SMEs. The quantitative data was obtained through a survey of closed-end questionnaires from SMEs in the capital city of Addis Ababa. The majority of the sample SMEs surveyed (68.4%) indicated that their source of initial or startup finance was their savings followed by Friends and family indicating that informal financial institutions serve as the major source of finance for SMEs. The main reasons for loan rejection include the lack of feasible guarantees, strict MFI guidelines, and high interest rates as some of the major causes. The research findings highlight the complex character of the financial informational walls of the SMEs and highlight the importance of addressing these impediments and providing directed efforts to improve the economic development of Addis-Ababa. Through the implementation of focused programs aimed at building upon financial literacy, formalizing businesses, and improving interest rates and MFI loan procedures, key actors can assist in unleashing the growth potential of SMEs and thus move towards broader economic development objectives. Keywords: Microfinance, SMEs, strict MFI guidelines,Item Assessment of Opportunities, Challenges, And Future Prospects of Life Insurance Services In Ethiopia(AAU, 2024-04-23) Nigatu Gebrewolde Kedane; Tekalegn Nega (PhD)This study assessed the opportunities, challenges, and prospects of life insurance services in Ethiopia. The research was conducted using mixed research approaches through a descriptive survey design. The study uses both primary and secondary data. Primary data was obtained from the employees of the life insurance department of the 12 insurance companies; secondary data was collected from published and unpublished, past research works. To collect qualitative data, interviewed six senior managers of the life insurance department and used the thematic analysis method to analyze the data. Quantitative data was collected using a seven-point Likert scale questionnaire and analyzed with the help of SPSS software. The total population of this study is 461; all are employed in the life department of twelve insurance companies, and out of these 461 employees, 210 samples are directly included in this study using the simple random sampling method, and the six senior managers are participated in the interviews. Interviewee are selected using the judgmental sampling method. Financial resources, administrative challenges, human resources, products, and services are the internal challenges of life insurance development. Sociodemographic challenges, economic challenges, technological challenges, and industrial challenges are major external challenges. The legal environment is a moderate challenge, and politics is not a challenge for life insurance development in Ethiopia. High market demand, administrative and policy amendments, the growth of commercial banks, and ICT infrastructure development are opportunities for the life insurance business. Employee skill development, introducing new products, focusing on innovation, budget improvement, and adoption of new technologies, accessibility, and expansion of services are internal opportunities for life insurance development. And also that the prospects of life insurance are bright and attractive. It has high market demand, business profit, economic growth, and population growth. Also, this study includes the researcher's recommendations.Item The Effect of the Directive “SBB/86/2023-Appointement of External Auditor of Bank” on Auditors Attributes Towards Audit Quality(A.A.U, 2024-06-03) Eyob Demesew; Degefe Duressa (PhD)The purpose of this study is to show and examine the effect of the new directive SBB/86/2023 issued by the National Bank of Ethiopia on the external audit quality of banks. The study used primary data collected from bank staffs, external senior auditors, audit managers, and audit partners through closed-ended Likert scale questionnaire. A quantitative explanatory research design was employed, collecting data through questionnaires from auditors, bank staff, and other stakeholders. The research evaluated the directive's impact on three dimensions of audit quality: auditor independence and objectivity, auditor competence and qualifications, and audit process and procedures. The Statistical analyses included descriptive statistics, reliability tests, validity test, normality test, correlation, and regression modeling. The results indicated the new directive positively and significantly influenced all three audit quality aspects. Specifically, it enhanced auditor independence/objectivity (β=0.462, p<0.001), improved auditor competence/qualifications (β=0.280, p<0.001), and strengthened audit processes/procedures (β=0.216, p<0.001). The regression model explained 69.3% of the variance in the directive's effect on overall audit quality. The findings suggest the new regulatory requirements from the National Bank of Ethiopia have been effective in promoting higher audit quality standards within the Ethiopian banking sector. Implementation of the expanded auditing guidelines has reinforced auditor independence, boosted auditor expertise, and driven more rigorous audit execution, thereby increasing transparency and credibility of bank financial reporting. The study suggests that the National Bank of Ethiopia (NBE) and AABE need to place greater emphasis on auditors’ independence and objectivity, competence and qualifications, and audit processes and procedures quality when revising or introducing directives related to conducting external audit of banks. The study also suggests the NBE need to take considerations and greater emphasis on directives requirement to outsource System/IT audit activities effect since outsourcing IT audit work to other vendors adds cost and brings potential risks around maintaining audit quality, independence, data security and confidentiality when third parties are involved. Furthermore, the study suggests NBE need to consider the effect of lacking in conformity of the directives with international accounting and auditing standards like IFRS standards, ISA standards, Capital market proclamations, and other accounting & auditing regulations and standards. Key words: National Bank of Ethiopia, Auditing & Accounting Board of Ethiopia, Audit Quality, Independence, Objectivity, Competence, Qualifications, Process, Procedure.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, 2024-03-12) 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 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.