Determinants of Financial Distress: Empirical Evidence from Private Commercial Banks in Ethiopia
| dc.contributor.advisor | Abebe, Yitayew (PhD) | |
| dc.contributor.author | Robel, Yohannes | |
| dc.date.accessioned | 2018-11-01T08:14:46Z | |
| dc.date.accessioned | 2023-11-04T07:58:26Z | |
| dc.date.available | 2018-11-01T08:14:46Z | |
| dc.date.available | 2023-11-04T07:58:26Z | |
| dc.date.issued | 2018-06 | |
| dc.description | A Thesis Submitted to the Department of Accounting and Finance in Partial Fulfillment of the Requirement for the Degree of Master of Accounting and Finance | en_US |
| dc.description.abstract | The major focus of this study is to investigate empirically financial distress determinants in the case of private commercial banks in Ethiopia. Fourteen private commercial banks were included in the sample that had at least six years annual report out of sixteen. Document review was used for collecting data from 2012- 2017 annual reports. In line with this objective, the study adopted quantitative methods of research approaches to test the study hypothesis. The study applied Altman’s 1993 Z-score model as the proxy for financial distress and panel data model with its fixed effect estimate to test a series of hypotheses that emerge through the review of existing literature. The collected data then analyzed using descriptive statistics, correlation analysis, and panel data regression analysis. To confidently forward conclusion, normality, multicollinearity, heteroscedasticity and autocorrelation tests were conducted on the data. The data then was processed using Eviews 8 statistical package. The results show that: sampled banks were in distress zone. Specifically variables such as capital adequacy, earning ability, liquidity, bank size, and inflation has found significant influence on financial distress of private commercial banks in Ethiopia. On the other hand asset quality, management efficiency, and GDP have no influence on financial distress. Macro variables are less influence on determining financial distress compared to micro variables. In general, the research concludes that both bank specific and macroeconomic factors determine the level of financial distress of Ethiopian commercial banks. Finally, private commercial banks must take remedies and apply early warning systems to predict financial distress before bankruptcy was given as recommendation. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/13571 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Altman’s z-score | en_US |
| dc.subject | Bankruptcy | en_US |
| dc.subject | CAMELS | en_US |
| dc.subject | Financial Distress | en_US |
| dc.title | Determinants of Financial Distress: Empirical Evidence from Private Commercial Banks in Ethiopia | en_US |
| dc.type | Thesis | en_US |