Using The Sustainable Growth Model For Decision Making: The Case Of Ethiopian Airlines .. Pre And Post Public Enterprise Reform
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Date
2002-01
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A.A.U
Abstract
This paper casts light on the financial aspect of managing
growth in Ethiopian Airlines. It addresses an important
issue in financial management attaining sustainable
growth especially in public enterprises. The study reveals
that the actual growth of the enterprise studied is not in
harmony with the sustainable growth rate that should have
been achieved, for the period 1986-1999. However, there is
some improvement in the enterprise in management of growth
after the Public Enterprise (Reform) Proclamation No.
25/1992.
The option of reducing dividend payout (i.e. increasing the
retention ratio) is beyond the firm's domain of decisionmaking,
and the researcher recommends that this aspect be
considered in policy decisions by the government so as to
enable the firm to increase or decrease dividend payout
ratio depending on its fund requirement. In addition, the
researcher suggests that improvement in asset turnover and
profi tabili ty be considered to prevent problems of growth
that may arise. Increasing payload factor and reducing
costs are suggested to achieve this objective.
IV
Description
In Partial Fulfilment Of The Requirements For The
Master Of Business Administration
Keywords
The Sustainable Growth Model For Decision