MSC in Accounting and Finance

Permanent URI for this collectionhttps://etd.hu.edu.et/handle/123456789/135

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ACCESING TECHNICAL EFFICIENCY AND PRODUCTIVITY GROWTH OF MEDIUM AND LARGE-SCALE MANUFACTURING INDUSTRIES IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-05) MERERTU BEKELE
The main objective of the study is to measure the technical efficiency and productivity of large and medium manufacturing industries. To compute efficiency score the study employed Constant Return to scale and Variable returning to scale using a dataset ranging from2016 to 2020 of 44 sub industries out of 79 to industries. A purposive sampling technique is used identify and sample industries with full dataset on all input and output variables. Additionally, a Malmquist productive index is performed examine total productivity growth. To do this the study used a panel data of 15 major groups of industries with data ranging from 2007 to 2020. Secondary data was the only source and obtained from Ethiopian Statistical Service. To measure technical efficiency score two models were use: Constant Return to scale and Variable return to scale models. Based on constant return to scale model, on average, the efficiency value of the sample industries was 25.92% from the year 2016 to 2020. This reveals on average about 74.18% of inputs were inappropriately utilized. Whereas the average technical score when variable return to score model assumed was 28.76%. In addition Malmquist index result shows the sector under study had showed productivity progress by 5.7% over the study periods. This finding will have implication for policy makers and industry managers in order to be efficient.
AFFORDABLE HOUSING DEVELOPMENT AND PROVISION PRACTICES IN HAWASSA CITY, SIDAMA NATIONAL REGIONAL STATE.
(HAWASSA UNIVERSITY, 2024-03) DIRIBA DANSE RIBISO
Housing affordability is one of the key issues at global scale for which either Ethiopia or Hawassa cannot be exceptional. This is because housing for human beings is not only a matter of sheltering but also a protection from natural and social dangers. Accordingly, this study aims to examine the extent and seriousness of the housing affordability and prevailing practices in Hawassa City, Ethiopia. Primary data was collected from the study area through questionnaire surveys, structured and semi-structured interviews, observations, focus group discussions and through desk review based on the sources for secondary data. Besides, quantitative techniques were used to analyze the collected data. The study results suggest that there is a need for effective policy intervention and an inclusive housing system, as well as cooperation and partnership between major interest groups, as tools for future policy development to tackle the housing problem in the study area. Government intervention through sound housing policies is necessary to ensure housing provision for citizens in the nation.
DETERMINANT OF CREDIT DEFAULT OF MICRO FINANCE INSTITUTION BORROWERS THE CASE OF HAWASSA CITY,
(HAWASSA UNIVERSITY, 2025-06) MARKOS DUKAMO
This study investigated the determinants of credit default among microfinance institution (MFI) borrowers in Hawassa City, Ethiopia. MFIs are essential in extending financial services to underserved populations, yet loan default remains a significant challenge. Using data from 296 MFI borrowers, the study examines borrower and loan characteristics to identify factors influencing loan default. The independent variables analyzed include demographic factors such as age, gender, education, and household size, along with financial and business-related factors like business experience, secondary income sources, and prior credit experience. Loan-specific factors such as credit size, repayment amount, and timing of credit release are also assessed. Descriptive statistics and correlation analysis reveal significant relationships between several variables and loan default. Notably, education level, household size, business experience, and gender emerged as key predictors. Higher education and more extensive business experience are associated with lower default rates, whereas larger household sizes and gender dynamics impact repayment behavior. On the other hand, factors such as income from other sources and the timeline of credit disbursement show weaker associations with default, though they are still relevant. Logistic regression results further underscore the predictive power of business experience and education, with borrowers possessing these traits showing a significantly reduced likelihood of defaulting. The model demonstrates strong explanatory power, with Cox & Snell R Square = 0.695 and Nagelkerke R Square = 0.929. The findings suggest that targeted support, such as business training and financial education, could enhance repayment performance. MFIs are encouraged to consider borrower profiles when designing loan conditions and to support clients’ capacity to repay by aligning credit terms with their financial situations. The study recommends future research into social and technological influences on repayment, as well as longitudinal analyses to track borrower behavior over time. Overall, the study contributes valuable insights for improving MFI operations and reducing credit default in Ethiopia
DETERMINANTS OF ACCESS TO FINANCE FOR SMALL AND MEDIUM ENTERPRISES: THE CASE STUDY OF YIRGALEM TOWN IN SIDAMA REGIONAL STATE OF ETHIOPIA
(Hawassa University, 2025-05) AKILILU WONDIMU SHEGU
Small and medium Enterprises (SMEs) play a crucial role in alleviating poverty and fostering economic growth in developing countries, including Ethiopia. This study investigates the determinants of access to finance for SMEs in Yirgalem Town, Sidama Regional State, utilizing a sample of 65 businesses and employing a binary logit regression model. The results reveal that key factors such as opportunity to market, cost of borrowing, and collateral requirements significantly influence access to finance, while institutional factors do not show a statistically significant impact. Notably, the opportunity to market has the strongest positive effect, suggesting that businesses with better market access are more likely to secure financing. Surprisingly, a positive correlation between cost of borrowing and access to finance indicates that higher borrowing costs may be associated with greater credit availability. The study emphasizes the need to enhance market access and revise collateral policies to improve financing opportunities for small businesses. Additionally, despite the insignificance of institutional factors in the short term, strengthening legal and regulatory frameworks may yield long-term benefits for financial inclusion. Policy recommendations include lowering borrowing costs, promoting marketing opportunities, and improving access to collateral-free financing options. The study also suggests avenues for future research, such as examining informal lending systems and expanding the study to other regions for comparative analysis. These findings offer valuable insights for advancing financial inclusion and small business development in Ethiopia and similar economies..
DETERMINANTS OF DIVIDEND PAYOUT IN SELECTED PRIVATE COMMERCIAL BANKS IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-03) YOHANNES HAILU
Examining the internal determinants of dividend payout in selected private commercial banks in Ethiopia is an important topic of study for several reasons. Firstly, dividend payout is an essential component of corporate governance and provides valuable insights into a bank's financial health and management's efficiency. Understanding the factors that influence dividend payout decisions can help investors and stakeholders assess the bank's profitability, stability, and future prospects. Secondly, Ethiopia's banking sector is undergoing significant changes and reforms, such as the liberalization of the industry and the emergence of private commercial banks. Thus, analyzing the determinants of dividend payout in these banks can shed light on the specific challenges and opportunities faced by private banks in Ethiopia's unique economic context. Lastly, this study can contribute to the existing literature on dividend policy, expand the knowledge base on Ethiopian banking, and inform policymakers and regulators in developing effective regulations and policies for the banking sector. This study examines the determinants of dividend payout in selected private commercial banks in Ethiopia from 2012-2022. Using a quantitative research approach with correlational design, the study investigates the effects of profitability, liquidity, size, leverage, growth of gross earnings, and previous year's dividend payout on dividend distributions. Depend on findings the study has given suitable suggestions to determinants of dividend payout in selected private banks in Ethiopia.
DETERMINANTS OF LIQUIDITY RISK IN ETHIOPIAN MICROFINANCE INSTITUTIONS
(Hawassa University, 2024-04) TEKILE TESEMA KIA
Studying determinants of liquidity risk in microfinance institutions (MFIs) in Ethiopia is important for several reasons: Liquidity risk refers to the ability of an institution to meet its financial obligations without incurring significant losses. If MFIs are unable to manage liquidity risk effectively, they may face financial instability or even bankruptcy. Hence, studying determinants of liquidity risk in microfinance institutions in Ethiopia is essential for ensuring financial stability, protecting client interests, promoting sector development, and aligning practices with international standards. This study examines the determinants of liquidity risk in Eleven Ethiopian microfinance institutions over the period 2009 to 2022. The study investigates the impact of eight independent variables, namely capital adequacy ratio, non-performing loan, lending interest rate, cost of fund, return on asset, rate of deposit, inflation, and gross domestic product, on liquidity risk. The regression analysis reveals that capital adequacy ratio, non performing loan, cost of fund, return on asset, and rate of deposit significantly influence liquidity risk in these microfinance institutions. However, lending interest rate, inflation, and gross domestic product do not exhibit a statistically significant relationship with liquidity risk. These findings provide valuable insights for policymakers and microfinance institutions in managing liquidity risk and ensuring financial stability.
DETERMINANTS OF LIQUIDITY RISK IN ETHIOPIAN MICROFINANCE INSTITUTIONS
(HAWASSA UNIVERSITY, 2024-03) TEKILE TESEMA
Studying determinants of liquidity risk in microfinance institutions (MFIs) in Ethiopia is important for several reasons: Liquidity risk refers to the ability of an institution to meet its financial obligations without incurring significant losses. If MFIs are unable to manage liquidity risk effectively, they may face financial instability or even bankruptcy. Hence, studying determinants of liquidity risk in microfinance institutions in Ethiopia is essential for ensuring financial stability, protecting client interests, promoting sector development, and aligning practices with international standards. This study examines the determinants of liquidity risk in Eleven Ethiopian microfinance institutions over the period 2009 to 2022. The study investigates the impact of eight independent variables, namely capital adequacy ratio, non-performing loan, lending interest rate, cost of fund, return on asset, rate of deposit, inflation, and gross domestic product, on liquidity risk. The regression analysis reveals that capital adequacy ratio, non performing loan, cost of fund, return on asset, and rate of deposit significantly influence liquidity risk in these microfinance institutions. However, lending interest rate, inflation, and gross domestic product do not exhibit a statistically significant relationship with liquidity risk. These findings provide valuable insights for policymakers and microfinance institutions in managing liquidity risk and ensuring financial stability.
DETERMINANTS OF LIQUIDITY: THE CASE OF SELECTED PRIVATE COMMERCIAL BANKS IN ETHIOPIA
(HAWASSA UNIVERSITY, 2025-05) MESFIN MATHEWOS
Liquidity management stands as a cornerstone of financial stability within banking institutions. This study investigates the primary factors influencing liquidity in selected private commercial banks operating in Ethiopia. With the rapid expansion of the country’s banking sector and intensifying competition among financial institutions, understanding the internal and external determinants of bank liquidity has become crucial. This study investigates the key determinants influencing liquidity in selected private commercial banks operating in Ethiopia between 2008 and 2023. Quantitative research approach and explanatory Research design were adopted in carrying out this research. Secondary data were collected from the selected seven commercial banks using purposive sampling technique and macro-economic data are collected from Ministry of Finance and Economic Development (MOFED). The study used both descriptive and inferential statistics. Mean and standard deviation were used as descriptive statistics, whereas correlation and panel regressions were used from inferential statistics using Eviews-9. The study focuses on variables such as capital adequacy, asset quality, loan growth, bank size, and non performing loans, alongside broader economic indicators like inflation, GDP growth, interest rate spreads, and exchange rate volatility. The findings of the study show that Capital Adequacy, Bank Size, GDP Growth, Inflation Rate, and Interest Rate Spread are significant determinants of bank liquidity, while increased non-performing loans and macroeconomic instability negatively impact liquidity levels. The research provides evidence-based insights for bank managers, regulators, and policymakers aiming to improve liquidity management practices and safeguard the resilience of Ethiopia’s banking sector. By highlighting the interconnectedness of internal governance and external economic forces, this study contributes to a deeper understanding of liquidity dynamics in emerging financial market
DETERMINANTS OF NON PERFORMING LOAN: THE CASE OF COMMERCIAL BANKS IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-03) Netsanet Engida
Non-performing loans (NPL) are a critical issue for the banking sector in Ethiopia. NPLs can have a significant negative impact on a bank's profitability, stability, and overall financial health. As such, understanding the determinants of NPL in Ethiopian commercial banks is essen tial for effective risk management and regulatory oversight. Ethiopia has a rapidly growing economy, with a banking sector that has seen significant expansion in recent years. However, this growth has also brought challenges, including an increase in NPLs. Identifying the key fac tors that contribute to NPLs in Ethiopian commercial banks is crucial for developing strategies to mitigate these risks and ensure the long-term sustainability of the sector. This study aims to contribute to the existing literature on NPLs by examining the key determinants of NPL in Ethio pian commercial banks. To achieve this objective, ten banks with ten years of data ranging from 2013-2022 were selected for analysis. A positivism knowledge claim was adopted, along with a quantitative research approach and an explanatory research design. The results of the OLS re gression analysis revealed that five variables, namely loan growth rate (LGR), bank size (BS), return on assets (ROA), interest rate (IR), and inflation rate (INF), have a statistically significant effect on NPL in Ethiopian commercial banks. This implies that factors such as loan portfolio quality, bank size, profitability, and macroeconomic conditions play a crucial role in determin ing the level of NPLs in the banking sector. On the other hand, variables such as return on equity (ROE), capital adequacy (CA), and gross domestic product (GDP) were found to have a statisti cally insignificant effect on NPL. These findings provide valuable insights for policymakers, reg ulators, and bank management in Ethiopia to develop effective strategies for managing NPLs and promoting a sound and stable banking secto
DETERMINANTS OF NON-PERFORMING LOANS IN ETHIOPIAN COMMERCIAL BANKS
(HAWASSA UNIVERSITY, 2025-06) Tesfaye Desta
This study investigates the macroeconomic and bank-specific factors influencing non-performing loans within Ethiopian commercial banks. Employing a quantitative research approach, it selected a purposive sample of 13 commercial banks from a total of 33. Secondary data, covering the years 2014 to 2023, were gathered from audited bank financial statements, the National Bank of Ethiopia (NBE), the Central Statistical Agency (CSA), and the Ministry of Finance. To ensure data robustness, tests for heteroskedasticity, normality, serial correlation, and multicollinearity were conducted, with no violations found. Data analysis was performed using a multiple regression model and the Fixed Effect Model (FEM) for panel data regression via EViews software version 12. The study’s findings indicate that Gross Domestic Product (GDP), Capital Adequacy Ratio (CAR), and Return on Equity (ROE) have a significant negative impact on NPL levels, while money supply, inflation rate, and loan growth rate positively and significantly influence NPL prevalence. Additionally, the Loan-to-Deposit Ratio (LDR) was found to have a positive but insignificant effect on NPLs. The study recommends that to reduce nonperforming loans (NPLs) in Ethiopia, efforts should focus on promoting economic growth, reducing unemployment through skill development and entrepreneurship, and maintaining stable inflation via effective monetary policies. Banks are encouraged to strengthen capital adequacy, improve credit assessment practices, enhance management efficiency, conduct regular risk assessments, and invest in financial literacy to promote responsible borrowing and reduce credit risk.
DETERMINANTS OF PROFITABILITY IN ETHIOPIAN PRIVATE COMMERCIAL BANKS: EVIDENCE FROM 2017–2023
(HAWASSA UNIVERSITY, 2025-05) TEMESGEN TESFAYE
The major objective of this study was to examine both bank-specific factors, such as capital adequacy, liquidity, bank size, bank age, asset tangibility and leverage, as well as macroeconomic variables, including GDP growth and inflation, to determine their impact on profitability, as measured by Return on Assets (ROA). The research employed a quantitative approach, and used both descriptive and explanatory research designs to analyze panel data from five private commercial banks. The banks were Awash Bank, Abyssinia Bank, Dashen Bank, Nib Bank, and Zemen Bank and studied over the period from 2017 to 2023. Secondary data were obtained from the audited financial statements of the selected banks and macroeconomic reports from the National Bank of Ethiopia (NBE). The analysis employed EViews 9 software for regression analysis, revealing significant relationships between various factors and profitability, measured by Return on Assets (ROA).Various diagnostic tests, including multicollinearity, heteroscedasticity, normality, and autocorrelation, were conducted to ensure the reliability of the Ordinary Least Squares (OLS) regression model. The study finds indicate that bank size significantly increased ROA by effect size of 7.9% (β = 0.079, p = 0.007), while liquidity positively influenced profitability, with an increase of 11.9% (β = 0.119, p = 0.038). Additionally, leverage showed a positive impact, enhancing ROA by 2.2% (β = 0.022, p = 0.005). Asset tangibility was positively correlated with profitability, although not statistically significant (β = 1.638, p = 0.165). The study also found that GDP growth had a positive effect size on profitability (β = 1.967, p = 0.028), while inflation was inversely related to ROA, though not significantly affect financial performance. Accordingly, the study suggests that private banks need to work on their capital structure and asset management strategies. Managing liquidity to grow stability and profitability and managing debt to reduce financial risk are important. Also, regulators have the responsibility to generate an environment of low inflation and maintained stability in the economy that permits the banking sector to develop. This study adds to the literature on Ethiopian banking profitability and will be useful to policy makers, banks, and researchers in the future.
DETERMINANTS OF PROFITABILITY IN HOTEL INDUSTRY: THE CASE OF HAWASSA CITY ADMINISTRATION
(HAWASSA UNIVERSITY, 2025-05) MESAY PHILIPHOS SHIFA
This study investigates the determinants of profitability in the hotel industry, focusing on hotels within the Hawassa City Administration. Using Return on Assets (ROA) as the measure of profitability, the research examines the influence of key factors including firm size, location, number of rooms, liquidity, and hotel age. Employing both ordinary least squares (OLS) regression and random-effects generalized least squares (GLS) panel regression models, the study analyzes data from 25 observations to identify the significant predictors of hotel profitability. The OLS regression results demonstrate that the model explains approximately 93.6% of the variance in ROA, indicating a strong fit. Findings reveal that location, number of rooms, liquidity, and hotel age significantly influence profitability. Specifically, location has a statistically significant negative effect, suggesting that hotels situated further from urban centers tend to experience lower profitability. Conversely, the number of rooms and hotel age show positive and significant impacts, indicating that larger hotels and those with more operational experience tend to be more profitable. Unexpectedly, liquidity exhibits a significant negative relationship with profitability, implying that higher liquidity may indicate inefficient asset utilization. Firm size, measured by equity, does not show a significant effect in this model. The random-effects GLS model further supports these findings, highlighting hotel age and liquidity as significant predictors of the natural logarithm of ROA (lnROA), while firm size and location lose significance when accounting for group-specific effects. The model explains a substantial portion of between-group variation but little within-group variation, suggesting that differences across clusters largely drive profitability outcomes. Overall, the study underscores the critical role of operational factors such as location, capacity, liquidity management, and hotel experience in driving profitability, while challenging assumptions about the impact of firm size. These insights provide valuable guidance for hotel managers and investors aiming to enhance financial performance in the hospitality sectoA
DETERMINANTS OF TAX REVENUE (FROM 1992-2022) IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-06) ELIAS PAWULOS
T.he purpose of this study is examining the Determinant of tax revenue in Ethiopia. And it uses time series regression analysis and quantitative research methods; study employs the autoregressive distributed lag (ARDL) error correction model (ECM) regression to analyze the relation between tax revenue and various economic factories in Ethiopia for the period 1992– 2022. The findings from the unit root tests revealed are stationary. The ARDL-bound tests confirmed the existence of a co-integration relationship among the variables. The Johansen co integration of long-run results showed a significant relationship between inflation, nominal GDP, and foreign direct investment. And the same variables are insignificant: trade openness, manufacturing, agriculture. And also the short-run results indicated a significant negative relationship between trade, nominal GDP, agriculture, and tax revenue. In the short run, foreign direct investment has no statistically significant short-run relationship with tax revenue. The diagnostic result show free serial correlation and hetroskedasticity whilst the model’s linearity assumption is supported by the RESET test result, validating the model’s suitability for analyzing variable relationships. The residuals of the model are normally distributed, affirming the model’s reliability in predicting tax revenue, and both the CUSUM and CUSUM squares stability tests indicate that the model is stable over time, reinforcing the dependability of the model’s prediction. The model demonstrates a highly good fit with an R-squared value. The error correction term is highly significant, confirming the existence of a long-run relationship among variables. The study provides valuable insights for policymakers to develop effective economic policies aimed at enhancing tax revenue generation while ensuring economic stability and growth in Ethiopia.
EFFECT OF CREDIT MONITORING ACTIVITIES ON ASSET QUALITY: A CASE STUDY ON PRIVATE AND PUBLIC BANKS IN ETHIOPIA
(Hawassa University, 2024-04) DAWIT BEYENE
Credit monitoring activities play a crucial role in determining the asset quality of banks. Effective credit monitoring involves regularly assessing the creditworthiness of borrowers, analyzing their financial health, and evaluating potential risks associated with loans and investments. By actively monitoring credit, banks can identify and address any red flags or signs of non-performing or problematic loans at an early stage. This proactive approach allows banks to take appropriate measures to mitigate risks, such as restructuring or refinancing loans, resulting in improved asset quality. Moreover, credit monitoring activities enable banks to make informed decisions regarding credit extension, thereby ensuring that the loans offered are to creditworthy individuals or businesses, further enhancing the overall asset quality of the banks. This study examines the effect of credit monitoring activities on asset quality: a case study on private and public banks in Ethiopia. A response rate of 88.6% was achieved from respondent and both quantitative and qualitative data analysis tools were employed. The study concludes that the independent variables, namely collateral information, business ratings information, customer credit status information, and consumer default information, have a positive impact on asset quality in banks. Based on the study's findings, it is recommended that banks give more weightage to collateral information, business ratings information, customer credit status information, and consumer default information in their assessment of asset quality. By placing greater emphasis on these independent variables, banks can better identify and manage potential risks associated with loans and other credit facilities. It is imperative for banks to regularly update and upgrade their risk assessment models and systems to incorporate these variables effectively. Furthermore, banks should invest in technologies and data analytics tools that can provide accurate and real-time information on these variables, allowing for more informed lending decisions and ultimately improving their overall asset quality.
EFFECT OF CREDIT MONITORING ACTIVITIES ON ASSET QUALITY: A CASE STUDY ON PRIVATE AND PUBLIC BANKS IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-03) DAWIT BEYENE
Credit monitoring activities play a crucial role in determining the asset quality of banks. Effective credit monitoring involves regularly assessing the creditworthiness of borrowers, analyzing their financial health, and evaluating potential risks associated with loans and investments. By actively monitoring credit, banks can identify and address any red flags or signs of non-performing or problematic loans at an early stage. This proactive approach allows banks to take appropriate measures to mitigate risks, such as restructuring or refinancing loans, resulting in improved asset quality. Moreover, credit monitoring activities enable banks to make informed decisions regarding credit extension, thereby ensuring that the loans offered are to creditworthy individuals or businesses, further enhancing the overall asset quality of the banks. This study examines the effect of credit monitoring activities on asset quality: a case study on private and public banks in Ethiopia. A response rate of 88.6% was achieved from respondent and both quantitative and qualitative data analysis tools were employed. The study concludes that the independent variables, namely collateral information, business ratings information, customer credit status information, and consumer default information, have a positive impact on asset quality in banks. Based on the study's findings, it is recommended that banks give more weightage to collateral information, business ratings information, customer credit status information, and consumer default information in their assessment of asset quality. By placing greater emphasis on these independent variables, banks can better identify and manage potential risks associated with loans and other credit facilities. It is imperative for banks to regularly update and upgrade their risk assessment models and systems to incorporate these variables effectively. Furthermore, banks should invest in technologies and data analytics tools that can provide accurate and real-time information on these variables, allowing for more informed lending decisions and ultimately improving their overall asset quality
EFFECT OF FINANCIAL LITERACY ON LOAN REPAYMENT PERFOR MANCE OF MEMBERS IN THE CASE OF DURO SHALLA SACCOs UNION WEST ARSI ZONE, REGIONAL STATE, ETHIOPIA
(HAWASSA UNIVERSITY, 2024-05) DUGASA MEKONNEN MULETA
Financial literacy is the possession of knowledge, skills, and attitudes that enable an individual to use money effectively by making sound informed financial decisions.The main purpose of this study was to assess the effect of financial literacy on the loan repayment performance of members in the Duroshalla Saving and Credit Cooperatives Union in the Oromia regional state of Ethiopia. The resrachrer investigated the effect of variables of such as demographiccharacteri stics, socio economic related and financial literacy variables such as budget literacy, debt man agement literacy, and saving literacy debt management literacy, budgeting literacy, bookkeeping literacy,and saving literacy.The syudy employed both explanatory and descriptive survey reseach design with mixed approach also purposive sampling andsimple random sampling technique used .The collected data was analyzed using descriptive statistics and binary logistic regression additnally used (SPSS)version 26. The result of this study has shown that age, education level, occupation, marital status, budgeting literacy, debt management literacy, and saving literacy var iables have positive and significant effect on the loan repayment performance of the members of Duroshalla SACCOs Union in West Arsi Zone, Oromia, Ethiopia. On the other hand, family size and gender have anegative effect loan repayment performance of the members But bookkeeping l iteracy is not significant. Specifically, older, more educated, married members,in certain occupat ions ,with higher monthly incomes are more likely to repay loans on time. Furthermore, member s with better budgeting, debt management, and saving literacy skills demonstrate higher odds of timely loan repayment. The study underscores the importance of enhancing financial literacy programs within SACCOs to improve loan repayment rates and ensure the sustainability of these cooperatives.The recommendations for Duroshalla should provide finance al for training, offer i ncentives for older members, promote education and skill development, consider marital status i n loan assessment, encourage income-generating activities, assist members with larger families in financial management, promote budgeting and debt management literacy programs, and encourage saving habits among members.
FACTORS AFFECTING EFFECTIVE UTILIFFATION OF PUBLIC BUDGET: A CASE OF SELECTED PUBLIC ORGANIZATIONS IN HAWASSA TOWN ADMINISTRATION, SIDAMA REGIONAL STATE, ETHIOPIA
(HAWASSA UNIVERSITY, 2024-03) BETELIHEM NEGASH
The aim of this study was aimed to investigate factors affecting effective utilization of public budget in selected public organizations in Hawassa Town Administration. This study used descriptive and explanatory research design. The research used non-probability sampling technique to select samples. Population of the study was taken from six public organizations in Hawassa City administration who are working in plan preparation directorate, finance administration and internal audit directorate by selecting purposely a total sample of 138 respondents. In the selection, census sampling technique was employed. Primary data was collected using five Point Likert-Scale questionnaires, and out of 138 survey questionnaires 132 responses were properly filled and returned. Then the responses were analyzed using statistical Package for Social Sciences (SPSS) version-25 and Stata-14 and summarized to relate the variables that were collected from questionnaires. Both descriptive and binary logistic analysis was used to analyze the responses. The descriptive analysis result shows that all independent variables such as staff competency, stakeholder’s involvement, information technology, finance rules and regulations and auditing & monitoring had got moderate mean score. These results suggest that a numbers of respondents were not fully satisfied on level practice of these variables. From spearman correlation analysis result, five independent variables have a positive and significant relationship with the dependent variable of effective budget utilization of public sectors in Hawassa City Administration at 99% confidence level. As per the result of binary logistic regression analysis the researcher concluded that the five predictor variables (i.e., staff competency, stakeholder’s involvement, information technology, finance rules and regulations and auditing & monitoring) had significant effect on the dependent variable effective public budget utilization) in the study area. Finally the study recommended that the study public organizations should improve practice of staff competency activities, stakeholder’s involvement, information technology, finance rules and regulations and auditing & monitoring in order to increase the probability of improvement of the existing budget utilization status of public organizations
FACTORS AFFECTING EFFECTIVE UTILIZATION OF PUBLIC BUDGET: A CASE OF SELECTED PUBLIC ORGANIZATIONS IN HAWASSA TOWN ADMINISTRATION, SIDAMA REGIONAL STATE, ETHIOPIA
(Hawassa University, 2024-03) BETELIHEM NEGASH
The aim of this study was aimed to investigate factors affecting effective utilization of public budget in selected public organizations in Hawassa Town Administration. This study used descriptive and explanatory research design. The research used non-probability sampling technique to select samples. Population of the study was taken from six public organizations in Hawassa City administration who are working in plan preparation directorate, finance administration and internal audit directorate by selecting purposely a total sample of 138 respondents. In the selection, census sampling technique was employed. Primary data was collected using five Point Likert-Scale questionnaires, and out of 138 survey questionnaires 132 responses were properly filled and returned. Then the responses were analyzed using statistical Package for Social Sciences (SPSS) version-25 and Stata-14 and summarized to relate the variables that were collected from questionnaires. Both descriptive and binary logistic analysis was used to analyze the responses. The descriptive analysis result shows that all independent variables such as staff competency, stakeholder’s involvement, information technology, finance rules and regulations and auditing & monitoring had got moderate mean score. These results suggest that a numbers of respondents were not fully satisfied on level practice of these variables. From spearman correlation analysis result, five independent variables have a positive and significant relationship with the dependent variable of effective budget utilization of public sectors in Hawassa City Administration at 99% confidence level. As per the result of binary logistic regression analysis the researcher concluded that the five predictor variables (i.e., staff competency, stakeholder’s involvement, information technology, finance rules and regulations and auditing & monitoring) had significant effect on the dependent variable effective public budget utilization) in the study area. Finally the study recommended that the study public organizations should improve practice of staff competency activities, stakeholder’s involvement, information technology, finance rules and regulations and auditing & monitoring in order to increase the probability of improvement of the existing budget utilization status of public organizations.
FACTORS INFULANCING EFFECTIVENESS OF AUDIT GENERAL OFFICES: IN THE CASE OF SIDAMA REGIONAL STATE
(HAWASSA UNIVERSITY, 2025-05) TIBEBU TAYE ASFERE
The main purpose of the study is to investigate the factors influencing effectiveness of Audit general Office in the case of Sidama Regional State (OSAG) in Ethiopia. To this end, this study covered the period from October 01, 2024 Up to December 31, 2024. In light of this objective the study adopted quantitative method of research approaches to test a series research hypothesis. Specifically, the study used survey of structured questionnaires administered to 64 auditors. Data was then analyzed on quantitative basis using Statistical Package for the Social Sciences (SPSS) Version 26, linear regression analysis and descriptive statistics. Key factors investigated include Competency and Advocacy of the Auditor, auditor independence, cooperation from audits, and resource availability. The findings of the study showed that a significant positive relationship between each of these factors and the overall effectiveness of government audits. Competency and Advocacy of the Auditor, enhanced by continuous professional development and adherence to established standards, emerged as a crucial determinant. Auditor independence, free from political and managerial influence, was found to be critical for unbiased and reliable audit outcomes. Cooperation from audits, characterized by timely provision of information and supportive attitudes, was also highlighted as a key contributor to effective audits. Additionally, the availability of adequate resources, such as financial, technological, and human capital, was essential for the efficient execution of audit processes. The study highlights the need for targeted interventions to address these factors, thereby improving the effectiveness of audits and enhancing public sector governance. Recommendations include enhancing training programs, reinforcing auditor independence, fostering collaborative relationships with audits, and ensuring adequate resource allocation. Finally, the study proposed that future research should focus on conducting similar research by undertaking a qualitative study and including various stakeholders or larger samples from different parts of the country to confirm the generalizability of the findings
FFECT OF FINANCIAL LITERACY ON LOAN REPAYMENT PERFOR MANCE OF MEMBERS IN THE CASE OF DURO SHALLA SACCOs UNION WEST ARSI ZONE, REGIONAL STATE, ETHIOPIA
(HAWASSA UNIVERSITY, 2024-05) DUGASA MEKONNEN MULETA
Financial literacy is the possession of knowledge, skills, and attitudes that enable an individual to use money effectively by making sound informed financial decisions.The main purpose of this study was to assess the effect of financial literacy on the loan repayment performance of members in the Duroshalla Saving and Credit Cooperatives Union in the Oromia regional state of Ethiopia. The resrachrer investigated the effect of variables of such as demographiccharacteri stics, socio economic related and financial literacy variables such as budget literacy, debt man agement literacy, and saving literacy debt management literacy, budgeting literacy, bookkeeping literacy,and saving literacy.The syudy employed both explanatory and descriptive survey reseach design with mixed approach also purposive sampling andsimple random sampling technique used .The collected data was analyzed using descriptive statistics and binary logistic regression additnally used (SPSS)version 26. The result of this study has shown that age, education level, occupation, marital status, budgeting literacy, debt management literacy, and saving literacy var iables have positive and significant effect on the loan repayment performance of the members of Duroshalla SACCOs Union in West Arsi Zone, Oromia, Ethiopia. On the other hand, family size and gender have anegative effect loan repayment performance of the members But bookkeeping l iteracy is not significant. Specifically, older, more educated, married members,in certain occupat ions ,with higher monthly incomes are more likely to repay loans on time. Furthermore, member s with better budgeting, debt management, and saving literacy skills demonstrate higher odds of timely loan repayment. The study underscores the importance of enhancing financial literacy programs within SACCOs to improve loan repayment rates and ensure the sustainability of these cooperatives.The recommendations for Duroshalla should provide finance al for training, offer i ncentives for older members, promote education and skill development, consider marital status i n loan assessment, encourage income-generating activities, assist members with larger families in financial management, promote budgeting and debt management literacy programs, and encourage saving habits among members.