MSC in Accounting and Finance
Permanent URI for this collectionhttps://etd.hu.edu.et/handle/123456789/135
Browse
3 results
Search Results
Item DETERMINANTS OF DIVIDEND PAYOUT IN SELECTED PRIVATE COMMERCIAL BANKS IN ETHIOPIA(HAWASSA UNIVERSITY, 2024-03) YOHANNES HAILUExamining 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.Item DETERMINANTS OF PROFITABILITY IN ETHIOPIAN PRIVATE COMMERCIAL BANKS: EVIDENCE FROM 2017–2023(HAWASSA UNIVERSITY, 2025-05) TEMESGEN TESFAYEThe 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.Item DETERMINANTS OF PROFITABILITY IN HOTEL INDUSTRY: THE CASE OF HAWASSA CITY ADMINISTRATION(HAWASSA UNIVERSITY, 2025-05) MESAY PHILIPHOS SHIFAThis 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