College of Business and Economics
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The College of Business and Economics promotes excellence in teaching, research, and community engagement
in the fields of business, economics, management, and development studies.
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Item The thesis Paper Submitted in Partial Fulfillment of the Requirements for the Award of Masters of Business Administration Degree in Marketing Managemen(HAWASSA UNIVERSITY, 2024-03) SHASHAMO DUKALEAlthough coffee plays a dominant role as a source of foreign exchange income, as it makes up the largest proportion of the export sector in Ethiopia, the potential in the region is not fully realized. As stated in various references, the performance of Ethiopian coffee exports to the rest of the world is low in relation to the country's potential. Therefore, the main objective of conducting this study is to examine the determinants of the export performance of coffee in Ethiopia. Accordingly, seven specific objectives have been developed under the theme of the main objective, comprising the variables examined; Company barriers, product barriers, institutional support problems, government policy and regulatory factors, export industry barriers, export market challenges and infrastructural challenges in Ethiopia. To achieve the goal of the study, the researcher used a mixed research approach that combines both a qualitative and a quantitative research approach. Both primary and secondary data sources were used in conducting the study. The primary data were collected through questionnaires and interviews .The secondary data was used by various websites, articles ,and research edited in the area of the study. In order to arrive at meaningful facts and conclusions, the collected data were analyzed using descriptive and inferential statistics. The results of the study showed that the export performance of coffee in Ethiopia is significantly influenced by external barriers such as factors related to institutional support, political and regulatory environment, export industry barriers, export market barriers and infrastructural challenges. Finally, based on the results of the study, the researcher has made possible recommendations for coffee exporters, government institutions, and policy makers on how to mitigate the factors influencing coffee export performance in EthiopiaItem DETERMINANTS OF LIQUIDITY RISK IN ETHIOPIAN MICROFINANCE INSTITUTIONS(HAWASSA UNIVERSITY, 2024-03) TEKILE TESEMAStudying 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.Item THE EFFECT OF LOAN DELINQUENCY ON FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUTION IN ETHIOPIA(HAWASSA UNIVERSITY, 2024-03) ASAYE KONTAMOThis study examines the impact of loan delinquency on the financial performance of 11 microfinance institutions in Ethiopia from 2008 to 2021. Using a quantitative research approach with an explanatory research design, the researcher employs regression analysis to investigate the determinants of return on assets (ROA). The findings align with prior research, showing a negative relationship between nonperforming loans (NPL) and ROA. Higher NPLs indicate increased credit risk and potential losses, consistent with theoretical expectations and previous studies. Similarly, a negative relationship is found between credit to deposit ratio (CDR) and ROA, suggesting that greater reliance on credit for funding is associated with higher risk and potentially lower profitability. However, the positive coefficients on capital adequacy (CA) and firm size (FS) confirm prior research indicating that well-capitalized and larger entities perform better financially. Surprisingly, the loan loss provision ratio (LLP) and cost per asset ratio (CPL) were found to be statistically insignificant in determining ROA. These results imply that the significance of these variables may be context-specific or subject to variations across industries or time periods. This study contributes to the understanding of the relationship between loan delinquency and financial performance in the Ethiopian microfinance sectorItem 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 THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY OF SELECTED PRIVATE BANKS IN ETHIOPIA(HAWASSA UNIVERSITY, 2024-05) TENAYE FANTUThe main objective of this study is to examine the effect of credit risk management on profitability of selected private banks in Ethiopia. The study purposely selected 14 private banks with 10 years dataset ranging from 2013 to 2022. In this study, credit risk is represented by three proxies namely: Nonperforming Loan Ratio (NPL), Loan Loss Provision (LLPR) and Loan to Deposit Ratio (LTR) and ROA and ROE as a measure of profitability. A quantitative approach with descriptive and explanatory design was applied to examine the underlying hypotheses. The dataset of the target banks was obtained from National Bank of Ethiopia. The results reveal that Non-performing loan and Loan loss provision have a negative and statistically significant effect on profitability while Liquidity ratio and bank size have a positive and statistically significant effect on profitability. However, the coefficient of tangibility ratio shows mixed and significant results on the two proxies (ROA &ROE) of profitability and statistically significant effect. The findings of the study has implication for bank managers, policy makers, regulatory body and practitioners in that it would give an important insight help do design a strategic plan. Future studies are suggested to be conducted in this research area by incorporating variables such as Macro-economic factors like: Exchange rate, political influence, etc.Item ACCESING TECHNICAL EFFICIENCY AND PRODUCTIVITY GROWTH OF MEDIUM AND LARGE-SCALE MANUFACTURING INDUSTRIES IN ETHIOPIA(HAWASSA UNIVERSITY, 2024-05) MERERTU BEKELEThe 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.Item THE EFFECTS OF CULTURAL PRACTICES AND INDIGINOUS KNOWLEDGE ON ECOSYSTEM MANAGEMENT IN LAKE HAWASSA, ETHIOPIA(Hawassa universtity, 2020-03) TADELECH TEMESGENLake Hawassa in Ethiopia is one such ecosystem that is currently threatened by degradation needs innovative measures to be conserved. The general objective was to analyze how culture affects resource utilization and conservation by the ethnic groups living in Lake Hawassa ecosystem. The study sample involved 120 households who live in Lake Hawassa ecosystem who were selected using simple random sampling procedure. The study utilized descriptive survey method where data was collected using semi structured questionnaires administered to household heads and face to face interviews with key informants including local community elders. Quantitative data was analyzed through descriptive analysis inform of percentages, frequencies and chi square test. Pearson-chi squared test was used to establish association between culture and environmental management. The study also revealed that the Chi squared test indicated that there exists a strong significant relationship between cultural aspects such as cultural values and norms and environmental management (x 2=24.83, df =6, P<0.001). The study concluded that culture is a fundamental determinant of environmental attitudes which influence environmental attitudes and values and behavior. The study recommends that policy makers utilize a culture-specific approach in designing environmental policies to develop culturally appropriate environmental laws, regulations and policies. This is to ensure that the rights, livelihoods, and culture of communities are considered in designing of environmental laws, policies and regulations and the communities are actively involved in design of policies for sustainable environmental conservation and management.Item THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY OF SELECTED PRIVATE BANKS IN ETHIOPIA(Hawassa University, 2024-05) TENAYE FANTUThe main objective of this study is to examine the effect of credit risk management on profitability of selected private banks in Ethiopia. The study purposely selected 14 private banks with 10 years dataset ranging from 2013 to 2022. In this study, credit risk is represented by three proxies namely: Nonperforming Loan Ratio (NPL), Loan Loss Provision (LLPR) and Loan to Deposit Ratio (LTR) and ROA and ROE as a measure of profitability. A quantitative approach with descriptive and explanatory design was applied to examine the underlying hypotheses. The dataset of the target banks was obtained from National Bank of Ethiopia. The results reveal that Non-performing loan and Loan loss provision have a negative and statistically significant effect on profitability while Liquidity ratio and bank size have a positive and statistically significant effect on profitability. However, the coefficient of tangibility ratio shows mixed and significant results on the two proxies (ROA &ROE) of profitability and statistically significant effect. The findings of the study has implication for bank managers, policy makers, regulatory body and practitioners in that it would give an important insight help do design a strategic plan. Future studies are suggested to be conducted in this research area by incorporating variables such as Macro-economic factors like: Exchange rate, political influence, etc.Item DETERMINANTS OF LIQUIDITY RISK IN ETHIOPIAN MICROFINANCE INSTITUTIONS(Hawassa University, 2024-04) TEKILE TESEMA KIAStudying 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.Item THE EFFECT OF LOAN DELINQUENCY ON FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUTION IN ETHIOPIA(Hawassa University, 2024-03) ASAYE KONTAMOThis study examines the impact of loan delinquency on the financial performance of 11 microfinance institutions in Ethiopia from 2008 to 2021. Using a quantitative research approach with an explanatory research design, the researcher employs regression analysis to investigate the determinants of return on assets (ROA). The findings align with prior research, showing a negative relationship between nonperforming loans (NPL) and ROA. Higher NPLs indicate increased credit risk and potential losses, consistent with theoretical expectations and previous studies. Similarly, a negative relationship is found between credit to deposit ratio (CDR) and ROA, suggesting that greater reliance on credit for funding is associated with higher risk and potentially lower profitability. However, the positive coefficients on capital adequacy (CA) and firm size (FS) confirm prior research indicating that well-capitalized and larger entities perform better financially. Surprisingly, the loan loss provision ratio (LLP) and cost per asset ratio (CPL) were found to be statistically insignificant in determining ROA. These results imply that the significance of these variables may be context-specific or subject to variations across industries or time periods. This study contributes to the understanding of the relationship between loan delinquency and financial performance in the Ethiopian microfinance sector.