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Title
Determinants of Bank Profitability: An Empirical Study on Ethiopian Private Commercial Banks |
Full text
http://etd.aau.edu.et/dspace/handle/123456789/4747 |
Date
2012 |
Author(s)
Habtamu, Negussie |
Contributor(s)
Dr. Vencati Ponnala |
Abstract
A Thesis Submitted to The Department of Accounting and Finance Presented in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in Finance - Determinants of Banks Profitability: An Empirical Study on Ethiopian Private Commercial Banks Habtamu Negussie Addis Ababa University, 2012 The purpose of this study is to investigate determinants of private commercial banks profitability in Ethiopia by using panel data of seven private commercial banks from year 2002 to 2011. The study used quantitative research approach and secondary financial data are analyzed by using multiple linear regressions models for the three bank profitability measures; Return on Asset (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). Fixed effect regression model was applied to investigate the impact of capital adequacy, asset quality, managerial efficiency, liquidly, bank size, and real GDP growth rate on major bank profitability measures i.e., (ROA), (ROE), and (NIM) separately. Beside this the study used primary data analysis to solicit mangers perception towards the determinants of private commercial banks profitability. The empirical results shows that bank specific factors; capital adequacy, managerial efficiency, bank size and macro-economic factors; level of GDP, and regulation have a strong influence on the profitability of private commercial banks in Ethiopia. Thus, management bodies of private commercial bank should strive to strengthen the identified significant factors and government bodies should also see the adverse effect of tight polices imposed on the existing private banks as well as for the new entrants. |
Subject(s)
profitability, commercial banks |
Language
en |
Publisher
AAU |
Type of publication
Thesis |
Repository
Addis Ababa - University of Addis Ababa
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Added to C-A: 2014-02-04;15:51:26 |
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