Companies In Ethiopia Research Articles

Analysis of Factors Influencing Investment Decisions in Insurance Companies in Ethiopia

Analysis of Factors Influencing Investment Decisions in Insurance Companies in Ethiopia

Factors Affecting Consumer Behavior Toward Purchasing Motor Insurance Policy in the Case of Selected Insurance Companies in Ethiopia

Factors Affecting Consumer Behavior Toward Purchasing Motor Insurance Policy in the Case of Selected Insurance Companies in Ethiopia

ASSESSMENT OF PROJECT RISK MANAGEMENT IN SELECTED MINING COMPANIES IN ETHIOPIA

Purpose: This study uses qualitative research to assess the project risk management practices of selected mining companies in Ethiopia. Methodology: The study was qualitative, and data was obtained using purposive sampling methods; the study's sample size was based on 41 respondents working actively on mining projects in Ethiopia. The questionnaires covered the main aspects of risk management, including overall project risk management, risk planning, risk identification, risk analysis, and risk monitoring and controlling practices. Findings: The study's findings indicated the absence of systematic risk management policy or guidelines and no organized standard risk management processes. Moreover, project managers primarily manage risk with their team's support. It was found that with risk identification, risk analysis, monitoring, and controlling processes, mitigation of project risks could have been conducted more proactively. Instead, risks are managed upon occurrence by relying primarily on the subjective judgment of the mining specialists, often project managers. Originality/Value: This research assesses the risk management practices of mining companies in Ethiopia for the first time. Recommendations have also been made for companies to develop their risk management knowledge through training and exposure to international practices. This approach will slowly build a systematic approach to risk management practices in the Ethiopian setting. The findings of this article also indicated the need for more research as few papers have been published on mining risks globally, and none have been published in Ethiopia’s context.

Determinants of financial distress: evidence from insurance companies in Ethiopia

The issue of financial distress has received much attention of scholars because it harms firm financial and operational systems which could lead to insolvency. The objective of this study is to examine the determinants of financial distress in Ethiopian insurance companies. A panel dataset was obtained from 11 insurance companies which range from 2010 to 2021. The study used the “Altman’s Z”-score model as a measure for financial distress. The pooled OLS regression results revealed that profitability (ROA), liquidity levels, insurers’ size, earnings growth, diversification have negative and significant effect on financial distress. Moreover, inflation rate, claims ratio, leverage, and asset tangibility have positive significant impact on financial distress. The study will have implications for different stakeholders, such as managers, policy makers, shareholders, etc., in that firm-specific and macro-economic factors are essential for managing the status of financial distress.

Survey of Major Diseases on Medicinal and Aromatic Plants Growing Areas of Ethiopia

Medicinal and aromatic plants are industrial plant that are primarily used for therapeutic, aromatic and culinary purposes as components of cosmetics, medicinal products, health foods and other natural health products. Like other cereal crops, these potential medicinal and aromatic plants are constantly in grave danger from disease attack. The aim of this study was to assess the most prevalent diseases on prioritized medicinal and aromatic plants. Survey was conducted at Wondo Genet Agricultural research stations and herb growing companies in Ethiopia. Survey fields were observed from vegetative to maturity stage of the plant to assess the pest status. A total of 11 medicinal and aromatic plants were assessed in four different locations and these herbs were attacked by various diseases. Rust disease was the most serious problem on Aloe vera and Lemon grass, accounting for 30-40 percent of disease severity at Wondo Genet. In Butajira, powdery mildew was the most common disease found on sage, with a 20 percent severity. Downy mildew was recorded as a major disease on basil plants in Hawassa and Debre Zeit, with a 30-35 percent severity. Therefore, identification of the pathogen's causing agents and integrated disease management for the major recorded diseases of medicinal and aromatic plants needs further research.

Audit committee characteristics and earning management of insurance companies in Ethiopia

Audit committee characteristics and earning management of insurance companies in Ethiopia

The Effect of Availability of Foreign Exchange and Devaluation of BIRR on the Performance of Companies in Ethiopia (Instance of Sample Company)

The Effect of Availability of Foreign Exchange and Devaluation of BIRR on the Performance of Companies in Ethiopia (Instance of Sample Company)

Does intellectual capital efficiency measured by modified value-added intellectual coefficient affect the financial performance of insurance companies in Ethiopia?

Insurance company managers and shareholders should be conscious of the effect of intellectual capital efficiency and its components on financial performance. The purpose of this study is to examine the role of intellectual capital efficiency and its components on the financial performance of insurance companies. To achieve study objectives Modified value-added intellectual coefficient is adopted to measure the effect of intellectual capital efficiency. The study adopted an explanatory research design with an arrangement of secondary data analysis via document analysis, quantitative approach, and deductive method of inquiry. Panel data was used with a sample of 14 insurance companies from 2012-2022. Descriptive and regression analyses were performed to analyze the data using STATA version 15.0. Econometric model estimation procedures and multiple regression assumptions were tested accordingly. The random effect regression result revealed that the value-added intellectual capital and its component human capital and capital employed efficiency have a positive significance association with financial performance. Whereas, relational capital efficiency and structural capital efficiency do not have a significant contribution to the financial performance of insurance sectors in Ethiopia. The findings of this study contribute to the theoretical and practical understanding of the relationship between intellectual capital efficiency and financial performance in the context of insurance companies in Ethiopia.

The effect of capital structure on performance: empirical evidence from manufacturing companies in Ethiopia

The effect of capital structure on performance: empirical evidence from manufacturing companies in Ethiopia

Determinants of profitability of insurance companies in Ethiopia: evidence from insurance companies from 2011 to 2020 years

The profitability of insurance companies has been the focus of several studies within the rise of economies across the countries worldwide. This study aimed to identify determinants of profitability of insurance companies in Ethiopian. The study used nine insurance companies selected by purposive sampling technique among the total 17 insurance companies in Ethiopia from period of 2011 to 2020 based on their establishment. Descriptive, causal research design and quantitative research approach were adopted in carrying out this study. Classical linear regression model under estimation of ordinary least square was employed to identify the determinants of profitability of insurance companies in Ethiopia at 5% level of significance. The classical linear regression model revealed that variable age of the company, tangibility of an asset, size of the company, managerial efficiency, leverage ratio, premium growth and GDP have a positive coefficient relationship with return on asset while loss ratio and inflation have a negative coefficient relationship with return on asset. On the other hand, age of the company size, managerial efficiency, leverage ratio, liquidity ration inflation and premium growth have statistically significant at 5% confidence interval level, whereas the other variables such tangibility of asset and GDP have no statistical significance at 5% confidence interval level. The insurance companies’ previous profit, age of the company, company size, managerial efficiency, leverage ratio, liquidity ratio, loss ratio, premium growth and inflation rate variables are significant key drivers of profitability of Ethiopian insurance companies. Giving due attention to the sector in line with key factors affecting the profitability will improve the overall performance of the insurance companies in Ethiopia.

The Effect of Availability of Foreign Exchange and Devaluation of Birr on the Performance of Companies in Ethiopia (Instance of Sample Company)

When a country devalues its currency, some firms and countries generally benefit from any resulting changes in relative prices, while other firms and countries are relatively unaffected or suffer a loss in competitiveness. By taking a sample of import and export firms, this study assessed the effect availability of foreign currency and devaluation of birr on performance of firms in Ethiopia in general. More specifically it intended to assess the main challenges to access foreign currencies, assess the effects of foreign currency shortage on import/export firms, assess the effects of devaluation of Birr on import/export firms and assess company-specific factors. The study used both primary (collected through questionnaire) and secondary data collected from financial statements of the companies. This study applies both the descriptive and inferential analysis. After detail analysis, the increase in private driven business, Informal channels of inflow of foreign currency, increased population and Corruption will worsen appropriate use of forex and aggravate challenges of shortage of forex. And also it is found that the foreign currency shortage has affected the firms in many ways such as profit loss, lay off employees and discourages new investment. On the other hand devaluation of birr against the foreign currencies makes Ethiopian commodities to be competitive in international markets. And it can also attract new investments and export.

Loan-eligibility prediction for Airtime Credit Service Subscribers using Machine Learning: The case Ethio Telecom

Ethio telecom is largest telecommunication companies in Ethiopia. Ethio telecom begun airtime credit service in 2010 to its above 70 million mobile subscribers. The service aims to maintain customer relationships, minimize churn, and generate additional income. However, collecting service money from subscribers is a challenge, resulting in losses of around 2.7 million birrs. To address this, a machine learning-based technology solution was developed to predict eligible customers based on historical data usage. The model uses an Ethio telecom dataset with 114871 rows and 18 columns. Five machine learning classification algorithms were selected for the proposed solution based on the research behavior and literature review: Random Forest, Logistic Regression, Gradient Boosting machines, Naïve Bayes, and Support vector machines. These algorithms are implemented on the prepared dataset and evaluated using model evaluation metrics like accuracy, precision, recall, F1-score are applied. In addition, the confusion matrix table and receiver operating characteristics-area under curve are used to evaluate performance. The accuracy of Random Forest was 90.40%, Logistic Regression was 75%, Gradient boosting classifier was 90.42%, Naïve Bayes was 89.8%, and the Support vector machines was 73.1%. We performed comparative analysis between the models to select the robust model. So that, the Gradient Boosting classifier model provide an outstanding result in predicting eligibility for the airtime credit service.

Key audit matters disclosure: do they reveal construction firm’s risk of financial distress? Evidence from Ethiopia

Recent studies have provided insights into key audit matters (KAMs) disclosure content and their determinants. While conducting this study, no known study examined the relation between the type of KAMs reported and the level of clients’ financial distress (FIDT) risk in Ethiopia, which is a clear research gap. Hence, this study aimed to examine the disclosure of KAMs’ (in number and nature) usefulness in assessing a client construction firm’s FIDT risk. A quantitative method with five-year (2017–2022) secondary data of KAMs disclosure in the audited financial reports of grade one construction companies in Ethiopia was used to study the relationship. The pooled OLS regression analysis shows that KAMs reported by auditors are valuable in predicting and assessing a firm’s risk of FIDT. The number of KAMs and all account-specific KAMs were useful in assessing firms’ FIDT. However, from the company-wide KAMs, going concern was found to be significant. Results were found robust to FIDT, using alternative measures, and tests of endogeneity. Overall, this study suggests construction firms contemplate auditor disclosers (KAMs) as one of the financial health assessment approaches.

Regulation of Group of Companies in Ethiopia: A Comparative Overview

Companies that are organized in a group aim at leveraging the market share, mitigate liability or facilitate long-term management efficiency. The reasons that make group establishment attractive for the parent company can be a basis for concern to other stakeholders, mainly, minority shareholders and creditors of the subsidiary company. The strict application of separate existence of a company and directors’ fiduciary duties towards their companies –applicable in cases of single entity companies– may be difficult in the case of group companies. States, therefore, devise regulatory mechanisms to protect the subsidiary company and its minority shareholders and creditors while at the same time protecting corporate freedom and entrepreneurial reality. Ethiopia has introduced regulatory rules regarding group company (Parent-Subsidiary Company). The objective of this article is to discuss the nature and regulation of Group Company as specified under the new commercial code and in comparison, with other countries’ laws. The article argues that the rules stipulated are not designed to adequately protect the interests of the subsidiary and its stakeholders. It also argues that the liberal interpretation of the provisions governing group companies to include the application of rules governing single company can contribute to potential protection rules missing under the sections in the group company.

Private Security Companies in Ethiopia: An Insight from a Rights Perspective

In Ethiopia, the private security services sector has grown considerably over the previous three decades. Although the sector has a positive role in the protection of persons, property and institutions, there are concerns, inter alia, regarding the violation of rights of employees. This article examines the privatization of security services in Ethiopia from a rights perspective. Specifically, it deals with the extent of privatization and its implication on rights of its employees, the obligation of state and private operators to ensure the rights commonly violated, the drivers for the violations, and the measures that need to be taken to rectify the situation. A combination of doctrinal and non-doctrinal approaches was employed to conduct this study. The study is based on both primary and secondary data through in-depth interviews, focus group discussion, observation, and document reviews. The study indicates that the private security service sector is one of the grey areas of rights abuses including labor exploitation, poor working conditions, and workplace discrimination. These abuses emanate from the practice of employment agencies and the existing regulatory frameworks. I argue that the adoption of a comprehensive private security industry legislation and the establishment of a framework for private security services providers’ regulation and oversight will assist to address the rights violations that have been observed in the sector.

Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia.

The study examines the financial distress situation and its determinants in insurance sectors in Ethiopia. To achieve study objectives, revised Altman's 2000 is adopted to measure the financial distress situation. The study adopted an explanatory research design with an arrangement of secondary data analysis via document analysis, quantitative approach, and deductive method of inquiry. The study used panel data from ten insurance companies over the study period 2010/11-2020/21. Descriptive and regression analyses were performed to analyze the data using STATA 14. Econometric model estimation procedures and multiple regression assumptions were tested accordingly. The random effect regression result revealed that firm-specific factors (liquidity and profitability) have a significant positive association, whereas firm size significantly negatively impacts financial distress. While the random effect regression result also proposed inflation has a positive and significant association with financial distress. However, firm-specific factors (revenue growth and leverage) have positive and negative, respectively, and macroeconomic factors (Gross Domestic Product) have positive but statically insignificant to the financial distress situation of insurance sectors in Ethiopia.

Maximizing Training Outcomes: An Analysis of Factors Affecting Employee Training in Manufacturing Firms

Training effectiveness is crucial for employee and organizational growth. This study aims to explore the factors that affect employee training effectiveness in manufacturing companies in Ethiopia. The study focuses on trainers, training content, supervisor support, and the training environment as independent variables, with training effectiveness as the dependent variable. A quantitative research design was adopted, and data were collected from employees who recently underwent training at four manufacturing companies in Bishoftu City, Ethiopia. The findings revealed that competent trainers, well-organized training content, supportive supervisors, and a conducive training environment significantly influenced training effectiveness. The study contributes to addressing the gap in literature regarding the specific effects of these factors on the manufacturing industry in Ethiopia.

The structural link between TQM practices and financial performance: the mediating role of operational performance

PurposeThis study aims at examining the effect of total quality management (TQM) practices on the financial performance ISO 9001:2008 certified manufacturing companies in Ethiopia with a mediating role of operational performance.Design/methodology/approachA cross-sectional survey research was conducted to meet the purpose. Data used for the study were solely primary data and were collected from the top and middle-level managers of different departments and senior experts working under the production/operation and quality management units of the target organizations. Data were obtained from 302 participants working in 73 companies using a self-administered questionnaire. Structural equation modelling (SEM) technique was applied to test the hypotheses positing the structural link between TQM practices, operational performance and financial performance.FindingsThe findings show that TQM practices had a significant direct and positive effect on both operational performance and financial performance and that operational performance significantly affects financial performance. The bootstrapping output of the mediation analysis also established that operational performance partially mediates the causal link between TQM practices and financial performance.Research limitations/implicationsThe empirical evidence provided by the present study provides helpful insights and guidance to managers to make a good deal of investment in maintaining enhanced performance outcomes under the operations stream that eventually would lead to better financial outcome.Originality/valueBeing one of the first attempts to empirically examine the structural linkages among TQM practices, operational performance and financial performance in Ethiopian manufacturing organizations, this paper provides strategic insights on the importance of implementing TQM practices in a holistic manner for the achievement of better performance outcomes.

Effects of Peace Marketing and Social Marketing Practice on Conflict Management: Mediating Role of Strategic Leadership (The Case from Mining Companies in East Guji Zone Oromia, Ethiopia)

The main objective of this study is to assess the effects of peace marketing and social marketing practices on conflict management in the case of mining industries in Ethiopia's Oromia regional state of the East Guji zone. Farther more, the study helps the mining industry owners understand the effects of peace marketing and social marketing practices on conflict management which leads to peace and harmony between the company and the surrounding community that sustains long lasting peace and profitability of the company. The study has relevant literature and a considerable discussion of the effects of peace and social marketing on conflict management with the mediating role of strategic leadership. According to various researchers, peace marketing is a somewhat fresh idea in place of a non-return market in collaboration with social marketing practices to create peace. (Al-taie et al., 2022). As a result, this research aimed to investigate the effects of the peace market and social marketing practice in conflict resolution from mining companies in Ethiopia, East Guji zone of Oromia regional state. The study employed a Quantitative research design method using a survey questionnaire to collect data. The data analysis was done using the structural equation modeling technique (SEM), and 400 respondents were taken as a sample size. The analyzed result shows that peace marketing and social marketing practice has an appositive and significant effect on conflict management as well as strategic leadership is the best mediator among peace marketing and social marketing practice on conflict management.

Safety Culture among Transport Companies in Ethiopia: Are They Ready for Emerging Fleet Technologies?

The safety culture and safety climate of transport companies have a significant impact on fleet safety outcomes. Ample research shows that transport companies with a strong safety culture also show lower crash statistics. In spite of modern technologies that help with having a safer fleet, it is difficult to achieve a safer fleet without a proactive safety culture and climate. In Ethiopia, it is assumed that most transport companies have failed to create a distinguishable safety climate in their fleet safety administration and that their heavy vehicle drivers have a poor safety culture. These could be important factors contributing to a higher rate of road traffic crashes involving heavy vehicles. This study aims to assess the existing safety culture among a sample of transport companies in Ethiopia and identify suitable intervention methods to improve the safety culture. Moreover, the study sought to identify the readiness of the transport companies to apply modern technology in their fleets by examining their safety culture and safety climate. In total, 10 fleet managers and 174 heavy vehicle drivers participated in the fleet safety audit survey. A descriptive analysis and a detailed fleet safety audit score were calculated. Based on the scale scoring, ten companies score below best practices, one scores well below best practices, and only one company meets the criteria to be considered achieving best practices. The results from this study show that the safety culture and safety climate in most transport companies are quite limited. In addition, most transport companies implement similar safety measures, including inconsistent driver training and annual maintenance.