January 1, 2017 Thesis Open Access

Tadesse Yirgu

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{
  "DOI": "10.20372/nadre:4388", 
  "author": [
    {
      "family": "Tadesse Yirgu"
    }
  ], 
  "issued": {
    "date-parts": [
      [
        2017, 
        1, 
        1
      ]
    ]
  }, 
  "abstract": "<p>This research is aimed to test the level of financial distress of commercial banks in Ethiopia and<br>\nidentify its determinant. In order to achieve these objectives secondary data was collected for<br>\neight banks for sample period covering from 2006 to 2015 and analyzed using descriptive<br>\nstatistics and fixed effect (FE) regression model. Based on the descriptive statistics the study<br>\nconcludes that sampled banks were under distress. The FE regression model identified capital<br>\nadequacy, management efficiency, earning ability and bank size as having negative effect on<br>\nbanking financial distress and except size all of them appeared significant; whereas asset quality<br>\nand liquidity appeared as having positive effect, but liquidity was only significant. Regarding the<br>\nmacroeconomic factors, economic growth and saving interest rate have significantly negative<br>\nand positive effect on banking financial distress respectively; whereas inflation was not<br>\nsignificant. In general, the research concludes that both bank specific and macroeconomic<br>\nfactors determine the level of financial distress of Ethiopian commercial banks</p>", 
  "title": "The Determinants of Financial Distress: Empirical Evidence from Banks in Ethiopia", 
  "type": "thesis", 
  "id": "4388"
}