Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia Salah Mohammed Abdulahi, Mekonnen Kumlachew Yitayaw, Habtamu Legese Feyisa, Wondmagegn Biru Mamo Cogent Economics and Finance, 2023 An efficient bank is more robust to shocks, fosters competitiveness, and promotes stability of the financial system. This study estimates Ethiopia’s commercial banks’ level of efficiency and its determinants during the period 2014–2020. Data Envelopment Analysis (DEA), Malmquist DEA, and Tobit regression were employed to analyze the data. The result indicated that the average efficiency score of banks in the constant returns to scale (CRS), variable returns to scale (VRS), and scale efficiency (SE) models were 95.5%, 99.85%, and 96.95% , respectively. Furthermore, in the VRS model, a state bank is more efficient than private banks. During the study period, the Total Factor Productivity (TFP) of Banks improved by 1%. According to the Tobit model, the efficiency of banks grows with an increment in the number of branches, bank size, and credit risk. However, when, liquidity risk and the log of the fixed asset increase, bank efficiency will decrease. The level of capitalization, log of GDP, and inflation, on the other hand, do not influence bank efficiency. Therefore, banks should pay close attention to aspects that influence technical efficiency.
Determinants of bank stability in Ethiopia: A two-step system GMM estimation Mekonnen Kumlachew Yitayaw, Yohannes Kefale Mogess, Habtamu Legese Feyisa, Wondmagegn Biru Mamo, Salah Mohammed Abdulahi Cogent Economics and Finance, 2023 Studies on the determinants of bank stability conclude that bank-specific and external factors affect bank financial stability. However, most of these studies are conducted in developed countries, where Banks, on average, are richer and have more liquidity. This study evaluates the effect of bank-specific and external factors on Bank Stability in a least developed country—Ethiopia using commercial banks data from 2014 to 2020. By using Two-Step System Generalized Method of Moments (GMM) estimation, we find that bank lending rate, tangibility, GDP growth rate, control of corruption, and rule of law effectiveness stabilize bank financial stability. The effect is more pronounced for Banks with high market share of mobilized capital. On the other hand, bank concentration and bank efficiency reduce bank financial stability by about 2.51 and 0.97 units, respectively. Furthermore, the effect of historical level of bank stability has a positive and significant effect on current level of bank financial stability. The implication of this result is vital for policy-makers, as it explicitly suggests that keeping bank stability today has a vital role in achieving higher bank stability in the future.
The Impact of Governance on Financial Institution and Financial Market Development: Empirical Evidence from Emerging Markets Habtamu Legese Feyisa, Wondmagegn Biru Mamo, Mekonnen Kumlachew Yitayaw Studia Universitatis Vasile Goldis Arad Economics Series, 2022 The overall objective of the study is to investigate the impact of governance on financial development in Sub-Saharan African countries. To achieve the stated objective, the study employed balanced data of 43 Sub-Saharan African countries during the year 2002 to 2018. To analyze the data, the study used both the fixed and random effect estimation approaches and explored the relationship between the three dimensions of governance and three pillars of financial development in Sub-Saharan African countries. The study also applied the Principal Component Analysis (PCA) to create indexes for the political, economic, and institutional dimensions of governance taking the six world governance indicators. The overall findings of the study indicate that the political, economic, and overall governance composite index has a positive and significant impact on the overall financial developments of sub-Saharan African countries. The development of financial institutions in the region is influenced significantly and positively by political, institutional, and overall governance. In addition, the economic dimension of governance has had a significant and positive impact on the development of the financial markets in sub-Saharan Africa. Furthermore, trade openness, real interest rate, inflation, real GDP, and access to electricity are all major macroeconomic predictors of financial development, according to the study. As a result, all aspects of governance quality in the Sub-Saharan African countries must be improved. This can be achieved by policies aimed at strengthening voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, corruption control, and overall macroeconomic reform.
The impact of civil liberties, global health security, median age and population size on the spread of COVID-19 (SARS-CoV-2) Habtamu Legese, Wondmagegn Biru, Frezer Tilahun, Henock Semaw International Journal of Sociology and Social Policy, 2022 PurposeThe purpose of this paper is to investigate the impact of civil liberties, global health security, median age and population size on the spread of COVID-19 across the globe.Design/methodology/approachThis study was done by taking data from 166 different countries from the Economist Intelligence Unit, European Centre for Disease Prevention and Control, World Bank, Johns Hopkins University and United Nations Population Division (UNPD). After conducting all the necessary standard econometric tests, the study was analyzed using the ordinary least squares (OLS) regression.FindingsThe finding of the study indicated that COVID-19 tests per million people (LTT/PM), Population Size (LPOP), Civil Liberty Index (CLI) are statistically significant and positively affect the number of confirmed COVID-19 cases; on the other hand, the Health Security Index (HSI) negatively affects the number of confirmed COVID-19 cases.Practical implicationsIn emergency circumstances, the government ought to have a special responsibility to align civil rights with the protection of public health cautiously. However, measures to restrict civil liberties must be proportionate.Originality/valueBesides other variables, the study included and considered civil liberties as a significant factor to affect the spread of COVID-19, which is a new contribution to the existing body of knowledge in the field.
Nexus between being landlocked and living standards in Sub-Saharan African countries: A two-step System GMM analysis Mekonnen Kumlachew Yitayaw, Habtamu Legese Feyisa, Wondmagegn Biru Mamo, Yohannes Kefale Mogess Journal of Infrastructure Policy and Development, 2022 The ultimate objective of the study was to investigate the effects of being landlocked on the living standards in Sub-Saharan African (SSA) countries from 1991 to 2019. Adopting the two-step estimation technique of System GMM (generalized method of moments), the study found that being landlocked has a negative and significant effect on the living standards in SSA countries when using GDP per capita as the living standard measure. Moreover, the historical living standard experiences of SSA countries have a positive and significant influence on the current living standard level. In addition, the population growth rate has a positive and significant effect on the living standards in SSA countries. On the other hand, the official exchange rate, broad money as a percentage of GDP, and inflation have a negative and significant effect on the living standards in SSA countries. Generally, the estimated result reveals the existence of a significant variation in the living standards in landlocked and coastal SSA countries. This study suggests that regional integration between landlocked and transit countries should be improved to minimize entry costs and increase access to global markets for landlocked countries. We argue that this study is of interest to landlocked and coastal countries to increase trade integration and promote the development of both groups, and it will contribute to the scarce empirical evidence.
FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN THE EMERGING MARKETS Wondmagegn Biru Mamo, Habtamu Legese Feyisa, Mekonnen Kumlachew Yitayaw Corporate Governance and Organizational Behavior Review, 2021 In the economic growth of a country, the banking sector plays a significant role (Alam, Rabbani, Tausif, & Abey, 2021). The overall objective of the study is to investigate the financial performance of commercial banks in emerging markets. The study tried to see the impact of governance, exchange rate volatility, trade openness, and internet access on the financial performance of commercial banks in Ethiopia during the years from 2014 to 2019. The study employed a random-effects model using balanced panel data. The result indicated that composite governance index, trade openness, and internet access have a positive and statistically significant effect on the financial performance of commercial banks as measured by their return on assets. However, the exchange rate volatility has a negative and statistically significant effect on the financial performance of commercial banks. On the other hand, the result of bank-specific variables considered in the study such as profit margin, asset utilization, net interest margin, overhead efficiency, and numbers of branches have a positive and statistically significant effect on the financial performance of commercial banks. Contrarily, the equity multiplier ratio has a negative and significant effect on the financial performance of commercial banks
RECENT SCHOLAR PUBLICATIONS
Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia SM Abdulahi, MK Yitayaw, HL Feyisa, WB Mamo Cogent Economics & Finance 11 (1), 2186039 , 2023 2023 Citations: 38
Determinants of bank stability in Ethiopia: A two-step system GMM estimation MK Yitayaw, YK Mogess, HL Feyisa, WB Mamo, SM Abdulahi Cogent Economics & Finance 11 (1), 2161771 , 2023 2023 Citations: 51
Growth determinants of micro and small enterprises (MSEs): Evidence from entrepreneurs in the Eastern Region of Ethiopia WB Mamo Journal of the Knowledge Economy 14 (1), 138-160 , 2023 2023 Citations: 28
Determinants of bank stability in Ethiopia: A two-step system GMM estimation. Cogent Economics and Finance, 11 (1) MK Yitayaw, YK Mogess, HL Feyisa, WB Mamo, SM Abdulahi 2023 Citations: 5
Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia. Cogent Economics & Finance, 11 (1), 2186039 SM Abdulahi, MK Yitayaw, HL Feyisa, WB Mamo 2023 Citations: 5
The impact of governance on financial institution and financial market development: Empirical evidence from emerging markets HL Feyisa, WB Mamo, MK Yitayaw Studia Universitatis „Vasile Goldis” Arad–Economics Series 32 (3), 48-64 , 2022 2022 Citations: 8
The impact of civil liberties, global health security, median age and population size on the spread of COVID-19 (SARS-CoV-2) H Legese, W Biru, F Tilahun, H Semaw International Journal of Sociology and Social Policy 42 (5-6), 498-508 , 2022 2022 Citations: 1
Employment status during the COVID-19 pandemic: evidence from Ethiopia WB Mamo, HL Feyisa, MK Yitayaw, SN Tereda The Indian Journal of Labour Economics 65 (1), 123-135 , 2022 2022 Citations: 9
Financial performance of commercial banks in the emerging markets WBM , Habtamu Legese Feyisa, & Mekonnen Kumlachew Yitayaw Corporate Governance and Organizational Behavior Review 5 (2, special issue … , 2022 2022 Citations: 20
Nexus between being landlocked and living standards in Sub-Saharan African countries: A two-step System GMM analysis MK Yitayaw, HL Feyisa, WB Mamo, YK Mogess Journal of Infrastructure, Policy and Development 6 (1), 1421 , 2022 2022 Citations: 5
The Effect of Government Incentives on the Performance of Micro and Small Enterprises (MSE’s) in Eastern Ethiopia: Evidence from Harar, Dire Dawa city Administration and … WB Mamo Journal of Economics and Business 3 (3), 1125-1135 , 2020 2020 Citations: 14
MOST CITED SCHOLAR PUBLICATIONS
Determinants of bank stability in Ethiopia: A two-step system GMM estimation MK Yitayaw, YK Mogess, HL Feyisa, WB Mamo, SM Abdulahi Cogent Economics & Finance 11 (1), 2161771 , 2023 2023 Citations: 51
Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia SM Abdulahi, MK Yitayaw, HL Feyisa, WB Mamo Cogent Economics & Finance 11 (1), 2186039 , 2023 2023 Citations: 38
Growth determinants of micro and small enterprises (MSEs): Evidence from entrepreneurs in the Eastern Region of Ethiopia WB Mamo Journal of the Knowledge Economy 14 (1), 138-160 , 2023 2023 Citations: 28
Financial performance of commercial banks in the emerging markets WBM , Habtamu Legese Feyisa, & Mekonnen Kumlachew Yitayaw Corporate Governance and Organizational Behavior Review 5 (2, special issue … , 2022 2022 Citations: 20
The Effect of Government Incentives on the Performance of Micro and Small Enterprises (MSE’s) in Eastern Ethiopia: Evidence from Harar, Dire Dawa city Administration and … WB Mamo Journal of Economics and Business 3 (3), 1125-1135 , 2020 2020 Citations: 14
Employment status during the COVID-19 pandemic: evidence from Ethiopia WB Mamo, HL Feyisa, MK Yitayaw, SN Tereda The Indian Journal of Labour Economics 65 (1), 123-135 , 2022 2022 Citations: 9
The impact of governance on financial institution and financial market development: Empirical evidence from emerging markets HL Feyisa, WB Mamo, MK Yitayaw Studia Universitatis „Vasile Goldis” Arad–Economics Series 32 (3), 48-64 , 2022 2022 Citations: 8
Determinants of bank stability in Ethiopia: A two-step system GMM estimation. Cogent Economics and Finance, 11 (1) MK Yitayaw, YK Mogess, HL Feyisa, WB Mamo, SM Abdulahi 2023 Citations: 5
Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia. Cogent Economics & Finance, 11 (1), 2186039 SM Abdulahi, MK Yitayaw, HL Feyisa, WB Mamo 2023 Citations: 5
Nexus between being landlocked and living standards in Sub-Saharan African countries: A two-step System GMM analysis MK Yitayaw, HL Feyisa, WB Mamo, YK Mogess Journal of Infrastructure, Policy and Development 6 (1), 1421 , 2022 2022 Citations: 5
The impact of civil liberties, global health security, median age and population size on the spread of COVID-19 (SARS-CoV-2) H Legese, W Biru, F Tilahun, H Semaw International Journal of Sociology and Social Policy 42 (5-6), 498-508 , 2022 2022 Citations: 1
