-
Research Article
Factors Affecting Capital Lease Financing Companies Financial Performance in Ethiopia
Issue:
Volume 11, Issue 5, October 2025
Pages:
84-94
Received:
14 August 2025
Accepted:
27 August 2025
Published:
23 September 2025
Abstract: The main aim of the study is to investigate factors affecting capital lease financing company’s financial performance in Ethiopia. Explanatory research design was employed since the study has cause and effect relationship with quantitative research approach. The target population of the present study was five formally registered and overseen by National Bank of Ethiopia these financing companies currently functional. Because of the lease financing companies in Ethiopia are five in number it is manageable to include all in the sample of the study, so census sampling method was employed as a sampling technique. Both primary and secondary data collection methods were used for the present study, primary data was collected from the managers and accountants of each lease financing companies, whereas, secondary data was collected from lease financing financial report for the period of 2014-2023 obtained from National Bank of Ethiopia. This study investigates the factors influencing financial performance, with a particular focus on Access to Funding (AF), regulatory framework (RFW), Business Size (BS), Asset type (AT), and Tax incentives (TI). a multiple linear regression and correlation analysis were conducted to assess the individual and collective impacts of these variables and also SPSS software used to manipulate the raw date in to meaningful insight. The result of the study shows there is a negative relationship between business size and financial performance of lease financing companies, asset type and financial performance has negatively correlated, tax incentive is positively associated with financial performance of lease financing companies, & access to funding also negatively correlated with financial performance of lease financing companies in Ethiopia. Suggestions forwarded by the researcher are; the lease companies and its management is good to adequately manage its machineries and maximize profit from its leasing with due care to obsolesces, as it has a positive and statistically significant impact on their financial performance in short or long run. & tax incentives provided by the government does have a positive and statistically significant impact on the financial performance of the company, therefore, the management of the companies should use this opportunity as one of its profit maximization strategy.
Abstract: The main aim of the study is to investigate factors affecting capital lease financing company’s financial performance in Ethiopia. Explanatory research design was employed since the study has cause and effect relationship with quantitative research approach. The target population of the present study was five formally registered and overseen by Nat...
Show More
-
Research Article
The Impact of Human Capital Investment on the Financial Performance of Selected BSE-Listed Companies
Arun Bhosale*
,
Anjanadevi Tamragundi
Issue:
Volume 11, Issue 5, October 2025
Pages:
95-103
Received:
31 May 2025
Accepted:
19 June 2025
Published:
25 September 2025
Abstract: This study explores the impact of Human Capital Investment (HCI) on the financial performance of the top 25 companies listed on the Bombay Stock Exchange (BSE) over a ten-year period from 2014-15 to 2023-24. Financial performance is measured using three key indicators: Return on Assets (ROA), Return on Equity (ROE), and Return on Capital Employed (ROCE). Using regression and correlation analysis, the study identifies a significant positive relationship between HCI and all three financial metrics, with the strongest influence observed on ROCE. The findings suggest that companies investing consistently in employee training, development, and welfare tend to achieve higher profitability and operational efficiency. This underscores the strategic value of human capital as a critical asset in enhancing corporate performance. The study contributes to the growing body of evidence supporting the integration of HCI into core business strategy. It offers practical implications for corporate managers and policymakers to design and implement policies that prioritize human capital development as a means to achieve long-term financial sustainability and competitive advantage.
Abstract: This study explores the impact of Human Capital Investment (HCI) on the financial performance of the top 25 companies listed on the Bombay Stock Exchange (BSE) over a ten-year period from 2014-15 to 2023-24. Financial performance is measured using three key indicators: Return on Assets (ROA), Return on Equity (ROE), and Return on Capital Employed (...
Show More
-
Research Article
Factors Affecting Usage of Electronic Banking Services Among Customers of Commercial Bank of Ethiopian Waliso Town
Issue:
Volume 11, Issue 5, October 2025
Pages:
104-118
Received:
13 August 2025
Accepted:
22 August 2025
Published:
26 September 2025
Abstract: E-banking can be creating a platform for its customers to generally access information and to transact businesses electronically through an electronic device without necessarily being present at the bank. The main objective of this study was to assess factors affecting electronic banking services usage among customers in Waliso Town, Ethiopia. Data were collected from 423 participants, and 412 customers were the completed interview and gave the response rate of 97.4%. Convenient sampling technique was used to select study participant from the all-Banks branches. Data was entered into the Epi-data manager version 4.62 and exported to Statistical Package for Social Science version 25 for analysis. Descriptive analysis (like frequencies, percentages, means, and standard deviation) and inferential analysis was done. The result was presented using text, tables, and charts. This study was clearly indicated awareness on electronic banking services, perceived usefulness, perceived ease to use and perceived risk were significantly associated with electronic banking services usage. Managers and banks workers work hard on giving advice and information on awareness, usefulness, ease to use, and risk of electronic banking services to enhance electronic banking services usage. Bank manager should strength information desk team who are work in distributing promotion materials, and forward updated services on electronic banking service to improve electronic banking service usage. The banks workers also work hard on service quality rather than focusing only on number of users that doesn’t guarantee the banks digitalization strategy by giving necessary support to customers and work on problem solving properly.
Abstract: E-banking can be creating a platform for its customers to generally access information and to transact businesses electronically through an electronic device without necessarily being present at the bank. The main objective of this study was to assess factors affecting electronic banking services usage among customers in Waliso Town, Ethiopia. Data...
Show More
-
Research Article
Lease Financing Participation and Its Impact on the Small and Medium Enterprises: In Case of Kellem Wollaga Zone, Oromia Regional State, Ethiopia
Workneh Girma Gelalcha*,
Wakjira Bekele Negawo
Issue:
Volume 11, Issue 5, October 2025
Pages:
119-143
Received:
23 July 2025
Accepted:
13 September 2025
Published:
9 October 2025
Abstract: The main aim of this study was to investigate the Factors affecting of lease financing participations and its consequences on the income of SMEs by focusing on SMEs side factors that constraint SMEs from lease financing participation. Leasing is a financing in kind for production and service purpose by which a leaser provides specified capital goods on financial lease or hire purchase agreement basis to a lessee, without collateral, for a specified period of time and collects in return a certain amount of periodical payments over the specified period. Lease financing is an alternative means to finance SMEs that missed sector in Ethiopia. The study used both qualitative and quantitative method. Both primary and secondary data was used as evidence for the study. In identifying the respondents from the study population purposively selection method was adopted. Based on this, 286 sample SMEs were drawn from total population of 1000 SMEs in the study area. The collected data were analyzed through descriptive statistics, Probit model, Heckman two stages model and also Propensity Score Matching (PSM). Factors affecting lease financing participation identified by probit model; whereas Heckman two stages was used to evaluate the effect intensity of SMEs in lease financing and finally, PSM Propensity score match was used to examine the consequence of lease financing participation on the income of SMEs. The study found that Experience of SME managers, Size of SMEs, capital of SMEs, access to market, Credit worthiness of SMEs, and Business feasibility are significantly and positively affected SMEs participation decision. The estimates of Heckman second stage showed income of respondents was a robust and the result of the study showed that capital of the SME was significantly increased SMEs income from lease financing project. Therefore, lease financing practice should be encouraged by government and nongovernment organizations through supporting training of SMEs’ managers, creating awareness about lease financing services, making available accessibility of Market for their product as well as to gate raw materials for their production process, provide training on different issues in order to increase SMEs participation in lease financing thereby improving their income level so that it can be taken as an alternative development strategy.
Abstract: The main aim of this study was to investigate the Factors affecting of lease financing participations and its consequences on the income of SMEs by focusing on SMEs side factors that constraint SMEs from lease financing participation. Leasing is a financing in kind for production and service purpose by which a leaser provides specified capital good...
Show More
-
Research Article
Effects of Behavior-Based Entrepreneurship Training and BDS on MSMEs Growth and Performance: The Case Study on EDI-Ethiopia
Henok Laike*
Issue:
Volume 11, Issue 5, October 2025
Pages:
144-161
Received:
27 August 2025
Accepted:
12 September 2025
Published:
10 October 2025
Abstract: The creation of entrepreneurs, supporting their growth and ensuring their sustainability, activating and promoting a private sector-led economy, creating jobs, and addressing rural/urban migration are all considered crucial steps in addressing a variety of socio-economic challenges, from mind-set shift to major societal issues. In order to understand the relationship between the program interventions of Entrepreneurship development institution and to investigate the impact of the programs on actual business performance and growth, this research used a quantitative research methodology with a focus on descriptive statistics to examine various key behavioral and business performance parameters that contribute to the research questions through regression testing. The finding of the research determined a significant positive effect of program interventions of EDI Ethiopia on growth and performance of MSMEs through regression analysis empirically assessed from various perspectives including behavioral changes, entrepreneurial competencies, practices, and business performance indicators supported with an input from direct clients. The result also showed that the mixed-mode delivery of program interventions are critical success factors for MSMEs performance and growth evidenced by tangible business operation improvement outputs including but not limited to revenue, sales, customer reach, jobs created, diversification, formalization and business management skill development. Basing these concrete findings, the research recommends strengthening of the program implementation at a national level through efficient resource mobilization for realizing the program’s main outcomes, enhancing the data management by giving due attention for key aspects of the programs on performance and growth of MSMEs as well as addressing key challenges posed by MSMEs in collaboration with ecosystem players in the sector.
Abstract: The creation of entrepreneurs, supporting their growth and ensuring their sustainability, activating and promoting a private sector-led economy, creating jobs, and addressing rural/urban migration are all considered crucial steps in addressing a variety of socio-economic challenges, from mind-set shift to major societal issues. In order to understa...
Show More
-
Review Article
Strategic Digital Transformation Planning as a Catalyst Linking User Experience and Organizational Excellence: A Case Study of the Saudi Health Sector
Afaf Hamood Alanizi,
Alharath Ateik*
Issue:
Volume 11, Issue 5, October 2025
Pages:
162-175
Received:
19 July 2025
Accepted:
19 August 2025
Published:
10 October 2025
Abstract: The rapid advancement of digital health services has created both opportunities and challenges for healthcare systems worldwide, particularly in developing comprehensive e-health frameworks that align with patient needs and institutional capacities. This study investigates the critical factors influencing the adoption of digital health services within the Ministry of Health in Saudi Arabia, focusing on five dimensions: trust, technological infrastructure, ease of use, perceived usefulness, and awareness. A quantitative research approach was employed through the distribution of a structured electronic questionnaire, which gathered responses from 132 participants recruited via social media platforms. The survey captured demographic data in addition to participants’ perceptions of digital health transformation. Statistical analysis revealed moderate levels of trust, with respondents rating transparency and accuracy positively. Nevertheless, concerns regarding data privacy emerged as a persistent barrier to full adoption. Furthermore, technological infrastructure was rated poorly, indicating gaps in system reliability, integration, and performance that hinder effective implementation. Ease of use appeared as a key determinant of adoption, with respondents emphasizing the importance of user-friendly interfaces, accessibility, and adequate technical support. Perceived usefulness, however, was relatively low, suggesting that the added value of digital health tools in improving efficiency and service quality has not been fully demonstrated to end-users. Awareness was found to play a mediating role, shaping how trust, technology, and usability translate into acceptance and utilization. Hypothesis testing confirmed that trust and technology significantly influence adoption, while ease of use and usefulness strongly drive user acceptance. The findings highlight the necessity of enhancing data security measures, upgrading technological infrastructure, and improving user experience through training and design optimization. Additionally, targeted awareness campaigns are recommended to strengthen public understanding of the benefits of digital health services. By addressing these factors, Saudi Arabia’s Ministry of Health can accelerate a sustainable digital transformation in healthcare, ensuring higher adoption rates and improved service delivery.
Abstract: The rapid advancement of digital health services has created both opportunities and challenges for healthcare systems worldwide, particularly in developing comprehensive e-health frameworks that align with patient needs and institutional capacities. This study investigates the critical factors influencing the adoption of digital health services wit...
Show More
-
Research Article
Factors Affecting External Auditors’ Independence in Ethiopia: In the Case of Mirab Omo Zone Bero Woreda
Ekram Tegenework,
Endalkachew Desta*
Issue:
Volume 11, Issue 5, October 2025
Pages:
176-189
Received:
20 August 2025
Accepted:
1 September 2025
Published:
14 October 2025
DOI:
10.11648/j.ebm.20251105.17
Downloads:
Views:
Abstract: This study aimed to assess the factors affecting the independence of external auditors in the Mirab Omo Zone in Ethiopia. The research employed an explanatory survey research design, which is well-suited to investigate the causal relationships between various factors and the level of independence exhibited by external auditors. A quantitative research approach was adopted, with external auditors in the study area comprising the population. A sample of 140 external auditors was selected, and primary data was collected through structured questionnaires. Descriptive and inferential statistical analyses, including Pearson's correlation and multiple linear regression, were performed to examine the relationships between the independent variables (regulatory environment, effect of ethical standards, client pressures, financial interests, and legal and regulatory framework) and the dependent variable (external auditor's independence). The findings indicate that the regulatory environment, the effect of ethical standards, the legal and regulatory framework, financial interests, and client pressures all have statistically significant relationships with the external auditor's independence. The study provides valuable insights for regulatory bodies, policymakers, auditing firms, and business organizations in Ethiopia, as it can inform the development and improvement of regulatory frameworks and guidelines related to auditors' independence. The research findings also help auditing firms and individual auditors understand the challenges they face and develop strategies to mitigate the factors affecting their independence. Based on these findings, recommendations include strengthening and enforcing the regulatory framework, prioritizing ethical standards and ongoing education, improving legal and regulatory systems, implementing safeguards against financial interests, and providing support for auditors facing client pressures.
Abstract: This study aimed to assess the factors affecting the independence of external auditors in the Mirab Omo Zone in Ethiopia. The research employed an explanatory survey research design, which is well-suited to investigate the causal relationships between various factors and the level of independence exhibited by external auditors. A quantitative resea...
Show More
