A detailed review of existing literature on the structure-conduct-performance (SCP) relationship indicates that the empirical divergence between SCP and competing hypothesis is still not conclusive which is attracting many research works across the world, and recently in Africa. Studies on SCP are dominated by quantitative analysis with exclusion of non-quantifiable variables such as related to conduct and/or those lack data (regulation). The majority of studies employ a multiple linear regression model where a measure of bank performance (mostly profit) is regressed on market concentration variables (such as k-firm, Herfindahl-Hirschman Index, etc.) along with some control variables. Studies that used the structure model have limited focus on other key variables like regulation, macroeconomic, and industry factors. They have also applied a quantitative approach and assumed conduct as being a derivative of the market structure. Hence, there was no attempt to explore the behavior of banks within the given structure, banking, and macro environment. Few studies have explicitly considered Ethiopia’s banking performance using the structural approach (SCP or ESH). Nevertheless, the existing bank performance studies were not analyzed incorporating big banks in the industry, with long period observation of banks, using parametric and non-parametric methods, which are scarce in the Ethiopian context.
The study has investigated one of the key research questions: how bank-specific factors are related to bank performance? The model constructed is framed based on the commonly used supervisory tool to monitor bank performance: CAMEL. This consists of elements such as Capital Adequacy, Asset Quality, Management, Earning and Liquidity. It has used six variables representing each of the components and runs a regression model based on fixed and random models. The outcome shows that many of the bank-specific factors have a significant statistical relationship with performance measures. Despite the mixed result in the various models, the study explored that a bank’s capital holding, asset quality and business diversification, cost control and liquidity positions are important parts of the management decisions that have a significant influence on its performance.
The time overrun in construction projects has become one of the most common problems in the industry that cause multitude of negative effects on the projects and its stakeholders. This study focused on assessing the main causes of delay in public building construction projects in Addis Ababa Administration mainly undertaken by grade one contractors. In these projects, 42 delay causing events in the Addis Ababa public building construction projects were identified and categorized in to five main category groups, and the most important and critical causes of public building construction delay causing factors were evaluated and ranked based on the RRI(Ranking and computation of relative importance index)values from the data collected in a questionnaire survey of three groups of respondents- clients, consultant and contractors in the construction industry. The survey findings revealed the top ten factors that cause construction delays in the public building construction projects in Addis Ababa are: (1) Difficulty in project financing (poor financial system); (2) Poor Project management system;(3) Delay in issuance of designs and working drawings; (4) Shortage of availability of imported construction materials and goods on market; (5) Design errors and complexity of designs;(6)Delay in progress payments for completed works; (7) Late start & resource mobilization to site; (8) Financing problems; (9) Inaccurate Site investigation Report;(10) Price Inflation. Furthermore, the ranking of the factors tested the agreement among the respondents and finally agreement test reveal that there appears a positivecorrelation between the groups in noticing and ranking the set of delay causes. The study recommended in general and particularly to all the parties for mitigating factors causing time overrun.
The study has explored the impact of selected regulatory variables on performances applying a panel regression on 18 commercial banks in Ethiopia for the period 1999-2015. The variables used in the model are directly derived from the extant regulatory approach used by the Central Bank to regulate the banking business. The literature review also shows that most of them are enacted in other countries with few exceptions and mainly related to bill purchase requirements. The model constructed, therefore, has established and finds a statistically significant relationship in some of the regulatory variables with performance measures. The most important findings of this study relate to the negative affect of some of the recent policy directions from the regulator on performances. For instance, branch growth and bill purchases have a statistically significant negative relationship with bank performances. This should be one of the areas requiring policy flexing from the regulatory side in the future. Nevertheless, other policy direction such as capital growth requirement remains a positive contributor to performances. More specifically, the study finds that exchange rate has a positive and statistically significant relationship with the profit models. Despite the benefit of a depreciating local currency and a stable foreign currency type to shield them from currency fluctuation, it allowed banks to earn a policy profit. The depreciation of Birr permitted banks to enjoy a profit from their foreign currency holdings in the form of daily asset revaluations. Nevertheless, many of the variables (prudential regulatory variables) used in this study (interest rate, reserve rate, number of new entrant banks, and level of entry capital) are not statistically significant to influence on bank performances.
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