Review of Public Administration and Management

Department of Accounting and Finance, Wolkite University, Wolkite, Ethiopia

Publications

• Research Article   
  The Effect of Liquidity on the Profitability of Microfinance: Evidence from Microfinance Institutions in Ethiopia
  Author(s): Idris Ali Yimer* and Habtamu Kindu
  
  Micro-finance institutions have a bold contribution to the day-to-day financial system by addressing different economical transactions to customers who cannot access the conventional banking service in developing as well in developed countries. The prominent objective of the paper was to examine the liquidity impact on the profitability of 12 microfinance institutions in Ethiopia specifically. Explanatory research design, balanced fixed effect panel regression model and E-views software were used for the data among 12 selected institutions that are currently operating in Ethiopia. Sample period covered from 2005 to 2014. Return on assets used as the proxy of profitability to evaluate the financial healthiness of MFIs. The study identified that the deposit loan ratio has a statistically significant negative impact on profitability, whereas the debt to equity ratio has a negative influe.. View more»
  

  Abstract PDF