Efficient Management Boosts Bank Profitability in Ethiopia, Study Finds
The study looked at how certain factors affect the profitability of commercial banks in Ethiopia. They focused on bank size, capital ratio, and management efficiency. The researchers found that management efficiency has the biggest impact on profitability, with a positive relationship. Bank size, on the other hand, has a negative impact on profitability. Capital ratio also has a positive impact, but it is not as significant as management efficiency. Overall, the study shows that how well a bank is managed plays a crucial role in its profitability.