Outward looking foreign direct investment and its determinants in highly indebted Eastern African countries.

This study examines outward-looking foreign direct investment (FDI) and the determinants of four highly indebted low-income countries in East Africa. To achieve the stated objective, the study utilizes the pooled mean group (PMG) approach for panel data encompassing the period from 1990 to 2022. Additionally, bound testing and the autoregressive distributed lag (ARDL) model are applied to analyze time series data from individual countries within the sample. The panel PMG/ARDL estimation suggests that both market size and exchange rate have a significant positive impact on FDI inflows, both in the short run and the long run. Specifically, the time series analysis using ARDL estimation reveals that market size has a positive and significant impact on FDI inflows for both Rwanda and Tanzania, both in the long run and the short run. Furthermore, the association between the labor force and FDI inflows is positive only in the long run for Rwanda, while for Tanzania, it shows a positive association in both the short run and the long run. In terms of the availability of natural resources, the analysis indicates a positive impact in the short run but a negative association with FDI inflows in the long run, with the exception of a positive association with Rwanda in the long run. Additionally, external debt has a positive and significant impact on FDI inflows for Kenya, both in the short run and the long run. Based on the findings, the study recommends that policymakers should focus on policies and strategies that promote market expansion and create a larger consumer base. This can be achieved through initiatives such as market development programs, trade agreements, and regional cooperation.

Does intellectual capital efficiency measured by modified value-added intellectual coefficient affect the financial performance of insurance companies in Ethiopia?

Insurance company managers and shareholders should be conscious of the effect of intellectual capital efficiency and its components on financial performance. The purpose of this study is to examine the role of intellectual capital efficiency and its components on the financial performance of insurance companies. To achieve study objectives Modified value-added intellectual coefficient is adopted to measure the effect of intellectual capital efficiency. The study adopted an explanatory research design with an arrangement of secondary data analysis via document analysis, quantitative approach, and deductive method of inquiry. Panel data was used with a sample of 14 insurance companies from 2012-2022. Descriptive and regression analyses were performed to analyze the data using STATA version 15.0. Econometric model estimation procedures and multiple regression assumptions were tested accordingly. The random effect regression result revealed that the value-added intellectual capital and its component human capital and capital employed efficiency have a positive significance association with financial performance. Whereas, relational capital efficiency and structural capital efficiency do not have a significant contribution to the financial performance of insurance sectors in Ethiopia. The findings of this study contribute to the theoretical and practical understanding of the relationship between intellectual capital efficiency and financial performance in the context of insurance companies in Ethiopia.

Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia.

The study examines the financial distress situation and its determinants in insurance sectors in Ethiopia. To achieve study objectives, revised Altman's 2000 is adopted to measure the financial distress situation. The study adopted an explanatory research design with an arrangement of secondary data analysis via document analysis, quantitative approach, and deductive method of inquiry. The study used panel data from ten insurance companies over the study period 2010/11-2020/21. Descriptive and regression analyses were performed to analyze the data using STATA 14. Econometric model estimation procedures and multiple regression assumptions were tested accordingly. The random effect regression result revealed that firm-specific factors (liquidity and profitability) have a significant positive association, whereas firm size significantly negatively impacts financial distress. While the random effect regression result also proposed inflation has a positive and significant association with financial distress. However, firm-specific factors (revenue growth and leverage) have positive and negative, respectively, and macroeconomic factors (Gross Domestic Product) have positive but statically insignificant to the financial distress situation of insurance sectors in Ethiopia.