Investigating the problems experienced by virtual team members engaged in requirements elicitation
- Authors: De Abrew, Upuli Kanchana
- Date: 2013
- Subjects: Virtual work teams Virtual work teams -- South Africa System design System analysis
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1151 , http://hdl.handle.net/10962/d1007845
- Description: The constant acceleration in the rate of technological innovation, and the ever growing emphasis on the importance of information for competition has seen organisations around the world strive for the technologies that give them global customer reach. One of the most pervasive technological innovations developed is the internet, and its unique quality of being able to draw people from across the world together in one virtual space has given birth to the concept of virtual teams. Organisations have seized the advantages of such virtual teams to give them the cost and time reductions they need to stay competitive in the global marketplace. In the software industry, where product and service development is always a race against time, forward thinking software companies in the developed world have taken full advantage of the cost and time saving benefits that virtual teams have to offer. In addition, the rate of expansion of technology and software to support such teams is also growing exponentially, offering increasingly faster ways of virtual working. Despite the immense advantages offered by such teams, South African software development companies do not seem to engage in distributed work to any great degree. The importance of this research rests on the belief that South African software development companies will be unable to avoid engaging in distributed software development if they are to achieve and maintain competitiveness in the global marketplace. This research focuses on a sub-section of the software development process with a specific reference to South African software development. The requirements elicitation phase of software development is one of the initial stages of any software project. It is here that developers work with the users in order to identify requirements for the system to be built. It is acknowledged that other phases of distributed development also bring to bear their own problems, however, in the interests of scoping this research, only the requirements elicitation process is focused on. The research shows that most techniques of requirements elicitation can be adapted for use within the virtual environment, although each technique has its share of advantages and disadvantages. In addition, virtual team members experience problems during their general, day-to-day interactions, many of these arising from the dependence on technology for communication and task performance. The research identifies the problems in both categories, and develops a holistic model of virtual requirements elicitation to prevent or solve the problems experienced by virtual teams engaged in distributed requirements elicitation. The model is made up of three key frameworks, each of which prescribes actions to be taken to ensure the success of the virtual team within the requirements elicitation process. The model is verified through the testing of its critical success factors. Certain aspects of the model were adapted based on the findings of the study, but it was confirmed that the rationale behind the model is sound, indicating that it has the potential to solve the problems of virtual RE when implemented.
- Full Text:
- Date Issued: 2013
- Authors: De Abrew, Upuli Kanchana
- Date: 2013
- Subjects: Virtual work teams Virtual work teams -- South Africa System design System analysis
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1151 , http://hdl.handle.net/10962/d1007845
- Description: The constant acceleration in the rate of technological innovation, and the ever growing emphasis on the importance of information for competition has seen organisations around the world strive for the technologies that give them global customer reach. One of the most pervasive technological innovations developed is the internet, and its unique quality of being able to draw people from across the world together in one virtual space has given birth to the concept of virtual teams. Organisations have seized the advantages of such virtual teams to give them the cost and time reductions they need to stay competitive in the global marketplace. In the software industry, where product and service development is always a race against time, forward thinking software companies in the developed world have taken full advantage of the cost and time saving benefits that virtual teams have to offer. In addition, the rate of expansion of technology and software to support such teams is also growing exponentially, offering increasingly faster ways of virtual working. Despite the immense advantages offered by such teams, South African software development companies do not seem to engage in distributed work to any great degree. The importance of this research rests on the belief that South African software development companies will be unable to avoid engaging in distributed software development if they are to achieve and maintain competitiveness in the global marketplace. This research focuses on a sub-section of the software development process with a specific reference to South African software development. The requirements elicitation phase of software development is one of the initial stages of any software project. It is here that developers work with the users in order to identify requirements for the system to be built. It is acknowledged that other phases of distributed development also bring to bear their own problems, however, in the interests of scoping this research, only the requirements elicitation process is focused on. The research shows that most techniques of requirements elicitation can be adapted for use within the virtual environment, although each technique has its share of advantages and disadvantages. In addition, virtual team members experience problems during their general, day-to-day interactions, many of these arising from the dependence on technology for communication and task performance. The research identifies the problems in both categories, and develops a holistic model of virtual requirements elicitation to prevent or solve the problems experienced by virtual teams engaged in distributed requirements elicitation. The model is made up of three key frameworks, each of which prescribes actions to be taken to ensure the success of the virtual team within the requirements elicitation process. The model is verified through the testing of its critical success factors. Certain aspects of the model were adapted based on the findings of the study, but it was confirmed that the rationale behind the model is sound, indicating that it has the potential to solve the problems of virtual RE when implemented.
- Full Text:
- Date Issued: 2013
Modelling stock return volatility dynamics in selected African markets
- Authors: King, Daniel Jonathan
- Date: 2013
- Subjects: Rate of return -- Africa Stocks -- Prices -- Africa Finance -- Developing countries -- Econometric models
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1051 , http://hdl.handle.net/10962/d1006452
- Description: Stock return volatility has been shown to occasionally exhibit discrete structural shifts. These shifts are particularly evident in the transition from ‘normal’ to crisis periods, and tend to be more pronounced in developing markets. This study aims to establish whether accounting for structural changes in the conditional variance process, through the use of Markov-switching models, improves estimates and forecasts of stock return volatility over those of the more conventional single-state (G)ARCH models, within and across selected African markets for the period 2002-2012. In the univariate portion of the study, the performances of various Markov-switching models are tested against a single-state benchmark model through the use of in-sample goodness-of-fit and predictive ability measures. In the multivariate context, the single-state and Markov-switching models are comparatively assessed according to their usefulness in constructing optimal stock portfolios. It is found that, even after accounting for structural breaks in the conditional variance process, conventional GARCH effects remain important to capturing the heteroscedasticity evident in the data. However, those univariate models which include a GARCH term are shown to perform comparatively poorly when used for forecasting purposes. Additionally, in the multivariate study, the use of Markov-switching variance-covariance estimates improves risk-adjusted portfolio returns when compared to portfolios that are constructed using the more conventional single-state models. While there is evidence that the use of some Markov-switching models can result in better forecasts and higher risk-adjusted returns than those models which include GARCH effects, the inability of the simpler Markov-switching models to fully capture the heteroscedasticity in the data remains problematic.
- Full Text:
- Date Issued: 2013
- Authors: King, Daniel Jonathan
- Date: 2013
- Subjects: Rate of return -- Africa Stocks -- Prices -- Africa Finance -- Developing countries -- Econometric models
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1051 , http://hdl.handle.net/10962/d1006452
- Description: Stock return volatility has been shown to occasionally exhibit discrete structural shifts. These shifts are particularly evident in the transition from ‘normal’ to crisis periods, and tend to be more pronounced in developing markets. This study aims to establish whether accounting for structural changes in the conditional variance process, through the use of Markov-switching models, improves estimates and forecasts of stock return volatility over those of the more conventional single-state (G)ARCH models, within and across selected African markets for the period 2002-2012. In the univariate portion of the study, the performances of various Markov-switching models are tested against a single-state benchmark model through the use of in-sample goodness-of-fit and predictive ability measures. In the multivariate context, the single-state and Markov-switching models are comparatively assessed according to their usefulness in constructing optimal stock portfolios. It is found that, even after accounting for structural breaks in the conditional variance process, conventional GARCH effects remain important to capturing the heteroscedasticity evident in the data. However, those univariate models which include a GARCH term are shown to perform comparatively poorly when used for forecasting purposes. Additionally, in the multivariate study, the use of Markov-switching variance-covariance estimates improves risk-adjusted portfolio returns when compared to portfolios that are constructed using the more conventional single-state models. While there is evidence that the use of some Markov-switching models can result in better forecasts and higher risk-adjusted returns than those models which include GARCH effects, the inability of the simpler Markov-switching models to fully capture the heteroscedasticity in the data remains problematic.
- Full Text:
- Date Issued: 2013
Money supply endogeneity : an empirical investigation of South African data (2000Q1-2011Q4)
- Authors: Schady, Stuart William
- Date: 2013 , 2013-04-29
- Subjects: Monetary policy -- South Africa , Inflation targeting -- South Africa , Gross domestic product -- South Africa , Bank loans -- South Africa , Money supply -- South Africa , Endogenous growth (Economics) , Domestic credit extension
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:928 , http://hdl.handle.net/10962/d1001454 , Monetary policy -- South Africa , Inflation targeting -- South Africa , Gross domestic product -- South Africa , Bank loans -- South Africa , Money supply -- South Africa , Endogenous growth (Economics)
- Description: This study is about whether the money supply in South Africa under a monetary policy regime of inflation‐targeting is exogenously or endogenously determined. The proposition of an exogenous money supply has been offered by monetarists, where the Central Bank determines the quantity of money supplied to the economy and this has a causal influence on income and credit extension. The endogenous money theory is a post‐Keynesian proposition whereby the money creation is determined by banks adjusting their responses to demands for credit‐money from economic agents. The data analysis is from 2000Q1 to 2010Q4 and entails the use of the variables monetary base (MB), domestic credit extension (DCE), M3, and gross national product (GDP). All variables are logged. The empirical tests conducted start with the Augmented Dickey‐Fuller unit root test to determine the variables order of integration. Johansen cointegration tests are done followed by Vector Error‐Correction Models (VECMs) and Granger causality tests to determine whether there is unidirectional or bidirectional causality between variables over the long and short‐run. Based on the results of the testing it was discovered that over the inflation‐targeting regime money supply in South Africa was endogenously determined. Furthermore, the data best supports the Accommodationist analysis of endogenous money as opposed to that of Structuralism and Liquidity Preference , Adobe Acrobat 9.53 Paper Capture Plug-in
- Full Text:
- Date Issued: 2013
- Authors: Schady, Stuart William
- Date: 2013 , 2013-04-29
- Subjects: Monetary policy -- South Africa , Inflation targeting -- South Africa , Gross domestic product -- South Africa , Bank loans -- South Africa , Money supply -- South Africa , Endogenous growth (Economics) , Domestic credit extension
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:928 , http://hdl.handle.net/10962/d1001454 , Monetary policy -- South Africa , Inflation targeting -- South Africa , Gross domestic product -- South Africa , Bank loans -- South Africa , Money supply -- South Africa , Endogenous growth (Economics)
- Description: This study is about whether the money supply in South Africa under a monetary policy regime of inflation‐targeting is exogenously or endogenously determined. The proposition of an exogenous money supply has been offered by monetarists, where the Central Bank determines the quantity of money supplied to the economy and this has a causal influence on income and credit extension. The endogenous money theory is a post‐Keynesian proposition whereby the money creation is determined by banks adjusting their responses to demands for credit‐money from economic agents. The data analysis is from 2000Q1 to 2010Q4 and entails the use of the variables monetary base (MB), domestic credit extension (DCE), M3, and gross national product (GDP). All variables are logged. The empirical tests conducted start with the Augmented Dickey‐Fuller unit root test to determine the variables order of integration. Johansen cointegration tests are done followed by Vector Error‐Correction Models (VECMs) and Granger causality tests to determine whether there is unidirectional or bidirectional causality between variables over the long and short‐run. Based on the results of the testing it was discovered that over the inflation‐targeting regime money supply in South Africa was endogenously determined. Furthermore, the data best supports the Accommodationist analysis of endogenous money as opposed to that of Structuralism and Liquidity Preference , Adobe Acrobat 9.53 Paper Capture Plug-in
- Full Text:
- Date Issued: 2013
Organisational commitment in the automotive industry : a comparative study of employment contracts
- Authors: Bailey, Peter John
- Date: 2013
- Subjects: Organizational commitment , Employee motivation -- South Africa , Automobile industry and trade -- Management , Management -- Employee participation -- South Africa , Labor contracts -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9299 , http://hdl.handle.net/10948/d1014664
- Description: Organisations face many obstacles in maintaining high quality standards and enhancing their competitive positions. It is not just the external factors, such as market fluctuations, but also internal obstacles, that have an effect on the competitiveness of organisations. Most of the internal factors are the result of poor management practices such as insufficient employee development paths, lack of mentorship programmes or job insecurity which results in the poor performance and commitment levels of employees. However employees are more willing to provide efficient and effective practices if they are committed to the organisation. A committed workforce can be created through many practices. Some of these practices include, creating an environment where employees feel as though they are part of the organisation and that their actions directly influence the success of the organisation (Kingston 2007); building long lasting and fair relationships between staff and supervisors (Manetje 2009:50); providing partial organisational ownership for employees through employee share ownership schemes (Employee share ownership plan guidelines 2007:3); creating an organisation structure which binds employees and groups together and removes bureaucratic practices (Brooks 2009:190) and creating management styles that encourage employee involvement (Manetje 2009:51) Unfavourable conditions within the economy are not making it any easier for organisations to become more competitive. Organisations have had to downsize, restructure and transform in order to cut costs as the demands for goods and services slowed down. However, these practices have resulted in an insecure work environment for employees and have posed complex challenges for management. (Coetzee 2005). Employment contracts have therefore become popular tools for managing economic downturns. Organisations opt for more temporary staff so as to easily reduce headcount when costs need to be lowered. Employment contracts give organisations the advantage of flexibility which is a key area for success in turbulent business environments (Krausz, Bizman & Braslavsky 2001:302). Previous research on temporary contracts has revealed lower commitment levels of staff than other types of contracts such as permanent and fixed-term contracts (Guest 2004:12). Therefore, there needs to be a balance between various employment contracts; a balance which brings out the best in organisational performance. The different types of employment contracts are also important tools to use to enhance commitment within the organisation. For that reason, it is essential to understand the linkage between the types of contracts and organisational commitment and whether certain contracts result in higher levels of organisational commitment. The primary objective of the study is to identify factors which influence organisational commitment as well as to investigate whether organisational commitment and the different types of employment contracts can increase employee motivation and job involvement within the automotive industry environment. Given the primary objective of the study, a quantitative research paradigm was followed in testing the relevant hypotheses. A five-point Likert scale questionnaire was conducted to gather empirical data from the respondents employed within the automotive industry. The target population of the study was the employees within the automotive industry (Volkswagen of South Africa). A convenience sampling technique was used to distribute the questionnaires and the researcher made use of both manual hand-outs and an online system called the Survey Monkey to gather the data. The sample was restricted to 260 respondents. The main findings of this study revealed that the dimensions, workplace culture, job security, career development and personality were statistically significant and had a positive influence on organisational commitment. Workplace culture proved to be the most significant positive influence on organisational commitment. Thus, if an organisation adjusts this dimension to better suit the employees, the result could be an enhanced level of employee commitment. On the other hand, management style and mentoring were found to be the least important in influencing organisational commitment in the automotive industry. Furthermore, the results illustrated a significant positive relationship between organisational commitment and the dependent variables, employee motivation and job involvement. The study also identified the link between employment contracts and organisational commitment, job involvement and employee motivation. However, a statistically significant relationship only existed between employment contracts and job involvement. Thus the different types of contracts have an effect on the level of employee involvement within an organisation. The implications of the findings are that organisations within the automotive industry should focus on areas that have a substantially greater impact on organisational commitment. These areas include workplace culture, job security, personality and career development. Organisations thus need to find methods or processes which facilitate the development of these areas. In order for organisations to move from good to great, a workforce that is committed to the goals and objectives is required.
- Full Text:
- Date Issued: 2013
- Authors: Bailey, Peter John
- Date: 2013
- Subjects: Organizational commitment , Employee motivation -- South Africa , Automobile industry and trade -- Management , Management -- Employee participation -- South Africa , Labor contracts -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9299 , http://hdl.handle.net/10948/d1014664
- Description: Organisations face many obstacles in maintaining high quality standards and enhancing their competitive positions. It is not just the external factors, such as market fluctuations, but also internal obstacles, that have an effect on the competitiveness of organisations. Most of the internal factors are the result of poor management practices such as insufficient employee development paths, lack of mentorship programmes or job insecurity which results in the poor performance and commitment levels of employees. However employees are more willing to provide efficient and effective practices if they are committed to the organisation. A committed workforce can be created through many practices. Some of these practices include, creating an environment where employees feel as though they are part of the organisation and that their actions directly influence the success of the organisation (Kingston 2007); building long lasting and fair relationships between staff and supervisors (Manetje 2009:50); providing partial organisational ownership for employees through employee share ownership schemes (Employee share ownership plan guidelines 2007:3); creating an organisation structure which binds employees and groups together and removes bureaucratic practices (Brooks 2009:190) and creating management styles that encourage employee involvement (Manetje 2009:51) Unfavourable conditions within the economy are not making it any easier for organisations to become more competitive. Organisations have had to downsize, restructure and transform in order to cut costs as the demands for goods and services slowed down. However, these practices have resulted in an insecure work environment for employees and have posed complex challenges for management. (Coetzee 2005). Employment contracts have therefore become popular tools for managing economic downturns. Organisations opt for more temporary staff so as to easily reduce headcount when costs need to be lowered. Employment contracts give organisations the advantage of flexibility which is a key area for success in turbulent business environments (Krausz, Bizman & Braslavsky 2001:302). Previous research on temporary contracts has revealed lower commitment levels of staff than other types of contracts such as permanent and fixed-term contracts (Guest 2004:12). Therefore, there needs to be a balance between various employment contracts; a balance which brings out the best in organisational performance. The different types of employment contracts are also important tools to use to enhance commitment within the organisation. For that reason, it is essential to understand the linkage between the types of contracts and organisational commitment and whether certain contracts result in higher levels of organisational commitment. The primary objective of the study is to identify factors which influence organisational commitment as well as to investigate whether organisational commitment and the different types of employment contracts can increase employee motivation and job involvement within the automotive industry environment. Given the primary objective of the study, a quantitative research paradigm was followed in testing the relevant hypotheses. A five-point Likert scale questionnaire was conducted to gather empirical data from the respondents employed within the automotive industry. The target population of the study was the employees within the automotive industry (Volkswagen of South Africa). A convenience sampling technique was used to distribute the questionnaires and the researcher made use of both manual hand-outs and an online system called the Survey Monkey to gather the data. The sample was restricted to 260 respondents. The main findings of this study revealed that the dimensions, workplace culture, job security, career development and personality were statistically significant and had a positive influence on organisational commitment. Workplace culture proved to be the most significant positive influence on organisational commitment. Thus, if an organisation adjusts this dimension to better suit the employees, the result could be an enhanced level of employee commitment. On the other hand, management style and mentoring were found to be the least important in influencing organisational commitment in the automotive industry. Furthermore, the results illustrated a significant positive relationship between organisational commitment and the dependent variables, employee motivation and job involvement. The study also identified the link between employment contracts and organisational commitment, job involvement and employee motivation. However, a statistically significant relationship only existed between employment contracts and job involvement. Thus the different types of contracts have an effect on the level of employee involvement within an organisation. The implications of the findings are that organisations within the automotive industry should focus on areas that have a substantially greater impact on organisational commitment. These areas include workplace culture, job security, personality and career development. Organisations thus need to find methods or processes which facilitate the development of these areas. In order for organisations to move from good to great, a workforce that is committed to the goals and objectives is required.
- Full Text:
- Date Issued: 2013
Selected marketing communication methods influencing young adults' perceptions and buying intentions of healthy foods in South Africa
- Authors: Galloway, Kelly Lou
- Date: 2013
- Subjects: Restaurants -- Marketing , Food industry and trade -- South Africa , Fast food restaurants -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/6312 , vital:21072
- Description: For more than a decade (2001 – 2012) there has been extensive research conducted on the impact of marketing on food consumption, the promotion of healthy lifestyles and the use of media communication channels in the restaurant industry. However, no known research has focused specifically on the healthy fast-casual restaurant segment with a specific focus on media communication channels. This study attempts to address this limitation. The study deals with selected media communication channels and their influence on the healthy lifestyle perceptions and healthy lifestyle purchase intentions of young adult consumers in South Africa. The study considers the impact that a more selective choice of media communication channel can have on restaurants in the healthy fast-casual restaurant segment. Media communication channels are a vital part of a restaurant’s marketing communication program as they transmit messages between the business and its target market. In South Africa’s restaurant industry, there are numerous businesses that are conveying messages to consumers regarding their market offerings. This advertising clutter is aggravated by healthy fast-casual restaurants needing to compete against traditional fast-casual restaurants who are adding healthier items to their menus. The study’s secondary research included a literature review on marketing communication, selected media communication channels (print media, display media, broadcast media and online media) and the South African restaurant industry (with a focus on the healthy fast-casual segment). In addition, perception and purchase intention were discussed with a focus on healthy lifestyles and young adult consumers. In order to establish the influence of the selected media communication channels (print media, display media, broadcast media and online media) on young adults’ healthy lifestyle perceptions and healthy lifestyle purchase intentions an empirical investigation was also conducted. A positivistic research paradigm was used as quantitative methods were performed to identify significant relationships among the selected variables. The sample consisted of students from the Nelson Mandela Metropolitan University. A total of 440 questionnaires were distributed, with 350 usable. Therefore, a response rate of 79.55 per cent was obtained. The empirical investigation revealed that the items in the questionnaire that were used to gather information about healthy lifestyle perception and healthy lifestyle purchase intention loaded together on one factor which was renamed healthy lifestyle buying behaviour. Multiple regression analysis indicated that positive and statistically significant relationships existed between print media and healthy lifestyle buying behaviour and between online media and the healthy lifestyle buying behaviour of young adults. These relationships imply that an increased use of print media will reflect increased buying behaviour that supports healthy lifestyles amongst young adults. Similarly, the more online media is used, the more young adult buying behaviour will reflect healthier choices. This implies that restaurants in the healthy fast-casual restaurant segment can increase the demand for their market offerings and stand out amongst the advertising clutter through a more deliberate use of print media and online media. The study includes strategies that can be used to improve the use of print media and online media in order to influence the healthy lifestyle buying behaviour of young adults. Healthy lifestyle buying behaviours essentially will increase the demand for goods that support healthy lifestyles and therefore increase the demand for healthy fast-casual restaurants. The provision of healthy menu items and a more focused marketing program can be used as a strategy to attract more young adults as consumers, to grow business relationships with this target market, to enhance business performance and to create a healthier South African community.
- Full Text:
- Date Issued: 2013
- Authors: Galloway, Kelly Lou
- Date: 2013
- Subjects: Restaurants -- Marketing , Food industry and trade -- South Africa , Fast food restaurants -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/6312 , vital:21072
- Description: For more than a decade (2001 – 2012) there has been extensive research conducted on the impact of marketing on food consumption, the promotion of healthy lifestyles and the use of media communication channels in the restaurant industry. However, no known research has focused specifically on the healthy fast-casual restaurant segment with a specific focus on media communication channels. This study attempts to address this limitation. The study deals with selected media communication channels and their influence on the healthy lifestyle perceptions and healthy lifestyle purchase intentions of young adult consumers in South Africa. The study considers the impact that a more selective choice of media communication channel can have on restaurants in the healthy fast-casual restaurant segment. Media communication channels are a vital part of a restaurant’s marketing communication program as they transmit messages between the business and its target market. In South Africa’s restaurant industry, there are numerous businesses that are conveying messages to consumers regarding their market offerings. This advertising clutter is aggravated by healthy fast-casual restaurants needing to compete against traditional fast-casual restaurants who are adding healthier items to their menus. The study’s secondary research included a literature review on marketing communication, selected media communication channels (print media, display media, broadcast media and online media) and the South African restaurant industry (with a focus on the healthy fast-casual segment). In addition, perception and purchase intention were discussed with a focus on healthy lifestyles and young adult consumers. In order to establish the influence of the selected media communication channels (print media, display media, broadcast media and online media) on young adults’ healthy lifestyle perceptions and healthy lifestyle purchase intentions an empirical investigation was also conducted. A positivistic research paradigm was used as quantitative methods were performed to identify significant relationships among the selected variables. The sample consisted of students from the Nelson Mandela Metropolitan University. A total of 440 questionnaires were distributed, with 350 usable. Therefore, a response rate of 79.55 per cent was obtained. The empirical investigation revealed that the items in the questionnaire that were used to gather information about healthy lifestyle perception and healthy lifestyle purchase intention loaded together on one factor which was renamed healthy lifestyle buying behaviour. Multiple regression analysis indicated that positive and statistically significant relationships existed between print media and healthy lifestyle buying behaviour and between online media and the healthy lifestyle buying behaviour of young adults. These relationships imply that an increased use of print media will reflect increased buying behaviour that supports healthy lifestyles amongst young adults. Similarly, the more online media is used, the more young adult buying behaviour will reflect healthier choices. This implies that restaurants in the healthy fast-casual restaurant segment can increase the demand for their market offerings and stand out amongst the advertising clutter through a more deliberate use of print media and online media. The study includes strategies that can be used to improve the use of print media and online media in order to influence the healthy lifestyle buying behaviour of young adults. Healthy lifestyle buying behaviours essentially will increase the demand for goods that support healthy lifestyles and therefore increase the demand for healthy fast-casual restaurants. The provision of healthy menu items and a more focused marketing program can be used as a strategy to attract more young adults as consumers, to grow business relationships with this target market, to enhance business performance and to create a healthier South African community.
- Full Text:
- Date Issued: 2013
Share incentive schemes in South Africa : an analysis of company law, accounting and income tax implications
- Authors: Mentz, Melanie
- Date: 2013
- Subjects: Executives -- Salaries, etc. -- South Africa , Bonuses (Employee fringe benefits) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8969 , http://hdl.handle.net/10948/d1021109
- Description: In the last decade South Africa saw the introduction of s 8C into the Income Tax Act, no.58 of 1962, the introduction of IFRS 2 into the International Financial Reporting Standards and the promulgation of the 2008 Companies Act. Each of these changes is relevant to and impact on the consequences flowing from executive share incentive schemes, from the perspective of both the employer company offering the scheme and the employee participating in the scheme. The aim of this study was to analyse, from the employer company’s perspective, the implications of each discipline in isolation, as well as the interrelationship of the three disciplines. The further aims of this study were to utilise the findings from the analyses to identify where legislative amendment is required to close loopholes or ensure equitable results, to identify where the interrelationship of the three disciplines result in unintended consequences, and to provide recommendations on how to avoid these adverse consequences. The most significant findings of this study are summarised below. Due to the legal precedent created by the Supreme Court of Appeal in the Labat case, the mode of settlement – cash or equity – will be the determining factor as regards the availability of an income tax deduction in the hands of the employer company. It is submitted that legislative amendment is required to rectify this inequitable result. Where payment by the employer pursuant to a share appreciation rights scheme occurs in a year of assessment subsequent to the year of assessment in which vesting occurred, changes in the value of the underlying equity instrument from the vesting date to the payment date could result in adverse income tax consequences to the employer and/or the fiscus. To address this, it is recommended that the Income Tax Act should be amended to expressly bring cash-settled executive share incentive schemes within the scope of s 7B and to align the provisions of s 7B and 8C in order to avoid anomalies existing between these two sections in so far as the income tax consequences in the hands of the participating employees are concerned.
- Full Text:
- Date Issued: 2013
- Authors: Mentz, Melanie
- Date: 2013
- Subjects: Executives -- Salaries, etc. -- South Africa , Bonuses (Employee fringe benefits) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8969 , http://hdl.handle.net/10948/d1021109
- Description: In the last decade South Africa saw the introduction of s 8C into the Income Tax Act, no.58 of 1962, the introduction of IFRS 2 into the International Financial Reporting Standards and the promulgation of the 2008 Companies Act. Each of these changes is relevant to and impact on the consequences flowing from executive share incentive schemes, from the perspective of both the employer company offering the scheme and the employee participating in the scheme. The aim of this study was to analyse, from the employer company’s perspective, the implications of each discipline in isolation, as well as the interrelationship of the three disciplines. The further aims of this study were to utilise the findings from the analyses to identify where legislative amendment is required to close loopholes or ensure equitable results, to identify where the interrelationship of the three disciplines result in unintended consequences, and to provide recommendations on how to avoid these adverse consequences. The most significant findings of this study are summarised below. Due to the legal precedent created by the Supreme Court of Appeal in the Labat case, the mode of settlement – cash or equity – will be the determining factor as regards the availability of an income tax deduction in the hands of the employer company. It is submitted that legislative amendment is required to rectify this inequitable result. Where payment by the employer pursuant to a share appreciation rights scheme occurs in a year of assessment subsequent to the year of assessment in which vesting occurred, changes in the value of the underlying equity instrument from the vesting date to the payment date could result in adverse income tax consequences to the employer and/or the fiscus. To address this, it is recommended that the Income Tax Act should be amended to expressly bring cash-settled executive share incentive schemes within the scope of s 7B and to align the provisions of s 7B and 8C in order to avoid anomalies existing between these two sections in so far as the income tax consequences in the hands of the participating employees are concerned.
- Full Text:
- Date Issued: 2013
Taxing recurrent services rendered by a foreign company to an associated enterprise in South Africa
- Costa, David Patrick Anthony
- Authors: Costa, David Patrick Anthony
- Date: 2013
- Subjects: Vienna Convention on the Law of Treaties (1969) Tax administration and procedure -- South Africa Double taxation -- South Africa Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:906 , http://hdl.handle.net/10962/d1008269
- Description: The objective of the study was to investigate the right of the South African Government to tax the income earned by a foreign company when rendering services in South Africa to a South African associated enterprise on a recurrent basis, together with the right to tax the amounts paid to the employees of the permanent establishment for services rendered in South Africa. At the same time the research investigated whether the services rendered by a foreign company to an associated enterprise in South Africa on a recurrent basis would constitute a permanent establishment, as this is essential before South Africa may tax either the foreign company or the employees of the permanent establishment (where such employees are not resident in South Africa).The research was conducted by means of a critical analysis of documentary data and data from a limited number of interviews with academics and the authors of textbooks and articles. In order to limit the scope of the research, a number of assumptions were made. Conflicting viewpoints underlying certain of these assumptions were discussed. Some of the important conclusions reached are that the provisions of the Vienna Convention on the Law of Treaties should be taken into account when interpreting South African legislation (including Double Tax Agreements), and that the Organisation for Economic Cooperation and Development (OECD) Commentary may be relied upon when interpreting OECD based Double Tax Agreements in South Africa. No conclusion was reached on whether to apply an ambulatory or a static basis of interpreting the OECD Commentary, however. The final conclusion of the research is that the services rendered in South Africa on a recurrent basis would be geographically and commercially coherent and consequently meet the "location test'. It is clear that as the services are rendered regularly and recurrently, they would be regarded as having the necessary permanence and would meet the 'duration test'. The place of business would therefore be regarded as being fixed (having the necessary degree of permanence). As the services would be rendered at the place of business of the South African entity, they would be regarded as being rendered 'through' the place of business and the foreign entity would be regarded as having a permanent establishment in South Africa (as defined in Article 5(1) of the OECD Model Tax Convention}. The South African Government would therefore be entitled to tax the income attributable to the permanent establishment and the income earned by the non resident employees, who rendered services in South Africa for the permanent establishment. Once the entitlement to tax exists, South African legislative rules determine how South Africa proceeds to tax the income.
- Full Text:
- Date Issued: 2013
- Authors: Costa, David Patrick Anthony
- Date: 2013
- Subjects: Vienna Convention on the Law of Treaties (1969) Tax administration and procedure -- South Africa Double taxation -- South Africa Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:906 , http://hdl.handle.net/10962/d1008269
- Description: The objective of the study was to investigate the right of the South African Government to tax the income earned by a foreign company when rendering services in South Africa to a South African associated enterprise on a recurrent basis, together with the right to tax the amounts paid to the employees of the permanent establishment for services rendered in South Africa. At the same time the research investigated whether the services rendered by a foreign company to an associated enterprise in South Africa on a recurrent basis would constitute a permanent establishment, as this is essential before South Africa may tax either the foreign company or the employees of the permanent establishment (where such employees are not resident in South Africa).The research was conducted by means of a critical analysis of documentary data and data from a limited number of interviews with academics and the authors of textbooks and articles. In order to limit the scope of the research, a number of assumptions were made. Conflicting viewpoints underlying certain of these assumptions were discussed. Some of the important conclusions reached are that the provisions of the Vienna Convention on the Law of Treaties should be taken into account when interpreting South African legislation (including Double Tax Agreements), and that the Organisation for Economic Cooperation and Development (OECD) Commentary may be relied upon when interpreting OECD based Double Tax Agreements in South Africa. No conclusion was reached on whether to apply an ambulatory or a static basis of interpreting the OECD Commentary, however. The final conclusion of the research is that the services rendered in South Africa on a recurrent basis would be geographically and commercially coherent and consequently meet the "location test'. It is clear that as the services are rendered regularly and recurrently, they would be regarded as having the necessary permanence and would meet the 'duration test'. The place of business would therefore be regarded as being fixed (having the necessary degree of permanence). As the services would be rendered at the place of business of the South African entity, they would be regarded as being rendered 'through' the place of business and the foreign entity would be regarded as having a permanent establishment in South Africa (as defined in Article 5(1) of the OECD Model Tax Convention}. The South African Government would therefore be entitled to tax the income attributable to the permanent establishment and the income earned by the non resident employees, who rendered services in South Africa for the permanent establishment. Once the entitlement to tax exists, South African legislative rules determine how South Africa proceeds to tax the income.
- Full Text:
- Date Issued: 2013
The bank lending and balance sheet channels of monetary policy: a theoretical analysis
- Authors: Gumede, Nomdumiso Beryl
- Date: 2013
- Subjects: Monetary policy Money Bank loans Financial sheets
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:933 , http://hdl.handle.net/10962/d1001864
- Description: The credit channel and its significance in the monetary policy transmission mechanism has been a point of contention among policy makers and economists for many years. In the early stages of this debate the monetarist view shaped thinking on the topic and cultivated the belief that the money supply is exogenously determined and that commercial banks playa minor role in the monetary transmission process. However, over the years, the credit view presented by Bernanke and Blinder (1988) has gained momentum. In contrast to the monetarist view, the credit view abandons the assumption of perfect substitutability and argues that due to their credit provision activities, financial institutions playa significant role in the transmission of monetary policy. The credit channel consists of two sub channels, the bank lending and balance sheet channels. In both, deposits drive loans and changes in monetary policy are effected through interest rates and their impact on borrowers' balance sheets, bank reserves, bank deposits and ultimately the quantity of bank loans supplied. Disyatat (2010) re-examines the conventional view and presents an argument against the foundation upon which the theories are based. Using this as a basis, and motivated by the vast amount of empirical literature that already exists on this topic, both in South Africa and abroad, this research provides a theoretical analysis of the credit channel and its relative importance in the monetary policy transmission mechanism. The exogenous/endogenous nature of money supply is considered and its implications for the existence and operation of the credit channel set out. It is found that, in order for a credit channel to operate efficiently in an economy, money supply should be endogenously determined. Moreover, a theoretical argument supporting Disyatat's (2010) revised credit channel is presented; it is concluded that, with a slight variation to Disyatat's proposed model, a single, unified channel exists.
- Full Text:
- Date Issued: 2013
- Authors: Gumede, Nomdumiso Beryl
- Date: 2013
- Subjects: Monetary policy Money Bank loans Financial sheets
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:933 , http://hdl.handle.net/10962/d1001864
- Description: The credit channel and its significance in the monetary policy transmission mechanism has been a point of contention among policy makers and economists for many years. In the early stages of this debate the monetarist view shaped thinking on the topic and cultivated the belief that the money supply is exogenously determined and that commercial banks playa minor role in the monetary transmission process. However, over the years, the credit view presented by Bernanke and Blinder (1988) has gained momentum. In contrast to the monetarist view, the credit view abandons the assumption of perfect substitutability and argues that due to their credit provision activities, financial institutions playa significant role in the transmission of monetary policy. The credit channel consists of two sub channels, the bank lending and balance sheet channels. In both, deposits drive loans and changes in monetary policy are effected through interest rates and their impact on borrowers' balance sheets, bank reserves, bank deposits and ultimately the quantity of bank loans supplied. Disyatat (2010) re-examines the conventional view and presents an argument against the foundation upon which the theories are based. Using this as a basis, and motivated by the vast amount of empirical literature that already exists on this topic, both in South Africa and abroad, this research provides a theoretical analysis of the credit channel and its relative importance in the monetary policy transmission mechanism. The exogenous/endogenous nature of money supply is considered and its implications for the existence and operation of the credit channel set out. It is found that, in order for a credit channel to operate efficiently in an economy, money supply should be endogenously determined. Moreover, a theoretical argument supporting Disyatat's (2010) revised credit channel is presented; it is concluded that, with a slight variation to Disyatat's proposed model, a single, unified channel exists.
- Full Text:
- Date Issued: 2013
The deductibility of losses incurred by a taxpayer as a result of senior employee theft, fraud or embezzlement
- Authors: Bux, Fardeen
- Date: 2013
- Subjects: Customs administration -- Officials and employees , Employee theft -- South Africa , Customs inspection -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8964 , http://hdl.handle.net/10948/d1020608
- Description: SARS has issued a draft interpretation note dealing with the deductibility of expenditure and losses arising from embezzlement and theft by employees noting that it is not prepared to accept, as a general proposition, that embezzlement and theft by senior managers have become a risk which is inseparable from business. There is however another view that is in direct contradiction with SARS. An analysis of global fraud surveys reveal that senior employee fraud is on the increase. In South Africa, criminal cases against senior employees in the private and public sector indicate that their behaviour can lead to an expectation of theft, fraud or embezzlement at that level of employees. The tests developed by the courts for the deduction of expenditure or losses in terms of the general deduction formula require that such expenditure or loss be attached to the performance of a business operation bona fide performed for the purpose of earning income and will be deductible whether such expenditure or losses are necessary for its performance or attached to it by chance. It is submitted that the increase in fraud and behaviour of senior employees noted in the criminal courts have resulted in a change in the economic environment supporting the contention that theft, fraud or embezzlement are an inherent risk to business in South Africa. In addition, global precedence supports the view that senior employee defalcations are deductible but only to the extent that the perpetrator is not in a proprietor or shareholder role. SARS therefore appears to be turning a blind eye to the risk of theft, fraud or embezzlement by senior employees but there is sufficient evidence to support a taxpayer wishing to claim a deduction for such loss. In light of international precedence, National Treasury should enact legislation allowing a deduction or alternatively, SARS should align its view with such precedence.
- Full Text:
- Date Issued: 2013
- Authors: Bux, Fardeen
- Date: 2013
- Subjects: Customs administration -- Officials and employees , Employee theft -- South Africa , Customs inspection -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8964 , http://hdl.handle.net/10948/d1020608
- Description: SARS has issued a draft interpretation note dealing with the deductibility of expenditure and losses arising from embezzlement and theft by employees noting that it is not prepared to accept, as a general proposition, that embezzlement and theft by senior managers have become a risk which is inseparable from business. There is however another view that is in direct contradiction with SARS. An analysis of global fraud surveys reveal that senior employee fraud is on the increase. In South Africa, criminal cases against senior employees in the private and public sector indicate that their behaviour can lead to an expectation of theft, fraud or embezzlement at that level of employees. The tests developed by the courts for the deduction of expenditure or losses in terms of the general deduction formula require that such expenditure or loss be attached to the performance of a business operation bona fide performed for the purpose of earning income and will be deductible whether such expenditure or losses are necessary for its performance or attached to it by chance. It is submitted that the increase in fraud and behaviour of senior employees noted in the criminal courts have resulted in a change in the economic environment supporting the contention that theft, fraud or embezzlement are an inherent risk to business in South Africa. In addition, global precedence supports the view that senior employee defalcations are deductible but only to the extent that the perpetrator is not in a proprietor or shareholder role. SARS therefore appears to be turning a blind eye to the risk of theft, fraud or embezzlement by senior employees but there is sufficient evidence to support a taxpayer wishing to claim a deduction for such loss. In light of international precedence, National Treasury should enact legislation allowing a deduction or alternatively, SARS should align its view with such precedence.
- Full Text:
- Date Issued: 2013
The effect of global e-commerce on taxation legislation and the permanent establishment concept in South Africa
- Authors: Young, Nikita Jade
- Date: 2013
- Subjects: Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa , South African taxation , E-commerce , Permanent establishment , Foreign business entity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:876 , http://hdl.handle.net/10962/d1001608 , Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa
- Description: The objective of this thesis was to analyse the effect of the increasing popularity of global e-commerce on the South African legislative framework in respect of the taxation of non-resident enterprises, and to propose a possible solution for the taxation of e-commerce, taking into account previous theories. The methodology utilised comprised of a critical analysis of the legal rules relating to the taxation of a foreign entity's business profits by virtue of the application of the permanent establishment principle, its definition and evolution as a conceptual basis for taxation. Furthermore, an in depth evaluation of the various solutions that have already been proposed and, in some cases, implemented was undertaken. It was concluded that the application of the permanent establishment principle is wholly ineffective as a means to levy tax on the e-commerce business profits of a foreign entity as the principle relies too heavily upon a physical intermediary in the source state, whereas e-commerce transactions are conducted on the intangible trading platform of the Internet. In light of the numerous policy proposals advanced over the years, it was concluded that the most feasible and practical solution for the taxation of foreign e-commerce would be the imposition on a foreign entity in South Africa of a low withholding tax on the active business profits in excess of a pre-determined threshold. Key words: South African taxation; e-commerce; foreign business entity; permanent establishment; withholding tax
- Full Text:
- Date Issued: 2013
- Authors: Young, Nikita Jade
- Date: 2013
- Subjects: Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa , South African taxation , E-commerce , Permanent establishment , Foreign business entity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:876 , http://hdl.handle.net/10962/d1001608 , Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa
- Description: The objective of this thesis was to analyse the effect of the increasing popularity of global e-commerce on the South African legislative framework in respect of the taxation of non-resident enterprises, and to propose a possible solution for the taxation of e-commerce, taking into account previous theories. The methodology utilised comprised of a critical analysis of the legal rules relating to the taxation of a foreign entity's business profits by virtue of the application of the permanent establishment principle, its definition and evolution as a conceptual basis for taxation. Furthermore, an in depth evaluation of the various solutions that have already been proposed and, in some cases, implemented was undertaken. It was concluded that the application of the permanent establishment principle is wholly ineffective as a means to levy tax on the e-commerce business profits of a foreign entity as the principle relies too heavily upon a physical intermediary in the source state, whereas e-commerce transactions are conducted on the intangible trading platform of the Internet. In light of the numerous policy proposals advanced over the years, it was concluded that the most feasible and practical solution for the taxation of foreign e-commerce would be the imposition on a foreign entity in South Africa of a low withholding tax on the active business profits in excess of a pre-determined threshold. Key words: South African taxation; e-commerce; foreign business entity; permanent establishment; withholding tax
- Full Text:
- Date Issued: 2013
The effect of the Nelson Mandela Bay Stadium on surrounding house prices: a hedonic analysis
- Authors: Fernandes, Gladys Nicola
- Date: 2013
- Subjects: Housing -- Prices -- South Africa -- Port Elizabeth , Stadiums -- Economic aspects -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9026 , http://hdl.handle.net/10948/d1020216
- Description: Sports facilities increasingly feature amongst the most expensive development projects world-wide. One such facility includes world-class stadia. Such facilities tend to commit a considerably large amount of a country's public funds to the project. This public expenditure on new stadia, and the required public taxation, may be economically justified if the benefits from the new stadia outweigh the costs. 15 May 2004 saw South Africa winning the bid to host the FIFA 2010 Soccer World Cup tournament. This mega-event was played in 10 stadia across nine chosen host cities. Five of these stadia were newly constructed, while the other five needed upgrading. Both South Africa's national government and local governments of host cities bore the expenses of the new stadia construction and the upgrading to the existing stadia. This amounted to a total public expenditure of R13.5295 billion on the stadia alone. The Nelson Mandela Bay Stadium on the banks of the North End Lake in Port Elizabeth was amongst the five newly constructed stadia costing R1.7 billion. Many international studies have been conducted to assess the impact of new stadia on the economies of host cities. One particular aspect which has received a lot of attention as far as empirical research is concerned is the impact of stadia on residential property prices (Carlino & Couslon, 2004; Davies, 2005; Tu, 2005; Coates & Humphreys, 2006; Ahlfeldt & Maennig, 2007, 2010; Dehring, Depken & Ward, 2007; Feng & Humphreys, 2008, 2012; Kavetsos, 2010; Ahlfeldt, Maennig & Scholz, 2010; Kiel, Matheson & Sullivan, 2010; Ahlfeldt & Kavetsos, 2011; Coates & Matheson, 2011). The majority of the studies conducted have indicated that the presence of a new stadium in an area has a significantly positive effect on surrounding house values that decays with distance from the facility. As no study has yet been done in South Africa to investigate the impact of the announcement of the construction of new stadia on nearby residential property values, this study examines, by means of the hedonic pricing model, the effect of the announcement to construct the Nelson Mandela Bay Stadium on the banks of North End Lake on adjacent residential property values. The study period for this study was 2004 - 2006. This time period captured the stadium announcement effect. The residential properties in North End that were traded at least once during the period 2004 to 2006 made up the target population. According to the South African Property Transfer Guide (SAPTG), a total of 417 property transactions (excluding repeat sales) took place over the study period (2004 - 2006). The 417 transactions were deemed to be the size of the target population and a list of 100 property transactions were used as the sampling frame. As the study period was from 2004 - 2006, it was necessary to adjust the market prices to constant 2006 prices. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used so as to eliminate any inflationary effects on the property values over the study period. The results of the study revealed that the stadium has a statistically significant positive effect on adjacent residential properties situated within a 1 200 metres radius from the stadium. The average owner of a residential property in North End would be willing-to-pay between R10 7898 and R11 704.6 to be situated 435 metres closer to the stadium.
- Full Text:
- Date Issued: 2013
- Authors: Fernandes, Gladys Nicola
- Date: 2013
- Subjects: Housing -- Prices -- South Africa -- Port Elizabeth , Stadiums -- Economic aspects -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9026 , http://hdl.handle.net/10948/d1020216
- Description: Sports facilities increasingly feature amongst the most expensive development projects world-wide. One such facility includes world-class stadia. Such facilities tend to commit a considerably large amount of a country's public funds to the project. This public expenditure on new stadia, and the required public taxation, may be economically justified if the benefits from the new stadia outweigh the costs. 15 May 2004 saw South Africa winning the bid to host the FIFA 2010 Soccer World Cup tournament. This mega-event was played in 10 stadia across nine chosen host cities. Five of these stadia were newly constructed, while the other five needed upgrading. Both South Africa's national government and local governments of host cities bore the expenses of the new stadia construction and the upgrading to the existing stadia. This amounted to a total public expenditure of R13.5295 billion on the stadia alone. The Nelson Mandela Bay Stadium on the banks of the North End Lake in Port Elizabeth was amongst the five newly constructed stadia costing R1.7 billion. Many international studies have been conducted to assess the impact of new stadia on the economies of host cities. One particular aspect which has received a lot of attention as far as empirical research is concerned is the impact of stadia on residential property prices (Carlino & Couslon, 2004; Davies, 2005; Tu, 2005; Coates & Humphreys, 2006; Ahlfeldt & Maennig, 2007, 2010; Dehring, Depken & Ward, 2007; Feng & Humphreys, 2008, 2012; Kavetsos, 2010; Ahlfeldt, Maennig & Scholz, 2010; Kiel, Matheson & Sullivan, 2010; Ahlfeldt & Kavetsos, 2011; Coates & Matheson, 2011). The majority of the studies conducted have indicated that the presence of a new stadium in an area has a significantly positive effect on surrounding house values that decays with distance from the facility. As no study has yet been done in South Africa to investigate the impact of the announcement of the construction of new stadia on nearby residential property values, this study examines, by means of the hedonic pricing model, the effect of the announcement to construct the Nelson Mandela Bay Stadium on the banks of North End Lake on adjacent residential property values. The study period for this study was 2004 - 2006. This time period captured the stadium announcement effect. The residential properties in North End that were traded at least once during the period 2004 to 2006 made up the target population. According to the South African Property Transfer Guide (SAPTG), a total of 417 property transactions (excluding repeat sales) took place over the study period (2004 - 2006). The 417 transactions were deemed to be the size of the target population and a list of 100 property transactions were used as the sampling frame. As the study period was from 2004 - 2006, it was necessary to adjust the market prices to constant 2006 prices. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used so as to eliminate any inflationary effects on the property values over the study period. The results of the study revealed that the stadium has a statistically significant positive effect on adjacent residential properties situated within a 1 200 metres radius from the stadium. The average owner of a residential property in North End would be willing-to-pay between R10 7898 and R11 704.6 to be situated 435 metres closer to the stadium.
- Full Text:
- Date Issued: 2013
The entrepreneurial orientation of small businesses in the Eastern Cape
- Authors: Matchaba-Hove, Mtonhodzi
- Date: 2013
- Subjects: Small business -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Job creation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9304 , http://hdl.handle.net/10948/d1017139
- Description: The high failure rate among small businesses in South Africa has created an urgent need to identify strategies that will improve their levels of performance. The purpose of this study was to investigate the relationship between the entrepreneurial orientation of small businesses in the Eastern Cape and their level of business success. Entrepreneurial orientation was assessed in terms of the 5 dimensions of entrepreneurial orientation, namely Innovativeness, Proactiveness, Competitive aggressiveness, Risk-taking and Autonomy. Business success was assessed in terms of profitability and growth. A literature overview was firstly conducted. The nature and importance of small businesses were described, and the important contributions they make to economic growth, job creation and innovation, as well alleviating poverty and redistributing income were highlighted. The various challenges faced by small businesses were also discussed. Among these challenges, the lack of entrepreneurial orientation was specifically highlighted as a major barrier to small business success. The nature of entrepreneurial orientation and the five dimensions thereof were described. A theoretical framework was proposed illustrating the relationships between the 5 dimensions of entrepreneurial orientation and business success that were to be empirically tested. A positivistic research paradigm was followed and a quantitative approach was implemented. Convenience sampling was used and a total of 350 questionnaires were distributed to small businesses in the Eastern Cape; 317 usable questionnaires were yielded. A measuring instrument was developed based on reliable and valid items from existing studies. Statistical techniques including descriptive statistics, Pearson's product moment correlations, Structural Equation Modelling and an Analysis of Variance were performed on the gathered data. Demographic data relating to the gender, age and race of the respondents, as well as data relating to the number of employees, the tenure of the business, and nature of industry in which the small businesses operate, were collected. An exploratory factor analysis was undertaken, and Cronbach‟s alpha coefficients were calculated to assess the validity and reliability of the measuring instrument. The independent variables, Innovativeness and Proactiveness, could not be confirmed by the factor analysis and a new dimension emerged which was named Proactive innovativeness. As a result of the factor analysis the operational definitions were rephrased. The Cronbach‟s alpha coefficients reported were all greater than 0.7, deeming the scales measuring the various dimensions reliable. Descriptive statistics were calculated to summarise the sample data, and Pearson's product-moment correlation coefficients were established to investigate the associations between the variables. Significant positive correlations were reported between all of the variables. SEM was performed to determine the significance of the relationships hypothesised between the independent and dependent variables in this study. The results of this study showed that the independent variables Competitive aggressiveness, Proactive innovativeness and Autonomy have a significant positive influence on the dependent variable Business success, while Risk-taking was found to have a significant negative influence on Business success. Furthermore, the results showed that Proactive innovativeness was higher in larger-sized small businesses, Autonomy was reported to be higher in small businesses where the owner was in possession of a tertiary qualification, and Risk-taking was found to be higher in small businesses owned by people of colour than in businesses owned by White respondents. In a business environment where change is constant, small business owners need to be able to adapt their operations and strategies to these changes and the consumer demands these changes may bring. Small business owners need to be able to strategically reinvent their businesses if they are to survive over the long term. The level of entrepreneurial orientation has been identified as having a positive influence on business success. The more small businesses implement Proactive innovativeness, Competitive aggressiveness, calculated and cautions Risk-taking and Autonomy, the better the chances are that they will be successful
- Full Text:
- Date Issued: 2013
- Authors: Matchaba-Hove, Mtonhodzi
- Date: 2013
- Subjects: Small business -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Job creation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9304 , http://hdl.handle.net/10948/d1017139
- Description: The high failure rate among small businesses in South Africa has created an urgent need to identify strategies that will improve their levels of performance. The purpose of this study was to investigate the relationship between the entrepreneurial orientation of small businesses in the Eastern Cape and their level of business success. Entrepreneurial orientation was assessed in terms of the 5 dimensions of entrepreneurial orientation, namely Innovativeness, Proactiveness, Competitive aggressiveness, Risk-taking and Autonomy. Business success was assessed in terms of profitability and growth. A literature overview was firstly conducted. The nature and importance of small businesses were described, and the important contributions they make to economic growth, job creation and innovation, as well alleviating poverty and redistributing income were highlighted. The various challenges faced by small businesses were also discussed. Among these challenges, the lack of entrepreneurial orientation was specifically highlighted as a major barrier to small business success. The nature of entrepreneurial orientation and the five dimensions thereof were described. A theoretical framework was proposed illustrating the relationships between the 5 dimensions of entrepreneurial orientation and business success that were to be empirically tested. A positivistic research paradigm was followed and a quantitative approach was implemented. Convenience sampling was used and a total of 350 questionnaires were distributed to small businesses in the Eastern Cape; 317 usable questionnaires were yielded. A measuring instrument was developed based on reliable and valid items from existing studies. Statistical techniques including descriptive statistics, Pearson's product moment correlations, Structural Equation Modelling and an Analysis of Variance were performed on the gathered data. Demographic data relating to the gender, age and race of the respondents, as well as data relating to the number of employees, the tenure of the business, and nature of industry in which the small businesses operate, were collected. An exploratory factor analysis was undertaken, and Cronbach‟s alpha coefficients were calculated to assess the validity and reliability of the measuring instrument. The independent variables, Innovativeness and Proactiveness, could not be confirmed by the factor analysis and a new dimension emerged which was named Proactive innovativeness. As a result of the factor analysis the operational definitions were rephrased. The Cronbach‟s alpha coefficients reported were all greater than 0.7, deeming the scales measuring the various dimensions reliable. Descriptive statistics were calculated to summarise the sample data, and Pearson's product-moment correlation coefficients were established to investigate the associations between the variables. Significant positive correlations were reported between all of the variables. SEM was performed to determine the significance of the relationships hypothesised between the independent and dependent variables in this study. The results of this study showed that the independent variables Competitive aggressiveness, Proactive innovativeness and Autonomy have a significant positive influence on the dependent variable Business success, while Risk-taking was found to have a significant negative influence on Business success. Furthermore, the results showed that Proactive innovativeness was higher in larger-sized small businesses, Autonomy was reported to be higher in small businesses where the owner was in possession of a tertiary qualification, and Risk-taking was found to be higher in small businesses owned by people of colour than in businesses owned by White respondents. In a business environment where change is constant, small business owners need to be able to adapt their operations and strategies to these changes and the consumer demands these changes may bring. Small business owners need to be able to strategically reinvent their businesses if they are to survive over the long term. The level of entrepreneurial orientation has been identified as having a positive influence on business success. The more small businesses implement Proactive innovativeness, Competitive aggressiveness, calculated and cautions Risk-taking and Autonomy, the better the chances are that they will be successful
- Full Text:
- Date Issued: 2013
The feasibility of forming a monetary union in SADC : meeting convergence and optimum currency area criteria and evaluating fiscal sustainability
- Authors: Mokoena, Motshidisi Suzan
- Date: 2013
- Subjects: Southern African Development Community Economic and Monetary Union Common Monetary Area (Organization) Economic policy -- Africa, Southern Monetary policy -- Africa, Southern Monetary unions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1073 , http://hdl.handle.net/10962/d1007743
- Description: In conformity with the goal of the African Union to build a monetary union for the entire African continent, one of the goals of the Southern African Development Community (SADC) is the formation of a monetary union with a single central bank. Towards this end certain macroeconomic convergence criteria, which are closely aligned with those used by the European Union (EU), have been set. While empirical research on whether or not SADC would benefit from the formation of a currency union has focused on the optimum currency area criteria, no reference to these criteria is made in the SADC programme. Instead, the SADC approach has been governed by a set of macroeconomic convergence criteria synonymous with those pursued by the European Monetary Union (EMU) prior to its formation. Doubts regarding the future of the EU have recently been raised as a result of debt crises in certain member states, implicitly raising questions about the adequacy of the convergence criteria that were adopted. Accordingly, this study considers the feasibility of establishing a currency union in the SADC region. The proposed convergence criteria are assessed against the theory of optimum currency areas as well as in terms of their adequacy in the light of recent EU experience. In addition, the paper provides a preliminary assessment of the fiscal sustainability of the SADC region by conducting Engle-Granger cointegration tests on the public debt and revenue series for the SADC countries under analysis. It was observed that SADC has made considerable progress towards meeting its macroeconomic convergence criteria in recent years. However, in light of the regions' heavy dependence on commodity exports coupled with recent price fluctuations in this regard, the sustainability of this progress is questioned. Furthermore, a review of the EMU experience to date highlights numerous flaws in its approach and the potential challenges the SADC region should consider in moving forward with its agenda. In essence, the study suggests that almost all the SADC member states are fiscally unprepared for monetary union formation and the recent EMU debt crisis has highlighted the importance of acquiring a state of fiscal sustainability prior to union formation. In addition, it is imperative that the SADC members continue to address issues of product diversification, intraregional trade and political unification, all of which should be governed by a centralised fiscal authoriry.
- Full Text:
- Date Issued: 2013
- Authors: Mokoena, Motshidisi Suzan
- Date: 2013
- Subjects: Southern African Development Community Economic and Monetary Union Common Monetary Area (Organization) Economic policy -- Africa, Southern Monetary policy -- Africa, Southern Monetary unions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1073 , http://hdl.handle.net/10962/d1007743
- Description: In conformity with the goal of the African Union to build a monetary union for the entire African continent, one of the goals of the Southern African Development Community (SADC) is the formation of a monetary union with a single central bank. Towards this end certain macroeconomic convergence criteria, which are closely aligned with those used by the European Union (EU), have been set. While empirical research on whether or not SADC would benefit from the formation of a currency union has focused on the optimum currency area criteria, no reference to these criteria is made in the SADC programme. Instead, the SADC approach has been governed by a set of macroeconomic convergence criteria synonymous with those pursued by the European Monetary Union (EMU) prior to its formation. Doubts regarding the future of the EU have recently been raised as a result of debt crises in certain member states, implicitly raising questions about the adequacy of the convergence criteria that were adopted. Accordingly, this study considers the feasibility of establishing a currency union in the SADC region. The proposed convergence criteria are assessed against the theory of optimum currency areas as well as in terms of their adequacy in the light of recent EU experience. In addition, the paper provides a preliminary assessment of the fiscal sustainability of the SADC region by conducting Engle-Granger cointegration tests on the public debt and revenue series for the SADC countries under analysis. It was observed that SADC has made considerable progress towards meeting its macroeconomic convergence criteria in recent years. However, in light of the regions' heavy dependence on commodity exports coupled with recent price fluctuations in this regard, the sustainability of this progress is questioned. Furthermore, a review of the EMU experience to date highlights numerous flaws in its approach and the potential challenges the SADC region should consider in moving forward with its agenda. In essence, the study suggests that almost all the SADC member states are fiscally unprepared for monetary union formation and the recent EMU debt crisis has highlighted the importance of acquiring a state of fiscal sustainability prior to union formation. In addition, it is imperative that the SADC members continue to address issues of product diversification, intraregional trade and political unification, all of which should be governed by a centralised fiscal authoriry.
- Full Text:
- Date Issued: 2013
The impact of electricity on economic growth in South Africa
- Authors: Ndlovu, Vanessa Constance
- Date: 2013
- Subjects: Economic development -- South Africa , Power resources -- South Africa , Electric power consumption -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9022 , http://hdl.handle.net/10948/d1019787
- Description: Since 1994, with many of its sanctions lifted, South Africa became a stronger economic power house in Africa leading the continent‘s industrial output and mineral production and generating a large proportion of Africa‘s electricity. The South African economy has since been growing at a fast pace which has also led to an increase in the demand for electricity. South Africa‘s generating capacity has remained constant through a consistently increasing demand, leading to an electricity shortfall. An immediate threat to South Africa‘s continued economic growth is a capacity constraint in terms of energy supply. Increasing economic growth coupled with the rapid industrialisation and mass electrification programme of the last decade, as well as planned and unplanned maintenance and coal stock pile problems led, in January 2008, to demand out stripping supply. With electricity being an important component of economic development, it is vital that the impact of the supply of electricity on the economic growth of the country be well understood. Currently few studies have been done on the analysis of this relationship in South Africa specifically and how this relationship impacts specific sectors of the economy that contributes to the total GDP of the country. This study has assumed rigorous application of Granger technique with proper statistical verification of assumptions, selection of relevant variables and provides trusted statistical forecasts. In an attempt to understand this relationship, an Econometric model has been developed to assess the impact of electricity supply and price on the economic growth of South Africa. In the empirical analysis section of this study it was found that with a forecast for GDP, past values of electricity prices and coal sales may be used to forecast electricity supply. It was also found that if we have a forecast value of future electricity price we can use past values of electricity supply and coal sales to forecast GDP for the next quarter. We also found that electricity supply is granger caused by GDP; electricity price; and total coal sales. And that economic growth is granger caused by electricity supply; electricity price; and total coal sales. It was concluded that in order for government to improve the economic growth of South Africa, a major focus on the energy industry is needed to ensure sustainable supply capacity. The energy sector, as was shown in the study, has a major impact in the functioning of the Gross Domestic Product of the country.
- Full Text:
- Date Issued: 2013
- Authors: Ndlovu, Vanessa Constance
- Date: 2013
- Subjects: Economic development -- South Africa , Power resources -- South Africa , Electric power consumption -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9022 , http://hdl.handle.net/10948/d1019787
- Description: Since 1994, with many of its sanctions lifted, South Africa became a stronger economic power house in Africa leading the continent‘s industrial output and mineral production and generating a large proportion of Africa‘s electricity. The South African economy has since been growing at a fast pace which has also led to an increase in the demand for electricity. South Africa‘s generating capacity has remained constant through a consistently increasing demand, leading to an electricity shortfall. An immediate threat to South Africa‘s continued economic growth is a capacity constraint in terms of energy supply. Increasing economic growth coupled with the rapid industrialisation and mass electrification programme of the last decade, as well as planned and unplanned maintenance and coal stock pile problems led, in January 2008, to demand out stripping supply. With electricity being an important component of economic development, it is vital that the impact of the supply of electricity on the economic growth of the country be well understood. Currently few studies have been done on the analysis of this relationship in South Africa specifically and how this relationship impacts specific sectors of the economy that contributes to the total GDP of the country. This study has assumed rigorous application of Granger technique with proper statistical verification of assumptions, selection of relevant variables and provides trusted statistical forecasts. In an attempt to understand this relationship, an Econometric model has been developed to assess the impact of electricity supply and price on the economic growth of South Africa. In the empirical analysis section of this study it was found that with a forecast for GDP, past values of electricity prices and coal sales may be used to forecast electricity supply. It was also found that if we have a forecast value of future electricity price we can use past values of electricity supply and coal sales to forecast GDP for the next quarter. We also found that electricity supply is granger caused by GDP; electricity price; and total coal sales. And that economic growth is granger caused by electricity supply; electricity price; and total coal sales. It was concluded that in order for government to improve the economic growth of South Africa, a major focus on the energy industry is needed to ensure sustainable supply capacity. The energy sector, as was shown in the study, has a major impact in the functioning of the Gross Domestic Product of the country.
- Full Text:
- Date Issued: 2013
The impact of estate planning on the effectiveness of estate duty as a wealth tax in South Africa
- Authors: Ostler, Luise Marie
- Date: 2013
- Subjects: Wealth tax -- Law and legislation -- South Africa Estates (Law) -- South Africa Inheritance and transfer tax -- Law and legislation -- South Africa Estate planning -- South Africa Tax planning -- South Africa Capital gains tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:894 , http://hdl.handle.net/10962/d1003741
- Description: The thesis examined the current system of the taxation of wealth in South Africa with an emphasis on the taxes that apply upon the death of the taxpayer. The focus of the research was on the problems associated with estate duty, namely the issue of double taxation; the alleged cumbersome administration of the tax and the limited revenue that it brings in; it’s questionable efficacy due to extensive estate planning on the part of taxpayers while they are still alive and its lack of uniformity with other wealth taxes. An interpretative research approach was followed which involved analysing documentary data. The conclusions that were reached were that estate duty as a wealth tax in South Africa has been rendered ineffective due to the inherent problems associated with its application, namely the fact that double taxation exists, not only in the context of capital gains tax, but also in that taxpayers resent being taxed upon death after having paid income tax during their lives. The perceived unfairness that is associated with estate duty has caused the creation of a secondary industry of estate planning, with the aim of minimising estate duty, which industry has resulted in the ineffectiveness of estate duty and its limited revenue. No evidence could be found regarding the Treasury’s assertion that estate duty is a cumbersome tax to administer. The final conclusion reached was that the current estate duty regime needs to be overhauled preferably by extending the current system of capital gains tax and abolishing estate duty, with due consideration being given to the consequences associated therewith.
- Full Text:
- Date Issued: 2013
- Authors: Ostler, Luise Marie
- Date: 2013
- Subjects: Wealth tax -- Law and legislation -- South Africa Estates (Law) -- South Africa Inheritance and transfer tax -- Law and legislation -- South Africa Estate planning -- South Africa Tax planning -- South Africa Capital gains tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:894 , http://hdl.handle.net/10962/d1003741
- Description: The thesis examined the current system of the taxation of wealth in South Africa with an emphasis on the taxes that apply upon the death of the taxpayer. The focus of the research was on the problems associated with estate duty, namely the issue of double taxation; the alleged cumbersome administration of the tax and the limited revenue that it brings in; it’s questionable efficacy due to extensive estate planning on the part of taxpayers while they are still alive and its lack of uniformity with other wealth taxes. An interpretative research approach was followed which involved analysing documentary data. The conclusions that were reached were that estate duty as a wealth tax in South Africa has been rendered ineffective due to the inherent problems associated with its application, namely the fact that double taxation exists, not only in the context of capital gains tax, but also in that taxpayers resent being taxed upon death after having paid income tax during their lives. The perceived unfairness that is associated with estate duty has caused the creation of a secondary industry of estate planning, with the aim of minimising estate duty, which industry has resulted in the ineffectiveness of estate duty and its limited revenue. No evidence could be found regarding the Treasury’s assertion that estate duty is a cumbersome tax to administer. The final conclusion reached was that the current estate duty regime needs to be overhauled preferably by extending the current system of capital gains tax and abolishing estate duty, with due consideration being given to the consequences associated therewith.
- Full Text:
- Date Issued: 2013
The influence of business social responsibility on the brand image and business performance of small and medium-sized enterprises
- Authors: Zeka, Bomikazi
- Date: 2013
- Subjects: Business names
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9056 , http://hdl.handle.net/10948/d1007753 , Business names
- Description: Given the importance of the contribution of small and medium-sized enterprises (SMEs) in national and international economies, there is a lack of research attention given to the role that social responsibility can play in the success of SMEs. A vast amount of research has been conducted on how social responsibility can be beneficial to larger and more established enterprises; however, the benefits that can accrue to SMEs and their different stakeholder groups is less evident. Thus, the primary objective of this study is to investigate the influence of business social responsibility (BSR) on the brand image and business performance of SMEs. After a comprehensive literature review was undertaken on SMEs in South Africa, as well as the concept BSR and its various dimensions, the following independent variables were identified as possibly influencing the intervening variable (Brand Image) and the dependent variable (Business Performance) in this study: • Diversity • Environmental Awareness • Community Development • Stakeholder Relations These independent variables were selected to construct a hypothetical model and research hypotheses, as they are the four most commonly recognised BSR initiatives in which SMEs can engage. These independent variables were used in determining whether BSR could possible lead to a positive brand image and ultimately, an increased business performance for SMEs. In order to establish the influence of BSR on the brand image and business performance of SMEs, an empirical investigation was undertaken. A measuring instrument, in the form of a questionnaire, was compiled from secondary literature sources. The respondents were identified through the convenience sampling technique and the 200 usable questionnaires gathered from the respondents, were subjected to statistical analyses. The validity and reliability of the measuring instrument was confirmed by means of an exploratory factor analysis (EFA) and the calculation of Cronbach‟s alpha coefficients. As a result of conducting EFAs, some definitions of the variables were adapted. However, none of the variables used in the study were eliminated, nor did additional variables occur following the EFAs. Consequently, the hypothetical model and its research hypotheses remained the same. During the data analyses, descriptive statistics were calculated to summarise the sample data and Pearson‟s Product Moment Correlations were calculated to establish the correlations between the variables used in this study. The primary statistical procedure used to test the significance of the relationships hypothesised between the independent, intervening and dependent variables in this study, was the multiple linear regression analysis. To conclude the empirical investigation, a t-test and Analysis of Variance (ANOVA) tests were performed to assess the influence of demographic variables on respondents‟ perceptions regarding the independent, intervening and dependent variables used in the study. Furthermore, to establish significant differences between individual mean scores, post-hoc Sheffé tests were calculated, and practical significance was assessed by calculating Cohen‟s d values. The main empirical findings showed that there is a significant relationship found between the independent variables, Environmental Awareness, Community Development and Stakeholder Relations, with the intervening variable Brand Image and the dependent variable Business Performance. The empirical investigation showed that younger respondents had a more positive perception of Brand Image than older respondents, along with respondents who held the position of manager in the enterprise. The study also revealed that the more work experience the respondent had, the less optimistic they were about Brand Image. Furthermore, enterprises that have been in existence for a fewer amount of years than their older counterparts, considered Brand Image to be more important. Therefore, there is a distinction that can be made that younger respondents and younger enterprises had a more positive perception of brand image than older respondents and enterprises that have been in existence for a longer period of time. This study has added to the limited amount of literature on BSR in the field of SMEs. Through the hypothetical model developed in this study, a significant contribution has been made towards understanding the BSR factors influencing the success of SMEs. As a result, this study presents recommendations and suggestions to assist SME owners/managers who engage in social responsibility to continue to make positive contributions for the welfare of their stakeholders and the community at large and also to encourage SME owners/managers who do not engage in BSR to consider the various benefits that can accrue to their stakeholders and the enterprise itself, as this may ultimately enhance the business performance of their SMEs.
- Full Text:
- Date Issued: 2013
- Authors: Zeka, Bomikazi
- Date: 2013
- Subjects: Business names
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9056 , http://hdl.handle.net/10948/d1007753 , Business names
- Description: Given the importance of the contribution of small and medium-sized enterprises (SMEs) in national and international economies, there is a lack of research attention given to the role that social responsibility can play in the success of SMEs. A vast amount of research has been conducted on how social responsibility can be beneficial to larger and more established enterprises; however, the benefits that can accrue to SMEs and their different stakeholder groups is less evident. Thus, the primary objective of this study is to investigate the influence of business social responsibility (BSR) on the brand image and business performance of SMEs. After a comprehensive literature review was undertaken on SMEs in South Africa, as well as the concept BSR and its various dimensions, the following independent variables were identified as possibly influencing the intervening variable (Brand Image) and the dependent variable (Business Performance) in this study: • Diversity • Environmental Awareness • Community Development • Stakeholder Relations These independent variables were selected to construct a hypothetical model and research hypotheses, as they are the four most commonly recognised BSR initiatives in which SMEs can engage. These independent variables were used in determining whether BSR could possible lead to a positive brand image and ultimately, an increased business performance for SMEs. In order to establish the influence of BSR on the brand image and business performance of SMEs, an empirical investigation was undertaken. A measuring instrument, in the form of a questionnaire, was compiled from secondary literature sources. The respondents were identified through the convenience sampling technique and the 200 usable questionnaires gathered from the respondents, were subjected to statistical analyses. The validity and reliability of the measuring instrument was confirmed by means of an exploratory factor analysis (EFA) and the calculation of Cronbach‟s alpha coefficients. As a result of conducting EFAs, some definitions of the variables were adapted. However, none of the variables used in the study were eliminated, nor did additional variables occur following the EFAs. Consequently, the hypothetical model and its research hypotheses remained the same. During the data analyses, descriptive statistics were calculated to summarise the sample data and Pearson‟s Product Moment Correlations were calculated to establish the correlations between the variables used in this study. The primary statistical procedure used to test the significance of the relationships hypothesised between the independent, intervening and dependent variables in this study, was the multiple linear regression analysis. To conclude the empirical investigation, a t-test and Analysis of Variance (ANOVA) tests were performed to assess the influence of demographic variables on respondents‟ perceptions regarding the independent, intervening and dependent variables used in the study. Furthermore, to establish significant differences between individual mean scores, post-hoc Sheffé tests were calculated, and practical significance was assessed by calculating Cohen‟s d values. The main empirical findings showed that there is a significant relationship found between the independent variables, Environmental Awareness, Community Development and Stakeholder Relations, with the intervening variable Brand Image and the dependent variable Business Performance. The empirical investigation showed that younger respondents had a more positive perception of Brand Image than older respondents, along with respondents who held the position of manager in the enterprise. The study also revealed that the more work experience the respondent had, the less optimistic they were about Brand Image. Furthermore, enterprises that have been in existence for a fewer amount of years than their older counterparts, considered Brand Image to be more important. Therefore, there is a distinction that can be made that younger respondents and younger enterprises had a more positive perception of brand image than older respondents and enterprises that have been in existence for a longer period of time. This study has added to the limited amount of literature on BSR in the field of SMEs. Through the hypothetical model developed in this study, a significant contribution has been made towards understanding the BSR factors influencing the success of SMEs. As a result, this study presents recommendations and suggestions to assist SME owners/managers who engage in social responsibility to continue to make positive contributions for the welfare of their stakeholders and the community at large and also to encourage SME owners/managers who do not engage in BSR to consider the various benefits that can accrue to their stakeholders and the enterprise itself, as this may ultimately enhance the business performance of their SMEs.
- Full Text:
- Date Issued: 2013
The influence of motivational factors on corporate performance and customer satisfaction
- Authors: Potgieter, Adéle
- Date: 2013
- Subjects: Consumer satisfaction , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9312 , http://hdl.handle.net/10948/d1019738
- Description: South Africa is ranked 44th place out of 53 countries (IMD 2011). It would seem imperative for the South African Government and the private sector to pay close attention to studies of this nature that indicate the importance of certain factors on the motivation of employees. In essence this study could assist Government and the private sector in understanding the importance of different factors that influence motivation of employees and the profitability of organisations. Should organisations re-align their focus on motivation of employees by taking cognisance of the elements addressed in this study, it could have a positive effect on the productivity of individual firms as well as on national productivity. The purpose of this study was to establish which motivational factors have an effect on the motivation of employees that would affect their individual, the organisational performance and customer satisfaction. The study aimed at firstly identifying motivational factors that has an influence on organisational performance. Secondly, investigating the effect of employee performance on organisational performance and thirdly investigating the impact of employee performance on customer satisfaction. The primary objective of this study was to establish which motivational factors have an effect on the motivation of employees thus affecting their individual and organisational performance and customer satisfaction. The relationship between work motivation, performance and productivity is complex. Although work motivation seems to have a significant impact on performance and productivity, it is certainly not the only influencing factor (Fisher, Katz, Miller & Thatcher 2003:82). Research has indicated that besides motivation, productivity is influenced by a variety of factors which could include the employee’s ability, skills, training, and availability of resources, management practices and economic conditions. In the light of the above, this study endeavoured to establish which dominant motivational factors have an influence on employee, corporate performance and customer satisfaction. Different motivational factors including hygiene factors, such as attitude, job satisfaction, rewards, leadership styles and communication were discussed as well as their influence on employee and organisational performance Information was gathered through secondary research. The investigation also included an exploration of different research methodologies, methods of data collection and analysis for this specific study. The main empirical research findings indicated that there is a positive relationship between motivator factors and employee performance as well as between management communication and employee performance. It is recommended that a policy and control manual should be compiled and distributed to new employees as part of their induction programme. The policies should be updated annually to incorporate changes in the organisation and to indicate to employees that management is serious about creating positive relationships between employees and employers. There is also a positive relationship between employee performance and organisational performance. It is recommended that organisations implement employee performance management systems that link to organisational performance goals in order to be able to critically access the performance of the employee in relation to the broader goals and results of an organisation. The relationship between motivational factors and customer satisfaction should however be investigated further. There seems to be different views in the literature on whether customer satisfaction surveys (or other measurements) should be used to support this relationship.
- Full Text:
- Date Issued: 2013
- Authors: Potgieter, Adéle
- Date: 2013
- Subjects: Consumer satisfaction , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9312 , http://hdl.handle.net/10948/d1019738
- Description: South Africa is ranked 44th place out of 53 countries (IMD 2011). It would seem imperative for the South African Government and the private sector to pay close attention to studies of this nature that indicate the importance of certain factors on the motivation of employees. In essence this study could assist Government and the private sector in understanding the importance of different factors that influence motivation of employees and the profitability of organisations. Should organisations re-align their focus on motivation of employees by taking cognisance of the elements addressed in this study, it could have a positive effect on the productivity of individual firms as well as on national productivity. The purpose of this study was to establish which motivational factors have an effect on the motivation of employees that would affect their individual, the organisational performance and customer satisfaction. The study aimed at firstly identifying motivational factors that has an influence on organisational performance. Secondly, investigating the effect of employee performance on organisational performance and thirdly investigating the impact of employee performance on customer satisfaction. The primary objective of this study was to establish which motivational factors have an effect on the motivation of employees thus affecting their individual and organisational performance and customer satisfaction. The relationship between work motivation, performance and productivity is complex. Although work motivation seems to have a significant impact on performance and productivity, it is certainly not the only influencing factor (Fisher, Katz, Miller & Thatcher 2003:82). Research has indicated that besides motivation, productivity is influenced by a variety of factors which could include the employee’s ability, skills, training, and availability of resources, management practices and economic conditions. In the light of the above, this study endeavoured to establish which dominant motivational factors have an influence on employee, corporate performance and customer satisfaction. Different motivational factors including hygiene factors, such as attitude, job satisfaction, rewards, leadership styles and communication were discussed as well as their influence on employee and organisational performance Information was gathered through secondary research. The investigation also included an exploration of different research methodologies, methods of data collection and analysis for this specific study. The main empirical research findings indicated that there is a positive relationship between motivator factors and employee performance as well as between management communication and employee performance. It is recommended that a policy and control manual should be compiled and distributed to new employees as part of their induction programme. The policies should be updated annually to incorporate changes in the organisation and to indicate to employees that management is serious about creating positive relationships between employees and employers. There is also a positive relationship between employee performance and organisational performance. It is recommended that organisations implement employee performance management systems that link to organisational performance goals in order to be able to critically access the performance of the employee in relation to the broader goals and results of an organisation. The relationship between motivational factors and customer satisfaction should however be investigated further. There seems to be different views in the literature on whether customer satisfaction surveys (or other measurements) should be used to support this relationship.
- Full Text:
- Date Issued: 2013
The influence of organisational culture on the happiness of employees in the ICT industry
- Authors: Lama Ndai, Arnaud
- Date: 2013
- Subjects: Corporate culture -- South Africa , Job satisfaction , Organisational behaviour
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9318 , http://hdl.handle.net/10948/d1020609
- Description: Based on the increasing importance that information and communication technologies (ICT) plays in most global economies, the high demand for ICT employees and the influence of organisational culture on the success of ICT businesses, the purpose of this study was to provide ICT managers with ways to retain and keep their employees satisfied and happy in their jobs. Therefore, the primary objective of this study was to identify and empirically test the influence of various factors of organisational culture on Happiness and Job satisfaction of employees in the ICT industry in South Africa. After completing a comprehensive literature review, it appeared that limited research had been conducted on the happiness of employees in the ICT industry. Numerous factors were identified as influencing happiness; however, due to the difficulty to assess some of these factors, this study only focused on the influence of organisational culture on the happiness and in return the job satisfaction of employees. All the factors influencing organisational culture were reviewed in the literature and 13 independent variables were identified and hypothesised to influence the mediating variable Happiness and the dependent variable Job satisfaction. All the variables in this study were clearly conceptualised and operationalised. Valid and reliable items sourced from various measuring instruments used in previous studies, were used to operationalise theses variables. Furthermore, numerous items were self-generated from secondary sources. A convenience sampling method was used to identify the respondents and a structured questionnaire was completed online by respondents. The data collected from 187 usable questionnaires was subjected to various statistical analyses using the software program Statistica. A Confirmatory Factor Analysis was used to assess the validity of the dependent variable Job satisfaction and the mediating variable Happiness of this study, whereas an Exploratory Factor Analysis was used to assess the validity of the independent variables. To confirm the reliability of all the variables investigated, Cronbach’s alpha coefficients were calculated. Due to the large number of variables and the small number of respondents, conducting a factor analysis on the independent variables was not possible. This problem was solved by the use of the item parcelling method. After the item parcelling was conducted and the factor analysis conducted, only seven out of the 13 factors loaded together as expected. All the parcels measuring these factors did not load together as expected and where necessary these factors were renamed and operationalised again. The sample data was summarised using descriptive statistics. The majority of respondents reported that they were satisfied with their jobs and almost half of the respondents reported being happy with their lives. Pearson’s correlation coefficients were used to establish the degree of relationship between the factors investigated in this study. After the Multiple Regression Analysis was conducted, it was found that three independent variables influence the Happiness of employees in the ICT industry, namely, Customer focus, Strategic direction and intent and Family orientation and atmosphere. Happiness was also found to have a positive influence on the Job satisfaction of ICT employees. The influence of various selected demographic variables on the dependent, mediating and independent variables was investigated by means of an Analysis of Variance (ANOVA). The statistical significance between the differences in means scores was measured using the Bonferroni Post-hoc test. The Population group of the respondents, the Years of service and their Age group were found to significantly influence some of the independent variables and mediating variables investigated in this study. No relationship was found between any demographic variables and the dependent variable Job satisfaction. Limited studies on the influence of organisational culture on the happiness of nemployees and more particularly those in the ICT industry were found in the literature. This study has made a contribution to the field of happiness research by understanding the factors influencing the happiness and job satisfaction of employees in the ICT industry. As a result, the study presents recommendations and suggestions to assist ICT businesses to improve their organisational culture and at the same time enhance the happiness and job satisfaction of their employees.
- Full Text:
- Date Issued: 2013
- Authors: Lama Ndai, Arnaud
- Date: 2013
- Subjects: Corporate culture -- South Africa , Job satisfaction , Organisational behaviour
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9318 , http://hdl.handle.net/10948/d1020609
- Description: Based on the increasing importance that information and communication technologies (ICT) plays in most global economies, the high demand for ICT employees and the influence of organisational culture on the success of ICT businesses, the purpose of this study was to provide ICT managers with ways to retain and keep their employees satisfied and happy in their jobs. Therefore, the primary objective of this study was to identify and empirically test the influence of various factors of organisational culture on Happiness and Job satisfaction of employees in the ICT industry in South Africa. After completing a comprehensive literature review, it appeared that limited research had been conducted on the happiness of employees in the ICT industry. Numerous factors were identified as influencing happiness; however, due to the difficulty to assess some of these factors, this study only focused on the influence of organisational culture on the happiness and in return the job satisfaction of employees. All the factors influencing organisational culture were reviewed in the literature and 13 independent variables were identified and hypothesised to influence the mediating variable Happiness and the dependent variable Job satisfaction. All the variables in this study were clearly conceptualised and operationalised. Valid and reliable items sourced from various measuring instruments used in previous studies, were used to operationalise theses variables. Furthermore, numerous items were self-generated from secondary sources. A convenience sampling method was used to identify the respondents and a structured questionnaire was completed online by respondents. The data collected from 187 usable questionnaires was subjected to various statistical analyses using the software program Statistica. A Confirmatory Factor Analysis was used to assess the validity of the dependent variable Job satisfaction and the mediating variable Happiness of this study, whereas an Exploratory Factor Analysis was used to assess the validity of the independent variables. To confirm the reliability of all the variables investigated, Cronbach’s alpha coefficients were calculated. Due to the large number of variables and the small number of respondents, conducting a factor analysis on the independent variables was not possible. This problem was solved by the use of the item parcelling method. After the item parcelling was conducted and the factor analysis conducted, only seven out of the 13 factors loaded together as expected. All the parcels measuring these factors did not load together as expected and where necessary these factors were renamed and operationalised again. The sample data was summarised using descriptive statistics. The majority of respondents reported that they were satisfied with their jobs and almost half of the respondents reported being happy with their lives. Pearson’s correlation coefficients were used to establish the degree of relationship between the factors investigated in this study. After the Multiple Regression Analysis was conducted, it was found that three independent variables influence the Happiness of employees in the ICT industry, namely, Customer focus, Strategic direction and intent and Family orientation and atmosphere. Happiness was also found to have a positive influence on the Job satisfaction of ICT employees. The influence of various selected demographic variables on the dependent, mediating and independent variables was investigated by means of an Analysis of Variance (ANOVA). The statistical significance between the differences in means scores was measured using the Bonferroni Post-hoc test. The Population group of the respondents, the Years of service and their Age group were found to significantly influence some of the independent variables and mediating variables investigated in this study. No relationship was found between any demographic variables and the dependent variable Job satisfaction. Limited studies on the influence of organisational culture on the happiness of nemployees and more particularly those in the ICT industry were found in the literature. This study has made a contribution to the field of happiness research by understanding the factors influencing the happiness and job satisfaction of employees in the ICT industry. As a result, the study presents recommendations and suggestions to assist ICT businesses to improve their organisational culture and at the same time enhance the happiness and job satisfaction of their employees.
- Full Text:
- Date Issued: 2013
The influence of students' perceived happiness on their entrepreneurial intention at a higher educational institution in South Africa
- Authors: Mamoudou, Hamadou
- Date: 2013
- Subjects: Entrepreneurship -- Study and teaching , ntrepreneurship
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9319 , http://hdl.handle.net/10948/d1020764
- Description: Like most developing countries, South Africa is characterised by high rates of unemployment in general and even more so among the youth and graduates. One solution to this unemployment problem is encouraging people to become entrepreneurs. Most findings reveal however that entrepreneurial activities among the youth in general and university graduates in particular are low. Since entrepreneurial intention is the main precursor of future entrepreneurial actions, a secondary research was undertaken in this study to discover which factors influence entrepreneurial intention in order to increase students’ future entrepreneurial behaviour. Various determinants of entrepreneurial intention were found in the literature, but none of the previous studies investigated the influence of happiness on entrepreneurial intention, despite the growing importance of research on happiness. Consequently, the primary objective of this study was to identify and empirically test the possible influence of various determinants of students’ Perceived happiness on their Entrepreneurial intention at a higher educational institution in South Africa. The comprehensive literature review that was undertaken revealed eleven independent variables that could potentially influence students’ Perceived happiness. These independent variables were regrouped under two main categories, namely sociodemographic factors and psychological factors. Socio-demographic factors included: Perception of wealth, Satisfaction with health, Perception of employment, Leisure, Social relationships and Religion. On the other hand, psychological factors included: Extroversion, Neuroticism, Optimism, Self-esteem and Goals achievement. The independent variables, the mediating variable (Perceived happiness), as well as the dependent variable (Entrepreneurial intention) were clearly defined and operationalised and a hypothesised model, suggesting the hypotheses between the variables was built. During the creation of the measuring instrument, items were sourced from both reliable and valid scales used in previous studies, as well as self-generated items. The respondents of this study were identified through the simple random sampling technique and an electronic questionnaire was sent to each one of them. In total, 806 usable questionnaires were returned and data was subjected to several statistical analyses. An exploratory factor analysis was conducted to assess the validity of the measuring instrument, whereas reliability was gauged by calculating Cronbach’s alpha coefficients. These two tests allowed the extraction of the dependent variable (Entrepreneurial intention), the mediating variable (Perceived happiness) and seven independent variables, namely Perception of wealth, Perception of employment, Leisure, Religion, Extroversion, Neuroticism and finally Goals achievement. Pearson’s correlation coefficients were calculated in order to assess the degree of correlation or association that existed between the variables investigated in the present study. Multiple regressions analyses were used to test the influence of the independent variables on the mediating variable, whereas simple regression analysis was used to assess the influence of the mediating variable on the dependent variable. Additionally, a series of multiple regression analyses was conducted in order to verify the mediating effect of Perceived happiness between all the independent variables and Entrepreneurial intention. The following independent variables were identified as influencing the mediating variable Perceived happiness, namely: Perception of employment; Leisure; Religion; Extroversion; Neuroticism; and Goals achievement. The results of the series of multiple regression analyses revealed that Perceived happiness had a positive influence on Entrepreneurial intention. However, Perceived happiness did not mediate the relationships between the independent variables and Entrepreneurial intention. Thus, the following independent variables were identified as having a direct influence on the dependent variable Entrepreneurial intention, namely: Perception of wealth; Religion; Perception of employment; Extroversion; and Goals achievement. In order to investigate the influence of various demographic variables on the independent, the mediating and the dependent variables, an analysis of variance (ANOVA) was performed. The demographic variables Gender, Population group, Year of study and Faculty had influences on the dependent variable, Entrepreneurial intention, whereas only Population group and Faculty had influences on the mediating variables, Perceived happiness. By empirically investigating the influence of students’ Perceived happiness on their Entrepreneurial intention, this study has expended the limits of knowledge on both happiness and entrepreneurial intention research. It has made a significant contribution towards understanding the factors influencing students’ Perceived happiness and their Entrepreneurial intention. In addition, practical suggestions and recommendations towards increasing students’ levels of Perceived happiness and aspirations to become entrepreneurs after completing their studies have been proposed to students, lecturers and university management.
- Full Text:
- Date Issued: 2013
- Authors: Mamoudou, Hamadou
- Date: 2013
- Subjects: Entrepreneurship -- Study and teaching , ntrepreneurship
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9319 , http://hdl.handle.net/10948/d1020764
- Description: Like most developing countries, South Africa is characterised by high rates of unemployment in general and even more so among the youth and graduates. One solution to this unemployment problem is encouraging people to become entrepreneurs. Most findings reveal however that entrepreneurial activities among the youth in general and university graduates in particular are low. Since entrepreneurial intention is the main precursor of future entrepreneurial actions, a secondary research was undertaken in this study to discover which factors influence entrepreneurial intention in order to increase students’ future entrepreneurial behaviour. Various determinants of entrepreneurial intention were found in the literature, but none of the previous studies investigated the influence of happiness on entrepreneurial intention, despite the growing importance of research on happiness. Consequently, the primary objective of this study was to identify and empirically test the possible influence of various determinants of students’ Perceived happiness on their Entrepreneurial intention at a higher educational institution in South Africa. The comprehensive literature review that was undertaken revealed eleven independent variables that could potentially influence students’ Perceived happiness. These independent variables were regrouped under two main categories, namely sociodemographic factors and psychological factors. Socio-demographic factors included: Perception of wealth, Satisfaction with health, Perception of employment, Leisure, Social relationships and Religion. On the other hand, psychological factors included: Extroversion, Neuroticism, Optimism, Self-esteem and Goals achievement. The independent variables, the mediating variable (Perceived happiness), as well as the dependent variable (Entrepreneurial intention) were clearly defined and operationalised and a hypothesised model, suggesting the hypotheses between the variables was built. During the creation of the measuring instrument, items were sourced from both reliable and valid scales used in previous studies, as well as self-generated items. The respondents of this study were identified through the simple random sampling technique and an electronic questionnaire was sent to each one of them. In total, 806 usable questionnaires were returned and data was subjected to several statistical analyses. An exploratory factor analysis was conducted to assess the validity of the measuring instrument, whereas reliability was gauged by calculating Cronbach’s alpha coefficients. These two tests allowed the extraction of the dependent variable (Entrepreneurial intention), the mediating variable (Perceived happiness) and seven independent variables, namely Perception of wealth, Perception of employment, Leisure, Religion, Extroversion, Neuroticism and finally Goals achievement. Pearson’s correlation coefficients were calculated in order to assess the degree of correlation or association that existed between the variables investigated in the present study. Multiple regressions analyses were used to test the influence of the independent variables on the mediating variable, whereas simple regression analysis was used to assess the influence of the mediating variable on the dependent variable. Additionally, a series of multiple regression analyses was conducted in order to verify the mediating effect of Perceived happiness between all the independent variables and Entrepreneurial intention. The following independent variables were identified as influencing the mediating variable Perceived happiness, namely: Perception of employment; Leisure; Religion; Extroversion; Neuroticism; and Goals achievement. The results of the series of multiple regression analyses revealed that Perceived happiness had a positive influence on Entrepreneurial intention. However, Perceived happiness did not mediate the relationships between the independent variables and Entrepreneurial intention. Thus, the following independent variables were identified as having a direct influence on the dependent variable Entrepreneurial intention, namely: Perception of wealth; Religion; Perception of employment; Extroversion; and Goals achievement. In order to investigate the influence of various demographic variables on the independent, the mediating and the dependent variables, an analysis of variance (ANOVA) was performed. The demographic variables Gender, Population group, Year of study and Faculty had influences on the dependent variable, Entrepreneurial intention, whereas only Population group and Faculty had influences on the mediating variables, Perceived happiness. By empirically investigating the influence of students’ Perceived happiness on their Entrepreneurial intention, this study has expended the limits of knowledge on both happiness and entrepreneurial intention research. It has made a significant contribution towards understanding the factors influencing students’ Perceived happiness and their Entrepreneurial intention. In addition, practical suggestions and recommendations towards increasing students’ levels of Perceived happiness and aspirations to become entrepreneurs after completing their studies have been proposed to students, lecturers and university management.
- Full Text:
- Date Issued: 2013
The interest rate elasticity of credit demand and the balance sheet channel of monetary policy transmission in South Africa
- Authors: Doig, Gregory Graham
- Date: 2013
- Subjects: Monetary policy -- South Africa Banks and banking -- South Africa Bank loans -- South Africa Finance -- South Africa Vector autoregression (VAR) approach to econometric modeling Financial statements Interest rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1052 , http://hdl.handle.net/10962/d1006482
- Description: It has long been accepted that changes in monetary policy have real economic effects; however, the mechanism by which these policy changes are transmitted to the real economy has been the subject of much debate. Traditionally the transmission mechanism of monetary policy has consisted of various channels which include the money channel, the asset price channel and the exchange rate channel. Recent developments in economic theory have led to a relatively new channel of policy transmission, termed the credit channel. The credit channel consists of the bank lending channel as well as the balance sheet channel, and focuses on the demand for credit as the variable of interest. The credit channel is based on the notion that demanders and suppliers of credit face asymmetric information problems which create a gap between the cost of external funds and the cost of internally generated funds, referred to as the wedge. The aim here is to determine the size and lag length effects of changes in credit demand, by both firms as well as households, as a result of changes in interest rates. A secondary, but subordinate, aim is to test for a balance sheet channel of monetary policy transmission. A vector autoregressive (VAR) model is used in conjunction with causality tests, impulse response functions and variance decompositions to achieve the stated objectives. Results indicate that the interest rate elasticity of credit demand, for both firms and households, is interest inelastic and therefore the monetary policy authorities have a limited ability to influence credit demand in the short as well as medium term. In light of the second aim, only weak evidence of a balance sheet channel of policy transmission is found.
- Full Text:
- Date Issued: 2013
- Authors: Doig, Gregory Graham
- Date: 2013
- Subjects: Monetary policy -- South Africa Banks and banking -- South Africa Bank loans -- South Africa Finance -- South Africa Vector autoregression (VAR) approach to econometric modeling Financial statements Interest rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1052 , http://hdl.handle.net/10962/d1006482
- Description: It has long been accepted that changes in monetary policy have real economic effects; however, the mechanism by which these policy changes are transmitted to the real economy has been the subject of much debate. Traditionally the transmission mechanism of monetary policy has consisted of various channels which include the money channel, the asset price channel and the exchange rate channel. Recent developments in economic theory have led to a relatively new channel of policy transmission, termed the credit channel. The credit channel consists of the bank lending channel as well as the balance sheet channel, and focuses on the demand for credit as the variable of interest. The credit channel is based on the notion that demanders and suppliers of credit face asymmetric information problems which create a gap between the cost of external funds and the cost of internally generated funds, referred to as the wedge. The aim here is to determine the size and lag length effects of changes in credit demand, by both firms as well as households, as a result of changes in interest rates. A secondary, but subordinate, aim is to test for a balance sheet channel of monetary policy transmission. A vector autoregressive (VAR) model is used in conjunction with causality tests, impulse response functions and variance decompositions to achieve the stated objectives. Results indicate that the interest rate elasticity of credit demand, for both firms and households, is interest inelastic and therefore the monetary policy authorities have a limited ability to influence credit demand in the short as well as medium term. In light of the second aim, only weak evidence of a balance sheet channel of policy transmission is found.
- Full Text:
- Date Issued: 2013