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Cointegration in equity markets: a comparison between South African and major developed and emerging markets

  • Authors: Petrov, Pavel
  • Date: 2011
  • Subjects: Cointegration Stock exchanges -- South Africa Stock exchanges -- Developing countries Stock exchanges -- Developed countries South Africa -- Economic conditions Portfolio management -- South Africa Econometrics Autoregression (Statistics)
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:5575 , http://hdl.handle.net/10962/d1005539
  • Description: Cointegration has important implications for portfolio diversification. One of these is that in order to spread risk it is advisable to invest in markets that are not cointegrated. Over the last several decades communication technology has made the world a smaller place and hence cointegration in equity markets has become more prevalent. The bulk of research into cointegration focuses on developed and Asian markets, with little research been done on African markets. This study compares the Engle-Granger and Johansen tests for cointegration and uses them to calculate the level of cointegration between South African and other global equity markets. Each market is compared pair-wise with South Africa and the results have been that in general South Africa is cointegrated with other emerging markets but not really with African nor developed markets. Short-run analysis with the error correction was carried out and showed that in general markets respond slowly to any disequilibrium. Innovation accounting methods showed that the country placed first in Cholesky ordering dominates the other one. Multivariate cointegration was carried out using three selections of 4, 6 and 8 market portfolios. One of the markets was SA and the others were all chosen based on the criteria that they are not pair-wise cointegrated with SA. The level of cointegration varied depending on the portfolios, as did the error correction rates, impulse responses and variance decomposition. The one constant was that the USA dominated any portfolio where it was introduced. Recommendations were finally made about which market portfolio an investor should consider as most favourable.
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  • Date Issued: 2011

Cointegration, causality and international portfolio diversification : investigating potential benefits to a South African investor

  • Authors: Msimanga, Nkululeko Lwazi
  • Date: 2011
  • Subjects: Cointegration , Econometrics , International finance , Stock exchanges -- South Africa , Stock exchanges -- Developing countries , Stock exchanges -- Developed countries , Investments -- South Africa , Portfolio management -- South Africa , Investment analysis , Autoregression (Statistics)
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:962 , http://hdl.handle.net/10962/d1002696 , Cointegration , Econometrics , International finance , Stock exchanges -- South Africa , Stock exchanges -- Developing countries , Stock exchanges -- Developed countries , Investments -- South Africa , Portfolio management -- South Africa , Investment analysis , Autoregression (Statistics)
  • Description: Research studies on portfolio diversification have tended to focus on developed markets and paid less attention to emerging markets. Traditionally, correlation analysis has been used to determine potential benefits from diversification but current studies have shifted focus from correlation analysis to exploring cointegration analysis and other forms of tests such as the Vector Error Correction Methodology. The research seeks to find if it is beneficial for a South African investor to diversify their portfolio of emerging market equities over a long-term period. Daily weighted share indices for the period of January 1996 to November 2008 were collected and analysed through the application of the Johansen cointegration technique and Vector Error Correction Methodology. Granger Causality tests were also performed to established whether one variable can be useful in forecasting another variable. The study found that there was at least one statistically significant long-run relationship between the emerging markets. After testing for unit roots for all the share indices and their first difference using the Augmented Dickey-Fuller test (ADF), Philips-Perron and Kwiatkowski, Phillips, Schmidt, and Shin (KPSS) unit root tests, similar conclusions were m~de. All the unit root tests and their levels could not be rejected for all the series. However, unit root tests on the first differences were rejected, meaning that all series are of order 1(1) - evidence of cointegration. Simply put, emerging markets tend not to drift apart over time. This suggests that emerging markets offer limited benefits to investors who are looking to add some risk to their portfolios. In addition, the study also found evidence of both unidirectional and bidirectional causality (Granger-Cause tests) between markets. This implies that the conditions for a particular market are exogenous of the other market. The study concludes that emerging markets are gradually adopting the same profile as developed markets.
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  • Date Issued: 2011

Consumer perceptions of private label brands: an Eastern Cape university-aged analysis

  • Authors: Mpofu, Bukhosi Dumoluhle
  • Date: 2011
  • Subjects: House brands -- South Africa -- Eastern Cape Young consumers -- South Africa -- Eastern Cape Consumer behavior -- South Africa -- Eastern Cape
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:1167 , http://hdl.handle.net/10962/d1002783
  • Description: This research investigates the consumer perceptions of private label brands amongst the university aged consumers from selected Eastern Cape universities. The research also aimed to ascertain whether or not generation Y consumers are aware of the existence of private labels, whether price, quality, advertising, packaging, reference groups and demographic variables influenced generation Y purchasing behavior of private label brands. To achieve these objectives, the research made use of the simple random technique to gather the primary data via the use of an online structured questionnaire. The sample population selected where the students in the Eastern Cape Province Universities (Rhodes and Nelson Mandela Metropolitan Universities) who reside off-campus. The assumption was that students who reside off-campus are more aware of private labels as they carry out shopping more than those that reside on campus and generally would have more disposable income and the reason that two different universities have been chosen is to provide a broad base of student opinions, covering varying cultural and income backgrounds, thus allowing for unbiased, valuable research. After pre-tests were conducted the questionnaire was made available online to easy the distribution of the questionnaire and allow for a greater response rate. Descriptive and inferential statistics where used to analyze the results of the questionnaire. The results showed that consumers are generally aware of private label brands and have at least seen them being advertised. Furthermore, the results showed that consumers purchase groceries based on price, quality and convenience of location of the grocery stores .The results indicate that Generation Y consumers are indeed a significant part of the consumer population and that they represent a confident, self reliant, optimistic and positive generation and are verbally and visually more sophisticated, creating a whole new language through digital media and that Generation Y consumers are generally aware of the existence of private labels. The results also indicate that Generation Y consumers strongly agreed that they purchase groceries based on price and quality, meaning price and quality are very influential when purchasing groceries and that the packaging of, generally, all private label brands was not attractive hence a conclusion was made that packaging of private labeled products does not influence Generation Y’s purchasing behaviour of private labels.
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  • Date Issued: 2011

Environmental literacy: a needs analysis

  • Authors: Lillah, Riyaadh
  • Date: 2011
  • Subjects: Environmental education , Environmental sciences , Human ecology
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:9290 , http://hdl.handle.net/10948/d1011029 , Environmental education , Environmental sciences , Human ecology
  • Description: An impending environmental crisis has been predicted by many which has led to an increased awareness and concern regarding the ability of the planet to sustain human development. Furthermore, organisations expected to be leaders in society, such as businesses and Higher Education Institutions (HEIs), have been identified as some of the main drivers behind the ever increasing rate of destruction of the natural environment. Business schools have even been singled out as some of the main drivers behind the degradation of the natural environment by not addressing the knowledge gap of managers in this regard. Given this, the problem statement of this research is to determine how effective existing NMMU curricula are at shaping environmentally literate business graduates. The problem will be investigated from two perspectives. Firstly, from a supply side perspective - investigating the pro-environmental behaviours, ecological and business knowledge, „green‟ management skills and environmental values that students registered in the Business and Economics Sciences faculty at NMMU exhibit. Secondly, the problem will be investigated from a demand side perspective – investigating the pro-environmental behaviours, ecological and business knowledge, "green‟ management skills and environmental values that potential employers of NMMU students require. The focus will be on prospective employers in the mining and automotive industries. To address the problem to be investigated in this study a theoretical framework was developed and tested. This theoretical framework was based on the assumption that environmental literacy is measurable in terms of the behaviours of individuals towards the natural environment and that these behaviours are in turn dependent upon the ecological and business knowledge, "green‟ management skills and environmental values that the individual possesses. To test the theoretical framework an online survey was conducted amongst students registered in the Business and Economic Sciences Faculty at Nelson Mandela Metropolitan University (NMMU), while semi-structured personal interviews were used to assess the demand for environmentally literate business graduates in the mining and automotive industries. In total 308 business students participated in the online survey. The findings suggest that students are highly sensitive to moral issues pertaining to the natural environment and have a better understanding of traditional ecological concepts than "green‟ business concepts. It was also found that ecological and business knowledge had the greatest influence on pro-environmental behaviours followed by environmental values and "green‟ management skills. The findings of this study will be used to enhance environmental literacy in the faculty. In terms of the semi-structured personal interviews, the views of eight environmental experts in the South African mining industries were obtained. The general analytical procedure was applied to identify prominent themes which existed in the qualitative data. This involved developing codes and identifying data which related to those specific codes in order to provide a description of and provide some dimension to these codes. Codes were categorised according to their similarity to each other. The different categories identified were ecology, legal compliance, technology, environmental management, sustainable development, pollution and waste management, financial implications and corporate citizenship. Some of these themes were not entirely expected based on the literature review. These additional insights add depth to the analysis of environmental education in South Africa and highlight the gaps in environmental literacy literature. In terms of environmental literacy, these categories had implications for the knowledge, skills, values and behaviours of business graduates. From the findings of this study the researcher concluded that a certain level of enthusiasm for environmental education exists among NMMU students, as well as individuals in the mining and automotive industries in South Africa. However, the level of environmental literacy exhibited by students registered in the Business and Economic Sciences Faculty at NMMU (between nominal and functional) was not considered to be sufficient to operate effectively in the mining and automotive industries.
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  • Date Issued: 2011

Exchange rate behavior in the cases of the Zambian Kwacha and Malawian Kwacha : is there misalignment?

  • Authors: Magwizi, Brenda Thandekha , Rhodes University
  • Date: 2011
  • Subjects: Foreign exchange rates -- Zambia Foreign exchange rates -- Malawi International relations -- Case studies -- Zambia International relations -- Case studies -- Malawi
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:974 , http://hdl.handle.net/10962/d1002708
  • Description: The exchange rate is the price of one currency against another currency or currencies of a group of countries. Real exchange rates are important because they show the external competitiveness of a country‟s economy. Thus, when the exchange rate of a country is misaligned, this will affect its trade, production and the welfare of people. This study analysed macroeconomic determinants of the real exchange rate and dynamic adjustment of the real exchange rate as a result of shocks to these determinants. The study also determined the extent of misalignment of the real exchange rate in Malawi and Zambia and identified variables that contributed to it. Such information is important to policy makers. Quarterly data were used for both countries from 1980:1-2008:4. The literature review identified those variables that determine the exchange rate and these include government consumption, foreign aid, net foreign assets, commodity prices, terms of trade, domestic credit, openness and the Balassa Samuelson effect (technological progress). To determine the long-run relationship between the exchange rate and its determinants, we employed the Johansen approach and the Vector Error Correction Model (VECM). For robustness check on the long-run and shortrun effects of determinants on the exchange rate, variance decomposition and impulse response analyses were used. Results in the study show that in Malawi for both models, an increase in LAID, LGCON and LTOT resulted in real exchange rate depreciation and increases in LDC, NFA and LNEER resulted in an appreciation. In Zambia, increases in LAID, LGCON, LOPEN and LTOT caused the real exchange rate to depreciate while increases in LDC, NFA and LCOPPER led to an appreciation. Lagged LREER and LNEER were found to have short run effects on the equilibrium exchange rate for Malawi and lagged LCOPPER and LDC for Zambia. Periods of exchange rate misalignment were found in both countries. It was also found that the coefficient of speed of adjustment in Malawi in models 1 and 2 indicate that 11% and 27% of the variation in the real exchange rate from its equilibrium adjust each quarter respectively. The speed of adjustment for Zambia in both models was 45% and 47% respectively, higher than that of Malawi. Foreign aid has proven to be important in exchange rate misalignment in both countries, though this was not really expected in the case of Zambia. Given these results, it may be of interest to policy makers to understand which variables impact most on the exchange rate and how misalignment due to these determinants can be minimised.
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  • Date Issued: 2011

Exchange rate pass-through to domestic prices in Kenya

  • Authors: Mnjama, Gladys Susan
  • Date: 2011
  • Subjects: Kenya -- Economic conditions , Kenya -- Economic conditions -- Econometric models , Foreign exchange rates -- Kenya , Stocks -- Prices -- Kenya , Banks and banking -- Kenya , Cointegration , Econometrics , Inflation (Finance) -- Kenya
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:975 , http://hdl.handle.net/10962/d1002709 , Kenya -- Economic conditions , Kenya -- Economic conditions -- Econometric models , Foreign exchange rates -- Kenya , Stocks -- Prices -- Kenya , Banks and banking -- Kenya , Cointegration , Econometrics , Inflation (Finance) -- Kenya
  • Description: In 1993, Kenya liberalised its trade policy and allowed the Kenyan Shillings to freely float. This openness has left Kenya's domestic prices vulnerable to the effects of exchange rate fluctuations. One of the objectives of the Central Bank of Kenya is to maintain inflation levels at sustainable levels. Thus it has become necessary to determine the influence that exchange rate changes have on domestic prices given that one of the major determinants of inflation is exchange rate movements. For this reason, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to domestic prices in Kenya. In addition, it takes into account the direction and size of changes in the exchange rates to determine whether the exchange rate fluctuations are symmetric or asymmetric. The thesis uses quarterly data ranging from 1993:Ql - 2008:Q4 as it takes into account the period when the process of liberalization occurred. The empirical estimation was done in two stages. The first stage was estimated using the Johansen (1991) and (1995) co integration techniques and a vector error correction model (VECM). The second stage entailed estimating the impulse response and variance decomposition functions as well as conducting block exogeneity Wald tests. In determining the asymmetric aspect of the analysis, the study followed Pollard and Coughlin (2004) and Webber (2000) frameworks in analysing asymmetry with respect to appreciation and depreciation and large and small changes in the exchange rate to import prices. The results obtained showed that ERPT to Kenya is incomplete but relatively low at about 36 percent in the long run. In terms of asymmetry, the results showed that ERPT is found to be higher in periods of appreciation than depreciation. This is in support of market share and binding quantity constraints theory. In relation to size changes, the results show that size changes have no significant impact on ERPT in Kenya.
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  • Date Issued: 2011

Exchange rates behaviour in Ghana and Nigeria: is there a misalignment?

  • Authors: Mapenda, Rufaro
  • Date: 2011 , 2011-11-09
  • Subjects: Foreign exchange rates -- Ghana , Foreign exchange rates -- Nigeria , Economic development -- Ghana , Economic development -- Nigeria , Foreign exchange administration -- Ghana , Foreign exchange administration -- Nigeria , International relations
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:976 , http://hdl.handle.net/10962/d1002710 , Foreign exchange rates -- Ghana , Foreign exchange rates -- Nigeria , Economic development -- Ghana , Economic development -- Nigeria , Foreign exchange administration -- Ghana , Foreign exchange administration -- Nigeria , International relations
  • Description: Exchange rates are believed to be one of the major driving forces behind sustainable macroeconomic growth and it is therefore important to ensure that they are at an appropriate level. Exchange rate misalignment is a situation where the actual exchange rate differs significantly from its equilibrium value, resulting in either an overvalued or an undervalued currency. The problem with an undervalued currency is that it will increase the domestic price of tradable goods whereas an overvalued currency will cause a fall in the domestic prices of the tradable goods. Persistent exchange rate misalignment is thus expected to result in severe macroeconomic instability. The aim of this study is to estimate the equilibrium real exchange rate for both Ghana and Nigeria. After so doing, the equilibrium real exchange rate is compared to the actual real exchange rate, in order to assess the extent of real exchange rate misalignment in both countries, if any such exists. In order test the applicability of the equilibrium exchange rate models, the study draws from the simple monetary model as well as the Edwards (1989) and Montiel (1999) models. These models postulate that the variables which determine the real exchange rate are the terms of trade, trade restrictions, domestic interest rates, foreign aid inflow, income, money supply, world inflation, government consumption expenditure, world interest rates, capital controls and technological progress. Due to data limitations in Ghana and in Nigeria, not all the variables are utilised in the study. The study uses the Johansen (1995) model as well as the Vector Error Correction Model (VECM) to estimate the long- and the short-run relationships between the above-mentioned determinants and the real exchange rate. Thereafter the study employs the Hodrick-Prescott filter to estimate the permanent equilibrium exchange rate. The study estimates a real exchange rate model each for Ghana and Nigeria. Both the exchange rate models for Ghana and Nigeria provide evidence of exchange rate misalignment. The model for Ghana shows that from the first quarter of 1980 to the last quarter of 1983 the real exchange rate was overvalued; thereafter the exchange rate moved close to its equilibrium value and was generally undervalued with few and short-lived episodes of overvaluation. In regard to real exchange rate misalignment in Nigeria prior to the Structural Adjustment Program in 1986 there were episodes of undervaluation from the first quarter of 1980 to the first quarter of 1984 and overvaluation from the second quarter of 1984 to the third quarter of 1986; thereafter the exchange rate was generally and marginally undervalued.
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  • Date Issued: 2011

Extending legal professional privilege to non-legal tax practitioners in South Africa: a comparative and constitutional perspective

  • Authors: Jani, Pride
  • Date: 2011
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: vital:882 , http://hdl.handle.net/10962/d1001636
  • Description: This study explains the differing rights of taxpayers, based on the nature of the profession of the tax adviser they consult. Those who utilize the services of tax attorneys can rely on the protection afforded by legal professional privilege whereas those who obtain their advice from non-legal advisers, such as accountants and other tax advisers, cannot claim the same protection. Legal professional privilege is a substantive right which should be extended to cover clients of non-legal tax advisers. The continued denial of the privilege to clients of nonlegal tax practitioners while it is availed to those who approach legal practitioners infringes the rights to privacy and equality contained in the South African Constitution. The object of this research is to show that the common law concept of legal professional privilege is amenable to extension so as to cover the clients of non-legal tax advisers. A qualitative approach was adopted which involved an in-depth analysis of the origins, rationale as well as the requirements for the operation of the doctrine. This also involved a constitutional as well as a comparative dimension. The constitutional dimension sought to show that the current distinction is untenable under the South African Constitution by virtue of the infringement of the rights to privacy and equality. The comparative dimension presented an analysis of the various jurisdictions that have extended the doctrine as well as those that are still to do so or have adamantly rejected the idea. The differential treatment of taxpayers based on the professional they engage contravenes the privacy and equality provisions and is thus unconstitutional. The study demonstrates that legal professional privilege is amenable to extension and there is need for legislative intervention as the courts are limited in the extent to which they may intervene in light of the separation of powers and judicial deference. Legal professional privilege should therefore be extended to protect the clients of non-legal tax advisers as opposed to partial protection which subsists at the moment.
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  • Date Issued: 2011

Financial integration in East Africa: evidence from interest rate pass-through analysis

  • Authors: Bholla, Zohaib Salim
  • Date: 2011
  • Subjects: East African Community -- Economic integration East African Community -- Economic conditions -- 21st century Interest rates -- Africa, East Interest rates -- Econometric models -- Africa, East Interest rates -- Effect of inflation on -- Africa, East Banks and banking -- Africa, East
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:1044 , http://hdl.handle.net/10962/d1006131
  • Description: The successful launch of the European Monetary Union (EMU) raised an already ever growing interest in the economics of monetary integration and the formation of monetary unions around the world. Following the EMU experience, countries have considered forming a monetary union amongst themselves. The East African Community (EAC), comprising the three original member countries Kenya, Tanzania and Uganda and now including Burundi and Rwanda, is an example of such a group of countries that seek to form a monetary union. This study aims to identify the current level of financial integration amongst the East African countries. In order to do so the study examines whether the pass-through of monetary policy in the five countries has become similar over time. This is to provide an indication of the extent to which the nominal convergence criteria amongst the member countries have been met. The results of the study provide an indication of whether the formation of a monetary union in East Africa is possible. The empirical analysis used in this study included stationarity tests, four tests of co integration and an asymmetric error correction model to investigate whether the pass-through of monetary policy transmission in the five countries has become more similar over the ten year sample period from 1999 to 2008. The analysis uses three interest rates and 6-year rolling windows to identify the extent of macroeconomic convergence that prevails within the EAC, and consequently whether the formation of a monetary union is possible. The results suggest that the magnitude of the convergence amongst the countries remain low and there are significant rigidities in the deposit and lending rates over time, however the passthrough has improved with respect to the lending rate but not the deposit rate. The overall conclusion of the study suggests that an EAC wide monetary union is currently not possible based on the evidence provided from the pass-through analysis.
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  • Date Issued: 2011

Financial system development and economic growth in selected African countries: evidence from a panel cointegration analysis

  • Authors: Starkey, Randall Ashley
  • Date: 2011
  • Subjects: Economic development -- Africa Economic development -- Developing countries Banks and banking -- Africa Banks and banking -- Developing countries Stock exchanges -- Africa Stock exchanges -- Developing countries Econometric models Economic policy -- Africa Economic policy -- Developing countries
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:979 , http://hdl.handle.net/10962/d1002713
  • Description: Financial systems (i.e. banking systems and stock markets) can influence economic growth by performing the five key financial functions, namely: mobilising savings, allocating capital, easing of exchange, monitoring and exerting corporate governance, as well as ameliorating risk. The level of development of the financial system is a key determinant of how effectively and efficiently these functions are performed. This study examines the short-run and long-run relationships between financial system development and economic growth for a panel of seven African countries (namely: Egypt, Ivory Coast, Kenya, Morocco, Nigeria, South Africa and Tunisia) covering the period 1988 to 2008. While numerous empirical studies have researched this topic, none of the previous African empirical literature have investigated thjs by using three groups of financial development measures (i.e. overall financial development, banking system development and stock market development measures) as well as employing panel cointegration analyses. The investigation of the long-run finance-growth relationship is conducted using two methods; the Pedroni panel cointegration approach and the Kao panel cointegration technique. The Pedroni panel cointegracion approach is more often applied in empirical research as it has less restrictive deterministic trend assumptions, while the Kao panel cointegration technique is employed in this study for comparison purposes. Furthermore, the short-run linkages bet\veen financial development and economic growth are analysed using the Holtz-Eakin d of (1989) panel Granger causality test. The results of the Pedroni cointegration tests show that there are long-run relationships between overall financial development (measured by LOFD and OFD2) and economic growth, banking system development (measured by LPSC) and economic growth, as well as stock marker development (measured by LMCP and LVLT) and economic growth. In contrast, the Kao test fails to find any cointegration between finance and growth. However, on the balance, findings largely support a conclusion of cointegration between financial development and economic growth since the Pedroni approach is more appropriate for examining cointegration in heterogeneous panels. Estimates of these long-run cointegrating relationships show that all five financial development measures have the expected positive linkages with growth. However, only four of the five financial development measures were found to have significant long-run linkages with growth, as the relationship between LOFD and growth was not found to be significant in the long-run. The panel Granger causality results show that economic growth Granger causes banking system development in the short-run (i.e. there is demand-following finance), irrespective of the measure of banking development used. While there is bi-directional, reciprocal causality between economic growth and both of the measures of overall financial development and one measure of srock market development (i.e. LVLT). Thus, pulicy makers should focus on formulating policy which promotes faster paced economic growth so as to stimulate financial development, while at the same time encourage policy that promotes the balanced expansion of the banking systems and srock markets in ordet to augment economic growth.
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  • Date Issued: 2011

How integrated are the African stock exchanges?: evidence from long term comovement, returns and volatility spillovers

  • Authors: Kambadza, Tinashe Harry Dumile
  • Date: 2011
  • Subjects: Stock exchanges -- Africa Money market -- Africa Globalization -- Economic aspects -- Africa International economic relations
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:1017 , http://hdl.handle.net/10962/d1002752
  • Description: Stock market linkages have implications for portfolio diversification, asset pricing, monetary and regulatory policy as well as financial stability. This study examines the extent to which African stock markets are linked using daily data for the period 2000-2010. The study is divided into three main parts each focussing on the ways in which integration of the stock markets can be viewed. Firstly, we analyse the long run co-movement of the stock markets using both bivariate and multivariate Johansen (1988) and Johansen and Juselius (1990) cointegration approaches. Secondly, we analyse returns linkages using Factor analysis and the Vector Autoregressive (VAR) models. In the Factor Analysis model, we used two extraction methods, namely Principal Component Analysis and the Maximurn Likelihood technique. The VAR model was extended with impulse response, variance decomposition and block exogeniety. Thirdly, we analyse the behaviour of volatility and the volatility linkages among the stock markets. We initially analysed and modelled volatility in each stock market using the GARCH, EGARCH and GJR GARCH and then examined the long-term trend of the volatility. Conditional volatility series for each country were then estimated using the most appropriate model and were analysed using VAR, block exogeniety, impulse response and variance decomposition to determine the extent of their linkages. The findings of the study are as follows: Both the bivariate and multivariate models found slim evidence of cointegration amongst the stock markets, suggesting that there were opportunities for portfolio diversification for investors. In general, the financial crisis had very little impact on the long-run relationships of the stock markets. Results for the returns linkages showed that there were limited retums linkages with the exceptions of South African-Namibia and Egypt-Morocco to a lesser extent. South Africa was found to be the most endogenous, whilst Ghana and Nigeria were the most exogenous on the continent. We regards to volatility, we found that it was asymmetric and persistent across all the stock markets with long term trend of volatility showing that it significantly increased for most of the markets. Finally, there were limited volatility linkages, only between South Africa, Egypt and Namibia, implying that African stock markets are still largely segmented from each other. However, the linkages between South Africa and Egypt could have negative effects as they could lead to the spread of contagion effects during times of crises. Therefore, policymakers should consider revising and improving policies to enhance economic integration on the continent.
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  • Date Issued: 2011

Identifying the interdependence between South Africa's monetary policy and the stock market

  • Authors: Muroyiwa, Brian
  • Date: 2011
  • Subjects: Monetary policy -- South Africa , Stock exchanges -- Law and legislation -- South Africa , Interest rates -- South Africa , Securities -- Prices -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:982 , http://hdl.handle.net/10962/d1002716 , Monetary policy -- South Africa , Stock exchanges -- Law and legislation -- South Africa , Interest rates -- South Africa , Securities -- Prices -- South Africa
  • Description: This study estimates the interdependence between South Africa‟s monetary policy and stock market performance, utilising structural vector autoregression (SVAR) methodology. The study finds that a stock price shock which decrease stock prices by 100 basis points leads to 5 basis points decrease in interbank rate. A monetary policy shock that increases the interbank rate by l percent leads to decrease in real stock prices by 1 percent. This result for South Africa is similar to the result by Bjornland and Leteimo (2009) which earlier concluded that there was a high interdependence between interest rate setting and stock prices. However the magnitude of the relationship is relatively lower for South Africa compared to that of the United States of America (USA). The result of the current study is also very much consistent with the argument that the South African stock market is resource-based and so is influenced by external shocks, meaning monetary policy shock does not have as much impact on stock market in South Africa as in the USA. However the SARB may have to consider watching movements in stock prices so that booms in stock markets do not defeat central bank monetary policy thrusts. The stock price market is an essential source of information for monetary policy in South Africa.
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  • Date Issued: 2011

Impact of social entrepreneur's education and business skills training on the success of non-profit organisation

  • Authors: Scholtz, Laurie
  • Date: 2011
  • Subjects: Social entrepreneurship -- South Africa , Nonprofit organizations -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:9284 , http://hdl.handle.net/10948/1337 , Social entrepreneurship -- South Africa , Nonprofit organizations -- South Africa
  • Description: The social problems that exist within South Africa cannot be ignored. The magnitude of poverty, unemployment and crime that exist are ever increasing while HIV/Aids has left 10 percent of the children within this country orphaned. Discrepancies in the access to proper healthcare and education between the private sector and the public sector is evident, mainly due to the failure of the public sector (government) to effectively implement and manage the healthcare and education systems in South Africa. In the last decade, there has been a significant increase in the number of registered non-profit organisations which can be attributed to a greater awareness of the social problems that exist, as well as the inability of the government and the public sector to address the social problems on their own. Social entrepreneurs are attempting to find innovative solutions to these problems by starting non-profit organisations and then implementing projects and programmes that will help alleviate these social problems. Social entrepreneurship is a fairly new concept, particularly within the realm of academic research. Previous studies on social entrepreneurship have highlighted the need for social entrepreneurs and have also emphasised the many challenges these social entrepreneurs face, one of which is the lack of education and business skills training. Research indicates that a non-profit organisation should be run like a small business in order to be successful, which highlights the importance for social entrepreneurs to be equipped with the appropriate business skills. The impact that a social entrepreneur’s education and business skills training has on the success of a non-profit organisation is however still largely unknown. The purpose of this study was three-fold: firstly, to study the relationship between the education and business skills training of a social entrepreneur and the successful functioning of their non-profit organisations; secondly, to develop recommendations for social entrepreneurs on how to more effectively manage their non-profit organisations and guide them in what business training will benefit them as a social entrepreneur; and lastly, to add to the already existing knowledge on social entrepreneurs, particularly within a South African context. The main research methodology used to conduct the empirical investigation in this study was qualitative in nature. Elements of quantitative data collection were adopted in the instruments in order to ensure standardisation when measuring a social entrepreneur’s education and business skills training, as well as the success of their respective non-profit organisation. In-depth interviews were conducted with fourteen social entrepreneurs who work in a variety of social developmental sectors within South Africa. An interview guide was developed to record the formal levels of education and business skills training received by the respondents and to discuss the impact of other types of education and business skills training on their capabilities as managers of non-profit organisations. A tool was developed to measure the success of the respective non-profit organisations and the results were compared to the social entrepreneur’s levels of education and business skills training. Global analysis was the data analysis technique adopted in this study and was used to identify common themes among the transcripts as well as possible relationships between different variables. There were two main findings with regard to the impact a social entrepreneur’s education and business skills training has on the successful functioning of his/her respective non-profit organisation. Firstly, the formal types of education and business skills training of a social entrepreneur have a direct impact on the success of a nonprofit organisation. Secondly, once a social entrepreneur has completed school level education, informal types of education and business skills training play a bigger role than formal types in the effective management and success of his/her respective non-profit organisation. The findings of the empirical investigation showed that the most valuable three types of informal education and business skills training include workshops and conferences, business experience and networks. The most important recommendation for social entrepreneurs is that their school level education should be completed, in order to access further education and business skills training opportunities. The social entrepreneurs must equip themselves with certain skills and knowledge, namely: financial management, legal knowledge, human resource management, strategic management, monitoring and evaluation skills, technical skills and research skills, in order to ensure the successful functioning of their respective non-profit organization.
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  • Date Issued: 2011

Inflation threshold and nonlinearity: implications for inflation targeting in South Africa

  • Authors: Morar, Derwina
  • Date: 2011
  • Subjects: Inflation targeting -- South Africa Interest rates -- Effect of inflation on -- South Africa Monetary policy -- South Africa Economic development -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:984 , http://hdl.handle.net/10962/d1002718
  • Description: Following many other central banks around the world, the South African Reserve Bank has adopted inflation targeting as its monetary policy framework. The aim of this is to achieve low levels of inflation in order to attain price stability thereby promoting growth. In South Africa, the chosen band to target is 3%–6%. This has been criticised by many trade unions who are calling for the abandonment of inflation targeting. Despite targeting 3%–6%, it is not known whether this is the optimal inflation range for South Africa. Therefore, the aim of this study is to determine the inflation threshold level for South Africa using quarterly data for the period 1983 to 2010. The first section determines whether or not there is a long-run relationship between inflation and growth using the Johansen cointegration method. Exogeneity tests determine the causality between these variables. Vector error correction models are estimated if cointegration is found. The second part determines the threshold level of inflation using the method of conditional least squares. The inflation level that maximises the R-squared value and minimises the residual sum of squares gives an indication of the threshold level. The third part of the study determines whether or not inflation volatility has a significant impact on growth. The first part established that there is long-run comovement between inflation and growth.The causality is bidirectional with both variables being endogenous.Findings regarding the threshold level show that the current inflation targeting band of 3%–6% may be extended up to 9.5%. In addition, the range of inflation from 5.5% to 6.5% promotes economic growth in South Africa. Finally, the evidence suggests that inflation volatility does not have a significant impact on economic growth and the focus of policy should be directed towards the level of inflation as has been the case.
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  • Date Issued: 2011

Monetary policy transmission in South Africa: a comparative analysis of credit and exchange rate channels

  • Authors: Sebitso, Nathaniel Maemu
  • Date: 2011
  • Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
  • Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
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  • Date Issued: 2011

Perceptions of Chinese students on the quality of the academic programmes and services offered at Nelson Mandela Metropolitan University

  • Authors: Song, Junli
  • Date: 2011
  • Subjects: Nelson Mandela Metropolitan University -- Curricula -- Chinese students , Chinese students -- Education (Higher) -- South Africa -- Port Elizabeth , Strategic planning , Service industries -- Marketing
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:9359 , http://hdl.handle.net/10948/1368 , Nelson Mandela Metropolitan University -- Curricula -- Chinese students , Chinese students -- Education (Higher) -- South Africa -- Port Elizabeth , Strategic planning , Service industries -- Marketing
  • Description: With English as the medium of academic exchange, Chinese students are the largest single overseas student group in the English speaking countries (2010). Relative to the outbound education market of other countries, the Chinese education market is large, and it is currently receiving much attention globally. Not only is South Africa one of countries where English is spoken, it has relatively speaking, low study fees and easily-accessed visas compared with countries in Europe and the United States. Therefore, South African universities have a virtually unlimited potential for receiving Chinese students. For South African education providers, particularly NMMU as the host university for the research in question, in order to render the expected education quality and to cater for the Chinese education market effectively, it is of utmost importance that the institutions have a clear understanding of Chinese students’ expectations as well as their actual academic experiences (in the broadest context) when studying at this university. The above is closely linked to the expected educational quality, the actual educational delivery as experienced by Chinese students, as well as the levels of satisfaction they experience as students at NMMU. The purpose of this research project is twofold. Firstly, it aims to construct a theoretical model showing the variables and relationships pertaining to expected and actual educational delivery as experienced by Chinese students. Having assessed the perceptions of the respondents based on the findings, another purpose is to design appropriate educational marketing strategies suitable to address the academic needs and expectations of Chinese students in the broadest context. By designing appropriate education strategies, the potential to develop the Chinese education market in South Africa will be enhanced. Given the purpose and nature of the research in question, methodological triangulation strategies were used. A Likert seven-point scale research instrument was developed and administered. Due to the limited number of respondents (n=61), the Likert scale instrument was further subjected to enrich the data by means of face-to-face interviews with 61 Chinese students (respondents), who shared their perceptions on the expectations and actual experiences of NMMU academic programme quality encounters. By following the methodological triangulation strategies, the validity of the findings is enhanced. The phenomenological dimension of the research was conducted according to guidelines as documented in secondary sources. The findings of the matched pair t-tests indicated that significant statistical differences do exist between the ‘expectations’ and ‘actual experiences’ of Chinese students’ perceived academic programme quality. Sufficient evidence is available at the 95 percent level of significance to support the hypothesis H1, namely: “There are differences between Chinese students’ ‘expected’ and ‘perceived’ academic programme quality (actual experience) of NMMU”. Besides the matched pair t-tests, further statistical analyses were performed by means of calculating Cohen’s ‘d’ values and relative percentage ratings to assess the magnitude of the “gap” between expectations and actual experiences of Chinese students studying at NMMU. The findings revealed that the Chinese students were not completely satisfied with their actual experiences when studying at NMMU. The above statistical findings were endorsed by the qualitative findings. Three sets of conclusions and recommendations were identified for this research. Firstly, conclusions emanating from secondary sources on service quality and students’ satisfaction literature were provided, such that students satisfaction is seen more as a psychological state which reveals an overall feeling of the students’ purchase and consumption experience. Secondly, the conclusions linked to the empirical findings revealed significant statistical differences between the expectations and perceptions (actual experiences) of Chinese students’ perceived academic programme quality. Finally, recommendations on relevant NMMU educational marketing objectives/ strategies can be grouped into four domains: - To build a customer-led education business which adheres to the principles of true marketing orientation with the focus on Chinese students. To achieve this objective a high level of understanding of Chinese students’ specific needs and wants when studying at NMMU is of utmost importance. The effective marketing positioning of NMMU can render leverage benefits to themselves and their clientele. - Findings from the biographic data analyses are significant to the positioning strategies and market segmentation strategies of NMMU. - The decision on a proper positioning strategy entails the choice of target market segments, which will determine where and how the education business competes and its choice of differential advantages. - The South African education providers should have appropriate educational brands to entice the Chinese students’ support.
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  • Date Issued: 2011

Selected marketing and human resources variables influencing sponsorship initiatives within corporate businesses :a South African perspective

  • Authors: Kruger, Elda
  • Date: 2011
  • Subjects: Branding (Marketing) , Advertising , Human capital
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:9367 , http://hdl.handle.net/10948/d1010010 , Branding (Marketing) , Advertising , Human capital
  • Description: In an ever changing world, consumers are less and less responsive to traditional advertising, which creates a challenge for marketers, as they need to constantly develop new marketing communication tools to make a lasting impression on current and potential consumers. Consumers of the twenty first century are described as emotionally acting individuals, and has led to a increase in creative and emotional marketing communication tools, for example sponsorship, which is an increasingly important element of an integrated marketing communication strategy. Because of the value sponsorship can have for a business, and the high costs involved in this marketing initiative, it is imperative to examine variables that might be influential, in order to apply this promotional activity to the business’ advantage (Belch & Belch 2007:12; Hartland, Skinner & Griffiths 2005:164-173; Nicholis, Roslow & Dublish 1999:365-387; Pham & Vanheule 1997:407-417). Because of the important effect of sponsorship, marketing managers seek clarity in respect of which events to support and to link their business’ brand with or not. There is however little guidance in literature available on which events to sponsor and how to exploit resources efficiently and effectively (Crimmins & Horn 1996; Speed & Thompson 2000). Therefore, the objective of this study is to identify factors that might influence sponsorship initiatives within corporate businesses in South Africa. The variables that was identified for the study at hand was marketing related variables namely branding, marketing ethics and green marketing, and human resources related variables namely, corporate culture, values and employee empowerment. In order to determine the influence of the predetermined variables on sponsorship, an empirical investigation was conducted. The positivistic (phenomenological) approach was used in this study as the aim was to determine whether a relationship exists between selected independent variables and the dependent variable, via the intervening variables, using statistical analysis. In order to gather primary data, selfadministered questionnaires were issued to 182 respondents by means of convenience and snowball sampling of which the results were analysed to arrive at conclusions regarding the research in question. The empirical analysis of the data followed the following statistical steps: exploratory factor analysis to test the validity of the measuring instrument, Cronbach Alpha correlation coefficients to confirm the reliability of the questionnaire, SEM goodness-of-fit, multiple regression analysis to test the hypothesised relationships between the independent, intervening and dependent variables, ANOVA and descriptive statistics. The main findings of this study suggest that branding and green marketing have a significantly positive relationship with sponsorship, indicating the importance of a business’ brand and environmental awareness in terms of its emotional marketing initiatives. These relationships iIn an ever changing world, consumers are less and less responsive to traditional advertising, which creates a challenge for marketers, as they need to constantly develop new marketing communication tools to make a lasting impression on current and potential consumers. Consumers of the twenty first century are described as emotionally acting individuals, and has led to a increase in creative and emotional marketing communication tools, for example sponsorship, which is an increasingly important element of an integrated marketing communication strategy. Because of the value sponsorship can have for a business, and the high costs involved in this marketing initiative, it is imperative to examine variables that might be influential, in order to apply this promotional activity to the business’ advantage (Belch & Belch 2007:12; Hartland, Skinner & Griffiths 2005:164-173; Nicholis, Roslow & Dublish 1999:365-387; Pham & Vanheule 1997:407-417). Because of the important effect of sponsorship, marketing managers seek clarity in respect of which events to support and to link their business’ brand with or not. There is however little guidance in literature available on which events to sponsor and how to exploit resources efficiently and effectively (Crimmins & Horn 1996; Speed & Thompson 2000). Therefore, the objective of this study is to identify factors that might influence sponsorship initiatives within corporate businesses in South Africa. The variables that was identified for the study at hand was marketing related variables namely branding, marketing ethics and green marketing, and human resources related variables namely, corporate culture, values and employee empowerment. In order to determine the influence of the predetermined variables on sponsorship, an empirical investigation was conducted. The positivistic (phenomenological) approach was used in this study as the aim was to determine whether a relationship exists between selected independent variables and the dependent variable, via the intervening variables, using statistical analysis. In order to gather primary data, selfadministered questionnaires were issued to 182 respondents by means of convenience and snowball sampling of which the results were analysed to arrive at conclusions regarding the research in question. The empirical analysis of the data followed the following statistical steps: exploratory factor analysis to test the validity of the measuring instrument, Cronbach Alpha correlation coefficients to confirm the reliability of the questionnaire, SEM goodness-of-fit, multiple regression analysis to test the hypothesised relationships between the independent, intervening and dependent variables, ANOVA and descriptive statistics. The main findings of this study suggest that branding and green marketing have a significantly positive relationship with sponsorship, indicating the importance of a business’ brand and environmental awareness in terms of its emotional marketing initiatives. These relationships imply that, according to respondents, if these two aspects improve within the business, so could its sponsorship initiatives. Interestingly, it was established that ethics was insignificant in terms of a business’sponsorship initiatives. Corporate culture and values had a positive relationship with sponsorship, and employee empowerment proved to be negatively related to Sport and Broadcast sponsorship, with no significant relationship with Education and Community sponsorship. Additionally, the empirical investigation revealed that the ethnicity of respondents exerted an influence on the perception employees have regarding ethics, employee empowerment and Sport and Broadcast sponsorship within the businesses they are employed at. As this study assisted in the development of sponsorship strategies for businesses to implement, it will have a direct benefit to marketers and businesses in general so that sponsorship initiatives can be directed in such a way to maximise the return on investment for a business. The implications of this study will be of great value to marketing managers as sponsorship is such an important marketing strategy and communications tool which impacts on the overall business objectives.mply that, according to respondents, if these two aspects improve within the business, so could its sponsorship initiatives. Interestingly, it was established that ethics was insignificant in terms of a business’ sponsorship initiatives. Corporate culture and values had a positive relationship with sponsorship, and employee empowerment proved to be negatively related to Sport and Broadcast sponsorship, with no significant relationship with Education and Community sponsorship. Additionally, the empirical investigation revealed that the ethnicity of respondents exerted an influence on the perception employees have regarding ethics, employee empowerment and Sport and Broadcast sponsorship within the businesses they are employed at. As this study assisted in the development of sponsorship strategies for businesses to implement, it will have a direct benefit to marketers and businesses in general so that sponsorship initiatives can be directed in such a way to maximise the return on investment for a business. The implications of this study will be of great value to marketing managers as sponsorship is such an important marketing strategy and communications tool which impacts on the overall business objectives.
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  • Date Issued: 2011

South African money market volatility, asymmetry and retail interest pass-through

  • Authors: Fadiran, Gideon Oluwatobi
  • Date: 2011
  • Subjects: Money market -- South Africa Interest rates -- South Africa Monetary policy -- South Africa Econometric models Banks and banking -- South Africa
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:993 , http://hdl.handle.net/10962/d1002728
  • Description: The purpose of this paper is to examine the interest rate transmission mechanism for South Africa as an emerging economy in a pre-repo and repo system. It explains how the money market rate is transmitted to the retail interest rates both in the long-run and short-run and tests the symmetric and asymmetric interest rate pass-through using the Scholnick (1996) ECM and the Wang and Lee (2009) ECM-EGARCH (1, 1)-M methodology. This permitted the examination of the impact of interest rate volatility, along with the leverage effect. An incomplete pass-through is found in the short-run. From the entire sample period, a symmetric adjustment is found in the deposit rate, which had upward rigidity adjustment, while an asymmetric adjustment is found in the lending rate, with a downward rigidity adjustment. All the adjustments supported the collusive pricing arrangements. According to the conditional variance estimation of the ECM-EGARCH (1, 1), negative volatility impact and leverage effect are present and influential only in the deposit interest rate adjustment process in South Africa.
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  • Date Issued: 2011

Survival analysis of SMMEs in Botswana

  • Authors: Mannathoko, Bame Joshua
  • Date: 2011
  • Subjects: Small business -- Botswana , Sex discrimination against women -- Botswana , Finance -- Botswana
  • Language: English
  • Type: Thesis , Masters , MCom
  • Identifier: vital:8984 , http://hdl.handle.net/10948/1531 , Small business -- Botswana , Sex discrimination against women -- Botswana , Finance -- Botswana
  • Description: This study investigates the factors influencing survival of micro enterprises funded by the Department of Youth in Botswana. Data drawn from 271 business ventures established between the years 2005 and 2009 was analysed by using the Cox proportional hazards model (CPHM), a survival analysis technique. Results from the analysis suggest that businesses operated by younger owners endure a higher risk of failure in comparison to businesses owned by older entrepreneurs while firm size at start-up was also a significant determinant of survival. As a component of human capital, a personal contribution to the start-up capital and prior employment experience were also found to be significant predictors of business survival. Regarding gender of the business owner, the claim that female operated businesses face a higher probability of failure when compared to businesses run by males was not supported by the study results. The amount of funding from the DOY at start-up was found not to have any influence on the survival or failure outcomes for the business projects. Based on these findings, certain policy implications can be deduced. This study recommends that policy makers focus more on human capital requirements of beneficiaries of government business development initiatives as well as entrepreneur contribution to start-up capital in order to increase the success rate of the business ventures. In addition, the capacity to perform continuous monitoring and mentoring of government funded businesses ventures, particularly SMMEs, should be increased within the relevant departments or alternatively outsourcing of the requisite skills should be considered. Lastly, recommendation to replicate this research, at a larger scale in future is proposed.
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  • Date Issued: 2011

The contribution made by Mr Justice EF Watermeyer to South African tax jurisprudence

  • Authors: Thackwell, Robert Colin
  • Date: 2011
  • Language: English
  • Type: text , Thesis , Masters , MCom
  • Identifier: vital:881 , http://hdl.handle.net/10962/d1001635
  • Description: The objective of this thesis is to highlight the colossal contributions made by the late Justice Watermeyer to South African tax jurisprudence. His contributions are viewed from a practical application point of view as well as from a statutory interpretative perspective. The style and technique with which he delivered his judgments are also considered to be a contribution in their own right. The core of this thesis is the analysis of seven of Justice Watermeyer‟s most influential judgments. The development and application of the principle or principles developed in each of these seven judgments is then traced chronologically through case law up until recent judgments. It is most notable that each and every phrase contained in section 11(a) of the Income Tax Act has been interpreted by Justice Watermeyer. These interpretations are still viewed as correct statements of the applicable law and will continue to be referred to on a regular basis given the fact that section 11(a) is one of the most widely contested provisions in the Income Tax Act. Several references to his approach to statutory interpretation are made through the course of the case analyses. Whilst significant evidence of a purposive oriented approach to interpretation appears in some judgments, such evidence is lacking in others. An absolute or conclusive submission in terms of his approach to statutory interpretation is not sufficiently supported. His style of judgment is also referred to and commented on, with particular focus placed on his use of illustrative examples. The contribution to South African tax law by Justice Watermeyer is found to be nothing short of enormous. He was and continues to be influential with respect to section 11(a),the definition of gross income in section 1, common law principles of tax avoidance as well as the interpretation of statutory laws of tax avoidance. It is anticipated that some of his interpretations with respect to statutory rules of tax avoidance will be referred to when the relatively new anti-avoidance provisions become the subject of litigation.
  • Full Text:
  • Date Issued: 2011
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