The relationship between electricity supply, power outages and economic growth in South Africa
- Authors: Khobai, Hlalefang
- Date: 2013
- Subjects: Economic development -- South Africa , Energy consumption -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9024 , http://hdl.handle.net/10948/d1020069
- Description: The economic boom in South Africa following the 1994 democratisation led to increased welfare of the citizens and their purchasing power. This further resulted in increase in electricity consumption. The electricity supply did not increase proportionally to the increase in electricity consumption leading to the 2008 shortage of electricity which nearly damaged the power generating circuit. The literature review has shown that electricity supply and consumption have a positive impact on economic growth. It further showed that employment enhances economic growth. Conversely, it showed that power outages negatively affect economic growth. The research serves to investigate the relationship between electricity supply and economic growth in South Africa and to examine the impact of power outages on economic growth. It also seeks to find the appropriate structure for electricity supply industry that will lead to increase in economic growth. The autoregressive distributed lag (ARDL) bounds approach was used to find the relationship between economic growth, electricity supply, power outages and employment using quarterly data from 2000 to 2012. The ARDL technique was chosen over the conventional models such as Johansen technique for the research because it uses a single reduced form of equation to examine the long run relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. The ARDL technique is also suitable to use to test co-integration when a small sample data is used and does not require the underlying variables to be integrated of similar order. The Vector Error Correction Model (VECM) Granger causality was also employed in the study to establish the causality between economic growth and electricity supply. It was chosen for its ability to develop longer term forecasting, when dealing with an unconstrained model. The results from the ARDL bounds test showed that there is a long run relationship between economic growth, electricity supply, power outages and employment. Based on the causality tests, the findings showed a unidirectional causality flowing from electricity supply to economic growth. This implies that electricity supply affect economic growth in South Africa. The results further showed no causality flowing from economic growth to electricity supply which indicates that when economic growth is booming fewer funds are used for improvement of the electricity generation. Lastly, the results showed that power outages negatively affect economic growth in the long run. To sum up, electricity supply is an important factor for economic growth in South Africa. It is therefore necessary that South Africa must put in place measures aimed at stimulating electricity supply. One of the measures aimed at increasing output of electricity is to unbundle the electricity sector. This process involves allowing entry of the Independent Power Producers (IPPs), Independent System Operator (ISO) and Regional Electricity Distributors (REDs). This will lead to increased supply of electricity and competitively lower prices of electricity. The study further recommends that renewable energy sources should be used to produce electricity instead of coal and nuclear fuels as they failed to produce enough electricity for the nation.
- Full Text:
- Date Issued: 2013
The zero-rating of certain professional services in terms of the Value-Added Tax Act
- Authors: Roberts, Tanya
- Date: 2013
- Subjects: South Africa. Value-Added Tax Act, 1991 , Tax exemption -- Law and legislation -- South Africa , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8968 , http://hdl.handle.net/10948/d1021006
- Description: The third sphere of government (Local Government) has been persistently clouded by unfavourable Annual Financial Statement (AFS) audit reports. This results in local government losing credibility and its stakeholders losing confidence in the institutions or municipalities. In-depth analysis of the root cause of this dilemma is an opportunity for the municipality to reorganise its house and redeem its dignity and credibility to its stakeholders through addressing the identified challenges. The importance of the study can be attributed to the need to investigate the root causes of unfavourable audit opinion and recommend possible remedies that can assist municipalities to improve their audit report outcomes which in turn will improve the confidence of its stakeholders. The primary objective of the study was to investigate variables that impact on the audit report outcomes on annual financial statements of the municipalities that are within Alfred Nzo District (AND) Jurisdiction, including Alfred Nzo District Municipality (ANDM). This was achieved through investigating the root causes of the audit report outcomes with specific focus on the relationship that exists between the management role and audit outcomes of the Alfred Nzo District Municipalities. This was measured by the municipality’s leadership, governance, internal controls and human capital management. Convenient sampling was used wherein 150 questionnaires (30 per municipality) were sent out to the selected employees in all the municipalities in the Alfred Nzo District. Out of the questionnaires that were sent out, 103 responses were received. These were analysed to draw findings, conclusion and recommendations. The empirical results of the study revealed that there is strong evidence that leadership, governance and human capital management have a positive influence on the municipality’s AFS audit report outcomes. It also revealed that there is overwhelming evidence that internal controls have a positive influence on the municipality’s AFS audit report outcomes. The study recommends how leadership, governance, internal controls and human capital management must be improved. It also provides future research recommendations to improve this study.
- Full Text:
- Date Issued: 2013
A critical analysis of the reference pricing tool used by SARS to address undervaluation of imported clothing
- Authors: Mansoor, Younus Ahmed
- Date: 2014
- Subjects: Transfer pricing -- Taxation -- South Africa , Tariff -- Law and legislation , Customs appraisal , Revenue management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8965 , http://hdl.handle.net/10948/d1020755
- Description: The South African Revenue Service has since 2009 introduced “reference pricing” as a tool to detect undervaluation of customs values of imported clothing and textiles. The term “reference pricing” is not defined in the Customs and Excise Act No.91 of 1964 which is the legislation that governs the importation of goods into the Republic of South Africa. The mandate of the South African Revenue Service, amongst others, is to facilitate legitimate trade. By applying the reference pricing guidelines the South African Revenue Service will target all importers who declare customs values which are less than the reference price for a targeted tariff heading associated with an item of clothing or textile. The Customs and Excise Act No.91 of 1964 is clear in that the transaction value which is the price paid or payable for the imported goods shall be the value used for customs duty purposes. The Customs and Excise Act No.91 of 1964 also requires that the interpretation of the sections 65, 66 and 67 of the said Act shall be subject to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Valuation Agreement). Part I of the Valuation Agreement deals with the rules for customs valuation. Article 17 of part 1 allows for customs administrations to satisfy themselves as to the truth or accuracy of any statement, document or declaration presented for customs valuation purposes. The Technical Committee on Customs Valuation of the World Trade Organisation decided the following in so far as Article 17 of the aforesaid agreement is concerned: “1. When a declaration has been presented and where the customs administration has reason to doubt the truth or accuracy of the particulars or of documents produced in support of this declaration, the customs administration may ask the importer to provide further explanation, including documents or other evidence, that the declared value represents the total amount actually paid or payable for the imported goods, ....” It would appear that the South African Revenue Service is using reference prices as a tool to support its reason for doubting the truth or accuracy of the declared customs values. The indiscriminate use of reference pricing, it is submitted, affects legitimate trade adversely. This treatise provides an understanding of how the customs value should be determined in terms of the Customs and Excise Act No.91 of 1964 and the Valuation Agreement. It then provides a background to reference pricing and how reference pricing will be used to detect undervalued imports of clothing and textiles, the advantages and disadvantages of using reference pricing and a comparative analysis of the approach adopted by the Mexican Tax Administration Service in so far as the use of reference pricing is concerned. It was established that the reference price cannot replace the customs value of an imported clothing item as the customs value is based on the price actually paid or payable for it and not on some arbitrary or fictitious value. The reference price can only be used as a tool to identify importers that are possibly undervaluing the customs values. The disadvantages far outweigh the advantages of using reference pricing. The treatise further provides a background to the use of a valuation database as a risk assessment tool and compares this to the use of reference pricing. The use of reference pricing and its impact on trade facilitation is then discussed as well as whether the use of reference pricing is consistent with the risk management principles as discussed in the World Customs Organisation Risk Management Guide. It was established that the South African Revenue Service has not disclosed the basis of arriving at the reference price per tariff heading that it targets and the use of reference pricing is not sanctioned by any international guideline or agreement. It was also established that the use of reference pricing targets compliant importers unnecessarily and this practice goes against the principles of trade facilitation. The use of reference pricing can be used as a tool to detect undervalued imports of clothing but should not be used as a basis to stop every consignment of clothing simply because the customs value declared is less than the reference price. It should not be used as a stand-alone tool but rather enhanced further with the recommendations provided. In the final analysis, recommendations are provided which seek to enhance the reference pricing mechanism and to further identify and exclude compliant importers and limit the use of reference pricing to target non-compliant importers who undervalue the customs value of imported clothing and textile items.
- Full Text:
- Date Issued: 2014
Consumer perceptions of multiple private label brands offered by Pick n Pay stores
- Authors: Marriott, Andrew William
- Date: 2014
- Subjects: Brand choice -- South Africa , House brands -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/5974 , vital:21021
- Description: This research provides insight into consumer perceptions of multiple private label brands being simultaneously offered by an individual retailer. The primary purpose of this study is to investigate the current consumer perceptions of the three private label brands at Pick n Pay Stores, a South African retailer. Consumers are no longer being presented with a single private label brand, but individual grocery retailers offer multiple private label brands under one retailer. Pick n Pay Store’s current private label brands co-exist as PnP no name, PnP and PnP Finest, and are synonymous with the generic, classic, and premium private label brand concepts, respectively. The question can thus be posed whether consumers perceive private label brands differently and whether they will eventually purchase the private label brand. The research explores the subject of brand, and the nature and success factors of private label brands in retail. This was done by reviewing the literature that traced the rapid changes in the retail sector because of the increasing influence of private label brands on conventional retail practices and consumer behaviour. A conceptual framework was developed showing the constructs that may have relationships with the three private label brands of Pick n Pay Stores. Information regarding the different private label brand concepts was obtained from primary as well as secondary research. An empirical study of a quantitative nature in the form of a paper-based and online-based questionnaire was undertaken. Altogether 375 usable questionnaires were collected. The results of the empirical study indicated positive relationships of perceptions between all three of the Pick n Pay private label brands and their respective intention to purchase. Furthermore, there was a statistically positive relationship between the brand perceptions of Pick n Pay private label brands. The proposed framework is intended to shed light onto the interactions between the private label concepts to allow for meaningful strategic branding decisions to be made at senior business levels.
- Full Text:
- Date Issued: 2014
Development finance in small and medium enterprises in Matjhabeng Municipality
- Authors: Babalola, Oluwanifesimi Omolade
- Date: 2014
- Subjects: Business enterprises -- South Africa -- Finance , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9187 , http://hdl.handle.net/10948/d1020215
- Description: It has been generally accepted within the developed and developing countries of the world that SMES contributes significantly to employment creation as the world population increases and that it also contributes to the economic growth of the areas they are situated in. Finance is the blood (life) of any business, for a business to be successful it needs steady successful access to funds and post financial support which leads to actualization of ideas, leads to investment and expansion, improves access to market amongst others. This is why the impact of development finance can never be over emphasized. The aims of the study are: To understand the extent to which small and medium businesses are supported through the availability of financial assistance in Matjabeng Municipality. To establish the survival rates of businesses that has been funded and or supported and whether they are or not sustainable. In achieving the aims and objectives of the research, the researcher looked at development funds both from the supply side and the demand side. The supply side which involved semi structured interviews with consultants of government parastatals (the FDC and DETEA) who are involved in financing Small Medium Enterprises in Matjhabeng municipality. The demand side involved administering of questionnaires to Entrepreneurs in the municipality who are registered with the Local Economic Department (LED), which led to the acceptance of the hypothesis of the research that development finance actually helps in the growth of small medium enterprises but in conjunction with post financial support such as bookkeeping, accounting, monitoring and evaluation. The researcher also discovered some findings amongst others which includes: The most effective ways entrepreneurs heard about funding in the municipality are through the media and word of mouth. Most of the entrepreneurs that received some type of funding are startups. More entrepreneurs that had access to funds also got some post financial business support. Financial assistance to entrepreneurs yielded improvements after respondents received financial assistance, the range of goods offered was improved and more jobs were created, entrepreneurs were able to obtain better business premises either by renting or buying and entrepreneurs had access to better equipment. Some of the recommendations of this study includes; The municipal government should help small and medium enterprises in the municipality by linking them to new markets. Effective monitoring and evaluation systems should be put in place by development funders and non-financial support services. Entrepreneurial skills development should be provided by the public and private agencies by organizing workshops for aspiring entrepreneurs in order to expose them to business opportunities that are sustainable and viable.
- Full Text:
- Date Issued: 2014
Domestic tax law v double tax treaties in the context of controlled foreign companies
- Authors: Froom, Natalie Marie
- Date: 2014
- Subjects: Taxation -- Law and legislation -- South Africa , Fiscal policy -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/3559 , vital:20442
- Description: The South African fiscal legislators have found it necessary to introduce anti-avoidance legislation which governs controlled foreign companies in order to counteract schemes devised by taxpayers where companies are established outside South Africa for the purpose of diverting income from the South African fiscal net. Whilst the enforcement of such legislation does have merit in that the intention behind the introduction of such domestic legislation is to prevent the erosion of the South African tax base, it is submitted that this does pose a problem from an international perspective. The objective of this treatise is to conduct a critical analysis of how compatible the South African fiscal legislation which governs controlled foreign companies is with the provisions of the double taxation agreement as prescribed in terms of the OECD Model Tax Convention (which was published in July 2010). In addition, the aim of this study is to deduce whether the purpose of the double taxation agreement is not only the avoidance of juridical double taxation but also that it addresses the avoidance of economic double taxation. This will assist in determining whether domestic controlled foreign company legislation (as embodied in section 9D of the Income Tax Act 58 of 1962) conflicts with the purpose of the double taxation agreement. By conducting an extensive research study and by depicting a certain scenario which addresses the issue at hand, the following is concluded: The tax treatment of the business profits generated by a controlled foreign company resident in a State outside South Africa and which have been generated from active business operating activities, is held to be in agreement with the provisions of the double taxation agreement. By contrast, the tax treatment of the controlled foreign company’s passive income in the form of interest income, is found not to correlate with the aforesaid agreement. As will be demonstrated in the chapters that follow, the controlled foreign company’s interest income is subjected to economic double taxation in terms of the scenario depicted in this treatise. This means that such income is taxed twice in the hands of two different taxpayers in two different States. As a result of this it is submitted that the following problem arises: Because section 9D of the Income Tax Act causes economic double taxation to occur (as illustrated in the previous paragraphs) and owing to the fact that the purpose of the double taxation agreement is the avoidance of economic double taxation, it can be shown that the section 9D domestic legislation conflicts with the terms of the double taxation agreement. This conflict is considered to be an area of concern because a contravention of the purpose of the double taxation agreement is regarded as a breach of the Contracting States’ international obligations in terms of the aforesaid agreement. It is further submitted that paragraph 23 of the OECD Commentary on article 1 and paragraph 14 of the OECD Commentary on article 7 are incorrect when they express the sentiment that domestic controlled foreign company legislation does not conflict with the provisions of the double taxation agreement. It is proposed that this be corrected to state the contrary.
- Full Text:
- Date Issued: 2014
Educational needs of the financial planning industry
- Authors: Palframan, Jaqueline Birgitta
- Date: 2014
- Subjects: Financial planning industry , Financial planners
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9327 , http://hdl.handle.net/10948/d1020986
- Description: The South African financial planning industry experienced a rapid growth from its generic beginnings in the 1970’s to the vast levels of specialisation taking place in the 21st century. Financial planning, akin to the medical profession, is arguably one of the most critical areas of influence in the personal lifestyle planning of individuals given the increasing longevity brought about by the medical profession. Early transgressions and irregularities, as in the case of most industries, brought about the introduction of the Financial Advisory and Iintermediary Services (FAIS) Act in 2004 to regulate, transform and restructure the industry. Since the introduction of the Act, compliance with the legislation and obtaining the appropriate qualifications have become a major focus for financial planners. This groundbreaking academic research involves an assessment of the educational needs of graduates in the financial planning industry including an evaluation of the relative importance of the subject fields, management competencies and skills required in the field of financial planning with specific reference to the financial planning programmes offered by the HEIs in South Africa. The purpose of this study can be phrased in a threefold manner: Firstly, to assess at programme level the theoretical and practical relevancy of the HEIs financial planning programme content relative to the present and immediate future normative requirements of the financial planning profession; Secondly, to assess whether the academic programmes address the critical skills shortage in financial planning by determining the appropriate qualification delivery in terms of academic and practical learning to develop the appropriate management competencies; and Thirdly, based on the findings of this research, to address any gaps pertaining to the financial planning programme content and management competency and skills levels, thereby contributing to the body of knowledge pertaining to financial planning education in order to be relevant and responsive in servicing the financial services sector. To give effect to the problem statement and to validate the research propositions, a mixed methods design within the pragmatic research paradigm was used. A relatively new and innovative mixed methods approach, namely Real-time Delphi (RTD) procedures of sourcing professional expert opinion enabled the collection of qualitative and quantitative data for data triangulation. The RTD methodology which seeks the pooled intelligence from a group of selected experts is also capable of determining future requirements rather than only the current practice. This is the first academic study of its kind in South Africa utilising the RTD methodology.
- Full Text:
- Date Issued: 2014
Establishing perceptions of an entrepreneur using word associations
- Authors: Goliath, Jasmine Estonia
- Date: 2014
- Subjects: Entrepreneurship -- South Africa , Economic development -- South Africa , Businesspeople -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9321 , http://hdl.handle.net/10948/d1020785
- Description: Entrepreneurship as a source of economic growth and competitiveness as well as job creation and the advancement of social interests is well documented. Despite these important contributions to the economies of countries, a shortage of entrepreneurial activity exists across borders and specifically in developing countries such as South Africa. The purpose of this study was to determine the perception and image of an entrepreneur in the eyes of various stakeholders. The reasoning behind this was that if the image of an entrepreneur could be determined, one could establish whether the image positively or negatively influences entrepreneurial intentions as well as potential future entrepreneurial activity. More specifically, the primary objective was to identify the perception and image that potential entrepreneurs (students) and existing entrepreneurs (small business owners) have of an entrepreneur. In the body of knowledge or general literature on entrepreneurship, the most commonly discussed topics are the nature and importance of entrepreneurship, the attributes (personality traits, characteristics and skills) associated with an entrepreneur, various push and pull factors, various rewards and drawbacks of such a career and the challenges entrepreneurs face. It is these aspects of entrepreneurship that stakeholders will most likely have been exposed to, and that most possibly have influenced their perception and image of an entrepreneur. The aforementioned aspects provided an overview of the theoretical body of knowledge on which the perception and image of an entrepreneur is based. The present study adopted a qualitative research paradigm with a phenomenological approach to achieve the research objectives of the study. Within this context, the study made use of a qualitative method for data collection and a quantitative method for data analysis. As such, a mixed methods approach was adopted. More specifically, a qualitative dominant mixed research method was implemented. A continuous word association test, which is a projective technique, was adopted as the qualitative means of data collection. This test involved asking participants to recall the words that come to mind when presented with the word “entrepreneur”. This method was selected because of its ability to reveal both affective and cognitive associations with the concept “entrepreneur”. A quantitative summative (manifest) content analysis was used as the quantitative research method for analysing the data. The continuous word association test was conducted among three sample groups, namely students prior to commencing, and students after completing a module in entrepreneurship, and small business owners. Student and small business owner participants were asked to write down as many words or phrases as possible that came to mind when they thought of the word “entrepreneur”, which was the stimulus word, within a ten-minute period. These responses were then collated and coded by developing a coding framework based on brand image and entrepreneurship literature. In studies on brand image, the components of image are considered to be tristructured in nature, consisting of cognitive (what the individual knows), affective (how the individual feels) and holistic (overall symbolism, combination of affective and cognitive) evaluations. The words generated by the participants in this study were broadly coded according to these categories and further subcategorised by searching for themes within the broad categories, which was facilitated and guided by an in-depth investigation of the entrepreneurship literature. The findings of this study show that the words generated by all three groups of participants were mostly of a cognitive nature, followed by words of a general or affective nature. As such, the vast majority of words generated by all three groups related to what the participants knew about an entrepreneur (cognitive) versus how they felt about one (affective), and were grounded in the management or entrepreneurship literature. When comparing the top ten words most frequently associated with the term “entrepreneur” by the three groups of participants, the attribute risk-taker was the most frequently recalled word among all three groups. Students prior to undertaking the entrepreneurship module associated an entrepreneur with being creative and a risk-taker, having a business enterprise and being involved in the selling of goods and services. Students after completing the module in entrepreneurship associated an entrepreneur with being profit-orientated, a risk-taker, innovative and original, and being opportunistic. Small business owners, on the other hand, associated an entrepreneur with being a risk-taker, innovative and original, goal- and achievement-orientated and profit-orientated. The findings show that all groups of participants associated an entrepreneur principally with certain attributes rather than with learned skills and competencies, and that all groups had a more positive than negative image of an entrepreneur. It was also found that exposure to entrepreneurship literature has an influence on the perception and image that students have of an entrepreneur. Because the words recalled by students after completing the entrepreneurship module were more in line with those recalled by small business owners, than with those recalled by students before starting the module, it can be suggested that entrepreneurship literature contributes to a more realistic image of an entrepreneur among students. This study has contributed to the field of entrepreneurship research by adopting a qualitative dominant research paradigm in conjunction with quantitative research methods to explore the complexity of the term “entrepreneur”. Furthermore, this study has been able to establish how individuals feel about entrepreneurship, in terms of being either positive or negative, by adding an affective aspect to the cognitive aspect of entrepreneurial decision-making. By conducting a continuous word association test among students prior to beginning and after completing a module in entrepreneurship, the entrepreneurial knowledge of students before being exposed to entrepreneurship literature was established, and subsequently the effectiveness of the entrepreneurship module determined. It is hoped that the findings of this study have added value to the entrepreneurship body of knowledge and can be used in future studies as a tool to address the problem of low entrepreneurial intention and activity among South Africans. Furthermore, it is hoped that by creating a positive image of an entrepreneur, entrepreneurship as a desirable career choice can be promoted and an entrepreneurial culture developed within communities and broader society.
- Full Text:
- Date Issued: 2014
Financial literacy and behaviour among the black community in Nelson Mandela Bay
- Authors: Antoni, Xolile Lucas
- Date: 2014
- Subjects: Finance, Personal , Investments -- Psychological aspects , Investments -- Decision making
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9315 , http://hdl.handle.net/10948/d1020027
- Description: South Africa has a poor savings culture. This means that South Africans do not save enough income for a later stage resulting in a relative large number of South African consumers living in debt and using more credit than what they have saved. Almost half of the South African consumers were in debt during the year 2010 and had a negative credit record. Thus consumers in South Africa are not living only in poor conditions but are also open to exploitation by the informal economy. Lenders in the informal economy are known as ‘loan sharks’ because they charge consumers interest rates of between 40 and 60 percent. This is because low income consumers have less access to savings products and credit facilities from the formal economy. These factors are more prevalent among the black consumers, as they use informal credit providers. The sources of credit for black consumers in the informal market are social networks such as friends and family. Furthermore, black consumers have low levels of knowledge regarding issues such as bad debts. Black consumers are also more likely to experience financial problems than other racial groups. This means that black consumers may need to improve their levels of financial knowledge, financial skills and adopt positive financial attitudes to manage their financial problems without obtaining more debt. Thus, financial education may be the way of ensuring that black consumers improve their financial decision-making ability and their financial behaviour. Therefore, the purpose of this study is to investigate the relationships between financial literacy, financial inclusion and financial behaviour among the black community in Nelson Mandela Bay. To achieve the purpose of this study, a literature review was conducted on financial literacy, financial education, financial inclusion and financial behaviour. This was followed by an empirical investigation to establish the relationships between financial literacy, financial inclusion and financial behaviour. In this study, a quantitative research approach was adopted as necessitated by the purpose of this study and also to be able to collect a vast amount of perceptions from the black community. The sample of this study consisted of low to middle income black consumers living in Nelson Mandela Bay.
- Full Text:
- Date Issued: 2014
Liquidity linkages between the South African bond and equity markets
- Authors: Magagula, Sifiso Charles
- Date: 2014
- Subjects: Financial crises , Global Financial Crisis, 2000-2008 , Financial risk management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9029 , http://hdl.handle.net/10948/d1020758
- Description: Purpose - The study sought to examine the liquidity linkages between the South African bond and equity markets before the global financial crisis in 2008. Design/methodology/approach: The window of observation covered the period January 2000 to September 2008. In order to ensure robustness in the estimation, the study used foreign participation in the various markets as an additional measure of liquidity. The other liquidity measures considered in the study were volume and value traded of the various securities respectively. Time series modeling techniques were used in the estimation. An unrestricted vector autoregressive (VAR) model was estimated following which the standard innovation accounting techniques, impulse response functions and forecast error variance decompositions were applied. In the empirical analysis, the Granger-causality between the two markets was also used. Findings - While all the liquidity measures suggest the existence of linkages between the bond and equity markets, the direction of causality was found to be unidirectional from equity to the bond market using the volume and value measures. On the other hand, the foreign participation measure of liquidity suggests bi-directional causality. The study also provides evidence of long run relationship between key macroeconomic variables such as inflation, exchange rate and interest rate on one hand and liquidity in the debt and equity markets on the other. As empirical findings indicates that the linkages in liquidity between these markets positive, this consistent with studies conducted by Chordia et al (2003 & 2005) and Engsted and Tanggaard (2000) who found the relationship was a positive one. When volumes of trade and trade values, the study find evidence on uni-directional causality and strong bi-directional causality is evidence when foreign investor participation is used as a liquidity measure. In summary, there is a strong evidence liquidity linkage between the bond and equity market from the empirical results.
- Full Text:
- Date Issued: 2014
Monetary policy transmission mechanism in Rwanda: review of the bank lending channel post 1994
- Authors: Nyiranshuti, Claudette
- Date: 2014
- Subjects: Transmission mechanism (Monetary policy) -- Rwanda , Monetary policy -- Rwanda -- Econometric models , Money supply -- Rwanda
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/3923 , vital:20492
- Description: This research attempts to empirically examine the bank-lending channel in monetary policy transmission in Rwanda, using quarterly data for the period 1996Q1 to 2011Q4. The responses of the loans supply, real output, prices, and deposits to monetary policy innovations were investigated in this research, using impulse response functions and variance decompositions obtained from a Vector Autoregressive model (VAR). Estimation results revealed that the bank lending channel in Rwanda is less effective. The findings suggest that although monetary policies working through interest rates have a significant effect on bank loans, loans appear to not influence the real output level. As in other developing economies, the financial sector in Rwanda is still weak. As a result of the absence of long- term investment, bank customers bear the risk associated with the poor quality of loans in addition to the risk associated with high and variable inflation. These are likely to hamper the monetary policy transmission mechanism.
- Full Text:
- Date Issued: 2014
Social media tools influencing customer purchasing behaviour in the retail environment
- Authors: Scholtz, Reynardt
- Date: 2014
- Subjects: Internet marketing , Social media -- Marketing , Branding (Marketing)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9330 , http://hdl.handle.net/10948/d1021055
- Description: Given the importance of a business being able to create a positive brand image in the minds of customers and influencing customer purchasing behaviour, there is a lack of attention given to the research of the role that social media tools can play in the success of retailers. Numerous research studies have focussed on determining the advantages of and impact that social media tools can have on the success of businesses, however, the impact of social media tools on the creation of a positive brand image, and influencing customer purchasing behaviour is less evident. Thus, the primary objective of this study is to investigate the influence of social media tools on the brand image of retailers and how it affects customer purchasing behaviour. A full literature review was conducted on the retail environment and its importance, as well as on social media as a marketing communication tool. Thereafter, independent variables (Official websites, Facebook and Twitter) were identified as possibly influencing the intervening variable (Brand image) and dependent variable (Customer purchasing behaviour). Three independent variables were selected and used to construct a hypothetical model and research hypothesis. The purpose of these independent variables was to determine whether the use of social media tools could lead to a positive brand image and ultimately improve customer purchasing behaviour. An empirical investigation was undertaken to be able to establish the influence of social media tools on the brand image and customer purchasing behaviour of retail customers. The measuring instrument used for this study, a questionnaire, was constructed from secondary literature sources. The convenience sampling technique was used to identify respondents. The usable questionnaires that were gathered from respondents were examined through statistical analyses. Exploratory factor analysis (EFA) and the calculation of Cronbach’s alpha coefficients were used to confirm the validity and reliability of the measuring instrument. Descriptive statistics, as part of the data analyses, were calculated to summarise and allow interpretation of the sample data. Furthermore, Pearson’s Product Moment Correlations were calculated to determine correlations among variables used in this study. Multiple regression analysis was the primary statistical procedure used for testing the significance of relationships hypothesised between the independent, intervening and dependent variables of this study. The empirical investigation was concluded by a the calculation of a t-test and Analysis of Variance (ANOVA), for the purpose of determining the influence of selected demographic variables on respondents’ perceptions with regard to the independent, intervening and dependent variables. In addition, post-hoc Tukey tests were conducted to determine significant differences among individual mean scores, and the degree of practical significance was determined by calculated Cohen’s d values. Based on the results of the empirical investigation, significant relationships were found among the independent variables (Official websites, Facebook and Twitter), the intervening variable (Brand image) and the dependent variable (Customer purchasing behaviour). The empirical investigation revealed that the age of respondents has a significant impact on how their image of a brand and purchasing behaviour are influenced by retailers’ use of social media tools. This study has made a contribution to the shortage of literature on the impact of social media tools on retailers. The hypothetical model developed for this study assisted in understanding the impact that retailers’ use of social media tools have on the brand image of retailers and customers’ purchasing behaviour. As a result, this study provides recommendations and suggestions for retailers to ensure a positive brand image in the minds of customers, and to ultimately use social media tools to positively influence the purchasing behaviour of customers.
- Full Text:
- Date Issued: 2014
South African VAT implications in respect of supplies by non residents to residents
- Authors: Burger, Bianca
- Date: 2014
- Subjects: Electronic commerce -- Taxation -- Law and legislation , Business enterprises -- Taxation -- Law and legislation , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8962 , http://hdl.handle.net/10948/d1019977
- Description: Paragraph 7(1) of the VAT Act provides for the charging of VAT at 14 percent on the supply of goods or services by a vendor in the course or furtherance of an ‘enterprise’, the importation into South Africa of goods by any person or the supply of ‘imported services’. The term ‘enterprise’ has been interpreted to require an on-going activity and therefore once off sales should be excluded. The sale must relate to enterprise activities, thereby excluding private sales. Furthermore the enterprise activities are required to be carried out in the Republic or partly in the Republic. Establishing whether the enterprise activities are carried out in the Republic remains a contentious issue as the VAT Act does not specify the minimum required business activities to meet this criterion. ‘Imported services’ excludes services imported for the purposes of making taxable supplies and the liability of accounting for VAT on ‘imported services’ lies with the recipient of the imported service. Supplies (imported services) which are chargeable in terms of s 7(1)(a) and supplies, which if made in the Republic, are exempt from VAT or zero rated. ‘Imported services’ definition requires services to be consumed in South Africa. Services offered outside South Africa therefore generally do not qualify as imported services even the South African entity benefits from such services, for example a training course attended in a foreign country. Technological developments in the field of e-commerce globally have required countries to examine VAT laws relating to e-commerce. Extensive research has been done by the OECD on this topic, with reports issued on recommendations of how e-commerce should be taxed. Most guidance issued by the OECD on taxing e-commerce relates to indirect electronic commerce, which refers to goods or services where ordering, payment and delivery occur on line. Distinction is drawn between taxation of business-to-business transactions and business-to-consumer transactions. The OECD suggests that the ‘reverse-charge’ or self-assessment method should be applied to the taxing of B2B transactions resulting in minimal compliance and administrative costs. It is further recommended that for B2C transactions place of consumption should be defined as the recipient’s usual jurisdiction of residence and that non-resident suppliers should be required to register and pay VAT in the jurisdiction of the consumer, as this would result in the most effective tax collection method. ‘Enterprise’ includes electronic services from a foreign supplier where the recipient is a resident of South Africa or where the payment originated from a South African bank account. The Minister’s regulation, which came into effect on 1 June 2014, includes the following items in the definition of electronic services: educational services, games, online auction services, miscellaneous services and subscription services. The South African VAT legislation draws no distinction between B2B and B2C supplies of electronic services. The reasoning behind this was to avoid situations in which private customers could pose as business customers in order to avoid the levying of tax. A review of the services currently included in the Minister’s regulation on electronic services indicate that services that would relate to B2B supplies have mostly been excluded from the regulation. Effectively the South African VAT legislation manages to indirectly exclude B2B supplies from the definition of electronic services and therefore achieves the objective of minimising the administrative burden on B2B supplies.
- Full Text:
- Date Issued: 2014
The income tax implications resulting from the introduction of section 12N of the Income Tax Act
- Authors: Grebe, Alta-Mari
- Date: 2014
- Subjects: Income tax -- Law and legislation -- South Africa , Land tenure -- South Africa , Capital gains tax -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8966 , http://hdl.handle.net/10948/d1020787
- Description: Section 12N, introduction into the Income Tax Act by way of Taxation Laws Amendment Act and which became effective on 2 November 2010, provides for allowances on the leasehold improvements on government-owned land and land leased from certain tax exempt entities as stipulated in section 10 (1) (cA) and (t). As section 12N deems the lessee to be the owner of the leasehold improvement, the lessee now qualifies for capital allowances which were previously disallowed.
- Full Text:
- Date Issued: 2014
The influence of employees's perceptions of organisational ethics and perceived relative self-ethicality on their levels of organisational identification and overall well-being
- Authors: Breytenbach, Nadia
- Date: 2014
- Subjects: Corporate culture , Well-being , Work ethic , Self-realization
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9411 , http://hdl.handle.net/10948/d1020072
- Description: This study investigated whether an employees’ perception of the ethical culture in the organisation and their perception of their own ethicality influenced their level of organisational identification and additionally, whether this relationship between perceived ethical culture and organisational identification had an influence on workplace wellbeing. The aim of this research study was to measure employees’ perceptions of organisational ethics, their relative self-ethicality, organisational identification, and wellbeing, in order to develop a model pertaining to the relationship between these three constructs. Research showed that employees’ perceptions of the ethical culture in their organisation can influence how they identify with that particular organisation. Research also indicated that the differences between perceived organisational ethicality and relative self-ethicality exist. Additionally, research showed the influence of perceived ethical culture and relative self-ethicality has indicated a relationship between organisational identification and wellbeing respectively. However, to date and to the researcher’s knowledge there has been no investigation of the relationship between these four constructs. This research study was quantitative in nature in which a questionnaire was utilised as a research method. A sample of 111 respondent from three organisations in the automation industry in the Eastern Cape, Port Elizabeth was utilised for this research study. The main findings indicated that an alternative model resulted to be a good fit through structural equation modelling. The results illustrated that organisational ethicality has an influence on how employees identify with their organisations and how this relationship influences wellbeing. Therefore, it is worthwhile to invest in an ethical organisational culture for the sustainability of the organisation and its employees’ livelihoods. This study contributes to the literature based on perceived ethical culture, organisational identification, and workplace wellbeing. Additionally, the study provides readers with a model on how these concepts influence each other.
- Full Text:
- Date Issued: 2014
The influence of family business resources on transgenerational success: a family business case study
- Authors: Klee, Robynne
- Date: 2014
- Subjects: Family-owned business enterprises Family-owned business enterprises -- Succession
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/11124 , vital:26887
- Description: Family businesses are major contributors to the economies of most countries and are known to be one of the best performing, most prevalent and resilient forms of business throughout the world. Despite their importance and based on the vast amount of research done in the field of family businesses, this form of business appears to be laden with challenges and is short-lived. Amongst others, one of the most fundamental challenges and contributors to the short-lived nature, and thus high failure rate of family businesses is poor succession planning. In order to address this challenge, the Successful Transgenerational Entrepreneurship Practices (STEP) research framework was developed to ascertain the factors that contribute to entrepreneurial performance and the effective transgenerational potential and success of family businesses globally. Transgenerational potential, entrepreneurial performance, the external mediating factors influencing family businesses, Entrepreneurial Orientation (EO) and the Resource Based View (RBV) of familiness resource pools are the components that make up the STEP research framework. By adopting the STEP research framework, the primary objective of this study is to establish how a transgenerational family business creates new economic activity over time by using and transferring familiness resource pools from one generation to the next. Due to the primary focus of the study being to research familiness resource pools and how they generate transgenerational potential for family businesses, this component of the STEP research framework is investigated in detail. The literature review therefore highlights the eight dimensions of familiness resource pools, namely: leadership, networks, capital, decision-making, culture, relationships, governance and knowledge, and are the main focus of this study. An interpretivism research paradigm is selected for this study. Interpretivism paradigms are associated with qualitative research methodologies. Owing to the fact that much still remains to be discovered in terms of familiness and familiness resource pools, a descriptive, single-case study is the type of research method undertaken. The sample is identified based on non-probability purposive sampling as per the strict guidelines of the STEP project. The sample size in this study consisted of one family business operating in the Eastern Cape, South Africa. The STEP interview schedule, which consists of semi-structured questions, is the research instrument used to collect the necessary data from five participants involved in the family business (a prominent motorcar dealership). Once all the data is collected, a combination of directed content analysis and explanation building are used to analyse the data. The findings of the study reveal that the leadership values present in the family business stem from that of the founder. Contrary to the current CEO’s beliefs that the family business investigated operates primarily under his participative leadership style, the interviews reveal that while the CEO does demonstrate participative leadership, his leadership style is somewhat autocratic in nature. This autocratic leadership style has caused the employees and the business as a whole, to become too reliant on the CEO, especially in terms of strategic decision-making, which may be a threat to the future succession of the business. The CEO’s expert leadership however, ensures that the business adheres to strict guidelines in terms of employing the best person for the job, regardless of whether the candidates are family members or not. As such, the prominent motorcar dealership is marketed as a family business and together under the family leadership, has helped attract customers and well qualified non-family employees to the business. While there is ample leadership available within the business, the lack of succession planning is reiterated to be a major threat facing the future of the business. Almost all of the original networks established by the founder in the prominent motorcar dealership studied still exist in the business in 2014. It is established that employees, especially those in the third generation, are encouraged to build their own networks within their relevant spheres of responsibility. Moreover, the business family’s history, reputation and goodwill have helped create and establish networks for the family business, especially within the Eastern Cape. These networks have helped the business drive sales and have contributed to the success of the business.
- Full Text:
- Date Issued: 2014
The taxation of Real Estate Investment Trusts (REIT) in South Africa
- Authors: Breetzke, Michael
- Date: 2014
- Subjects: Real estate investment trusts -- South Africa , Real estate investment trusts -- Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8963 , http://hdl.handle.net/10948/d1020001
- Description: Real Estate Investment Trusts (REIT’s) provide certain benefits for investors as opposed to them directly investing in property. Many countries worldwide have already established tax systems for REIT’s which give natural persons and companies the benefit of not outlaying substantial capital, and provide certain tax dispensations to them. The concept of a REIT is new to South Africa. The vehicles that have been used by investors in the past to invest indirectly in property have been Property Unit Trusts (PUTs) and Property Loan Stock Companies (PLS). These different types of entities have had different taxation rules applied to them, as they differed in legal entity, i.e. a trust versus a company. The different types of entity were historically a deterrent to foreign investors who preferred to invest in countries that had the REIT structure and certain tax dispensations. The National Treasury and the South African Revenue Service (SARS) decided to collaborate in this matter so as to encourage foreign property investment, and launched with effect from 1 April 2013, a new REIT tax dispensation for investors in property portfolios. The REIT created a unified regime in South Africa. All portfolios wanting to call themselves REITs had to qualify under certain requirements, and then they would be eligible for the new section 25BB tax dispensation. The South African REIT market is relatively new when compared to the Australian REIT market, which is the second largest in the world. The Australian REIT market has been around for approximately forty three years more than the South African REIT market. The Australian REIT regime is analysed in terms of how REITs are taxed in that country. The final chapter provides a comparison between the South African and Australian REIT regimes. The major differences are identified as to how each country taxes the REITs and the respective shareholders, and from these a few proposals are made which could improve the South African REIT regime in order for it to stand up to worldwide scrutiny.
- Full Text:
- Date Issued: 2014
Variables influencing customers' buying behaviour in the South African clothing retail industry
- Authors: Ndi, Rene Xavier Owona
- Date: 2014
- Subjects: Consumer behavior -- South Africa , Consumers' preferences -- South Africa , Retail trade -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/3029 , vital:20388
- Description: It is important for business managers to understand customers’ buying behaviours, as customers are the cornerstone of the business’ marketing strategy and the main providers of businesses’ profits. Previous research have identified numerous factors that influence customers’ buying behaviour, factors such as prices, promotions, brand image, brand reputation, customer experience and socio-cultural aspects. Despite the attention given to variables influencing buying behaviour, there was still a gap to be filled in this field of study in the clothing retail industry, especially in the South African clothing retail industry. Thus, the primary objective of this study was to investigate how the understanding of customers’ brand perceptions, customer experience and social considerations can be used by clothing retailers to initiate a purchase. A literature overview was conducted on the global retail industry, the global clothing retail, as well as on the South African retail and, more specifically, the South African clothing retail. In addition, a literature overview on variables influencing buying behaviour was provided, with a special accent on the selected variables for this study, namely brand perceptions, customer experience and social considerations. From the literature overview conducted on variables, seven independent variables were selected to be investigated with the dependent variable, buying behaviour. The independent variables, namely brand perceptions (as measured by brand quality, brand reputation and brand image), customer experience (as measured by store physical environment and staff service), and lastly social considerations (as measured by reference groups and culture/subculture) and the dependent variable (buying behaviour) were then presented in a hypothesised model. An empirical investigation was undertaken to establish the influence of the independent variables on the dependent variable. The measuring instrument used for the investigation was a self-administered questionnaire using seven-point Likert type of scale. The items were constructed based on previous research instruments found in secondary literature sources. The non-probability convenience sampling was implemented in this study to identify respondents. 207 usable questionnaires were collected and were examined through statistical analyses. The validity and the reliability of the measuring instruments were confirmed by exploratory factor analysis (EFA) and the calculation of Cronbach’s alpha coefficients. Descriptive statistics were undertaken to summarise respondents’ demographic information, while Pearson’s Product Moment Correlations were calculated to determine the correlations among variables. Furthermore, the relationships between the variables were assessed through multiple regression analysis, while a t-test and ANOVA tests were conducted to determine the influence of demographic variables on independent variables that showed significant positive relationships with the dependent variable. In addition, post-hoc Scheffe tests were undertaken to elaborate on the significant differences resulting from the t-test and ANOVA tests. Significant positive relationships were found between Brand Image/Reputation and Buying Behaviour, between Store Physical Environment and Buying Behaviour and between Cultural Clothing and Buying Behaviour. The empirical results also showed that there was a significant relationship between Age and Cultural Clothing. In the same way, there was a significant relationship between Population Group and the variables Brand Image/Reputation and Cultural Clothing. This study has contributed to the body of literature on buying behaviour, especially in the field of clothing retail, by extending the factors to consider when aiming at improving buying behaviour. In addition, the development of the hypothesised model significantly contributed towards having a better understanding of customers’ perceptions of the selected variables, and ultimately how these variables could trigger their purchase decisions. As a result, this study enumerated some recommendations and suggestions that should enable retailers to create a positive image and reputation in customers’ minds, assist retailers in arranging the stores in a more attractive way for customers and reach more culture-conscious customers.
- Full Text:
- Date Issued: 2014
Work/family conflict across various life and career stages
- Authors: Bostock, Natalie Jean
- Date: 2014
- Subjects: Work and family , Work environment , Well-being
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9413 , http://hdl.handle.net/10948/d1020157
- Description: This study examines Work Family Conflict including Work Interferes with Family (WIF) conflict, Family Interferes with Work (FIW) conflict, role overload, role interference and the impact of children across various life and career stages. Much of the research in this area focuses on the differences in the way the genders experience Work Family Conflict. Research has shown that various life and career stages can have a marked impact on this type of conflict and this study aims to determine how individuals in the various life and career stages experience this conflict. A correlational research design was used for this study. Using a five point likert scale, participants were asked to score their responses to seventeen items. The instrument was based on Duxbury and Mills Measure of Work Family Conflict (1990) (in Handbook of Quality-of-Life Research: An Ethical Perspective by Sirgy, 2001) with the inclusion of two additional items due to their high face validity. The questionnaire was distributed to human resources managers in organisations, friends, family members and colleagues and friends, family members and colleagues of theirs. Most of the responses were scored using a pencil and paper technique and the remainder was distributed using a Surveymonkey application on social media platforms like Facebook and Linkedin. The overall sample size of respondents was 175. The raw data was entered on an excel spreadsheet and analysed using Statistica version 12 and Microsoft Excel applications with VBA macros developed by a consultant for the Nelson Mandela Metropolitan University Unit for Statistical Consultation. . Statistics such as means, Cronbach alpha’s, relationships between factors, descriptive statistics, MANOVA and Chi-squared tests were used to analyse the data. The results of this study demonstrate the need for organisations to take heed of the various challenges that individuals face in both the workplace and home environment and the different ways in which these are experienced across various life and career stages. This will enable them to design specific interventions to mitigate the effects of Work Family Conflict and improve employee’s level of performance.
- Full Text:
- Date Issued: 2014
An analysis of interest deductions and other financial payments in terms of South African income tax legislation
- Authors: Kula, Xoliswa Beverley
- Date: 2015
- Subjects: Tax planning -- South Africa , Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/8188 , vital:25945
- Description: Tax avoidance through interest deductions has been highlighted internationally as a concern with the effect of eroding tax revenues of countries, including South Africa (SA). The evident cause of this concern is what is termed base erosion and profit shifting (BEPS) mainly orchestrated by multinational companies using aggressive tax planning schemes. Although the concern continues to exist, comprehensive measures are in place in SA such as the anti-avoidance rules and exchange control regulations to mitigate the concern. The study was undertaken to analyse the legislation on interest deductions in terms of the Income Tax Act No 58 of 1962 (‘the Act’) with particular focus on anti-avoidance. A number of issues pertaining to the operation of the provisions in the Act; administrative challenges as well the possible exploitation of loopholes within the provisions were identified. Furthermore, a comparative analysis conducted against Australia and the United Kingdom indicated that the measures adopted in SA are relatively similar, if not ahead. The effect the anti-avoidance measures have on the economic growth was considered. The results were positive in that the measures do not counteract the pursuit of economic growth. Lastly, the study assessed the position of SA against the internationally recommended best practice on the subject matter and it became evident that opportunities exist to improve the current measures applied in SA to mitigate the BEPS risks through interest deductions.
- Full Text:
- Date Issued: 2015