A framework for public infrastructure financing in Zimbabwe
- Authors: Kapesa, Tonderai
- Date: 2021-04
- Subjects: Finance, Public -- Accounting -- Standards , Accounting -- Standards , Finance -- Zimbabwe , Infrastructure (Economics) -- Zimbabwe -- Finance
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/51688 , vital:43363
- Description: The Government of Zimbabwe is operating using the mantra: ‘Zimbabwe is open for business’. The notion of opening for business requires robust supporting economic infrastructure for enhanced productivity, in the form of reliable supply of electricity, accessible road/railway transport networks and availability of contemporary Information Communication Technology (ICT) infrastructure. The aim of the study was to develop a framework for making financing decisions for public infrastructure in Zimbabwe. The objectives of the study are to: determine the main sources of public infrastructure financing in Zimbabwe; establish innovative finance’s capacity to close the public infrastructure financing gap in Zimbabwe; assess the role played by public-sector accounting in attracting appropriate and efficient mechanisms to finance public infrastructure in Zimbabwe; and ultimately to develop and recommend a framework for selecting suitable and efficient mechanisms to finance public infrastructure in Zimbabwe. According to literature reviewed, public infrastructure is broadly financed by public sector entities using their own resources (internally financed) or through private sector investments and innovative financing instruments (externally financed). When infrastructure is internally financed, the study is theoretically guided by the Public Goods Theory and the Theory of Public Finance and Public Policy. When externally financed, the Risk Return and Pecking Order theories are important. There are many instruments used to finance public infrastructure and one project may be financed using one or more instruments. Therefore, considerations are given to the need for a framework that helps improve the efficiency of the financing decision. The study was designed as a multiple case study that focused on four sectors of economic infrastructure, that is, transport, energy (electricity), ICT as well as water and sanitation. The research used synchronous mixed methods to achieve the objectives of the study. Qualitative research methods addressed the following objectives: a) to determine the main sources of public infrastructure financing in Zimbabwe; b) to establish innovative finance’s capacity to close the public infrastructure financing gap in Zimbabwe; and c) to assess the role played by public-sector accounting in attracting appropriate and efficient mechanisms to finance public infrastructure in Zimbabwe. Whilst to develop and recommend a framework for selecting suitable and efficient mechanisms to finance public infrastructure in Zimbabwe the study combined qualitative and quantitative research methods. Qualitative data was collected through interviews conducted with officials and staff from government ministries, government departments, as well as parastatal enterprises dealing with the four infrastructure types. The same respondents were asked to complete a survey questionnaire used to address part of the objective that developed a framework for public infrastructure financing. Interview data were triangulated using secondary data extracted from reports and financial statements. Some of the secondary data was collected from the World Bank’s development indicators online repository. Qualitative data analysis was done using RQDA, an open-source computer-aided data analysis software. Findings from the study revealed that the main sources of finance for public infrastructure in Zimbabwe are the government through budget appropriations, and concessionary loans from the China Export-Import Bank. There was also finance obtained from multilateral financial institutions such as the Development Bank of Southern Africa and the African Export-Import Bank. The study revealed that there is currently very limited use of innovative financing instruments such as PPPs in financing public infrastructure in Zimbabwe, despite the country having legislation to support such financing arrangements. The innovations in financing observed in the study entail the use of conventional financing mechanisms in unconventional ways. However, there is scope for improving the financing of public infrastructure using innovative financing mechanisms and significantly mitigate the financing gap. Public sector accountants in Zimbabwe are mainly active in financial reporting, although the financial statements for most ministries, government departments and parastatal enterprises had qualified audit opinions from the Auditor General’s office. Public sector accountants are not active in financial management and cost and management accounting responsibilities. As a result, public sector accountants are not adding value to public money through offering advisory services in the efficient investment of public money, as well as financing public infrastructure assets using the most efficient financing mechanism. There is no uniformly applied framework when making financing decisions for public infrastructure in Zimbabwe. Therefore, a framework was developed and is recommended for use by this study. The developed framework entails eight steps that are interrelated and interconnected. Use of the proposed framework requires availability of data about infrastructure projects that have been done in the past. The study recommends that Zimbabwe should ensure a robust framework for protecting private sector investments, which can be achieved by ensuring policy consistency; creating and implementing a legal framework that protects private capital; and having economically viable infrastructure sectors, that are liberalised to allow private sector participation. The Government of Zimbabwe must take deliberate actions that ensure variety of financing options at the disposal of the public sector to lower costs of financing public infrastructure. It is also important to fully operationalise the legislation and policies designed to facilitate the participation of the private sector in financing public sector projects. Such operationalisation entails a decentralisation of the regulations and policies to the provincial and municipal levels. , Thesis (PhD) -- Faculty of Business and Economic Sciences, Accounting, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Kapesa, Tonderai
- Date: 2021-04
- Subjects: Finance, Public -- Accounting -- Standards , Accounting -- Standards , Finance -- Zimbabwe , Infrastructure (Economics) -- Zimbabwe -- Finance
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/51688 , vital:43363
- Description: The Government of Zimbabwe is operating using the mantra: ‘Zimbabwe is open for business’. The notion of opening for business requires robust supporting economic infrastructure for enhanced productivity, in the form of reliable supply of electricity, accessible road/railway transport networks and availability of contemporary Information Communication Technology (ICT) infrastructure. The aim of the study was to develop a framework for making financing decisions for public infrastructure in Zimbabwe. The objectives of the study are to: determine the main sources of public infrastructure financing in Zimbabwe; establish innovative finance’s capacity to close the public infrastructure financing gap in Zimbabwe; assess the role played by public-sector accounting in attracting appropriate and efficient mechanisms to finance public infrastructure in Zimbabwe; and ultimately to develop and recommend a framework for selecting suitable and efficient mechanisms to finance public infrastructure in Zimbabwe. According to literature reviewed, public infrastructure is broadly financed by public sector entities using their own resources (internally financed) or through private sector investments and innovative financing instruments (externally financed). When infrastructure is internally financed, the study is theoretically guided by the Public Goods Theory and the Theory of Public Finance and Public Policy. When externally financed, the Risk Return and Pecking Order theories are important. There are many instruments used to finance public infrastructure and one project may be financed using one or more instruments. Therefore, considerations are given to the need for a framework that helps improve the efficiency of the financing decision. The study was designed as a multiple case study that focused on four sectors of economic infrastructure, that is, transport, energy (electricity), ICT as well as water and sanitation. The research used synchronous mixed methods to achieve the objectives of the study. Qualitative research methods addressed the following objectives: a) to determine the main sources of public infrastructure financing in Zimbabwe; b) to establish innovative finance’s capacity to close the public infrastructure financing gap in Zimbabwe; and c) to assess the role played by public-sector accounting in attracting appropriate and efficient mechanisms to finance public infrastructure in Zimbabwe. Whilst to develop and recommend a framework for selecting suitable and efficient mechanisms to finance public infrastructure in Zimbabwe the study combined qualitative and quantitative research methods. Qualitative data was collected through interviews conducted with officials and staff from government ministries, government departments, as well as parastatal enterprises dealing with the four infrastructure types. The same respondents were asked to complete a survey questionnaire used to address part of the objective that developed a framework for public infrastructure financing. Interview data were triangulated using secondary data extracted from reports and financial statements. Some of the secondary data was collected from the World Bank’s development indicators online repository. Qualitative data analysis was done using RQDA, an open-source computer-aided data analysis software. Findings from the study revealed that the main sources of finance for public infrastructure in Zimbabwe are the government through budget appropriations, and concessionary loans from the China Export-Import Bank. There was also finance obtained from multilateral financial institutions such as the Development Bank of Southern Africa and the African Export-Import Bank. The study revealed that there is currently very limited use of innovative financing instruments such as PPPs in financing public infrastructure in Zimbabwe, despite the country having legislation to support such financing arrangements. The innovations in financing observed in the study entail the use of conventional financing mechanisms in unconventional ways. However, there is scope for improving the financing of public infrastructure using innovative financing mechanisms and significantly mitigate the financing gap. Public sector accountants in Zimbabwe are mainly active in financial reporting, although the financial statements for most ministries, government departments and parastatal enterprises had qualified audit opinions from the Auditor General’s office. Public sector accountants are not active in financial management and cost and management accounting responsibilities. As a result, public sector accountants are not adding value to public money through offering advisory services in the efficient investment of public money, as well as financing public infrastructure assets using the most efficient financing mechanism. There is no uniformly applied framework when making financing decisions for public infrastructure in Zimbabwe. Therefore, a framework was developed and is recommended for use by this study. The developed framework entails eight steps that are interrelated and interconnected. Use of the proposed framework requires availability of data about infrastructure projects that have been done in the past. The study recommends that Zimbabwe should ensure a robust framework for protecting private sector investments, which can be achieved by ensuring policy consistency; creating and implementing a legal framework that protects private capital; and having economically viable infrastructure sectors, that are liberalised to allow private sector participation. The Government of Zimbabwe must take deliberate actions that ensure variety of financing options at the disposal of the public sector to lower costs of financing public infrastructure. It is also important to fully operationalise the legislation and policies designed to facilitate the participation of the private sector in financing public sector projects. Such operationalisation entails a decentralisation of the regulations and policies to the provincial and municipal levels. , Thesis (PhD) -- Faculty of Business and Economic Sciences, Accounting, 2021
- Full Text:
- Date Issued: 2021-04
Earnings quality and equity returns : evidence of the accrual anomaly from the South African equity market
- Authors: Lutchmun, Thashveen
- Date: 2015
- Subjects: Earnings management -- South Africa , Accounting -- Standards
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:915 , http://hdl.handle.net/10962/d1017537
- Description: A key incentive for accounting research is to provide evidence on the usefulness of earnings in making economic decisions. Of particular interest over the last two decades is the issue of the quality of financial reporting, specifically the quality of earnings, given the number of global financial scandals reported during that period. The quality of earnings is driven by the choices, estimates and judgments that the accounting standards make available to managers in order to portray the firm’s economic position and performance in a timely and credible manner. However, this leeway in financial reporting also creates opportunities for earnings management. The objective of this thesis is firstly to establish whether earnings manipulation has had the ability to predict cross-sectional returns in South Africa during the 2007-2014 period. In other words, the purpose of this thesis is to find evidence whether the market reacts to earnings management practices, as measured by accruals, and rewards high earnings quality companies with higher equity returns (a process known as the accrual anomaly). The timeframe selected for the research encompasses the global financial crisis, a period in which accounting manipulation incentives are likely to be strong. Secondly, this study attempts to establish the presence of the accrual anomaly amongst growth and value firms. The motivations for earnings management of the former are expected to be strong. Securities are allocated to portfolios according to accruals and the subsequent equity returns are analysed cross-sectionally to establish the existence of the accrual anomaly and hence assessing the usefulness of earnings manipulation in predicting equity returns. To provide evidence for the presence of the accrual anomaly amongst growth and value shares, securities are independently allocated to portfolios according to their book-to-market ratio and accruals and a cross-sectional analysis is performed on their subsequent equity returns. In order to increase the robustness of the tests, two measures of accruals are used: a balance sheet approach and a cash flow measure. Evidence is provided for the presence of the accrual anomaly among South African listed companies for the balance sheet measure of accruals but not the cash flow approach. Whilst the accrual anomaly is significantly present in a growth-neutral-value construct, statistical significance is not established when growth and value shares are considered individually.
- Full Text:
- Date Issued: 2015
- Authors: Lutchmun, Thashveen
- Date: 2015
- Subjects: Earnings management -- South Africa , Accounting -- Standards
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:915 , http://hdl.handle.net/10962/d1017537
- Description: A key incentive for accounting research is to provide evidence on the usefulness of earnings in making economic decisions. Of particular interest over the last two decades is the issue of the quality of financial reporting, specifically the quality of earnings, given the number of global financial scandals reported during that period. The quality of earnings is driven by the choices, estimates and judgments that the accounting standards make available to managers in order to portray the firm’s economic position and performance in a timely and credible manner. However, this leeway in financial reporting also creates opportunities for earnings management. The objective of this thesis is firstly to establish whether earnings manipulation has had the ability to predict cross-sectional returns in South Africa during the 2007-2014 period. In other words, the purpose of this thesis is to find evidence whether the market reacts to earnings management practices, as measured by accruals, and rewards high earnings quality companies with higher equity returns (a process known as the accrual anomaly). The timeframe selected for the research encompasses the global financial crisis, a period in which accounting manipulation incentives are likely to be strong. Secondly, this study attempts to establish the presence of the accrual anomaly amongst growth and value firms. The motivations for earnings management of the former are expected to be strong. Securities are allocated to portfolios according to accruals and the subsequent equity returns are analysed cross-sectionally to establish the existence of the accrual anomaly and hence assessing the usefulness of earnings manipulation in predicting equity returns. To provide evidence for the presence of the accrual anomaly amongst growth and value shares, securities are independently allocated to portfolios according to their book-to-market ratio and accruals and a cross-sectional analysis is performed on their subsequent equity returns. In order to increase the robustness of the tests, two measures of accruals are used: a balance sheet approach and a cash flow measure. Evidence is provided for the presence of the accrual anomaly among South African listed companies for the balance sheet measure of accruals but not the cash flow approach. Whilst the accrual anomaly is significantly present in a growth-neutral-value construct, statistical significance is not established when growth and value shares are considered individually.
- Full Text:
- Date Issued: 2015
The relationship between debtors policies and recovery of debtors on the Nelson Mandela University financial statements
- Authors: Jiba, Mncedikazi Felicelle
- Date: 2021-04
- Subjects: Financial statements , Accounting -- Standards , Debtor and creditor -- South Africa -- Eastern Cape
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51864 , vital:43379
- Description: The purpose of the study was to investigate the relationship between the debt collection process in terms of the debtors polices and the recovery of debtors on the annual financial statements at Nelson Mandela University. A related goal was to determine if the debt collection as per debtor’s policy is effective enough to recover debtors in time as debtors affects in financial operations of the university. The student fees are one of the sources of income of the university. When there is an increase in debtors it means debt collection is decreasing, which ultimately affects the cash flow income that is increased through the debtors of the university. The results showed that Nelson Mandela University is collecting debt as per the debtor’s policy, however the recovery of debtors is not in the benefits of the university as large amounts of debtors are tied up to handed over to clients. , Thesis (MTech) -- Faculty of Business and Economic Sciences, Cost management accounting, 2021
- Full Text: false
- Date Issued: 2021-04
- Authors: Jiba, Mncedikazi Felicelle
- Date: 2021-04
- Subjects: Financial statements , Accounting -- Standards , Debtor and creditor -- South Africa -- Eastern Cape
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51864 , vital:43379
- Description: The purpose of the study was to investigate the relationship between the debt collection process in terms of the debtors polices and the recovery of debtors on the annual financial statements at Nelson Mandela University. A related goal was to determine if the debt collection as per debtor’s policy is effective enough to recover debtors in time as debtors affects in financial operations of the university. The student fees are one of the sources of income of the university. When there is an increase in debtors it means debt collection is decreasing, which ultimately affects the cash flow income that is increased through the debtors of the university. The results showed that Nelson Mandela University is collecting debt as per the debtor’s policy, however the recovery of debtors is not in the benefits of the university as large amounts of debtors are tied up to handed over to clients. , Thesis (MTech) -- Faculty of Business and Economic Sciences, Cost management accounting, 2021
- Full Text: false
- Date Issued: 2021-04
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