The relationship between leadership styles and work engagement within the workplace
- Authors: Soares, Michelle
- Date: 2018
- Subjects: Leadership -- South Africa , Management -- Employee participation Employee motivation Work environment Organizational behavior
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/35480 , vital:33738
- Description: The proposed research was designed to investigate the relationship between leadership styles and work engagement within the workplace. The introduction provided the background to the research study, a brief theoretical overview of the leadership styles and work engagement as well as the relationship between the two variables was discussed. An overview of the motivation of the study, problem statements, research objectives and the propositions were also considered. A literature review provided a background to the origins, definitions, approaches, characteristics, styles, benefits, consequences, theories and models of leadership and work engagement. Thereafter, the relationship between the two variables were discussed and the propositions were revisited. The type of research conducted was an empirical study which utilised correlational and crosssectional design. The research methodology dealt with the population and sample, the measuring instruments, procedure, validity, reliability and ended off with the ethical standards that were considered whilst the research study was conducted. The findings attempted to answer whether a relationship existed between perceptions of leadership styles with the primary aim to either accept or reject the propositions posed in the preceding chapters. The research study concluded in discussing the results and attempted to link it to the literature that was presented in Chapter Two. The main aim was to identify whether relationships existed between the two variables. The study then concluded in discussing the limitations that were found in the study and discussed possible recommendations for the organisation and for potential future researchers who display an interest in pursuing this study further. In conclusion, the findings posed significant implications for leaders within the workplace who aspire to increase their employees’ work engagement levels for purposes of improving the effectiveness and efficiency of their employees’ overall performance towards achieving the business objectives.
- Full Text:
- Date Issued: 2018
- Authors: Soares, Michelle
- Date: 2018
- Subjects: Leadership -- South Africa , Management -- Employee participation Employee motivation Work environment Organizational behavior
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/35480 , vital:33738
- Description: The proposed research was designed to investigate the relationship between leadership styles and work engagement within the workplace. The introduction provided the background to the research study, a brief theoretical overview of the leadership styles and work engagement as well as the relationship between the two variables was discussed. An overview of the motivation of the study, problem statements, research objectives and the propositions were also considered. A literature review provided a background to the origins, definitions, approaches, characteristics, styles, benefits, consequences, theories and models of leadership and work engagement. Thereafter, the relationship between the two variables were discussed and the propositions were revisited. The type of research conducted was an empirical study which utilised correlational and crosssectional design. The research methodology dealt with the population and sample, the measuring instruments, procedure, validity, reliability and ended off with the ethical standards that were considered whilst the research study was conducted. The findings attempted to answer whether a relationship existed between perceptions of leadership styles with the primary aim to either accept or reject the propositions posed in the preceding chapters. The research study concluded in discussing the results and attempted to link it to the literature that was presented in Chapter Two. The main aim was to identify whether relationships existed between the two variables. The study then concluded in discussing the limitations that were found in the study and discussed possible recommendations for the organisation and for potential future researchers who display an interest in pursuing this study further. In conclusion, the findings posed significant implications for leaders within the workplace who aspire to increase their employees’ work engagement levels for purposes of improving the effectiveness and efficiency of their employees’ overall performance towards achieving the business objectives.
- Full Text:
- Date Issued: 2018
Convergence effects of African GDP with the rest of the world: Analysis the African continental free trade agreement
- Matonana, Phumelela Ntombiyesibini
- Authors: Matonana, Phumelela Ntombiyesibini
- Date: 2020
- Subjects: Gross domestic product -- Africa -- Statistics , Economic development -- Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/50306 , vital:42102
- Description: This study is an investigation of the convergence hypothesis in African countries motivated by the increasing interest to measure disparities in the establishment of an economic union. The objective of this study is to provide an analysis of convergence in Africa by looking at the African Continental Free Trade Agreement (AfCFTA) against 6 of its top trading partner groups. This study seeks to establish whether Africa and African countries who belong to the AfCFTA catchup to the growth rates of their more developed trading partners. The data sample spans from 1971- 2018. The method of analysis employed in this study is a unit root testing procedure using the linear ADF and nonlinear KSS unit root tests, the HEGY and Canova and Hansen seasonal unit root tests, the Lee and Strazicich structural break test, and the Flexible Fourier Function (FFF) and Fractional Frequency Flexible Fourier Function (FFFFF) unit root tests to account for smooth structural breaks. This study is, as we have reviewed, the first to investigate convergence in the newly established economic union and the first employ the above-mentioned series of unit root tests. The empirical outcomes in this study point towards weak evidence of convergence between Africa and international trade groups when considering the more robust Fourier-based unit root tests. Therefore, we conclude that Africa does not necessarily exhibit catch up effects with a majority of its trading partners.
- Full Text:
- Date Issued: 2020
- Authors: Matonana, Phumelela Ntombiyesibini
- Date: 2020
- Subjects: Gross domestic product -- Africa -- Statistics , Economic development -- Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/50306 , vital:42102
- Description: This study is an investigation of the convergence hypothesis in African countries motivated by the increasing interest to measure disparities in the establishment of an economic union. The objective of this study is to provide an analysis of convergence in Africa by looking at the African Continental Free Trade Agreement (AfCFTA) against 6 of its top trading partner groups. This study seeks to establish whether Africa and African countries who belong to the AfCFTA catchup to the growth rates of their more developed trading partners. The data sample spans from 1971- 2018. The method of analysis employed in this study is a unit root testing procedure using the linear ADF and nonlinear KSS unit root tests, the HEGY and Canova and Hansen seasonal unit root tests, the Lee and Strazicich structural break test, and the Flexible Fourier Function (FFF) and Fractional Frequency Flexible Fourier Function (FFFFF) unit root tests to account for smooth structural breaks. This study is, as we have reviewed, the first to investigate convergence in the newly established economic union and the first employ the above-mentioned series of unit root tests. The empirical outcomes in this study point towards weak evidence of convergence between Africa and international trade groups when considering the more robust Fourier-based unit root tests. Therefore, we conclude that Africa does not necessarily exhibit catch up effects with a majority of its trading partners.
- Full Text:
- Date Issued: 2020
Efficient market hypothesis with structural breaks: evidence from BRICS stock markets
- Authors: Guduza, Sinazo
- Date: 2019
- Subjects: Stock exchanges , Investment analysis Developing countries -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/42342 , vital:36647
- Description: The study is an examination of weak form market efficiency (EMH) in BRICS equity markets using weekly data spanning from 2005 to 2018. The study makes use linear as well as nonlinear unit rot tests, that is, the ADF and KSS tests respectively. For more robust results, the study uses the Integer Flexible Fourier Function (IFFF) and the Fractional Frequency Flexible Fourier Function (FFFFF) to account for smooth structural breaks. The study investigates the full sample period and splits the empirical data into three sub-samples corresponding to the period succeeding the global financial crisis, the BRICS summits and the BRICS Development Bank (BDB). This study, to the best of our knowledge, is the first to investigate the efficiency in the BRICS stock markets using a combination of the specified series of unit root tests. Moreover, there are no prior studies that have examined these markets for the sub-samples mentioned above. Our empirical results point us to convincing evidence of weak form inefficiency as the majority of the results reject the null hypothesis of a unit root.
- Full Text:
- Date Issued: 2019
- Authors: Guduza, Sinazo
- Date: 2019
- Subjects: Stock exchanges , Investment analysis Developing countries -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/42342 , vital:36647
- Description: The study is an examination of weak form market efficiency (EMH) in BRICS equity markets using weekly data spanning from 2005 to 2018. The study makes use linear as well as nonlinear unit rot tests, that is, the ADF and KSS tests respectively. For more robust results, the study uses the Integer Flexible Fourier Function (IFFF) and the Fractional Frequency Flexible Fourier Function (FFFFF) to account for smooth structural breaks. The study investigates the full sample period and splits the empirical data into three sub-samples corresponding to the period succeeding the global financial crisis, the BRICS summits and the BRICS Development Bank (BDB). This study, to the best of our knowledge, is the first to investigate the efficiency in the BRICS stock markets using a combination of the specified series of unit root tests. Moreover, there are no prior studies that have examined these markets for the sub-samples mentioned above. Our empirical results point us to convincing evidence of weak form inefficiency as the majority of the results reject the null hypothesis of a unit root.
- Full Text:
- Date Issued: 2019
Purchasing power parity in a newly industrialised country
- Authors: De Villiers, David James
- Date: 2019
- Subjects: Foreign exchange rates -- Econometric models , Purchasing power parity -- Econometric models , Purchasing power
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/39578 , vital:35292
- Description: A newly industrialised country (NIC) is a nation whose rapid industrial growth is delivering high levels of economic development. The ‘NIC’ term is however inappropriately applied: thus this study develops a fresh exposition of the concept. Argentina, Brazil, China, Egypt, India, Indonesia, Malaysia, Mexico, Philippines, Russia, Thailand, Turkey, Vietnam, and South Africa are identified as supposed present-day NICs. Regardless of the industrialisation strategy being pursued, NICs experience exchange rates misaligned in terms of equilibrium value. This can lead to an unpredictable exchange rate, and the failure of the empirical validation of the purchasing power parity (PPP) hypothesis. Theory suggests that there exist several frictions to price movements which manifest themselves as nonlinear adjustment processes. Common empirical methodologies for evaluating PPP are however inadequate in accounting for these phenomena. To close the gap between theory and empirical evidence, the Kapetanois-Shin-Snell unit root test, augmented with flexible Fourier functions with fractional frequencies (KSS-FFFFF), is conducted in order to empirically validate the PPP hypothesis when applied to NICs. This model is capable of capturing heterogeneous smooth transitions in regime switching, and approximating unknown structural breaks in the time series. The researcher developed a novel numerical method in the form of a binary search algorithm for selecting the optimal fractional frequency of the flexible Fourier functions. This procedure significantly reduces both the approximation error and the computational cost of flexible Fourier functions with fractional frequencies. The main result of the study is that all NIC’s real exchange rates are mean-reverting over the annual and monthly periods of 1960-2016 and 1970:1-2017:11. Therefore the traditional Casselian version of PPP holds true in each NIC.
- Full Text:
- Date Issued: 2019
- Authors: De Villiers, David James
- Date: 2019
- Subjects: Foreign exchange rates -- Econometric models , Purchasing power parity -- Econometric models , Purchasing power
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/39578 , vital:35292
- Description: A newly industrialised country (NIC) is a nation whose rapid industrial growth is delivering high levels of economic development. The ‘NIC’ term is however inappropriately applied: thus this study develops a fresh exposition of the concept. Argentina, Brazil, China, Egypt, India, Indonesia, Malaysia, Mexico, Philippines, Russia, Thailand, Turkey, Vietnam, and South Africa are identified as supposed present-day NICs. Regardless of the industrialisation strategy being pursued, NICs experience exchange rates misaligned in terms of equilibrium value. This can lead to an unpredictable exchange rate, and the failure of the empirical validation of the purchasing power parity (PPP) hypothesis. Theory suggests that there exist several frictions to price movements which manifest themselves as nonlinear adjustment processes. Common empirical methodologies for evaluating PPP are however inadequate in accounting for these phenomena. To close the gap between theory and empirical evidence, the Kapetanois-Shin-Snell unit root test, augmented with flexible Fourier functions with fractional frequencies (KSS-FFFFF), is conducted in order to empirically validate the PPP hypothesis when applied to NICs. This model is capable of capturing heterogeneous smooth transitions in regime switching, and approximating unknown structural breaks in the time series. The researcher developed a novel numerical method in the form of a binary search algorithm for selecting the optimal fractional frequency of the flexible Fourier functions. This procedure significantly reduces both the approximation error and the computational cost of flexible Fourier functions with fractional frequencies. The main result of the study is that all NIC’s real exchange rates are mean-reverting over the annual and monthly periods of 1960-2016 and 1970:1-2017:11. Therefore the traditional Casselian version of PPP holds true in each NIC.
- Full Text:
- Date Issued: 2019
The effect of monetary policy on inflation and unemployment in Kenya
- Authors: Top, Wuor Chuol Both
- Date: 2017
- Subjects: Monetary policy -- Kenya -- Econometric models , Unemployment -- Effect of inflation on -- Kenya Inflation (Finance) -- Kenya Unemployment -- Kenya Kenya -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/21329 , vital:29478
- Description: Since the establishment of the Central Bank of Kenya in 1966, monetary policymakers have been changing their policy instruments over the years in an attempt to bring inflation and unemployment rates to the desirable level. This study investigates the effect of monetary policy on inflation and unemployment in Kenya over the period 1991 to 2016. This study employs the Johansen co-integration and vector error correction technique so as to identify the long-run and short-run dynamics among the variables. The Augmented Dickey-Fuller test and Phillips-Perron test for stationarity in the time series is applied. The findings of this study suggest that both short-run and long-run relationships exist among the variables, namely inflation rate, unemployment rate, money supply, real interest rate and exchange rate. The main findings of this study show that monetary policy has a significant effect on inflation in the long-run, while it has little tangible effect on unemployment in the long-run. Among the three monetary policy instruments used in this study, money supply is shown to have the most influential effect on the level of inflation in Kenya. The two monetary policy instruments, real interest rate and exchange rate, have been proved to have little influence on unemployment. This study recommends that the optimum approach for monetary policymakers to adopt towards controlling inflation in Kenya is to implement a monetarytargeting framework ‘...where money supply is controlled...’ in order to affect prices in the economy. Concerning unemployment, this study recommends that the monetary policymakers formulate a policy that encourages investors to lend or invest their money at a rate which increases employment or reduces unemployment. This study also recommends that the best approach the CBK/monetary policymakers could adopt to reduce unemployment in Kenya would be to implement a policy that encourages depreciation in the Kenya shillings.
- Full Text:
- Date Issued: 2017
- Authors: Top, Wuor Chuol Both
- Date: 2017
- Subjects: Monetary policy -- Kenya -- Econometric models , Unemployment -- Effect of inflation on -- Kenya Inflation (Finance) -- Kenya Unemployment -- Kenya Kenya -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/21329 , vital:29478
- Description: Since the establishment of the Central Bank of Kenya in 1966, monetary policymakers have been changing their policy instruments over the years in an attempt to bring inflation and unemployment rates to the desirable level. This study investigates the effect of monetary policy on inflation and unemployment in Kenya over the period 1991 to 2016. This study employs the Johansen co-integration and vector error correction technique so as to identify the long-run and short-run dynamics among the variables. The Augmented Dickey-Fuller test and Phillips-Perron test for stationarity in the time series is applied. The findings of this study suggest that both short-run and long-run relationships exist among the variables, namely inflation rate, unemployment rate, money supply, real interest rate and exchange rate. The main findings of this study show that monetary policy has a significant effect on inflation in the long-run, while it has little tangible effect on unemployment in the long-run. Among the three monetary policy instruments used in this study, money supply is shown to have the most influential effect on the level of inflation in Kenya. The two monetary policy instruments, real interest rate and exchange rate, have been proved to have little influence on unemployment. This study recommends that the optimum approach for monetary policymakers to adopt towards controlling inflation in Kenya is to implement a monetarytargeting framework ‘...where money supply is controlled...’ in order to affect prices in the economy. Concerning unemployment, this study recommends that the monetary policymakers formulate a policy that encourages investors to lend or invest their money at a rate which increases employment or reduces unemployment. This study also recommends that the best approach the CBK/monetary policymakers could adopt to reduce unemployment in Kenya would be to implement a policy that encourages depreciation in the Kenya shillings.
- Full Text:
- Date Issued: 2017
Analysis of VAT compliance challenges in municipalities
- Authors: Nkonzombi, Linda
- Date: 2018
- Subjects: Value-added tax -- South Africa , Income tax -- South Africa Income tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33429 , vital:32864
- Description: The study was carried out to identify challenges that municipalities have with becoming Value Added Tax (‘VAT’) compliant. This study has been prompted by the ongoing findings reported by the Auditor General (‘AG’) in its audit reports. The increasing demand on the services of tax consultants also suggests that municipalities are having challenges in independently fulfilling their tax obligations. It was found that municipalities are often challenged with the application of the following VAT sections: The VAT apportionment methodology, section 8(27) dealing with unallocated payments, VAT reconciliations and claiming of VAT on invalid documentation and where VAT credits are denied. The main causes of non-compliance were identified as complexity of the tax laws, interpretation issues, behavioural attitude, lack of technical expertise within municipalities, and the fact that VAT is a self-assessed tax. Based on the findings of the study, it is recommended that all municipalities should be required to have a designated tax team to handle the tax matters of a municipality. The municipalities’ governing body, South African Local Government Association (‘SALGA’), should consider introducing penalties to non-VAT compliant municipalities. SARS should establish ‘customer relationships’ with the municipalities.
- Full Text:
- Date Issued: 2018
- Authors: Nkonzombi, Linda
- Date: 2018
- Subjects: Value-added tax -- South Africa , Income tax -- South Africa Income tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33429 , vital:32864
- Description: The study was carried out to identify challenges that municipalities have with becoming Value Added Tax (‘VAT’) compliant. This study has been prompted by the ongoing findings reported by the Auditor General (‘AG’) in its audit reports. The increasing demand on the services of tax consultants also suggests that municipalities are having challenges in independently fulfilling their tax obligations. It was found that municipalities are often challenged with the application of the following VAT sections: The VAT apportionment methodology, section 8(27) dealing with unallocated payments, VAT reconciliations and claiming of VAT on invalid documentation and where VAT credits are denied. The main causes of non-compliance were identified as complexity of the tax laws, interpretation issues, behavioural attitude, lack of technical expertise within municipalities, and the fact that VAT is a self-assessed tax. Based on the findings of the study, it is recommended that all municipalities should be required to have a designated tax team to handle the tax matters of a municipality. The municipalities’ governing body, South African Local Government Association (‘SALGA’), should consider introducing penalties to non-VAT compliant municipalities. SARS should establish ‘customer relationships’ with the municipalities.
- Full Text:
- Date Issued: 2018
The influence of the real business cycle shocks on aggregate demand in South Africa
- Authors: Mesatywa, Msa Pumelela
- Date: 2019
- Subjects: Business cycles -- South Africa , Economic indicators -- South Africa Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/42407 , vital:36653
- Description: The aim of this study is to investigate the influence of the real business cycle shocks on aggregate demand in South Africa. These shocks consist of government expenditure, oil prices, technology (proxied by research and development), labour productivity, and droughts. The theoretical framework is presented consisting of the literature review and empirical review. The Neo-classical, Keynesian and Structuralist theories are explained in the literature review. Furthermore, the empirical section consists of previous studies from developed and developing countries, and as well as studies conducted in South Africa based on the topic of this study. The Non-Linear Autoregressive Distributed Lag (NARDL) model approach was used to find the influence between economic growth, government expenditures, oil prices, technology shock (proxy research and development), labour productivity and droughts in South Africae using quarterly data from 1995 to 2017. The Hodrick-Prescott (HP) filter was used to extract the shocks and to test their influence on economic growth. The NARDL technique uses a single reduced form of equation to examine the long run relationship of the variables as opposed to other models. The NARDL technique is also suitable to use to test co-integration and does not require the underlying variables to be integrated of similar order. The results from the NARDL bounds test showed that there is a long run relationship for government expenditure, oil prices, technology, labour productivity and droughts. Furthermore, the labour productivity shock tends out to be the larger shock affecting South Africa’s economy. This study will provide policy recommendations on how to improve and increase labour productivity in South Africa.
- Full Text:
- Date Issued: 2019
- Authors: Mesatywa, Msa Pumelela
- Date: 2019
- Subjects: Business cycles -- South Africa , Economic indicators -- South Africa Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/42407 , vital:36653
- Description: The aim of this study is to investigate the influence of the real business cycle shocks on aggregate demand in South Africa. These shocks consist of government expenditure, oil prices, technology (proxied by research and development), labour productivity, and droughts. The theoretical framework is presented consisting of the literature review and empirical review. The Neo-classical, Keynesian and Structuralist theories are explained in the literature review. Furthermore, the empirical section consists of previous studies from developed and developing countries, and as well as studies conducted in South Africa based on the topic of this study. The Non-Linear Autoregressive Distributed Lag (NARDL) model approach was used to find the influence between economic growth, government expenditures, oil prices, technology shock (proxy research and development), labour productivity and droughts in South Africae using quarterly data from 1995 to 2017. The Hodrick-Prescott (HP) filter was used to extract the shocks and to test their influence on economic growth. The NARDL technique uses a single reduced form of equation to examine the long run relationship of the variables as opposed to other models. The NARDL technique is also suitable to use to test co-integration and does not require the underlying variables to be integrated of similar order. The results from the NARDL bounds test showed that there is a long run relationship for government expenditure, oil prices, technology, labour productivity and droughts. Furthermore, the labour productivity shock tends out to be the larger shock affecting South Africa’s economy. This study will provide policy recommendations on how to improve and increase labour productivity in South Africa.
- Full Text:
- Date Issued: 2019
A comparative analysis of the effects of different Levels of Education on growth in African Economies
- Authors: Mkhosana, Nomathamsanqa
- Date: 2020
- Subjects: Economic development -- Effect of education on , Education -- Economic Aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/50393 , vital:42161
- Description: The economic growth and development of a country depend on the educational opportunities available to its citizens. Education is deemed to influence economic growth via improved labour productivity particularly through knowledge and skills accumulation by promoting technological improvement and innovation. The aim of the study was to highlight the importance of each level of education on economic growth of African countries. The objective of the study was to find which level of education (primary, secondary and tertiary) has the most significant effect on economic growth. To obtain this objective, the study using two panel cointegration methods, the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) method applied to data covering the period of 2000 to 2017, the study aimed at sampling 10 educated economies and 10 advanced economies in Africa, since South Africa and Kenya belong in both categories, the study a total of 18 African economies. The results of the study show discrepancies, that is, primary and secondary education being most beneficial towards more advanced economies whilst only tertiary education is beneficiary towards more educated African countries. Policy implications are provided.
- Full Text:
- Date Issued: 2020
- Authors: Mkhosana, Nomathamsanqa
- Date: 2020
- Subjects: Economic development -- Effect of education on , Education -- Economic Aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/50393 , vital:42161
- Description: The economic growth and development of a country depend on the educational opportunities available to its citizens. Education is deemed to influence economic growth via improved labour productivity particularly through knowledge and skills accumulation by promoting technological improvement and innovation. The aim of the study was to highlight the importance of each level of education on economic growth of African countries. The objective of the study was to find which level of education (primary, secondary and tertiary) has the most significant effect on economic growth. To obtain this objective, the study using two panel cointegration methods, the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) method applied to data covering the period of 2000 to 2017, the study aimed at sampling 10 educated economies and 10 advanced economies in Africa, since South Africa and Kenya belong in both categories, the study a total of 18 African economies. The results of the study show discrepancies, that is, primary and secondary education being most beneficial towards more advanced economies whilst only tertiary education is beneficiary towards more educated African countries. Policy implications are provided.
- Full Text:
- Date Issued: 2020
The causal relationship between savings and economic growth in the Southern African development community
- Authors: Nsenga, Dieu Donne Katamba
- Date: 2018
- Subjects: Saving and investment -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/17409 , vital:28337
- Description: Promoting high domestic savings rates in order to boost economic growth is one of the SADC macroeconomic targets. Based on both the Solow’s (1956) and the endogenous “AK” growth models that predict a positive relationship between savings and economic growth in a closed economy, and on the Aghion-Comin-Howitt’s (2006) hypothesis that assumes a positive relationship between savings and economic growth in an open economy, two separate empirical models were constructed to test the long-run relationship and the causality between savings and economic growth in the SADC region. To this end, annual time series data for ten SADC member states obtained from the World Bank Indicators over the period 1985-2015 were pooled. The Panel ARDL/Pooled Mean Group estimator developed by Pesaran, Shin and Smith (1997) was performed to analyse the data. The main findings are that domestic savings is positively related to GDP in an open economy, whereas in a closed economy, it is insignificant. In addition, the speed of adjustment revealed a bi-directional causality between savings and economic growth. However, the speed of adjustment is much slower when the model is estimated with savings as the dependent variable but faster when GDP is regressed as the dependent variable. Thus, SADC member states are encouraged to implement policies that promote domestic savings as well as attract foreign direct investments, in order to boost economic growth. GDP growth will, in turn, increase the level of domestic savings.
- Full Text:
- Date Issued: 2018
- Authors: Nsenga, Dieu Donne Katamba
- Date: 2018
- Subjects: Saving and investment -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/17409 , vital:28337
- Description: Promoting high domestic savings rates in order to boost economic growth is one of the SADC macroeconomic targets. Based on both the Solow’s (1956) and the endogenous “AK” growth models that predict a positive relationship between savings and economic growth in a closed economy, and on the Aghion-Comin-Howitt’s (2006) hypothesis that assumes a positive relationship between savings and economic growth in an open economy, two separate empirical models were constructed to test the long-run relationship and the causality between savings and economic growth in the SADC region. To this end, annual time series data for ten SADC member states obtained from the World Bank Indicators over the period 1985-2015 were pooled. The Panel ARDL/Pooled Mean Group estimator developed by Pesaran, Shin and Smith (1997) was performed to analyse the data. The main findings are that domestic savings is positively related to GDP in an open economy, whereas in a closed economy, it is insignificant. In addition, the speed of adjustment revealed a bi-directional causality between savings and economic growth. However, the speed of adjustment is much slower when the model is estimated with savings as the dependent variable but faster when GDP is regressed as the dependent variable. Thus, SADC member states are encouraged to implement policies that promote domestic savings as well as attract foreign direct investments, in order to boost economic growth. GDP growth will, in turn, increase the level of domestic savings.
- Full Text:
- Date Issued: 2018
Response of the IMF and the World Bank to the Great Recession and the Euro sovereign crisis in a globalising world
- Authors: Thibane, Tankiso Abel
- Date: 2018
- Subjects: Recessions Globalization
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/16142 , vital:28330
- Description: The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) now the World Bank, were created in the mid-1940s. The IMF was tasked to manage the post-war international monetary system, while the World Bank’s role during its early years was to provide development finance to war-torn Europe. These institutions reformed some of their roles to make them relevant to the globalising world over the years and also responded to several post-war crises. Since these two institutions carry out their roles in a globalising world, this study has revealed that globalisation has different interpretations as many researchers refer to the economic and non-economic explanations of its meaning. Globalisation is also a historical process as it traces back several years ago. Since approximately the mid-2000s, the global economy experienced two economic crises, namely the US sub-prime financial crisis that later became the Great Recession and the Euro sovereign crisis. The two economic crises spread to other countries globally that were interconnected into the global economy regarding international trade, investment and banking. These two crisis events required responses from the IMF and the World Bank. The two institutions displayed a variety of strengths and weaknesses in dealing with the recession and the Euro crisis. The lending of both these institutions has been their strength as they have managed to expand their lending capacity during the two crisis periods examined. The IMF’s crisis intervention time frames have also been its strength, as the speed in which it has approved financial assistance requests has been within reasonable time frames. The IMF’s new lending instruments have been its weakness, as the success of these instruments has not been fully tested so far. This is because of the little use of the IMF’s new lending instruments. The IMF’s crisis prevention efforts through the use of its surveillance tools have also been its flaw. This is based on the fact that it has failed to prevent the US financial crisis (later the Great Recession) and the Euro sovereign crisis. Overall, this study found that these institutions played a significant role in responding to the Great Recession and Euro sovereign crisis as their strengths outweigh their weaknesses. However, the weaknesses of the IMF confirm that it needs to reform its role and learn from its flaws in the future.
- Full Text:
- Date Issued: 2018
- Authors: Thibane, Tankiso Abel
- Date: 2018
- Subjects: Recessions Globalization
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/16142 , vital:28330
- Description: The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) now the World Bank, were created in the mid-1940s. The IMF was tasked to manage the post-war international monetary system, while the World Bank’s role during its early years was to provide development finance to war-torn Europe. These institutions reformed some of their roles to make them relevant to the globalising world over the years and also responded to several post-war crises. Since these two institutions carry out their roles in a globalising world, this study has revealed that globalisation has different interpretations as many researchers refer to the economic and non-economic explanations of its meaning. Globalisation is also a historical process as it traces back several years ago. Since approximately the mid-2000s, the global economy experienced two economic crises, namely the US sub-prime financial crisis that later became the Great Recession and the Euro sovereign crisis. The two economic crises spread to other countries globally that were interconnected into the global economy regarding international trade, investment and banking. These two crisis events required responses from the IMF and the World Bank. The two institutions displayed a variety of strengths and weaknesses in dealing with the recession and the Euro crisis. The lending of both these institutions has been their strength as they have managed to expand their lending capacity during the two crisis periods examined. The IMF’s crisis intervention time frames have also been its strength, as the speed in which it has approved financial assistance requests has been within reasonable time frames. The IMF’s new lending instruments have been its weakness, as the success of these instruments has not been fully tested so far. This is because of the little use of the IMF’s new lending instruments. The IMF’s crisis prevention efforts through the use of its surveillance tools have also been its flaw. This is based on the fact that it has failed to prevent the US financial crisis (later the Great Recession) and the Euro sovereign crisis. Overall, this study found that these institutions played a significant role in responding to the Great Recession and Euro sovereign crisis as their strengths outweigh their weaknesses. However, the weaknesses of the IMF confirm that it needs to reform its role and learn from its flaws in the future.
- Full Text:
- Date Issued: 2018
Breaking the poverty cycle: exploring farmers’ strategies to empower employees in the agricultural sector
- Authors: Venter, Morné
- Date: 2018
- Subjects: Agricultural productivity -- South Africa , Agriculture -- Research -- Economic aspects -- Mathematical models , Industrial productivity , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/36772 , vital:34052
- Description: The primary aim of this research project was to explore the various strategies of specific farmers who have chosen to improve productivity through innovative labour management strategies. In particular, to describe strategies that have empowered employees and will enable them to break the poverty cycle. The potential to highlight a business case for quality jobs in the agricultural sector could add to the understanding of labour-intensive agricultural production systems. Participants in this study empower their employees through various means, which includes intrinsic and extrinsic motivation. The agricultural sector was specifically targeted in this study as farmworkers are some of the most vulnerable employee-populations in South Africa, because they have a relatively small chance of empowering themselves, or their children, as they are often stuck in the poverty cycle. The research method employed in this study was qualitative in order to gain an in depth understanding of labour management systems (LMS). Information was gathered through semi-structured, face-to-face interviews with a number of purposively selected farmers. The participants in this study were selected for a select number of reasons. The main reason being that they employ strategies that empower their employees in various ways to ensure the future employability of these employees. All the participants are committed to ensuring the success of their employees, because this ensures the success of the farms. Farmworkers are one of the cornerstones on which a farming enterprise is built, another cornerstone is the farmer. When these two components understand and respect one another and work with each other, rather than against each other, both will prosper. The approaches that the participants in this study utilise to empower their workers ensure that the poverty cycle for these workers in this semi- and unskilled sector is broken and that they become, not only employable, but invaluable to the farms on which they work. The approaches were categorised from the one end as the point where labour is commodified and treated as a cost factor, the “low road” -this approach aligns with McGregor’s theory X and may be termed “exploitative”. While, at the other end of the continuum of approaches is the view that an employee has potential and investment in the employee will yield commitment and discretionary effort - this approach aligns with McGregor’s theory Y, the “high road”. This includes strategies to improve productivity and empower employees beyond the workplace, and to a certain extent, the community.
- Full Text:
- Date Issued: 2018
- Authors: Venter, Morné
- Date: 2018
- Subjects: Agricultural productivity -- South Africa , Agriculture -- Research -- Economic aspects -- Mathematical models , Industrial productivity , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/36772 , vital:34052
- Description: The primary aim of this research project was to explore the various strategies of specific farmers who have chosen to improve productivity through innovative labour management strategies. In particular, to describe strategies that have empowered employees and will enable them to break the poverty cycle. The potential to highlight a business case for quality jobs in the agricultural sector could add to the understanding of labour-intensive agricultural production systems. Participants in this study empower their employees through various means, which includes intrinsic and extrinsic motivation. The agricultural sector was specifically targeted in this study as farmworkers are some of the most vulnerable employee-populations in South Africa, because they have a relatively small chance of empowering themselves, or their children, as they are often stuck in the poverty cycle. The research method employed in this study was qualitative in order to gain an in depth understanding of labour management systems (LMS). Information was gathered through semi-structured, face-to-face interviews with a number of purposively selected farmers. The participants in this study were selected for a select number of reasons. The main reason being that they employ strategies that empower their employees in various ways to ensure the future employability of these employees. All the participants are committed to ensuring the success of their employees, because this ensures the success of the farms. Farmworkers are one of the cornerstones on which a farming enterprise is built, another cornerstone is the farmer. When these two components understand and respect one another and work with each other, rather than against each other, both will prosper. The approaches that the participants in this study utilise to empower their workers ensure that the poverty cycle for these workers in this semi- and unskilled sector is broken and that they become, not only employable, but invaluable to the farms on which they work. The approaches were categorised from the one end as the point where labour is commodified and treated as a cost factor, the “low road” -this approach aligns with McGregor’s theory X and may be termed “exploitative”. While, at the other end of the continuum of approaches is the view that an employee has potential and investment in the employee will yield commitment and discretionary effort - this approach aligns with McGregor’s theory Y, the “high road”. This includes strategies to improve productivity and empower employees beyond the workplace, and to a certain extent, the community.
- Full Text:
- Date Issued: 2018
A comparative analysis of the determinants of South Africa bilateral trade flows with the European Union-Southern African development community economic partnership agreement and trade development and cooperation agreement
- Authors: Mhaka, Simbarashe
- Date: 2018
- Subjects: South Africa -- Economic integration , Africa, Southern -- Economic integration , Southern African Customs Union
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31875 , vital:31857
- Description: This research dissertation presents the impact of economic size, market size and exchange rate on South Africa’s trade flows with the European Union under the Trade Development and Cooperation Agreement (TDCA). The Big Five EU members are used to represent the EU trading bloc. The research also examines the effects of economic size, market size and ex-change rate on South African trade flows with members of the Southern African Customs Union and of the European Union in what is called the European Union-Southern African Development Community Economic Partnership Agreement (EU-SADC EPA). The research employs comparative analysis aimed at identifying the differences in the effects of market size, economic size and exchange rate on South Africa’s trade flows with these two trading blocs. The study exploits panel data on international trade of South Africa over the period 2000-’16. A gravity model of trade is used to identify the effect of these three variables on South Africa’s trade flows. The empirical analysis relies on a panel data econometrics framework as an estimation technique for the gravity model of trade between South Africa and the Big Five EU members. This shows the outcomes of the effects of economic size, market size and exchange rate on the trade flows of South Africa in the TDCA. The same technique is applied to estimate the effects of economic size, market size and exchange rate to trade flows of South Africa with the Big Five EU members as well as the other SACU members representing the SADC-EU EPA. In the panel data approach, three models are adopted. These are pooled OLS, fixed effects and random effects that can be estimated. The Hausman tests shows that the random effect is appropriate in the TDCA gravity function and the results indicate a positive relationship be-tween South Africa’s economic/market size and South Africa’s trade flows in the TDCA. In the EU-SADC EPA, the Hausman tests indicated that the fixed effect models are appropriate and the results show a positive relationship between economic size and market size with South Africa’s trade flows in the EU-SADC EPA. However, in the TDCA, the random effect model shows that exchange rate and the trading partner’s market size have a negative outcome on South Africa trade flows. The fixed effect model shows a negative relationship between the exchange rate and South Africa’s trade flows in the EU-SADC EPA. The results also show that it is better for South Africa to trade in the EU-SADC EPA than to remain in the TDCA. This is because the outcomes of economic and market size on South Africa’s trade flows are greater in the EU-SADC EPA than in the TDCA. On the other hand the negative effect of the exchange rate on South Africa’s trade flows is less in the EU-SADC EPA than in the TDCA. The research recommends that policy-makers select trading partners based on the sizes of their markets and economies.
- Full Text:
- Date Issued: 2018
- Authors: Mhaka, Simbarashe
- Date: 2018
- Subjects: South Africa -- Economic integration , Africa, Southern -- Economic integration , Southern African Customs Union
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/31875 , vital:31857
- Description: This research dissertation presents the impact of economic size, market size and exchange rate on South Africa’s trade flows with the European Union under the Trade Development and Cooperation Agreement (TDCA). The Big Five EU members are used to represent the EU trading bloc. The research also examines the effects of economic size, market size and ex-change rate on South African trade flows with members of the Southern African Customs Union and of the European Union in what is called the European Union-Southern African Development Community Economic Partnership Agreement (EU-SADC EPA). The research employs comparative analysis aimed at identifying the differences in the effects of market size, economic size and exchange rate on South Africa’s trade flows with these two trading blocs. The study exploits panel data on international trade of South Africa over the period 2000-’16. A gravity model of trade is used to identify the effect of these three variables on South Africa’s trade flows. The empirical analysis relies on a panel data econometrics framework as an estimation technique for the gravity model of trade between South Africa and the Big Five EU members. This shows the outcomes of the effects of economic size, market size and exchange rate on the trade flows of South Africa in the TDCA. The same technique is applied to estimate the effects of economic size, market size and exchange rate to trade flows of South Africa with the Big Five EU members as well as the other SACU members representing the SADC-EU EPA. In the panel data approach, three models are adopted. These are pooled OLS, fixed effects and random effects that can be estimated. The Hausman tests shows that the random effect is appropriate in the TDCA gravity function and the results indicate a positive relationship be-tween South Africa’s economic/market size and South Africa’s trade flows in the TDCA. In the EU-SADC EPA, the Hausman tests indicated that the fixed effect models are appropriate and the results show a positive relationship between economic size and market size with South Africa’s trade flows in the EU-SADC EPA. However, in the TDCA, the random effect model shows that exchange rate and the trading partner’s market size have a negative outcome on South Africa trade flows. The fixed effect model shows a negative relationship between the exchange rate and South Africa’s trade flows in the EU-SADC EPA. The results also show that it is better for South Africa to trade in the EU-SADC EPA than to remain in the TDCA. This is because the outcomes of economic and market size on South Africa’s trade flows are greater in the EU-SADC EPA than in the TDCA. On the other hand the negative effect of the exchange rate on South Africa’s trade flows is less in the EU-SADC EPA than in the TDCA. The research recommends that policy-makers select trading partners based on the sizes of their markets and economies.
- Full Text:
- Date Issued: 2018
Critical assessment of the quality of sustainability disclosures published by public entities in South Africa
- Authors: Nazer, Faith Catherine
- Date: 2018
- Subjects: Sustainable development reporting , Auditing -- South Africa , Finance, Public -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/32845 , vital:32372
- Description: This study was performed in light of the limited research available regarding the quality of sustainability reporting in the public sector, and particularly in South Africa; and due to the important role which the public sector should play in enhancing sustainable behaviour and consequently sustainability reporting. There have been definite developments in legislation and guidelines which aim to enhance the quality of published sustainability disclosures. Therefore, in light of these developments, the objective of this study was to evaluate whether there has been an improvement in the quality of sustainability disclosures published by selected South African public entities for the 2014 financial year compared to the 2008 financial year. This study used both qualitative and quantitative methods to collect and analyse data. The content analysis method was used in this study, with the coding frame being developed deductively through the use of existing sustainability reporting guidelines. The guidelines analysed and incorporated into the coding frame for this study were the Global Reporting Initiative (GRI) Generation 4 (G4) guideline and the integrated reporting framework. To ensure that the coding frame contained codes relevant to the South African context, the King III Report on Corporate Governance (King III) and the Johannesburg Stock Exchange Social Reporting Initiative (JSE SRI) were consulted, and reporting requirements incorporated into the coding frame. Ten Schedule 2 reports and twenty Schedule 3 reports were analysed using the coding frame developed. Descriptive statistics were used to summarise the resulting data. The Spearman Rank Order Correlation and the Mann-Whitney U Test were used to test for possible statistical significance of the changes in the data observed. This study found a number of significant improvements in the quality of reporting of sustainability disclosures from 2008 to 2014. Significant improvements were noted in the areas of reporting relating to balanced economic and environmental disclosures as well as comparative social disclosures being made. There were also significantly more annual published reports labelled as integrated reports in 2014 as compared to 2008, and significantly more 2014 reports used the GRI guidelines, integrated reporting framework, King III or a combination of these in the preparation of the annual published report. Significantly more tables, graphs and diagrams were used in the disclosure of social and other related matters in 2014, which enhanced the clarity of the information reported. There were also significant improvements noted in the disclosures relating to strategic focus and future orientation of the 2014 annual published reports and in the number of non-economic performance targets included in the public entities’ performance reports. Significant improvement was also noted in the quality of overall social disclosures and specifically in the quality of social disclosures relating to labour practices and decent working conditions, and disclosures relating to the entity’s impacts on society. The word count used to disclose matters relating to stakeholder engagement and board practices, composition and remuneration saw significant increases from 2008 to 2014. Despite these improvements and consistent with prior literature, it is concluded that more needs to be done in respect of reporting on social and environmental impacts, through the use of sustainability reporting guidelines and effective stakeholder engagement. In addition, it is recommended that annual published reports aim to provide a more balanced picture of the reporting entity and that negative performance be discussed in more detail. More effort needs to be made in enhancing the reliability of the annual published reports as a whole, through obtaining external assurance on the social and environmental disclosures. Finally, politicians and decision-makers in the public sector need to address the key root causes which lead to poor quality reporting. The significant impact of the following factors on the quality of sustainability disclosures was noted: the public entity’s total asset value, its total revenue, its level of social and environmental impact, the form of the report used as well as the guidelines used to prepare the reports.
- Full Text:
- Date Issued: 2018
- Authors: Nazer, Faith Catherine
- Date: 2018
- Subjects: Sustainable development reporting , Auditing -- South Africa , Finance, Public -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/32845 , vital:32372
- Description: This study was performed in light of the limited research available regarding the quality of sustainability reporting in the public sector, and particularly in South Africa; and due to the important role which the public sector should play in enhancing sustainable behaviour and consequently sustainability reporting. There have been definite developments in legislation and guidelines which aim to enhance the quality of published sustainability disclosures. Therefore, in light of these developments, the objective of this study was to evaluate whether there has been an improvement in the quality of sustainability disclosures published by selected South African public entities for the 2014 financial year compared to the 2008 financial year. This study used both qualitative and quantitative methods to collect and analyse data. The content analysis method was used in this study, with the coding frame being developed deductively through the use of existing sustainability reporting guidelines. The guidelines analysed and incorporated into the coding frame for this study were the Global Reporting Initiative (GRI) Generation 4 (G4) guideline and the integrated reporting framework. To ensure that the coding frame contained codes relevant to the South African context, the King III Report on Corporate Governance (King III) and the Johannesburg Stock Exchange Social Reporting Initiative (JSE SRI) were consulted, and reporting requirements incorporated into the coding frame. Ten Schedule 2 reports and twenty Schedule 3 reports were analysed using the coding frame developed. Descriptive statistics were used to summarise the resulting data. The Spearman Rank Order Correlation and the Mann-Whitney U Test were used to test for possible statistical significance of the changes in the data observed. This study found a number of significant improvements in the quality of reporting of sustainability disclosures from 2008 to 2014. Significant improvements were noted in the areas of reporting relating to balanced economic and environmental disclosures as well as comparative social disclosures being made. There were also significantly more annual published reports labelled as integrated reports in 2014 as compared to 2008, and significantly more 2014 reports used the GRI guidelines, integrated reporting framework, King III or a combination of these in the preparation of the annual published report. Significantly more tables, graphs and diagrams were used in the disclosure of social and other related matters in 2014, which enhanced the clarity of the information reported. There were also significant improvements noted in the disclosures relating to strategic focus and future orientation of the 2014 annual published reports and in the number of non-economic performance targets included in the public entities’ performance reports. Significant improvement was also noted in the quality of overall social disclosures and specifically in the quality of social disclosures relating to labour practices and decent working conditions, and disclosures relating to the entity’s impacts on society. The word count used to disclose matters relating to stakeholder engagement and board practices, composition and remuneration saw significant increases from 2008 to 2014. Despite these improvements and consistent with prior literature, it is concluded that more needs to be done in respect of reporting on social and environmental impacts, through the use of sustainability reporting guidelines and effective stakeholder engagement. In addition, it is recommended that annual published reports aim to provide a more balanced picture of the reporting entity and that negative performance be discussed in more detail. More effort needs to be made in enhancing the reliability of the annual published reports as a whole, through obtaining external assurance on the social and environmental disclosures. Finally, politicians and decision-makers in the public sector need to address the key root causes which lead to poor quality reporting. The significant impact of the following factors on the quality of sustainability disclosures was noted: the public entity’s total asset value, its total revenue, its level of social and environmental impact, the form of the report used as well as the guidelines used to prepare the reports.
- Full Text:
- Date Issued: 2018
The interaction between oil price shocks, currency volatility and stock market prices: evidence from South Africa
- Authors: Tshivhase, Mikovhe
- Date: 2019
- Subjects: Petroleum products -- Prices , Accounting and price fluctuations , Inflation (Finance) -- South Africa , Stock exchanges , Economics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/43834 , vital:37051
- Description: Crude oil is an essential and strategic commodity in modern economies. Therefore, energy price fluctuations have the potential of affecting the economic welfare of a country. For instance, they have the potential to undermine the government’s attainment of its economic growth targets (National Treasury, 2016:2). The South African Reserve Bank (SARB) also considers oil price movements to be one of the major threats to currency volatility and the continued attainment of its inflation targets of about (3-6, per cent), as evidenced by numerous recent statements by its monetary policy committee (SARB, 2016:5-13). This study used co-integration tests to investigate the interaction between oil price shocks, exchange rates and stock market prices in South Africa over the period 1 January 2011 to 1 April 2018. The study employed the Johansen co-integration test. The results found no long run co-integration between oil prices, exchange rate and stock market prices. Therefore, this study adopted the VAR model for causality tests. Using the VAR model, this study found the existence of a unidirectional causality between stock prices and oil prices, with stock prices leading the oil prices changes. The all share index, resources and financials index were found to be significant variables to explain oil prices. This result is consistent with the business cycle view, which states that oil price fluctuations are mainly driven by demand factors. Furthermore, strong world output growth trends especially in emerging markets, could give rise to an upward surge in oil prices. The study also found that there is a weak correlation between stock price and exchange rate in South Africa. This is consistent with the asset approach. The findings of this study add to the already largely debated theories that seek to explain the relationship between the oil prices, exchange rates and stock market prices. The recommendation of this research is that, policy makers, researchers and investment bankers or fund managers who have interest or trade these financial instruments, may have to consider the role of stock market prices in the various sectors of the economy in their models for forecasting the path of the oil prices and the Rand/US Dollar exchange rate trend.
- Full Text:
- Date Issued: 2019
- Authors: Tshivhase, Mikovhe
- Date: 2019
- Subjects: Petroleum products -- Prices , Accounting and price fluctuations , Inflation (Finance) -- South Africa , Stock exchanges , Economics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/43834 , vital:37051
- Description: Crude oil is an essential and strategic commodity in modern economies. Therefore, energy price fluctuations have the potential of affecting the economic welfare of a country. For instance, they have the potential to undermine the government’s attainment of its economic growth targets (National Treasury, 2016:2). The South African Reserve Bank (SARB) also considers oil price movements to be one of the major threats to currency volatility and the continued attainment of its inflation targets of about (3-6, per cent), as evidenced by numerous recent statements by its monetary policy committee (SARB, 2016:5-13). This study used co-integration tests to investigate the interaction between oil price shocks, exchange rates and stock market prices in South Africa over the period 1 January 2011 to 1 April 2018. The study employed the Johansen co-integration test. The results found no long run co-integration between oil prices, exchange rate and stock market prices. Therefore, this study adopted the VAR model for causality tests. Using the VAR model, this study found the existence of a unidirectional causality between stock prices and oil prices, with stock prices leading the oil prices changes. The all share index, resources and financials index were found to be significant variables to explain oil prices. This result is consistent with the business cycle view, which states that oil price fluctuations are mainly driven by demand factors. Furthermore, strong world output growth trends especially in emerging markets, could give rise to an upward surge in oil prices. The study also found that there is a weak correlation between stock price and exchange rate in South Africa. This is consistent with the asset approach. The findings of this study add to the already largely debated theories that seek to explain the relationship between the oil prices, exchange rates and stock market prices. The recommendation of this research is that, policy makers, researchers and investment bankers or fund managers who have interest or trade these financial instruments, may have to consider the role of stock market prices in the various sectors of the economy in their models for forecasting the path of the oil prices and the Rand/US Dollar exchange rate trend.
- Full Text:
- Date Issued: 2019
Academic performance and cognitive critical thinking skills of certificate in theory of accounting students at Nelson Mandela University
- Authors: Pienaar, Joné
- Date: 2019
- Subjects: Academic achievement , Thought and thinking , Cognitive learning , Educational tests and measurements , Academic achievement -- South Africa -- Port Elizabeth -- Evaluation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/43196 , vital:36759
- Description: With advances in computerisation, the skills that accountants need to remain relevant in an ever-changing world deserves consideration. Literature indicates that “critical thinking skills” form part of the required skill set. However, the development and assessment of critical thinking skills in the accounting curriculum has not received sufficient attention. This study focuses on evaluating the assessment of accounting students’ critical thinking skills, specifically those aspiring to be CAs (SA), who are in their final year of university education. The primary objective of this study is to establish whether a relationship exists between cognitive critical thinking skills and academic performance of CTA students at Nelson Mandela University. The research followed a positivistic mixed method research methodology. Using the Watson-Glaser Critical Thinking Appraisal (W-GCTA), the cognitive critical thinking ability of the sample (CTA students (n=60)) was determined and compared to their academic performance using various statistical techniques. Since the proxy for academic performance was the final marks of which the year-end examination forms a very large component, the examiners of each of the modules comprising the CTA programme also completed a questionnaire wherein they indicated the critical thinking skills assessed, and the assessment characteristics used in the examination papers. The results indicate that a relationship exists between cognitive critical thinking skills and academic performance of the sample in three of the four modules of the CTA programme: Accounting, Taxation and Estate Planning and Management Accounting. The questionnaire feedback indicates that cognitive critical thinking skills were assessed in the CTA programme to some extent, but that focus was placed on skills not assessed by the W-GCTA.
- Full Text:
- Date Issued: 2019
- Authors: Pienaar, Joné
- Date: 2019
- Subjects: Academic achievement , Thought and thinking , Cognitive learning , Educational tests and measurements , Academic achievement -- South Africa -- Port Elizabeth -- Evaluation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/43196 , vital:36759
- Description: With advances in computerisation, the skills that accountants need to remain relevant in an ever-changing world deserves consideration. Literature indicates that “critical thinking skills” form part of the required skill set. However, the development and assessment of critical thinking skills in the accounting curriculum has not received sufficient attention. This study focuses on evaluating the assessment of accounting students’ critical thinking skills, specifically those aspiring to be CAs (SA), who are in their final year of university education. The primary objective of this study is to establish whether a relationship exists between cognitive critical thinking skills and academic performance of CTA students at Nelson Mandela University. The research followed a positivistic mixed method research methodology. Using the Watson-Glaser Critical Thinking Appraisal (W-GCTA), the cognitive critical thinking ability of the sample (CTA students (n=60)) was determined and compared to their academic performance using various statistical techniques. Since the proxy for academic performance was the final marks of which the year-end examination forms a very large component, the examiners of each of the modules comprising the CTA programme also completed a questionnaire wherein they indicated the critical thinking skills assessed, and the assessment characteristics used in the examination papers. The results indicate that a relationship exists between cognitive critical thinking skills and academic performance of the sample in three of the four modules of the CTA programme: Accounting, Taxation and Estate Planning and Management Accounting. The questionnaire feedback indicates that cognitive critical thinking skills were assessed in the CTA programme to some extent, but that focus was placed on skills not assessed by the W-GCTA.
- Full Text:
- Date Issued: 2019
The impact of macroeconomic factors on the South African equity market
- Authors: Mpuku, Cwayita
- Date: 2018
- Subjects: South Africa -- Economic conditions -- Econometric models , Capital market -- South Africa , Stock exchanges -- South Africa , Johannesburg Stock Exchange
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/32238 , vital:31990
- Description: The South African equity market is the largest equity market in Africa and plays an important role in the development of the South African economy. It is a relatively large source of finance for companies that want to invest in capital and expand their businesses. Firms that are listed on the Johannesburg Stock Exchange (JSE) are therefore privy to an additional source of capital funds in addition having access to the credit markets. The development of a country’s equity market gives an indication of the extent to which firms have access to long-term funds which are needed for investment in production of goods and services and the growth of the economy. Historical evidence shows that downturns in the equity markets can disrupt economic performance of countries. The 1929 global depression and the 2008 global recession are examples of economic disruptions that have origins in the equity markets (Mishkin, 2013:190). An understanding of the risk factors that drive an equity market is therefore beneficial to both individuals and institutions. Individuals and institutions participate in the equity market by buying and selling shares of companies that are listed on the JSE. About 40 per cent of shares on the JSE are held by institutional investors such as pension funds and unit trusts (Ambrosi, 2014). The equity market therefore has an impact on people’s savings and pension funds invested by intermediary institutions. Investors who participate in the equity market do so with the expectation of receiving returns on their investment, but such returns don’t come without risk.
- Full Text:
- Date Issued: 2018
- Authors: Mpuku, Cwayita
- Date: 2018
- Subjects: South Africa -- Economic conditions -- Econometric models , Capital market -- South Africa , Stock exchanges -- South Africa , Johannesburg Stock Exchange
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/32238 , vital:31990
- Description: The South African equity market is the largest equity market in Africa and plays an important role in the development of the South African economy. It is a relatively large source of finance for companies that want to invest in capital and expand their businesses. Firms that are listed on the Johannesburg Stock Exchange (JSE) are therefore privy to an additional source of capital funds in addition having access to the credit markets. The development of a country’s equity market gives an indication of the extent to which firms have access to long-term funds which are needed for investment in production of goods and services and the growth of the economy. Historical evidence shows that downturns in the equity markets can disrupt economic performance of countries. The 1929 global depression and the 2008 global recession are examples of economic disruptions that have origins in the equity markets (Mishkin, 2013:190). An understanding of the risk factors that drive an equity market is therefore beneficial to both individuals and institutions. Individuals and institutions participate in the equity market by buying and selling shares of companies that are listed on the JSE. About 40 per cent of shares on the JSE are held by institutional investors such as pension funds and unit trusts (Ambrosi, 2014). The equity market therefore has an impact on people’s savings and pension funds invested by intermediary institutions. Investors who participate in the equity market do so with the expectation of receiving returns on their investment, but such returns don’t come without risk.
- Full Text:
- Date Issued: 2018
The effects of the stock and bond market on economic growth in South Africa (2003-2017)
- Authors: Faiers, Jarryd Brad
- Date: 2020
- Subjects: Capital market -- South Africa , Economic development -- Environmental aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48102 , vital:40486
- Description: Using quarterly data from 2003:Q3 to 2017:Q1, this study investigates the effect of the stock and bond markets on economic growth in South Africa. The variables used in the study pertain to South Africa and include the JSE All-Share Index, real effective exchange rate, bond market growth, investment expenditure, inflation rate, government expenditure and gross domestic product. The empirical study is guided by an Autoregressive Distributed Lag (ARDL) model approach which includes unit root tests for stationarity, bounds tests for cointegration and causality tests using the long run and short run error correction models. Diagnostic tests and stability tests are performed on the various econometric models. Tests include the Jarque-Bera test, Ramsey Reset Test, Whites test, CUSUM and CUSUM square test. The findings suggest that the stock market growth and bond market growth have displayed significantly different results with regards to their effects on economic growth. Stock market growth has had a positive impact on economic growth in the long run, whilst growth and development in the bond market does not have a statistically significant relationship with economic growth in the long run. The study provides a solid foundation for establishing the effects of the stock and bond market on economic growth.
- Full Text:
- Date Issued: 2020
- Authors: Faiers, Jarryd Brad
- Date: 2020
- Subjects: Capital market -- South Africa , Economic development -- Environmental aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48102 , vital:40486
- Description: Using quarterly data from 2003:Q3 to 2017:Q1, this study investigates the effect of the stock and bond markets on economic growth in South Africa. The variables used in the study pertain to South Africa and include the JSE All-Share Index, real effective exchange rate, bond market growth, investment expenditure, inflation rate, government expenditure and gross domestic product. The empirical study is guided by an Autoregressive Distributed Lag (ARDL) model approach which includes unit root tests for stationarity, bounds tests for cointegration and causality tests using the long run and short run error correction models. Diagnostic tests and stability tests are performed on the various econometric models. Tests include the Jarque-Bera test, Ramsey Reset Test, Whites test, CUSUM and CUSUM square test. The findings suggest that the stock market growth and bond market growth have displayed significantly different results with regards to their effects on economic growth. Stock market growth has had a positive impact on economic growth in the long run, whilst growth and development in the bond market does not have a statistically significant relationship with economic growth in the long run. The study provides a solid foundation for establishing the effects of the stock and bond market on economic growth.
- Full Text:
- Date Issued: 2020
A comparative study between the Seychelles and Singapore as a tax haven for the incorporation of a foreign structure of a resident company
- Wagener, Petrus Johannes Crous
- Authors: Wagener, Petrus Johannes Crous
- Date: 2017
- Subjects: Tax havens , Banks and banking, Foreign -- Taxation -- Seychelles , Banks and banking, Foreign -- Taxation -- Singapore , Taxation -- Seychelles , Taxation -- Singapore
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/21208 , vital:29456
- Description: Companies in South Africa will generally attempt to reduce their tax burden, and over the last ten years the use of Singapore and the Seychelles as tax haven jurisdictions’ have increased significantly. Singapore and the Seychelles are well known for their low or zero tax rates and for their confidentiality policies in respect of providing information to foreign tax authorities. It is because of these policies that individuals and businesses invest huge amounts in these countries. There is however uncertainty as to what type of foreign structure a resident company in South Africa may incorporate in the above-mentioned tax haven jurisdictions in order to receive the most effective tax benefit. The aim of this treatise was to identify the different foreign structures in Singapore and the Seychelles which a South African resident company may incorporate. Resulting from this research certain issues have been identified relating to the type of foreign structure and a major one is summarised below: The concept of “place of effective management” used to determine tax residence or as the tie-break clause concept under a double tax agreement. As stated in the case of Oceanic Trust Co Ltd NO v C: SARS (2012) 74 SATC 1275 which is in line with foreign precedents, the test is one of substance over form and the approach to determine “place of effective management” may be to attribute human characteristics to a structure to establish where it is effectively managed. Thus, South African companies can make use of Singapore or the Seychelles as tax havens and incorporate a foreign structure which will be seen as not being resident in South Africa to distribute passive income sources out of South Africa, without paying taxes in the country (withholding taxes may be levied in the tax havens). This should be of concern from the point of view of the South African government. Another issue noted in this treatise related to the use of offshore trusts as a foreign structure for a South African resident company may be the more effective option seeing that the controlled foreign company legislation is not applicable on offshore trusts, reducing the risk of taxation on foreign income of a South African resident company when it is held in an offshore trust. The above issues that have been identified present opportunities to South African resident companies to take advantage of the current tax legislation. It is further recommended that resident companies need to consider the South African domestic tax law implications, respective double tax agreements with both Singapore and the Seychelles as well as the domestic tax laws of these tax haven jurisdictions when planning on incorporating a foreign structure.
- Full Text:
- Date Issued: 2017
- Authors: Wagener, Petrus Johannes Crous
- Date: 2017
- Subjects: Tax havens , Banks and banking, Foreign -- Taxation -- Seychelles , Banks and banking, Foreign -- Taxation -- Singapore , Taxation -- Seychelles , Taxation -- Singapore
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/21208 , vital:29456
- Description: Companies in South Africa will generally attempt to reduce their tax burden, and over the last ten years the use of Singapore and the Seychelles as tax haven jurisdictions’ have increased significantly. Singapore and the Seychelles are well known for their low or zero tax rates and for their confidentiality policies in respect of providing information to foreign tax authorities. It is because of these policies that individuals and businesses invest huge amounts in these countries. There is however uncertainty as to what type of foreign structure a resident company in South Africa may incorporate in the above-mentioned tax haven jurisdictions in order to receive the most effective tax benefit. The aim of this treatise was to identify the different foreign structures in Singapore and the Seychelles which a South African resident company may incorporate. Resulting from this research certain issues have been identified relating to the type of foreign structure and a major one is summarised below: The concept of “place of effective management” used to determine tax residence or as the tie-break clause concept under a double tax agreement. As stated in the case of Oceanic Trust Co Ltd NO v C: SARS (2012) 74 SATC 1275 which is in line with foreign precedents, the test is one of substance over form and the approach to determine “place of effective management” may be to attribute human characteristics to a structure to establish where it is effectively managed. Thus, South African companies can make use of Singapore or the Seychelles as tax havens and incorporate a foreign structure which will be seen as not being resident in South Africa to distribute passive income sources out of South Africa, without paying taxes in the country (withholding taxes may be levied in the tax havens). This should be of concern from the point of view of the South African government. Another issue noted in this treatise related to the use of offshore trusts as a foreign structure for a South African resident company may be the more effective option seeing that the controlled foreign company legislation is not applicable on offshore trusts, reducing the risk of taxation on foreign income of a South African resident company when it is held in an offshore trust. The above issues that have been identified present opportunities to South African resident companies to take advantage of the current tax legislation. It is further recommended that resident companies need to consider the South African domestic tax law implications, respective double tax agreements with both Singapore and the Seychelles as well as the domestic tax laws of these tax haven jurisdictions when planning on incorporating a foreign structure.
- Full Text:
- Date Issued: 2017
The impact of monetary policy on profitability of four major banks in South Africa
- Authors: Nyakombi, Kulasande Dolly
- Date: 2018
- Subjects: Monetary policy -- Econometric models , Financial services industry -- South Africa , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33589 , vital:32890
- Description: This study examines the effect of monetary policy on the profitability of the four major banks in South Africa, namely; Standard Bank, Ned bank, ABSA and FNB. The annual data used is for the period of 1999 to 2015, the study use Pooled OLS effects and Fixed effects to investigate the impact of Monetary Policy on Bank Profitability using Return on Assets as profitability measure. Empirical results indicate that monetary policy proxies by repo rate and lending rates were found to have no significant impact on bank profitability in the four major South African banks.
- Full Text:
- Date Issued: 2018
- Authors: Nyakombi, Kulasande Dolly
- Date: 2018
- Subjects: Monetary policy -- Econometric models , Financial services industry -- South Africa , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33589 , vital:32890
- Description: This study examines the effect of monetary policy on the profitability of the four major banks in South Africa, namely; Standard Bank, Ned bank, ABSA and FNB. The annual data used is for the period of 1999 to 2015, the study use Pooled OLS effects and Fixed effects to investigate the impact of Monetary Policy on Bank Profitability using Return on Assets as profitability measure. Empirical results indicate that monetary policy proxies by repo rate and lending rates were found to have no significant impact on bank profitability in the four major South African banks.
- Full Text:
- Date Issued: 2018
The financial soundness of selected banks in South Africa: a camels rating system approach
- Authors: Manga, Rushil Mohan
- Date: 2019
- Subjects: Bank failures -- South Africa , Banks and banking -- Risk management , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/40889 , vital:36258
- Description: Bank failure continues to feature in South Africa and although it is not uncommon, nor limited to any single country, it has the potential to have significant systemic risks. It is, therefore of the utmost importance to mitigate bank failure where possible. Bank supervision plays a key role in ensuring that individual banks, and the banking sector, remain sound. This study analysed seven selected banks in South Africa namely, ABSA, African Bank, Capitec Bank, FirstRand Bank, Nedbank, Standard Bank and VBS Mutual Bank. The CAMELS rating system was applied to evaluate the component and composite ratings for each selected bank. The empirical evidence exhibited that the CAMELS model has been used world-wide and proved valuable in its simplicity and reliability. The results showed that all banks achieved a rating of three or fair, with the exception being African Bank. African Bank, rated four or marginal, continues to struggle to regain market confidence since its cu0ratorship and restructuring. The study further showed that among the selected banks, management quality and liquidity were two components that consistently showed critical weaknesses, which posed concerns for formal supervision. The study utilised One-way ANOVA (Analysis of Variance) to analyse the results of the CAMELS model. It was found that there was no significant difference in the financial soundness of the selected banks as a measure of the CAMELS model. The study further recommended that the banks invest and focus on developing human resource departments to attain and retain high quality managers in terms of qualifications and experience. The banks’ internal policies need to align, not only with the company’s business targets, but also the personal contentment and fulfilment of employees and managers. This will help reduce frictional unemployment in the banking sector. It must be noted that Capitec was the only bank to avoid a marginal or weak rating in the management quality component. To address the poor rating awarded to the liquidity component in all selected banks, it is recommended that senior management, regulators and supervisors need to work together to implement sound liquidity management practices. The CAMELS model presents a clear depiction of the financial soundness of a bank and can be comparable to other competitive banks within a country. For this reason, the model would be easily understandable, not only to supervisors and senior management, but also investors, stake-holders, their customers and the general population. It is therefore recommended that the SARB publishes a detailed annual report, which analyses all banks in South Africa by way of the CAMELS model.
- Full Text:
- Date Issued: 2019
- Authors: Manga, Rushil Mohan
- Date: 2019
- Subjects: Bank failures -- South Africa , Banks and banking -- Risk management , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/40889 , vital:36258
- Description: Bank failure continues to feature in South Africa and although it is not uncommon, nor limited to any single country, it has the potential to have significant systemic risks. It is, therefore of the utmost importance to mitigate bank failure where possible. Bank supervision plays a key role in ensuring that individual banks, and the banking sector, remain sound. This study analysed seven selected banks in South Africa namely, ABSA, African Bank, Capitec Bank, FirstRand Bank, Nedbank, Standard Bank and VBS Mutual Bank. The CAMELS rating system was applied to evaluate the component and composite ratings for each selected bank. The empirical evidence exhibited that the CAMELS model has been used world-wide and proved valuable in its simplicity and reliability. The results showed that all banks achieved a rating of three or fair, with the exception being African Bank. African Bank, rated four or marginal, continues to struggle to regain market confidence since its cu0ratorship and restructuring. The study further showed that among the selected banks, management quality and liquidity were two components that consistently showed critical weaknesses, which posed concerns for formal supervision. The study utilised One-way ANOVA (Analysis of Variance) to analyse the results of the CAMELS model. It was found that there was no significant difference in the financial soundness of the selected banks as a measure of the CAMELS model. The study further recommended that the banks invest and focus on developing human resource departments to attain and retain high quality managers in terms of qualifications and experience. The banks’ internal policies need to align, not only with the company’s business targets, but also the personal contentment and fulfilment of employees and managers. This will help reduce frictional unemployment in the banking sector. It must be noted that Capitec was the only bank to avoid a marginal or weak rating in the management quality component. To address the poor rating awarded to the liquidity component in all selected banks, it is recommended that senior management, regulators and supervisors need to work together to implement sound liquidity management practices. The CAMELS model presents a clear depiction of the financial soundness of a bank and can be comparable to other competitive banks within a country. For this reason, the model would be easily understandable, not only to supervisors and senior management, but also investors, stake-holders, their customers and the general population. It is therefore recommended that the SARB publishes a detailed annual report, which analyses all banks in South Africa by way of the CAMELS model.
- Full Text:
- Date Issued: 2019