Islamic compliant short term insurance: an exploratory study to develop an Islamic compliant insurance model within a South African context
- Authors: Jeeva, Shakir
- Date: 2016
- Subjects: Uncatalogued
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/193633 , vital:45375
- Description: In a world where there is ever increasing risks to be mitigated, either by choice or due to the law of the country, an insurance instrument is the most popular risk mitigation tool. However, from an Islamic perspective, Muslims have certain parameters to adhere to due to the laws and boundaries as set out in the Quraan, as well as the teachings of the final prophet, Prophet Muhammed (Peace Be Upon Him). This has relevance in this context as, according to Islam, the conventional insurance models are in contravention of certain Islamic laws as they contain elements which are not acceptable in the Muslim faith. Therefore, the Islamic insurance models, or Takaful models, have removed the impermissible elements of usury, speculation, and uncertainty, which are all contained in the current conventional insurance models. By removing these impermissible elements from the insurance model, the Takaful model is acceptable for Muslims to use as a risk mitigation tool. The primary aim of the study sought to propose a short term Islamic compliant insurance model within a South African framework. The secondary aims were to ascertain the Islamic requirements for an Islamic insurance model, how these requirements fit into an insurance model, to then compare and contrast the differences between conventional insurance and Islamic insurance and, lastly, to explore awareness and attitudes towards Islamic insurance. Therefore, from the above, a proposed short term Islamic insurance model was developed within a South African context which conforms to the laws and boundaries of Islam, making this insurance model permissible to use as a Takaful tool. Additionally, semi structured interviews were conducted with certain research participants, using purposive sampling, to examine the attitudes and knowledge of the Muslim community towards the Takaful model within a South African context. It was concluded that while the majority of the research participants understand the Takaful model and the significance of this, they have chosen to use the conventional insurance offerings due to the fact that they were unaware of other Takaful alternatives, or due to the fact that the Takaful alternative was out-priced when compared to the conventional insurance offerings. It was therefore concluded that while there is a need for Takaful offerings within South Africa, this must be done in conjunction with additional marketing, education and competitive pricing for potential clients to consider this as an insurance option. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2016
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Valuation of banks in emerging markets: an exploratory study
- Authors: Sabilika, Keith
- Date: 2014
- Subjects: Banks and banking -- Valuation , Banks and banking -- Valuation -- Developing countries , Discounted cash flow , Capital assets pricing model , Capital -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1200 , http://hdl.handle.net/10962/d1013057
- Description: Practitioners and academics in emerging markets are yet to agree on how best they can value companies in emerging markets. In contrast, academics and practitioners in developed markets seem to agree on mainstream valuation practices (Bruner, Eades, Harris and Haggins, 1998; Graham and Harvey, 2001). This study was therefore aimed at achieving such consensus with particular attention being paid to the emerging market banks. Emerging market banks are by no means small and are growing fast. Furthermore, these banks are currently involved in lots of cutting age economic activities such as mergers and acquisitions (M&A), joint ventures and strategic alliances which require sound valuation practices that are based on empirical evidence. The primary purpose of this research was to establish consensus of opinion among experts with regard to the valuation of banks in emerging markets. To achieve the purpose of this study the Delphi technique, which is a structured survey method that relies on a panel of experts to answer questionnaires in two or more Delphi rounds, was used to gather data and develop consensus among experts (Kalaian and Kasim, 2012). The main findings in this study pertain to aspects concerning the type of analysis considered by experts when analysing the performance of banks, how experts compare the discounted cash flow (DCF) approach to multiples valuation approach, the challenges encountered by experts when valuing banks in emerging markets, and how experts compute the cost of capital for banks in emerging markets. The main findings of this study can be summarised as follows: ∙ When analyzing the performance of banks, it is essential to conduct a bank-specific, industry and macroeconomic analysis; ∙ When estimating the future performance of banks, the time series analysis and an explicit forecast period of between 4-10 years may be used; ∙ When estimating the terminal value for banks in emerging markets, the perpetuity with growth is used; ∙ When computing the value for banks, the DCF valuation approach (equity DCF and DDM valuation models) are used as primary valuation methods and the relative valuation approach (P/E and P/BV ratio) are used as secondary valuation methods; ∙ The DCF valuation approach is considered as more accurate and popular when valuing banks in emerging markets; and ∙ When estimating the cost of equity, the capital asset pricing model (CAPM) is used.
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