Platinum share prices and the Marikana tragedy: an event study
- Authors: Sunga, Tapuwa Terence
- Date: 2014
- Subjects: Marikana (Rustenburg, South Africa) , Massacres -- South Africa -- Rustenburg , Stocks -- Prices -- South Africa , Stocks -- Prices -- Mathematical models
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1094 , http://hdl.handle.net/10962/d1013002
- Description: An event study is an economic tool of analysis that has begun to gain popularity in recent empirical literature. It is a technique that gives a researcher the opportunity to map out the reaction of a firm's stock to an event, usually making use of daily or monthly data. However, up to this point, event study methodology has generally been applied to more traditional phenomena capable of affecting equity value, such as dividend and macroeconomic policy announcements, and there have only been a few exceptions to this. This study looks at what impact the tragic shootings at Lonmin mine in Marikana on August 16th 2012 had on the share prices of platinum mining firms based in South Africa using event study methodology. It makes use of the technique to investigate how the share prices responded to the tragedy over a number of trading days, including the day of the shootings. To be best of our knowledge, no attempt has been made to analyse the impact on share prices using events of this nature. For the investigation, daily returns data was used for each firm. The abnormal returns and cumulative abnormal returns to each were then calculated and compared with their respective expected returns in order to determine whether investors in the shares of that particular firm reacted positively, negatively or not at all. The evidence found suggests that tragedies of this nature are capable of influencing share prices in the same manner as more traditional economic phenomena. Overall, only one firm was found to have been negatively affected by the shootings in a persistent manner, while the shares of the other firms examined reacted in a manner that was positive overall, but varied according to individual firm characteristics such as size. These finding conformed to our a priori expectations. In addition, the results also confirm the benefits of applying event study methodology to a wide variety of phenomena that fall outside the boundaries usually associated with business.
- Full Text:
- Date Issued: 2014
- Authors: Sunga, Tapuwa Terence
- Date: 2014
- Subjects: Marikana (Rustenburg, South Africa) , Massacres -- South Africa -- Rustenburg , Stocks -- Prices -- South Africa , Stocks -- Prices -- Mathematical models
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1094 , http://hdl.handle.net/10962/d1013002
- Description: An event study is an economic tool of analysis that has begun to gain popularity in recent empirical literature. It is a technique that gives a researcher the opportunity to map out the reaction of a firm's stock to an event, usually making use of daily or monthly data. However, up to this point, event study methodology has generally been applied to more traditional phenomena capable of affecting equity value, such as dividend and macroeconomic policy announcements, and there have only been a few exceptions to this. This study looks at what impact the tragic shootings at Lonmin mine in Marikana on August 16th 2012 had on the share prices of platinum mining firms based in South Africa using event study methodology. It makes use of the technique to investigate how the share prices responded to the tragedy over a number of trading days, including the day of the shootings. To be best of our knowledge, no attempt has been made to analyse the impact on share prices using events of this nature. For the investigation, daily returns data was used for each firm. The abnormal returns and cumulative abnormal returns to each were then calculated and compared with their respective expected returns in order to determine whether investors in the shares of that particular firm reacted positively, negatively or not at all. The evidence found suggests that tragedies of this nature are capable of influencing share prices in the same manner as more traditional economic phenomena. Overall, only one firm was found to have been negatively affected by the shootings in a persistent manner, while the shares of the other firms examined reacted in a manner that was positive overall, but varied according to individual firm characteristics such as size. These finding conformed to our a priori expectations. In addition, the results also confirm the benefits of applying event study methodology to a wide variety of phenomena that fall outside the boundaries usually associated with business.
- Full Text:
- Date Issued: 2014
Reviewing the definition of the natural resource curse and analysing its occurence post-1990
- Authors: Mwansa, Mumamba Chitumwa
- Date: 2014
- Subjects: Resource curse , Natural resources -- Management , Economic development , National income
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1100 , http://hdl.handle.net/10962/d1013243
- Description: That countries with high natural resource abundance should experience slower economic growth than those with low resource abundance seems contrary to what would be expected, considering the developmental head-start such resources afford. Yet Sachs and Warner (1997) found that economies with a high share of natural resource exports in national income in 1970 tended to experience slower economic growth in the two decades that followed. This finding, that natural resources are a “curse” rather than a blessing, has become generally accepted. This thesis sought to test whether the conclusion drawn from their data – that higher natural resource abundance leads to slower economic growth – is still correct. It sought to test their findings first by correcting for their use of resource intensity (natural resources share of exports) as a proxy for abundance. Using measures of resource abundance for 1995 as a proxy for abundance in previous decades, it was found that higher resource abundance was not associated with lower economic growth in the 1970s and 1980s. This finding is contrary to that of Sachs and Warner (1997, 2001). Secondly, this thesis tested whether the natural resource curse effect was still present for the period 1995–2010. This was done by observing the effect of both resource abundance and resource intensity on economic growth during 1995–2010. In both cases no resource curse effect was found, for this more recent period. The resource curse had disappeared regardless of whether one uses Sachs and Warner’s (1997, 2001) measure of resource intensity or a measure of resource abundance. Natural resources should therefore no longer be considered a “curse”. In explaining the difference for the impact of resource intensity between the 1970-90 period measured by Sachs and Warner (1997, 2001) and the more recent period 1995-2010 it was found that the Dutch Disease effect has decreased significantly since the 1970s and 1980s. This could partly explain why the resource curse has disappeared when measured in terms of resource intensity. Thus it was concluded that the natural resource curse existed in the period 1970-90 only when measured in terms of resource intensity but not when measured relative to resource abundance. The negative effects of natural resources on economic growth have disappeared in terms of both resource intensity and resource abundance in the more recent time period.
- Full Text:
- Date Issued: 2014
- Authors: Mwansa, Mumamba Chitumwa
- Date: 2014
- Subjects: Resource curse , Natural resources -- Management , Economic development , National income
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1100 , http://hdl.handle.net/10962/d1013243
- Description: That countries with high natural resource abundance should experience slower economic growth than those with low resource abundance seems contrary to what would be expected, considering the developmental head-start such resources afford. Yet Sachs and Warner (1997) found that economies with a high share of natural resource exports in national income in 1970 tended to experience slower economic growth in the two decades that followed. This finding, that natural resources are a “curse” rather than a blessing, has become generally accepted. This thesis sought to test whether the conclusion drawn from their data – that higher natural resource abundance leads to slower economic growth – is still correct. It sought to test their findings first by correcting for their use of resource intensity (natural resources share of exports) as a proxy for abundance. Using measures of resource abundance for 1995 as a proxy for abundance in previous decades, it was found that higher resource abundance was not associated with lower economic growth in the 1970s and 1980s. This finding is contrary to that of Sachs and Warner (1997, 2001). Secondly, this thesis tested whether the natural resource curse effect was still present for the period 1995–2010. This was done by observing the effect of both resource abundance and resource intensity on economic growth during 1995–2010. In both cases no resource curse effect was found, for this more recent period. The resource curse had disappeared regardless of whether one uses Sachs and Warner’s (1997, 2001) measure of resource intensity or a measure of resource abundance. Natural resources should therefore no longer be considered a “curse”. In explaining the difference for the impact of resource intensity between the 1970-90 period measured by Sachs and Warner (1997, 2001) and the more recent period 1995-2010 it was found that the Dutch Disease effect has decreased significantly since the 1970s and 1980s. This could partly explain why the resource curse has disappeared when measured in terms of resource intensity. Thus it was concluded that the natural resource curse existed in the period 1970-90 only when measured in terms of resource intensity but not when measured relative to resource abundance. The negative effects of natural resources on economic growth have disappeared in terms of both resource intensity and resource abundance in the more recent time period.
- Full Text:
- Date Issued: 2014
Saving and investment in South Africa: a causality study
- Authors: Mngqibisa, Vuyisa
- Date: 2014
- Subjects: Saving and investment -- South Africa Investments -- South Africa Credit -- South Africa Finance, Personal -- South Africa Portfolio management -- South Africa Investment analysis -- South Africa Error analysis (Mathematics)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1086 , http://hdl.handle.net/10962/d1011887
- Description: This study aims to investigate the relationship between private saving and investment for South Africa using a Vector Error Correction Framework. Saving and investment are considered to be important factors for sustainable economic growth in the country, particularly as these variables have been recorded at significantly lower levels than those of other developing nations. By examining the direction of causality between saving and investment, the most suitable policy measures can be used in stimulating either savings or investment, and as a result aggregate growth. The study found a positive two-way causality to exist between these two variables, proving that both saving and investment-led policies are necessary in raising saving and investment levels. With the inclusion of credit extension as the third variable used to remove any variable bias, the study not only found credit extension to Granger cause private saving, but the reverse relationship was found to be present as well. This relationship was however found to be negative, confirming that lower borrowing constraints may have a negative effect on saving levels. The negative relationship between credit supply and private saving (substitution effect) proves that credit supply will only yield a positive result for savings if channelled through investment expenditure.
- Full Text:
- Date Issued: 2014
- Authors: Mngqibisa, Vuyisa
- Date: 2014
- Subjects: Saving and investment -- South Africa Investments -- South Africa Credit -- South Africa Finance, Personal -- South Africa Portfolio management -- South Africa Investment analysis -- South Africa Error analysis (Mathematics)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1086 , http://hdl.handle.net/10962/d1011887
- Description: This study aims to investigate the relationship between private saving and investment for South Africa using a Vector Error Correction Framework. Saving and investment are considered to be important factors for sustainable economic growth in the country, particularly as these variables have been recorded at significantly lower levels than those of other developing nations. By examining the direction of causality between saving and investment, the most suitable policy measures can be used in stimulating either savings or investment, and as a result aggregate growth. The study found a positive two-way causality to exist between these two variables, proving that both saving and investment-led policies are necessary in raising saving and investment levels. With the inclusion of credit extension as the third variable used to remove any variable bias, the study not only found credit extension to Granger cause private saving, but the reverse relationship was found to be present as well. This relationship was however found to be negative, confirming that lower borrowing constraints may have a negative effect on saving levels. The negative relationship between credit supply and private saving (substitution effect) proves that credit supply will only yield a positive result for savings if channelled through investment expenditure.
- Full Text:
- Date Issued: 2014
The developmental state, social policy and social compacts: a comparative policy analysis of the South African case
- Authors: Gwaindepi, Abel
- Date: 2014
- Subjects: Economic development -- Political aspects -- South Africa , Income distribution -- South Africa , Democracy -- South Africa , Industrial policy -- Developing countries , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1101 , http://hdl.handle.net/10962/d1013278
- Description: The history of economic thought is ‘flooded’ with neo-classical accounts despite the fact that neoclassical economics did not occupy history alone. This has caused the discourses on ‘lost alternatives’ to be relegated as the deterministic ‘straight line’ neo-classical historical discourses are elevated. Globally hegemonic neo-classical discourse aided this phenomenon as it served to subordinate any counterhegemonic local discursive processes towards alternatives. This study is premised on the theme of non-neoclassical ‘lost alternatives’ using the post-apartheid South Africa as a case study. Emerging from the apartheid regime, the impetus towards non-neoclassical redistributive policies was strong in South Africa but this did not gain traction as the ANC’s ‘growth through redistribution’ was replaced by globally hegemonic discourse which favoured ‘redistribution through growth’. This thesis postulates the idea of two waves of ‘internal’ discursive formations; capturing the transition to democracy up to 1996 as the first wave and the period from 2005 to about 2009 as the second wave. The developmental state paradigm (DSP) emerged as the central heterodox paradigm with ideas such as industrial policy, welfare, and social dialogue/compacts being main elements. The DSP was expressly chosen in the early 1990s, the first period of strong internal discursive formation, but faded as neo-classical policies, epitomised through GEAR, dominated the policy space. The DSP discourse gained vitality in the second wave of internal discursive formation (2005-2009) and it was associated with the subsequent Zuma’s administration. The study illustrates that the DSP has failed to be fully developed into a practical framework but remained only at rhetorical level with the phrase ‘developmental state’ inserted into government policy documents and documents of ANC as a ruling party. The thesis further illustrates that the DSP fared well ideologically because of its inclination to the ideology of ‘developmentalism’ tended to trump any socialist inclined policies such as a generous welfare regime. The thesis rebuts the notion of the DSP in South Africa which has only been amorphously developed with the phrase ‘developmental state’ becoming a mere buzzword. The thesis argues that the DSP in the 21st century is much more complex and the growing ‘tertiarisation’ of the economy makes the Social Democratic Paradigm SDP’s capability centric approach much more relevant for South Africa. The study goes further to argue that a (SDP) is much more suitable alternative for addressing South African colonial/apartheid legacies and consolidation of democracy.
- Full Text:
- Date Issued: 2014
- Authors: Gwaindepi, Abel
- Date: 2014
- Subjects: Economic development -- Political aspects -- South Africa , Income distribution -- South Africa , Democracy -- South Africa , Industrial policy -- Developing countries , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1101 , http://hdl.handle.net/10962/d1013278
- Description: The history of economic thought is ‘flooded’ with neo-classical accounts despite the fact that neoclassical economics did not occupy history alone. This has caused the discourses on ‘lost alternatives’ to be relegated as the deterministic ‘straight line’ neo-classical historical discourses are elevated. Globally hegemonic neo-classical discourse aided this phenomenon as it served to subordinate any counterhegemonic local discursive processes towards alternatives. This study is premised on the theme of non-neoclassical ‘lost alternatives’ using the post-apartheid South Africa as a case study. Emerging from the apartheid regime, the impetus towards non-neoclassical redistributive policies was strong in South Africa but this did not gain traction as the ANC’s ‘growth through redistribution’ was replaced by globally hegemonic discourse which favoured ‘redistribution through growth’. This thesis postulates the idea of two waves of ‘internal’ discursive formations; capturing the transition to democracy up to 1996 as the first wave and the period from 2005 to about 2009 as the second wave. The developmental state paradigm (DSP) emerged as the central heterodox paradigm with ideas such as industrial policy, welfare, and social dialogue/compacts being main elements. The DSP was expressly chosen in the early 1990s, the first period of strong internal discursive formation, but faded as neo-classical policies, epitomised through GEAR, dominated the policy space. The DSP discourse gained vitality in the second wave of internal discursive formation (2005-2009) and it was associated with the subsequent Zuma’s administration. The study illustrates that the DSP has failed to be fully developed into a practical framework but remained only at rhetorical level with the phrase ‘developmental state’ inserted into government policy documents and documents of ANC as a ruling party. The thesis further illustrates that the DSP fared well ideologically because of its inclination to the ideology of ‘developmentalism’ tended to trump any socialist inclined policies such as a generous welfare regime. The thesis rebuts the notion of the DSP in South Africa which has only been amorphously developed with the phrase ‘developmental state’ becoming a mere buzzword. The thesis argues that the DSP in the 21st century is much more complex and the growing ‘tertiarisation’ of the economy makes the Social Democratic Paradigm SDP’s capability centric approach much more relevant for South Africa. The study goes further to argue that a (SDP) is much more suitable alternative for addressing South African colonial/apartheid legacies and consolidation of democracy.
- Full Text:
- Date Issued: 2014
The income tax consequences of the in-house development of software
- Authors: Hodge, Dominic Shaughn
- Date: 2014
- Subjects: Computer software -- Accounting , Income tax -- Data processing , Research and development projects , Income tax -- Law and legislation -- South Africa , Computer software -- Development -- South Africa , Computer software -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:910 , http://hdl.handle.net/10962/d1013550
- Description: The objective of this thesis was to explore the nature of expenditure incurred on the internal development of software and its treatment in terms of the accounting and taxation frameworks to which it is subject. In fulfilling the primary objective the thesis had a number of subsidiary considerations. These included, firstly, a brief analysis of the approach of the software industry in South Africa to the taxation treatment of this type of software. The second consideration was a discussion and analysis of the taxation framework which differentiates between capital and revenue and the extent to which the receipts produced by internally developed software may be informative of the nature of the expenditure. The third was an analysis of the deductibility of expenditure incurred in the production of software with the fourth analysing the tests employed in the determination of whether expenditure is capital or revenue in nature. The fifth objective was to briefly analyse the accounting standards which find application in the determination of whether or not the software created can be considered a capital asset. The final subsidiary objective of the thesis was an analysis of the taxation framework applicable to software in respect of research and development incentives, as well as the position in the United States of America. Throughout the thesis the most apparent commonality is that there exists a significant level of uncertainty as to the taxation treatment of software both in South Africa and in America. The research concludes by stating that such uncertainty is prejudicial to the interests of research and development in relation to software.
- Full Text:
- Date Issued: 2014
- Authors: Hodge, Dominic Shaughn
- Date: 2014
- Subjects: Computer software -- Accounting , Income tax -- Data processing , Research and development projects , Income tax -- Law and legislation -- South Africa , Computer software -- Development -- South Africa , Computer software -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:910 , http://hdl.handle.net/10962/d1013550
- Description: The objective of this thesis was to explore the nature of expenditure incurred on the internal development of software and its treatment in terms of the accounting and taxation frameworks to which it is subject. In fulfilling the primary objective the thesis had a number of subsidiary considerations. These included, firstly, a brief analysis of the approach of the software industry in South Africa to the taxation treatment of this type of software. The second consideration was a discussion and analysis of the taxation framework which differentiates between capital and revenue and the extent to which the receipts produced by internally developed software may be informative of the nature of the expenditure. The third was an analysis of the deductibility of expenditure incurred in the production of software with the fourth analysing the tests employed in the determination of whether expenditure is capital or revenue in nature. The fifth objective was to briefly analyse the accounting standards which find application in the determination of whether or not the software created can be considered a capital asset. The final subsidiary objective of the thesis was an analysis of the taxation framework applicable to software in respect of research and development incentives, as well as the position in the United States of America. Throughout the thesis the most apparent commonality is that there exists a significant level of uncertainty as to the taxation treatment of software both in South Africa and in America. The research concludes by stating that such uncertainty is prejudicial to the interests of research and development in relation to software.
- Full Text:
- Date Issued: 2014
The leadership competencies subordinates value : an exploratory study across gender and national culture
- Authors: Gondongwe, Sharon
- Date: 2014
- Subjects: Leadership , Organizational behavior , Organizational behavior -- Cross-cultural studies , Organizational behavior -- Sex differences
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1203 , http://hdl.handle.net/10962/d1015673
- Description: The effectiveness of leadership is largely dependent on whether the leadership competencies exhibited by leaders are congruent with the value system endorsed by subordinates. One of the ways in which leaders can influence subordinates is by understanding the leadership competencies valued by subordinates. Gender and national culture are two of the many factors that have an influence on the leadership competencies valued by subordinates. A large amount of research has been conducted to determine if, indeed, gender and national culture influence the leadership competencies subordinates' value. However, most of this research has been conducted in Europe and North America, places in which national cultures differ significantly from those prevailing in African countries. This study, from a South African and Zimbabwean perspective, attempted to ascertain if gender and national culture influence the leadership competencies they value in their leaders. Existing studies have indicated that gender and national culture do not influence the leadership competencies valued in a leader. The findings of this study are in accordance with previous research and agree that gender and national culture do not influence the leadership competencies valued in a leader. The results of this study indicated that male and female subordinates value similar leadership competencies. With respect to national culture, both South African and Zimbabwean subordinates value similar leadership competencies. Based on the findings of this study, regardless of gender and national culture, all subordinates value a leader who is loyal, visionary, openly embodies integrity, and is a leader who empowers subordinates.
- Full Text:
- Date Issued: 2014
- Authors: Gondongwe, Sharon
- Date: 2014
- Subjects: Leadership , Organizational behavior , Organizational behavior -- Cross-cultural studies , Organizational behavior -- Sex differences
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1203 , http://hdl.handle.net/10962/d1015673
- Description: The effectiveness of leadership is largely dependent on whether the leadership competencies exhibited by leaders are congruent with the value system endorsed by subordinates. One of the ways in which leaders can influence subordinates is by understanding the leadership competencies valued by subordinates. Gender and national culture are two of the many factors that have an influence on the leadership competencies valued by subordinates. A large amount of research has been conducted to determine if, indeed, gender and national culture influence the leadership competencies subordinates' value. However, most of this research has been conducted in Europe and North America, places in which national cultures differ significantly from those prevailing in African countries. This study, from a South African and Zimbabwean perspective, attempted to ascertain if gender and national culture influence the leadership competencies they value in their leaders. Existing studies have indicated that gender and national culture do not influence the leadership competencies valued in a leader. The findings of this study are in accordance with previous research and agree that gender and national culture do not influence the leadership competencies valued in a leader. The results of this study indicated that male and female subordinates value similar leadership competencies. With respect to national culture, both South African and Zimbabwean subordinates value similar leadership competencies. Based on the findings of this study, regardless of gender and national culture, all subordinates value a leader who is loyal, visionary, openly embodies integrity, and is a leader who empowers subordinates.
- Full Text:
- Date Issued: 2014
The presumption of gult created by Section 235(2) of the Tax Administration Act: a constitutional and comparative perspective
- Authors: Faifi, Farai
- Date: 2014
- Subjects: Guilt (Law) -- South Africa , Presumption of innocence -- South Africa , Income tax -- Law and legislation -- South Africa , Human rights -- Taxation -- South Africa , Taxpayer compliance -- Moral and ethical aspects -- South Africa , Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:907 , http://hdl.handle.net/10962/d1012979
- Description: This research examined the legal nature of the presumption of guilt created by section 235(2) of the South African Tax Admiration Act and considered whether or not its practical application violates the taxpayer’s fundamental right contained in section 35(3) of the Constitution, which gives every accused taxpayer the right to a fair trial, including the right to be presumed innocent. The research also provided clarity on the constitutionality of this presumption because it has been widely criticised for unjustifiably violating the taxpayer's constitutional right to a fair trial. The conclusion reached is that the presumption created by section 235(2) of the Tax Administration Act constitutes an evidentiary burden rather than a reverse onus. It does not create the possibility of conviction, unlike a reverse onus where conviction is possible, despite the existence of a reasonable doubt. Therefore, it does not violate the accused taxpayer’s the right to a fair trial and the right to be presumed innocent and hence it is constitutional. Accordingly, the chances that the accused taxpayer will succeed in challenging the constitutionality of section 235(2) of the Act are slim.
- Full Text:
- Date Issued: 2014
- Authors: Faifi, Farai
- Date: 2014
- Subjects: Guilt (Law) -- South Africa , Presumption of innocence -- South Africa , Income tax -- Law and legislation -- South Africa , Human rights -- Taxation -- South Africa , Taxpayer compliance -- Moral and ethical aspects -- South Africa , Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:907 , http://hdl.handle.net/10962/d1012979
- Description: This research examined the legal nature of the presumption of guilt created by section 235(2) of the South African Tax Admiration Act and considered whether or not its practical application violates the taxpayer’s fundamental right contained in section 35(3) of the Constitution, which gives every accused taxpayer the right to a fair trial, including the right to be presumed innocent. The research also provided clarity on the constitutionality of this presumption because it has been widely criticised for unjustifiably violating the taxpayer's constitutional right to a fair trial. The conclusion reached is that the presumption created by section 235(2) of the Tax Administration Act constitutes an evidentiary burden rather than a reverse onus. It does not create the possibility of conviction, unlike a reverse onus where conviction is possible, despite the existence of a reasonable doubt. Therefore, it does not violate the accused taxpayer’s the right to a fair trial and the right to be presumed innocent and hence it is constitutional. Accordingly, the chances that the accused taxpayer will succeed in challenging the constitutionality of section 235(2) of the Act are slim.
- Full Text:
- Date Issued: 2014
The relationship between service quality, customer satisfaction and customer loyalty in the retail supermarket industry
- Authors: Ndhlovu, Thinkwell
- Date: 2014
- Subjects: Consumer satisfaction , Customer loyalty , Customer services -- Rating of , Customer services -- Quality control , Relationship marketing , Supermarkets -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1202 , http://hdl.handle.net/10962/d1013221
- Description: The increasingly competitive business environment has influenced contemporary organisations to build mutual beneficial relationships with their customers indicating a paradigm shift from transactional marketing. In order to compete in this intense competitive environment, organisations are creating competitive advantage over their rivals through service quality that will influence customer satisfaction which subsequently leads to customer loyalty. Service quality has been found to be the key strategy of success and survival for most organisations like retail supermarkets who want to win the loyalty of their customers because of its positive effect on customer satisfaction. The purpose of this research was to determine the relationship between service quality, customer satisfaction and customer loyalty in the retail supermarket industry. An empirical study was conducted in Grahamstown between two main supermarkets through a survey that determined customers’ perceptions on service quality, customer satisfaction and customer loyalty respectively. The empirical findings of this research study revealed that moderate to strong positive linear relationships exists between the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) and customer satisfaction at the 5% level of significance. Furthermore, this study showed that dimensions of service quality (namely physical aspects, reliability, personal interaction and problem solving) have weak negative linear relationships with price sensitivity dimension of customer loyalty. The study further showed that the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) have weak to moderate positive linear relationships with the purchase intentions dimension of customer loyalty. In addition, all the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) showed moderate positive linear relationships with word of mouth communication dimension of customer loyalty. A weak negative linear relationship between price sensitivity dimension of customer loyalty and customer satisfaction was revealed in this study. Purchase intentions dimension of customer loyalty was also found to have a moderate positive linear relationship with customer satisfaction. In addition, word of mouth communication dimension of customer loyalty showed a strong positive linear relationship with customer satisfaction. There is sufficient evidence that the customers of the two supermarkets in this study have different perceptions on problem solving dimension of service quality. This study further provides sufficient evidence of the significant difference between gender on the levels of customer satisfaction. In addition, this study showed that customers of various levels of education and occupations differ in price sensitivity dimension of customer loyalty. The average scores for word of mouth communication, purchase intentions and price sensitivity dimensions of customer loyalty were found to be significantly different between the two supermarkets investigated in this study. Therefore, for supermarkets to compete effectively in the intense retail supermarket industry in South Africa they have to manage their service quality dimensions so as to influence customer satisfaction and customer loyalty respectively.
- Full Text:
- Date Issued: 2014
- Authors: Ndhlovu, Thinkwell
- Date: 2014
- Subjects: Consumer satisfaction , Customer loyalty , Customer services -- Rating of , Customer services -- Quality control , Relationship marketing , Supermarkets -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1202 , http://hdl.handle.net/10962/d1013221
- Description: The increasingly competitive business environment has influenced contemporary organisations to build mutual beneficial relationships with their customers indicating a paradigm shift from transactional marketing. In order to compete in this intense competitive environment, organisations are creating competitive advantage over their rivals through service quality that will influence customer satisfaction which subsequently leads to customer loyalty. Service quality has been found to be the key strategy of success and survival for most organisations like retail supermarkets who want to win the loyalty of their customers because of its positive effect on customer satisfaction. The purpose of this research was to determine the relationship between service quality, customer satisfaction and customer loyalty in the retail supermarket industry. An empirical study was conducted in Grahamstown between two main supermarkets through a survey that determined customers’ perceptions on service quality, customer satisfaction and customer loyalty respectively. The empirical findings of this research study revealed that moderate to strong positive linear relationships exists between the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) and customer satisfaction at the 5% level of significance. Furthermore, this study showed that dimensions of service quality (namely physical aspects, reliability, personal interaction and problem solving) have weak negative linear relationships with price sensitivity dimension of customer loyalty. The study further showed that the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) have weak to moderate positive linear relationships with the purchase intentions dimension of customer loyalty. In addition, all the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) showed moderate positive linear relationships with word of mouth communication dimension of customer loyalty. A weak negative linear relationship between price sensitivity dimension of customer loyalty and customer satisfaction was revealed in this study. Purchase intentions dimension of customer loyalty was also found to have a moderate positive linear relationship with customer satisfaction. In addition, word of mouth communication dimension of customer loyalty showed a strong positive linear relationship with customer satisfaction. There is sufficient evidence that the customers of the two supermarkets in this study have different perceptions on problem solving dimension of service quality. This study further provides sufficient evidence of the significant difference between gender on the levels of customer satisfaction. In addition, this study showed that customers of various levels of education and occupations differ in price sensitivity dimension of customer loyalty. The average scores for word of mouth communication, purchase intentions and price sensitivity dimensions of customer loyalty were found to be significantly different between the two supermarkets investigated in this study. Therefore, for supermarkets to compete effectively in the intense retail supermarket industry in South Africa they have to manage their service quality dimensions so as to influence customer satisfaction and customer loyalty respectively.
- Full Text:
- Date Issued: 2014
Toward a culture of engagement: leveraging the enterprise social network
- Authors: Alistoun, Garth
- Date: 2014
- Subjects: Communication in organizations -- South Africa Business communication -- South Africa Social media -- South Africa -- Case studies Leadership -- South Africa -- Case studies Human capital -- Management Personnel management Organizational effectiveness
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1154 , http://hdl.handle.net/10962/d1010869
- Description: This research aims to provide a theory of enterprise social networking that generates and/or sustains a culture of employee engagement within a chosen South African private sector company. Based on an extensive review of interesting literature and the application of a grounded theory process in a chosen case, this research work provides a theory of enterprise social networking sustaining and growing employee engagement together with an explanatory theoretical framework that makes the theory more practical. Employee engagement is defined as “the harnessing of organisation member’s selves to their work roles; in engagement people employ and express themselves physically, cognitively, and emotionally during role performances.” This research regards employee engagement as a three part concept composed of a trait (personality/cognitive) aspect, a state (emotional) aspect, and a behavioural aspect. Research has shown that employee engagement has an unequivocal positive impact on business outcomes, such as profitability, business performance, employee retention and productivity. Employee engagement can be regarded as a culture if it is abundant within the organization’s employee population. Gatenby et al. (2009) propose that employee engagement is fostered by creating the desire and opportunity for employees to connect with colleagues, managers and the wider organisation. This standpoint is supported by Kular et al. (2008) who state that the “key drivers of employee engagement identified include communication, opportunities for employees to feed their views upward and thinking that their managers are committed to the organisation.” Further indicators of employee engagement include strong leadership (particularly in the form of servant leadership), accountability, a positive and open organisational culture, autonomy, and opportunities for development. One of the key facets of employee engagement is connection. A complementary definition of social media, an umbrella under which enterprise social networks fall, is that “(it) is more of a relationship channel, a connection channel. Each and every tweet, update, video, post, is a connection point to another human being. And it’s the other human being who will determine your worth to them.” Social media provides participants with access to a larger pool of resources and relationships than they would normally have access to. This enlarged relationship/resource pool is a result of expanding human and social capital enabled through social media tools. In order to produce a theory of enterprise social networking sustaining and growing a culture of employee engagement a rigorous grounded theory methodology coupled with a case study methodology was applied. The case study methodology was used to identify a suitable research site and interesting participants within the site while the grounded theory process was used to produce both qualitative and quantitative data sets in a suitability rigorous fashion. The corroborative data was then used to discover and define the emergent theory.
- Full Text:
- Date Issued: 2014
- Authors: Alistoun, Garth
- Date: 2014
- Subjects: Communication in organizations -- South Africa Business communication -- South Africa Social media -- South Africa -- Case studies Leadership -- South Africa -- Case studies Human capital -- Management Personnel management Organizational effectiveness
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1154 , http://hdl.handle.net/10962/d1010869
- Description: This research aims to provide a theory of enterprise social networking that generates and/or sustains a culture of employee engagement within a chosen South African private sector company. Based on an extensive review of interesting literature and the application of a grounded theory process in a chosen case, this research work provides a theory of enterprise social networking sustaining and growing employee engagement together with an explanatory theoretical framework that makes the theory more practical. Employee engagement is defined as “the harnessing of organisation member’s selves to their work roles; in engagement people employ and express themselves physically, cognitively, and emotionally during role performances.” This research regards employee engagement as a three part concept composed of a trait (personality/cognitive) aspect, a state (emotional) aspect, and a behavioural aspect. Research has shown that employee engagement has an unequivocal positive impact on business outcomes, such as profitability, business performance, employee retention and productivity. Employee engagement can be regarded as a culture if it is abundant within the organization’s employee population. Gatenby et al. (2009) propose that employee engagement is fostered by creating the desire and opportunity for employees to connect with colleagues, managers and the wider organisation. This standpoint is supported by Kular et al. (2008) who state that the “key drivers of employee engagement identified include communication, opportunities for employees to feed their views upward and thinking that their managers are committed to the organisation.” Further indicators of employee engagement include strong leadership (particularly in the form of servant leadership), accountability, a positive and open organisational culture, autonomy, and opportunities for development. One of the key facets of employee engagement is connection. A complementary definition of social media, an umbrella under which enterprise social networks fall, is that “(it) is more of a relationship channel, a connection channel. Each and every tweet, update, video, post, is a connection point to another human being. And it’s the other human being who will determine your worth to them.” Social media provides participants with access to a larger pool of resources and relationships than they would normally have access to. This enlarged relationship/resource pool is a result of expanding human and social capital enabled through social media tools. In order to produce a theory of enterprise social networking sustaining and growing a culture of employee engagement a rigorous grounded theory methodology coupled with a case study methodology was applied. The case study methodology was used to identify a suitable research site and interesting participants within the site while the grounded theory process was used to produce both qualitative and quantitative data sets in a suitability rigorous fashion. The corroborative data was then used to discover and define the emergent theory.
- Full Text:
- Date Issued: 2014
Towards the feasibility of a landowner enterprise in the western Baviaanskloof : an external stakeholder analysis
- Authors: Wiles, Kira Leigh Deborah
- Date: 2014
- Subjects: Landowners -- South Africa -- Eastern Cape , Natural resources -- Co-management -- South Africa -- Eastern Cape , Land use -- Environmental aspects -- South Africa -- Eastern Cape , Land use -- Economic aspects -- South Africa -- Eastern Cape , Partnership -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1198 , http://hdl.handle.net/10962/d1012075 , Landowners -- South Africa -- Eastern Cape , Natural resources -- Co-management -- South Africa -- Eastern Cape , Land use -- Environmental aspects -- South Africa -- Eastern Cape , Land use -- Economic aspects -- South Africa -- Eastern Cape , Partnership -- South Africa -- Eastern Cape
- Description: In May 2012, a meeting was held between various stakeholder representatives of the Western Baviaanskloof to discuss the concept of a proposed landowner-enterprise. This concept was put forward in response to a need for collaboration in the midst of economic, environmental and social issues at play in the Baviaanskloof. Owing to the conservation value and rapidly decreasing economic output of the land, a radical shift to sustainable land-use practices was called for by various stakeholders. Suggested as a vehicle to generate income for the local landowners through alternative sustainable land-uses, the proposed enterprise may aid in addressing this shift by use of a bottom-up approach. During the stakeholder meeting, it was requested by the representative landowners that a feasibility assessment be conducted on the concept of the proposed enterprise prior to establishment. As an integral part of this assessment, the researcher took on the task of investigating stakeholder reception to the enterprise by means of a stakeholder analysis. It was decided to limit this to three markets: water, carbon and tourism. The purpose of this research study is twofold, namely to: investigate stakeholder influence and their reception of the proposed enterprise using a stakeholder analysis; and also to identify and advise on the opportunities and constraints relating to stakeholders, thus contributing to determining the feasibility of the proposed enterprise. In achieving the purpose of this study, a systematic stakeholder analysis framework was constructed, based on existing theory. This was necessary because, although stakeholder analysis is commonly practiced, no study was found to provide a theoretically based framework for the purpose of feasibility in the initial stages of enterprise establishment. Thus the contribution of the study is also twofold, namely the practical outcome of determining stakeholder reception for feasibility, and a secondary outcome of constructing a stakeholder analysis framework. The stakeholder analysis framework is based on an interpretation of existing stakeholder theory, with the addition of four "relational indicators" – goals, intentions, relationships, and resources. These four indicators provide a link between theory and practice in gauging the two attributes of stakeholder influence – power and interest. Dealing with a number of stakeholder interests in a unique context, the study takes on a single network case study approach in the paradigm of phenomenology. To suit the complex nature of the study, semi-structured interviews with various stakeholder representatives were conducted, using groups or organisations as units of analysis. Drawing from the stakeholder analysis framework and overall purpose of the study, four research objectives were set. The first was to identify the proposed enterprise's legitimate key external stakeholders, based on the three markets: water, carbon and tourism; the second to describe, categorise and assess relative dyadic influence of the above stakeholders by gauging their power and interest; the third, to determine the stakeholder network influence and probable reception of the proposed enterprise; and the last to advise the landowners on any identified opportunities or constraints stakeholders might pose, and thus to contribute to determining feasibility. In addressing the first objective, 21 stakeholders were identified, 12 of whom were found to be key to the current investigation. These key stakeholders were: Gamtoos Irrigation Board (GIB), LivingLands, R3G, Rhodes Restoration Group, Eastern Cape Parks and Tourism Agency (ECPTA), Department of Water Affairs (DWA), Nelson Mandela Bay Metropolitan (NMBM), Saaimanshoek, South African National Biodiversity Institute (SANBI), Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), Baviaans Tourism, and Baviaans Municipality. In applying the stakeholder analysis framework, ECPTA was categorised as the definitive (most influential) stakeholder to the enterprise, and DEDEAT, SANBI (through Working for Wetlands), Baviaans Tourism, GIB, and NMBM were categorised as pivotal (influential and active). In discerning stakeholder interest in the proposed enterprise, a number of emerging themes were found to affect the projected interest and behaviour of stakeholders, apart from their specified goals. Emerging themes included: tunnel visioning, internal disparity, individual/personality clashes, and misaligned interests. In addition to this, in interpreting stakeholder interest, specific intentions or agendas that might affect the interest shown towards the proposed enterprise were also taken into account. Five predominant intentions of stakeholders were identified as: implementing a stewardship programme, establishing a tourism association, establishing a water users' association, social development, and "the big vision". Findings on the final objective revealed a number of perceived opportunities and constraints relative to the feasibility of the enterprise. Three prime opportunities were identified as: partnerships with definitive and pivotal stakeholders, the possibility of tendering for implementer of the "Working for" programmes, and taking on the role of Tourism Association. The following potential constraints were also emphasised by participants: social aspects such as individuals and personalities, the incompatibility or non-existence of local market structures, and the need for external funding. With regard to stakeholder reception, most of the stakeholders, with the exception of NMBM and Saaimanshoek, responded positively to the idea of the enterprise. Overall, based on participant perceptions, the tourism market was found to be the most feasible the carbon market uncertain and a long-term possibility, and the water market the least feasible.
- Full Text:
- Date Issued: 2014
- Authors: Wiles, Kira Leigh Deborah
- Date: 2014
- Subjects: Landowners -- South Africa -- Eastern Cape , Natural resources -- Co-management -- South Africa -- Eastern Cape , Land use -- Environmental aspects -- South Africa -- Eastern Cape , Land use -- Economic aspects -- South Africa -- Eastern Cape , Partnership -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1198 , http://hdl.handle.net/10962/d1012075 , Landowners -- South Africa -- Eastern Cape , Natural resources -- Co-management -- South Africa -- Eastern Cape , Land use -- Environmental aspects -- South Africa -- Eastern Cape , Land use -- Economic aspects -- South Africa -- Eastern Cape , Partnership -- South Africa -- Eastern Cape
- Description: In May 2012, a meeting was held between various stakeholder representatives of the Western Baviaanskloof to discuss the concept of a proposed landowner-enterprise. This concept was put forward in response to a need for collaboration in the midst of economic, environmental and social issues at play in the Baviaanskloof. Owing to the conservation value and rapidly decreasing economic output of the land, a radical shift to sustainable land-use practices was called for by various stakeholders. Suggested as a vehicle to generate income for the local landowners through alternative sustainable land-uses, the proposed enterprise may aid in addressing this shift by use of a bottom-up approach. During the stakeholder meeting, it was requested by the representative landowners that a feasibility assessment be conducted on the concept of the proposed enterprise prior to establishment. As an integral part of this assessment, the researcher took on the task of investigating stakeholder reception to the enterprise by means of a stakeholder analysis. It was decided to limit this to three markets: water, carbon and tourism. The purpose of this research study is twofold, namely to: investigate stakeholder influence and their reception of the proposed enterprise using a stakeholder analysis; and also to identify and advise on the opportunities and constraints relating to stakeholders, thus contributing to determining the feasibility of the proposed enterprise. In achieving the purpose of this study, a systematic stakeholder analysis framework was constructed, based on existing theory. This was necessary because, although stakeholder analysis is commonly practiced, no study was found to provide a theoretically based framework for the purpose of feasibility in the initial stages of enterprise establishment. Thus the contribution of the study is also twofold, namely the practical outcome of determining stakeholder reception for feasibility, and a secondary outcome of constructing a stakeholder analysis framework. The stakeholder analysis framework is based on an interpretation of existing stakeholder theory, with the addition of four "relational indicators" – goals, intentions, relationships, and resources. These four indicators provide a link between theory and practice in gauging the two attributes of stakeholder influence – power and interest. Dealing with a number of stakeholder interests in a unique context, the study takes on a single network case study approach in the paradigm of phenomenology. To suit the complex nature of the study, semi-structured interviews with various stakeholder representatives were conducted, using groups or organisations as units of analysis. Drawing from the stakeholder analysis framework and overall purpose of the study, four research objectives were set. The first was to identify the proposed enterprise's legitimate key external stakeholders, based on the three markets: water, carbon and tourism; the second to describe, categorise and assess relative dyadic influence of the above stakeholders by gauging their power and interest; the third, to determine the stakeholder network influence and probable reception of the proposed enterprise; and the last to advise the landowners on any identified opportunities or constraints stakeholders might pose, and thus to contribute to determining feasibility. In addressing the first objective, 21 stakeholders were identified, 12 of whom were found to be key to the current investigation. These key stakeholders were: Gamtoos Irrigation Board (GIB), LivingLands, R3G, Rhodes Restoration Group, Eastern Cape Parks and Tourism Agency (ECPTA), Department of Water Affairs (DWA), Nelson Mandela Bay Metropolitan (NMBM), Saaimanshoek, South African National Biodiversity Institute (SANBI), Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), Baviaans Tourism, and Baviaans Municipality. In applying the stakeholder analysis framework, ECPTA was categorised as the definitive (most influential) stakeholder to the enterprise, and DEDEAT, SANBI (through Working for Wetlands), Baviaans Tourism, GIB, and NMBM were categorised as pivotal (influential and active). In discerning stakeholder interest in the proposed enterprise, a number of emerging themes were found to affect the projected interest and behaviour of stakeholders, apart from their specified goals. Emerging themes included: tunnel visioning, internal disparity, individual/personality clashes, and misaligned interests. In addition to this, in interpreting stakeholder interest, specific intentions or agendas that might affect the interest shown towards the proposed enterprise were also taken into account. Five predominant intentions of stakeholders were identified as: implementing a stewardship programme, establishing a tourism association, establishing a water users' association, social development, and "the big vision". Findings on the final objective revealed a number of perceived opportunities and constraints relative to the feasibility of the enterprise. Three prime opportunities were identified as: partnerships with definitive and pivotal stakeholders, the possibility of tendering for implementer of the "Working for" programmes, and taking on the role of Tourism Association. The following potential constraints were also emphasised by participants: social aspects such as individuals and personalities, the incompatibility or non-existence of local market structures, and the need for external funding. With regard to stakeholder reception, most of the stakeholders, with the exception of NMBM and Saaimanshoek, responded positively to the idea of the enterprise. Overall, based on participant perceptions, the tourism market was found to be the most feasible the carbon market uncertain and a long-term possibility, and the water market the least feasible.
- Full Text:
- Date Issued: 2014
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.
- Full Text:
- Date Issued: 2014
- 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.
- Full Text:
- Date Issued: 2014
Voluntary disclosure programmes and tax amnesties: an international appraisal
- Authors: Jaramba, Toddy
- Date: 2014
- Subjects: Tax amnesty -- South Africa , Tax evasion -- South Africa , Investments, Foreign -- Taxation -- South Africa , Tax collection -- South Africa , Tax administration and procedure -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:911 , http://hdl.handle.net/10962/d1015666
- Description: Tax amnesties are government programs that typically allow a short period of time for tax evaders to voluntarily repay previously evaded taxes without being subject to penalties and prosecution that discovery of such tax evasion normally brings. Tax amnesties differ widely in terms of coverage, tax types, and incentives offered. A state’s Voluntary Disclosure Programme is another avenue available to taxpayers to assist them in resolving their state tax delinquencies. This programme is an on-going programme as compared to a tax amnesty, which is there for a limited time period only. The main goal of the research was to describe the tax amnesty and the voluntary disclosure programmes in South Africa and to assess their advantages and disadvantages. This thesis also discussed another form of voluntary disclosure programme, referred to as an Offshore Voluntary Disclosure Programme, which allows taxpayers with unreported foreign bank accounts, and presumably unreported foreign income, to voluntarily disclose their affairs. The study found that, due to tax amnesties, Government raises more tax revenue not only in the short run from collecting overdue taxes but also by bringing former non-filers back into the tax system for the long run. It was also found that, initially short-run revenue brought in from overdue taxes will be positive for the first amnesty and then decline each time the amnesty is offered repeatedly. The reason for the decline in revenue might be that tax amnesties provide incentives for otherwise honest taxpayers to start evading taxes because they will anticipate the offering of future amnesties, thereby weakening tax compliance. The costs associated with amnesty programmes include negative long run revenue impact and also that amnesty programmes reduce compliance by taxpayers in the long-run. In South Africa tax amnesties, especially the voluntary disclosure programme, are likely to be successful since they will increase the revenue yield and also bring non-filers back on the tax rolls.
- Full Text:
- Date Issued: 2014
- Authors: Jaramba, Toddy
- Date: 2014
- Subjects: Tax amnesty -- South Africa , Tax evasion -- South Africa , Investments, Foreign -- Taxation -- South Africa , Tax collection -- South Africa , Tax administration and procedure -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:911 , http://hdl.handle.net/10962/d1015666
- Description: Tax amnesties are government programs that typically allow a short period of time for tax evaders to voluntarily repay previously evaded taxes without being subject to penalties and prosecution that discovery of such tax evasion normally brings. Tax amnesties differ widely in terms of coverage, tax types, and incentives offered. A state’s Voluntary Disclosure Programme is another avenue available to taxpayers to assist them in resolving their state tax delinquencies. This programme is an on-going programme as compared to a tax amnesty, which is there for a limited time period only. The main goal of the research was to describe the tax amnesty and the voluntary disclosure programmes in South Africa and to assess their advantages and disadvantages. This thesis also discussed another form of voluntary disclosure programme, referred to as an Offshore Voluntary Disclosure Programme, which allows taxpayers with unreported foreign bank accounts, and presumably unreported foreign income, to voluntarily disclose their affairs. The study found that, due to tax amnesties, Government raises more tax revenue not only in the short run from collecting overdue taxes but also by bringing former non-filers back into the tax system for the long run. It was also found that, initially short-run revenue brought in from overdue taxes will be positive for the first amnesty and then decline each time the amnesty is offered repeatedly. The reason for the decline in revenue might be that tax amnesties provide incentives for otherwise honest taxpayers to start evading taxes because they will anticipate the offering of future amnesties, thereby weakening tax compliance. The costs associated with amnesty programmes include negative long run revenue impact and also that amnesty programmes reduce compliance by taxpayers in the long-run. In South Africa tax amnesties, especially the voluntary disclosure programme, are likely to be successful since they will increase the revenue yield and also bring non-filers back on the tax rolls.
- Full Text:
- Date Issued: 2014
Why has South Africa been relatively unsuccessful at attracting inward foreign direct investment since 1994?
- Authors: Fulton, Mark Hugh John
- Date: 2014
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Africa, Southern , Investments, Foreign -- Chile , Investments, Foreign -- Botswana , Economic development -- South Africa , Economic development -- Developing countries , Political corruption -- Economic aspects -- South Africa , South Africa -- Economic policy -- 1994-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1097 , http://hdl.handle.net/10962/d1013056
- Description: Foreign Direct Investment (FDI) flows into South Africa have been very low for several decades, and this research examines the reason(s) why this has been the case since 1994. There is a common belief amongst economists that there is a positive relationship between the amount of FDI received and economic growth, thus the desire to attract greater FDI inflows. A literature review was conducted to establish the determinants of FDI globally and then data were collected and assessed to test which causes are most important. The performance of developing nations in attracting FDI was first compared with that of the developed nations. Thereafter, a regional breakdown of FDI flows was presented, with a particular focus on the Southern African region. FDI inflows to South Africa since 1994 were compared against the identified determinants of FDI, as well as with FDI inflows into two other major mining economies, Chile and Botswana. The friendliness of the government towards business was identified as a significant determinant of FDI inflows and the importance of this factor in explaining FDI inflows into environment in South Africa was looked at in more depth. It was found that many investors perceive the South African government as hostile towards business and as corrupt and/or inefficient. The empirical results show that this negative perception helps explain the FDI inflows attracted by South Africa since 1994. Therefore, increased friendliness to business by the government should increase future inward FDI flows into South Africa.
- Full Text:
- Date Issued: 2014
- Authors: Fulton, Mark Hugh John
- Date: 2014
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Africa, Southern , Investments, Foreign -- Chile , Investments, Foreign -- Botswana , Economic development -- South Africa , Economic development -- Developing countries , Political corruption -- Economic aspects -- South Africa , South Africa -- Economic policy -- 1994-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1097 , http://hdl.handle.net/10962/d1013056
- Description: Foreign Direct Investment (FDI) flows into South Africa have been very low for several decades, and this research examines the reason(s) why this has been the case since 1994. There is a common belief amongst economists that there is a positive relationship between the amount of FDI received and economic growth, thus the desire to attract greater FDI inflows. A literature review was conducted to establish the determinants of FDI globally and then data were collected and assessed to test which causes are most important. The performance of developing nations in attracting FDI was first compared with that of the developed nations. Thereafter, a regional breakdown of FDI flows was presented, with a particular focus on the Southern African region. FDI inflows to South Africa since 1994 were compared against the identified determinants of FDI, as well as with FDI inflows into two other major mining economies, Chile and Botswana. The friendliness of the government towards business was identified as a significant determinant of FDI inflows and the importance of this factor in explaining FDI inflows into environment in South Africa was looked at in more depth. It was found that many investors perceive the South African government as hostile towards business and as corrupt and/or inefficient. The empirical results show that this negative perception helps explain the FDI inflows attracted by South Africa since 1994. Therefore, increased friendliness to business by the government should increase future inward FDI flows into South Africa.
- Full Text:
- Date Issued: 2014
Willingness to pay for marine-based tourism within the Ponto do Ouro Partial Marine Reserve, Mozambique
- Authors: Daly, Clare Amelie Keating
- Date: 2014
- Subjects: Ponto do Ouro Partial Marine Reserve , Marine ecotourism -- Mozambique , Marine ecotourism -- Economic aspects -- Mozambique , Marine ecotourism -- Mozambique -- Marketing , Ecotourism -- Economic aspects -- Mozambique , Coastal zone management -- Mozambique , Marine resources conservation -- Mozambique
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1102 , http://hdl.handle.net/10962/d1013304
- Description: Marine and coastal ecosystems face widespread degradation largely because market failure hides the economic value of the goods and services provided by them. Marine protected areas (MPAs) can serve as a structure that ensures the continuing function of marine and coastal ecosystem goods and services. Yet, to be effective and sustainable, MPAs must be able to prove their economic worth and generate revenue. User-fees are a common system used to partially finance multi-use MPAs. This study applies contingent valuation as a method of economic valuation within an MPA in southern Mozambique. The objectives of this study are to determine the willingness to pay of combined user groups and of individual user groups for use of the Ponta do Ouro Partial Marine Reserve and to investigate the potential for the reserve to increase revenues for conservation through the implementation of a user-fee for marine based activities. The payment card contingent valuation method was employed to determine willingness to pay of dolphin swim tourists, scuba divers and fishermen. Data was collected by face-to-face interviews of 120 respondents within two popular tourist locations in the PPMR. Results show that visitors within the PPMR are mainly South Africans, loyal to the area. Probit and OLS regressions were used to determine the effects of various independent variables on willingness to pay. Results from the Probit model indicate that African residency, activity and environmental awareness were significant factors that influenced visitors being WTP more than R20 per person per day as a user fee within the PPMR. The OLS model examined independent variables that influenced visitors being willing to pay as well as the impact of the variables on the amount visitors were willing to pay. The OLS model found income, African residency and environmental awareness to be significant factors influencing visitors being willing to pay. The mean WTP was R43.75 per person per day. Using data supplied by the PPMR, conservative estimated annual revenues based on the implementation of this fee amount would range between R1.46m – R 3.3m.
- Full Text:
- Date Issued: 2014
- Authors: Daly, Clare Amelie Keating
- Date: 2014
- Subjects: Ponto do Ouro Partial Marine Reserve , Marine ecotourism -- Mozambique , Marine ecotourism -- Economic aspects -- Mozambique , Marine ecotourism -- Mozambique -- Marketing , Ecotourism -- Economic aspects -- Mozambique , Coastal zone management -- Mozambique , Marine resources conservation -- Mozambique
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1102 , http://hdl.handle.net/10962/d1013304
- Description: Marine and coastal ecosystems face widespread degradation largely because market failure hides the economic value of the goods and services provided by them. Marine protected areas (MPAs) can serve as a structure that ensures the continuing function of marine and coastal ecosystem goods and services. Yet, to be effective and sustainable, MPAs must be able to prove their economic worth and generate revenue. User-fees are a common system used to partially finance multi-use MPAs. This study applies contingent valuation as a method of economic valuation within an MPA in southern Mozambique. The objectives of this study are to determine the willingness to pay of combined user groups and of individual user groups for use of the Ponta do Ouro Partial Marine Reserve and to investigate the potential for the reserve to increase revenues for conservation through the implementation of a user-fee for marine based activities. The payment card contingent valuation method was employed to determine willingness to pay of dolphin swim tourists, scuba divers and fishermen. Data was collected by face-to-face interviews of 120 respondents within two popular tourist locations in the PPMR. Results show that visitors within the PPMR are mainly South Africans, loyal to the area. Probit and OLS regressions were used to determine the effects of various independent variables on willingness to pay. Results from the Probit model indicate that African residency, activity and environmental awareness were significant factors that influenced visitors being WTP more than R20 per person per day as a user fee within the PPMR. The OLS model examined independent variables that influenced visitors being willing to pay as well as the impact of the variables on the amount visitors were willing to pay. The OLS model found income, African residency and environmental awareness to be significant factors influencing visitors being willing to pay. The mean WTP was R43.75 per person per day. Using data supplied by the PPMR, conservative estimated annual revenues based on the implementation of this fee amount would range between R1.46m – R 3.3m.
- Full Text:
- Date Issued: 2014
Modelling daily return variations in developing market currencies
- Authors: Howarth, Grant
- Date: 2013-07-12
- Subjects: Dollar, American , Currency questions , Foreign exchange market , Foreign exchange rates , Rate of return -- Developing countries , Money market , Prices
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1076 , http://hdl.handle.net/10962/d1008365 , Dollar, American , Currency questions , Foreign exchange market , Foreign exchange rates , Rate of return -- Developing countries , Money market , Prices
- Description: This study examines the American Dollar (USD) denominated currency returns of five developing market currencies for the presence of the day-of-the-week effect. Daily data from January 1995 to February 2008 is examined, and is split into two subperiods, SP1 (1995 - 2002) and SP2 (2003 - February 2008). Currency returns are non-normally distributed across the full data set and SP1 , but tend towards normality in SP2. As such non-parametric tests are used to test the equality of the first four moments across days of the week. Tests on the first moment show that two of the currencies do not show any evidence of the day-of-the-week effect. However, evidence of the day-of-the-week effect is found in the other three currencies in SP1, although the effect disappears or weakens significantly in SP2. Little evidence of the day-of-the-week effect is found in tests on the second moment. The hypothesis of equal higher moments across currency returns is rejected for almost all of the weekday pairs for all five currencies in SP1 , but in SP2 the hypothesis of equal higher moments can only be rejected for a single pair of weekdays for one currency. This indicates the disappearance of the day-of-the-week effect across higher moments in SP2. Thus, the study finds that the day-of-the-week effect is present across the first moment and higher moments in the returns to most currencies in SP1 , but has disappeared for all five currencies in SP2. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Authors: Howarth, Grant
- Date: 2013-07-12
- Subjects: Dollar, American , Currency questions , Foreign exchange market , Foreign exchange rates , Rate of return -- Developing countries , Money market , Prices
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1076 , http://hdl.handle.net/10962/d1008365 , Dollar, American , Currency questions , Foreign exchange market , Foreign exchange rates , Rate of return -- Developing countries , Money market , Prices
- Description: This study examines the American Dollar (USD) denominated currency returns of five developing market currencies for the presence of the day-of-the-week effect. Daily data from January 1995 to February 2008 is examined, and is split into two subperiods, SP1 (1995 - 2002) and SP2 (2003 - February 2008). Currency returns are non-normally distributed across the full data set and SP1 , but tend towards normality in SP2. As such non-parametric tests are used to test the equality of the first four moments across days of the week. Tests on the first moment show that two of the currencies do not show any evidence of the day-of-the-week effect. However, evidence of the day-of-the-week effect is found in the other three currencies in SP1, although the effect disappears or weakens significantly in SP2. Little evidence of the day-of-the-week effect is found in tests on the second moment. The hypothesis of equal higher moments across currency returns is rejected for almost all of the weekday pairs for all five currencies in SP1 , but in SP2 the hypothesis of equal higher moments can only be rejected for a single pair of weekdays for one currency. This indicates the disappearance of the day-of-the-week effect across higher moments in SP2. Thus, the study finds that the day-of-the-week effect is present across the first moment and higher moments in the returns to most currencies in SP1 , but has disappeared for all five currencies in SP2. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
The functioning of the interbank market and its significance in the transmission of monetary policy
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
An empirical analysis of financial stress within South Africa and its apparent co-movement with financial stress emanating from advanced and emerging economies
- Authors: Graham, Brydone
- Date: 2013
- Subjects: Financial crises -- South Africa Financial crises -- Developing countries Globalization -- Economic aspects -- South Africa International economic relations South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1053 , http://hdl.handle.net/10962/d1006795
- Description: The identification of financial stress, and an understanding of financial contagion on a global scale, is of critical importance to a South African economy that is becoming increasingly integrated into the global economy. The last decade has been characterised by periods of high economic growth, but also periods of significant financial instability culminating in global economic crises. This study examines the extent to which the South African financial system is exposed to distress abroad by identifying and measuring the co-movement of financial stress originating from within and outside South Africa. The study can be separated into two sections: the identification of financial stress and the measurement of financial contagion. Using monthly data for the period 2000 to 2012, three indices were constructed for the emerging markets, advanced economies and South Africa using varianceequal weighting. The indices were tested for contagion using the Johansen and Jesulius (1990) multivariate cointegration approach supplemented with basic OLS architecture and Impulse Response analysis. The results indicate the three constructed indices were highly accurate at identifying the intensity and timing of financial stress over the three regions respectively. It was found that the South African financial sector is highly susceptible to financial stress originating from advanced economies. The results obtained for financial stress emanating from emerging markets were not as conclusive and found to be insignificant. Overall, it is clear that the methods employed to identify financial stress are highly accurate and that South Africa is highly susceptible to financial stress originating from abroad. It is clear that advanced economies have a greater ability to affect financial stress in South Africa via contagion. It must be noted that this does not conclude that South Africa is not affected by emerging market crises, but that these crises tend to affect South Africa through advanced economy channels as defined within this thesis.
- Full Text:
- Date Issued: 2013
- Authors: Graham, Brydone
- Date: 2013
- Subjects: Financial crises -- South Africa Financial crises -- Developing countries Globalization -- Economic aspects -- South Africa International economic relations South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1053 , http://hdl.handle.net/10962/d1006795
- Description: The identification of financial stress, and an understanding of financial contagion on a global scale, is of critical importance to a South African economy that is becoming increasingly integrated into the global economy. The last decade has been characterised by periods of high economic growth, but also periods of significant financial instability culminating in global economic crises. This study examines the extent to which the South African financial system is exposed to distress abroad by identifying and measuring the co-movement of financial stress originating from within and outside South Africa. The study can be separated into two sections: the identification of financial stress and the measurement of financial contagion. Using monthly data for the period 2000 to 2012, three indices were constructed for the emerging markets, advanced economies and South Africa using varianceequal weighting. The indices were tested for contagion using the Johansen and Jesulius (1990) multivariate cointegration approach supplemented with basic OLS architecture and Impulse Response analysis. The results indicate the three constructed indices were highly accurate at identifying the intensity and timing of financial stress over the three regions respectively. It was found that the South African financial sector is highly susceptible to financial stress originating from advanced economies. The results obtained for financial stress emanating from emerging markets were not as conclusive and found to be insignificant. Overall, it is clear that the methods employed to identify financial stress are highly accurate and that South Africa is highly susceptible to financial stress originating from abroad. It is clear that advanced economies have a greater ability to affect financial stress in South Africa via contagion. It must be noted that this does not conclude that South Africa is not affected by emerging market crises, but that these crises tend to affect South Africa through advanced economy channels as defined within this thesis.
- Full Text:
- Date Issued: 2013
An evaluation of the use of testamentary and Inter vivos trusts as estate-planning vehicles and the development of holistic estate-planning models involving the use of these trusts
- Authors: Naidoo, Loganathan
- Date: 2013
- Subjects: Commission of Inquiry into Certain Aspects of the Tax Structure of South Africa Income tax -- Law and legislation -- South Africa Taxation -- Law and legislation -- South Africa Trusts and trustees -- South Africa Trusts and trustees -- Taxations -- South Africa Estate planning -- South Africa Estates (Law) -- South Africa Administration of estates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:904 , http://hdl.handle.net/10962/d1008100
- Description: Trusts are subject to multiple forms of legislative regulation dealing with taxation and governance. Trusts were widely used by planners as tax avoidance shelters. Tax legislation was amended to subject trusts, other than special trusts as defined, to the highest income tax rate of forty percent, in terms of section 5(2) of the Income Tax Act, 58 of 1962. The inter vivos trust is also subject to a wide range of anti-avoidance measures, including those contained in sub-sections (3) to (8) of section 7 of the Income Tax Act and Part X of the Eighth Schedule to the Act, as well as the general anti -avoidance measures in section 103. These measures impact negatively on the use of trusts for estate-planning purposes. The research objective was to evaluate the use of testamentary and inter vivos trusts for estate-planning purposes and to develop a holistic estate-planning model incorporating these planning instruments. Both the testamentary trust and the inter vivos trust were evaluated against broad principles of effective estate planning and the taxes and duties applicable to them. The research also reviewed the writings of financial planners on various techniques and models used for estate planning, as wells as case studies documented in the literature. The research developed and evaluated holistic estate-planning models incorporating testamentary trusts and inter vivos trusts, respectively. By neutralizing the effects of various taxes and duties, it was demonstrated that it is possible to develop an estate plan that satisfies most of the requirements of effective estate planning.
- Full Text:
- Date Issued: 2013
- Authors: Naidoo, Loganathan
- Date: 2013
- Subjects: Commission of Inquiry into Certain Aspects of the Tax Structure of South Africa Income tax -- Law and legislation -- South Africa Taxation -- Law and legislation -- South Africa Trusts and trustees -- South Africa Trusts and trustees -- Taxations -- South Africa Estate planning -- South Africa Estates (Law) -- South Africa Administration of estates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:904 , http://hdl.handle.net/10962/d1008100
- Description: Trusts are subject to multiple forms of legislative regulation dealing with taxation and governance. Trusts were widely used by planners as tax avoidance shelters. Tax legislation was amended to subject trusts, other than special trusts as defined, to the highest income tax rate of forty percent, in terms of section 5(2) of the Income Tax Act, 58 of 1962. The inter vivos trust is also subject to a wide range of anti-avoidance measures, including those contained in sub-sections (3) to (8) of section 7 of the Income Tax Act and Part X of the Eighth Schedule to the Act, as well as the general anti -avoidance measures in section 103. These measures impact negatively on the use of trusts for estate-planning purposes. The research objective was to evaluate the use of testamentary and inter vivos trusts for estate-planning purposes and to develop a holistic estate-planning model incorporating these planning instruments. Both the testamentary trust and the inter vivos trust were evaluated against broad principles of effective estate planning and the taxes and duties applicable to them. The research also reviewed the writings of financial planners on various techniques and models used for estate planning, as wells as case studies documented in the literature. The research developed and evaluated holistic estate-planning models incorporating testamentary trusts and inter vivos trusts, respectively. By neutralizing the effects of various taxes and duties, it was demonstrated that it is possible to develop an estate plan that satisfies most of the requirements of effective estate planning.
- Full Text:
- Date Issued: 2013
An investigation into the factors that influence the success of small business in Port Elizabeth
- Authors: Wilmot, Chloé Margot
- Date: 2013
- Subjects: Small business -- South Africa -- Port Elizabeth Job creation -- South Africa Entrepreneurship -- South Africa Success in business -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1162 , http://hdl.handle.net/10962/d1001629
- Description: South Africa has one of the highest unemployment rates in the world, currently 23.90%. One way for the government and policy-makers of South Africa to address this dire statistic is through the fostering and promotion of entrepreneurship and small business creation. The benefits of entrepreneurship are numerous and can include: increasing a country’s productivity, enhancing the welfare and well-being of its citizens, reducing emigration rates, improving economic development and perhaps, most importantly, increasing employment rates. Worldwide, small businesses within the private sector have become indispensable to sustainable job creation and therefore it is of the utmost importance that small businesses in any economy develop, grow and succeed. Despite the fact that research pertaining to small businesses has increased over the years, little empirical evidence has been established. In particular, research into what makes small businesses successful has been limited. Entrepreneurial activity in South Africa remains less than ideal and therefore it is appropriate that research into the success factors of small businesses in South Africa be investigated. Furthermore, the survival of South African small businesses beyond four to five years of being in operation is estimated at only 20.00%. It is evident that a lack of knowledge exists and with respect to this research the factors found to be the most common determinants of success for small businesses in Port Elizabeth were determined and investigated. Convenience- and snowball sampling techniques were used to identify potential participants. In total 43 usable questionnaires were returned. Methodological triangulation was used to analyse the data, according to descriptive- and inferential statistics, as well as content analysis. This being so, the research was conducted within two paradigms, primarily, the positivist research paradigm and also the phenomenological research paradigm. The key findings of this study indicate personal factors to be the most important success factor group, while the environmental success factor group is considered the least important. The most important factors attributable to the success of participants’ small businesses include: maintaining good customer services skills and relationships; having a strong commitment to product/service quality; and having honest employees with sound professional ii knowledge and a positive morale. The least important success factors include: trade exhibitions and business fairs; small business legislation; and industry structure and competition. Finally, the hypothesis tests indicate that significant differences only exist between: the relationship statuses and business factors and the business sectors and environmental factors. The results of this research have significant practical implications for the various stakeholders of entrepreneurship. It is hoped that the results will add to the existing body of knowledge and in turn aid South Africa in becoming aware of the factors essential for small business success. In doing so, South Africa at large will be able to take full advantage of entrepreneurship and small business creation, which continue to remain well within its reach
- Full Text:
- Date Issued: 2013
- Authors: Wilmot, Chloé Margot
- Date: 2013
- Subjects: Small business -- South Africa -- Port Elizabeth Job creation -- South Africa Entrepreneurship -- South Africa Success in business -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1162 , http://hdl.handle.net/10962/d1001629
- Description: South Africa has one of the highest unemployment rates in the world, currently 23.90%. One way for the government and policy-makers of South Africa to address this dire statistic is through the fostering and promotion of entrepreneurship and small business creation. The benefits of entrepreneurship are numerous and can include: increasing a country’s productivity, enhancing the welfare and well-being of its citizens, reducing emigration rates, improving economic development and perhaps, most importantly, increasing employment rates. Worldwide, small businesses within the private sector have become indispensable to sustainable job creation and therefore it is of the utmost importance that small businesses in any economy develop, grow and succeed. Despite the fact that research pertaining to small businesses has increased over the years, little empirical evidence has been established. In particular, research into what makes small businesses successful has been limited. Entrepreneurial activity in South Africa remains less than ideal and therefore it is appropriate that research into the success factors of small businesses in South Africa be investigated. Furthermore, the survival of South African small businesses beyond four to five years of being in operation is estimated at only 20.00%. It is evident that a lack of knowledge exists and with respect to this research the factors found to be the most common determinants of success for small businesses in Port Elizabeth were determined and investigated. Convenience- and snowball sampling techniques were used to identify potential participants. In total 43 usable questionnaires were returned. Methodological triangulation was used to analyse the data, according to descriptive- and inferential statistics, as well as content analysis. This being so, the research was conducted within two paradigms, primarily, the positivist research paradigm and also the phenomenological research paradigm. The key findings of this study indicate personal factors to be the most important success factor group, while the environmental success factor group is considered the least important. The most important factors attributable to the success of participants’ small businesses include: maintaining good customer services skills and relationships; having a strong commitment to product/service quality; and having honest employees with sound professional ii knowledge and a positive morale. The least important success factors include: trade exhibitions and business fairs; small business legislation; and industry structure and competition. Finally, the hypothesis tests indicate that significant differences only exist between: the relationship statuses and business factors and the business sectors and environmental factors. The results of this research have significant practical implications for the various stakeholders of entrepreneurship. It is hoped that the results will add to the existing body of knowledge and in turn aid South Africa in becoming aware of the factors essential for small business success. In doing so, South Africa at large will be able to take full advantage of entrepreneurship and small business creation, which continue to remain well within its reach
- Full Text:
- Date Issued: 2013
China's African FDI safari : opportunistic exploitation or muturally beneficial to all participants
- Dreier, Tina, Rhodes University
- Authors: Dreier, Tina , Rhodes University
- Date: 2013 , 2013-04-10
- Subjects: Africa -- Foreign economic relations -- China , China -- Foreign economic relations -- Africa , Investments, Foreign -- China , Foreign direct investment
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:929 , http://hdl.handle.net/10962/d1001455 , Africa -- Foreign economic relations -- China , China -- Foreign economic relations -- Africa , Investments, Foreign -- China
- Description: When implemented within a favourable legislative framework, Foreign Direct Investment (FDI) can produce domestic growth-enhancing spillovers in host countries. Other potential positive effects include the provision of investment capital, the creation of local employment and the transfer of sophisticated technology or advanced knowledge. African nations in particular have been historically reliant on externally-provided funds. Prevailing low income levels, marginal savings rates and the absence of functioning financial markets necessary to provide local start-up capital continue to keep Africa reliant on foreign inflows. Considering China’s increasing financial commitments to Sub- Saharan Africa (SSA) over the last decade, this study examines the state of current Sino-African investment relationships. Specific attention is paid to the outcomes of this strategic bilateral alliance in order to determine whether or not a mutually beneficial investment relationship has evolved. The distinct nature and structure of, the motivation behind and the most significant determinants of Chinese FDI to SSA are all analysed in accordance with traditional FDI theories. A case study approach is used to establish whether China’s contemporary interest in SSA differs from historical investments and to also investigate country-specific commonalities and differences. Of particular relevance to SSA are resource-backed Chinese loans that finance major infrastructure projects in host nations. Interestingly, a lot of the Sino-African investment packages resemble similar deals struck between China and Japan in the 1970s. The results of this study indicate that China’s investment motives seem more diverse than initially expected. Resource-seeking, profit-seeking and market access-seeking reasons appear to be the most important motives. After establishing the Top- Ten recipients of Chinese FDI in SSA, these nations are then classified into three major categories: resource-, oil- or agricultural-rich nations. Undiversified resource- or oil-rich economies are found to have secured the largest shares of Chinese FDI. This study suggests that China’s contemporary “African Safari” is an unconventional way of providing financial assistance. Rather than solely supplying FDI, China finances a diverse mix of instruments, the most important being concessional loans, export credits, zero-interest loans and the establishment of Special Economic Zones. A profound difference to traditional Western investment packages is China’s non-interference approach. Accordingly, Beijing not only refrains from intervening in host countries’ domestic affairs but also refuses to attach formal conditionalties to its loans. China’s “financial safari” into Africa has produced many positive as well as negative effects in host countries. Nevertheless, it would seem that the positive effects outweigh the negative and China’s FDI could contribute to sustainable development in SSA
- Full Text:
- Date Issued: 2013
- Authors: Dreier, Tina , Rhodes University
- Date: 2013 , 2013-04-10
- Subjects: Africa -- Foreign economic relations -- China , China -- Foreign economic relations -- Africa , Investments, Foreign -- China , Foreign direct investment
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:929 , http://hdl.handle.net/10962/d1001455 , Africa -- Foreign economic relations -- China , China -- Foreign economic relations -- Africa , Investments, Foreign -- China
- Description: When implemented within a favourable legislative framework, Foreign Direct Investment (FDI) can produce domestic growth-enhancing spillovers in host countries. Other potential positive effects include the provision of investment capital, the creation of local employment and the transfer of sophisticated technology or advanced knowledge. African nations in particular have been historically reliant on externally-provided funds. Prevailing low income levels, marginal savings rates and the absence of functioning financial markets necessary to provide local start-up capital continue to keep Africa reliant on foreign inflows. Considering China’s increasing financial commitments to Sub- Saharan Africa (SSA) over the last decade, this study examines the state of current Sino-African investment relationships. Specific attention is paid to the outcomes of this strategic bilateral alliance in order to determine whether or not a mutually beneficial investment relationship has evolved. The distinct nature and structure of, the motivation behind and the most significant determinants of Chinese FDI to SSA are all analysed in accordance with traditional FDI theories. A case study approach is used to establish whether China’s contemporary interest in SSA differs from historical investments and to also investigate country-specific commonalities and differences. Of particular relevance to SSA are resource-backed Chinese loans that finance major infrastructure projects in host nations. Interestingly, a lot of the Sino-African investment packages resemble similar deals struck between China and Japan in the 1970s. The results of this study indicate that China’s investment motives seem more diverse than initially expected. Resource-seeking, profit-seeking and market access-seeking reasons appear to be the most important motives. After establishing the Top- Ten recipients of Chinese FDI in SSA, these nations are then classified into three major categories: resource-, oil- or agricultural-rich nations. Undiversified resource- or oil-rich economies are found to have secured the largest shares of Chinese FDI. This study suggests that China’s contemporary “African Safari” is an unconventional way of providing financial assistance. Rather than solely supplying FDI, China finances a diverse mix of instruments, the most important being concessional loans, export credits, zero-interest loans and the establishment of Special Economic Zones. A profound difference to traditional Western investment packages is China’s non-interference approach. Accordingly, Beijing not only refrains from intervening in host countries’ domestic affairs but also refuses to attach formal conditionalties to its loans. China’s “financial safari” into Africa has produced many positive as well as negative effects in host countries. Nevertheless, it would seem that the positive effects outweigh the negative and China’s FDI could contribute to sustainable development in SSA
- Full Text:
- Date Issued: 2013