Corporate social responsibility of private game reserves in the Eastern Cape Province
- Authors: Motala, Amina Sadiq
- Date: 2013
- Subjects: Social responsibility of busines -- South Africa -- Eastern Cape Game reserves -- South Africa -- Eastern Cape Ecotourism -- South Africa -- Eastern Cape Environmental responsibility -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1187 , http://hdl.handle.net/10962/d1004335
- Description: The primary aim of this research study was to determine the current state of practice of corporate social responsibility (CSR) within the ecotourism based private game reserve (PGR) industry in the Eastern Cape Province of South Africa. According to Carroll (1991) four kind of responsibilities constitute total CSR, namely economic, legal, ethical and philanthropic responsibilities. Given the context of this research a fifth responsibility concerning environmental responsibilities was added to Carroll 's (1991) pyramid ofCSR. A descriptive and illustrative case study approach, within the phenomenological research paradigm, was used for the purpose of this research. The unit of analysis is the Indalo group, the Association of Eastern Cape Private Game Reserves, made up of 12 ecotourism based PORs. As the current research focused on eight of the twelve PGRs a mUltiple case study was employed. To give effect to the aim a number of research objectives were identified. Firstly to desclibe and assess the current practice in implementing CSR within the ecotourism based PGR industry in the Eastern Cape Province. Secondly, to assess and evaluate the involvement of ecotourism based PGRs in the Eastern Cape Province in each of the five responsibilities comprising CSR. Thirdly, to identify the challenges faced by ecotourism based PGRs in the Eastern Cape Province with regard to the implementation of CSR initiatives. Lastly to provide pertinent conclusions and recommendations with regard to CSR strategies within the ecotourism based PGR industry in the Eastern Cape Province. Data were collected by means of in-depth interviews with the managers of each reserve. In addition the researcher conducted focus interviews with administrative employees at each of the member reserves of the Indalo group. Additionally the managers of each reserve were requested to respond to a structured five point Likert scale questionnaire based on the research by Aupperle, Carroll and Hatfield (1985). This research study found that the current practice at the Indalo group is towards a strategic, long term approach to CSR that aids in the development of a 'sustainable organisation.' The aspect of ' empowerment' emerged as the essence of the current practice ofCSR of the Indalo group. Based on the current practice it was concluded that the Indalo group is actively involved in the specific components of CSR namely, environmental, economic, legal, ethical and philanthropic responsibilities. With regard to the environmental responsibilities it was concluded that the environment is the foundation upon which all other components of CSR rest. In addition it was concluded that the economic responsibilities, if managed well, are key to unlocking the CSR potential of a reserve as well as ensuring widespread economic development. In terms of the legal and ethical responsibilities it was concluded that tourism policies both at the national and international level have not aided in the development of a CSR agenda of the Indalo group. Furthermore managers of the reserves have been instrumental in cultivating their own legal culture of CSR based on their experience in the tourism industry and their ethical stances. In terms of the philanthropic responsibilities it can be concluded that charitable activities that are long term and strategic in nature allow for direct and indirect benefits to all parties involved. Overall, it can further be concluded that despite Hudson and Miller's (2005:5) view that the "tourism industry is well hehind other industries in terms of CSR" the Indalo group is moving forward in terms of rooting CSR into their everyday operations.
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Factors influencing the successful adoption of mobile commerce services
- Authors: De Sousa, Sergio Anthony David
- Date: 2013
- Subjects: Mobile commerce Electronic commerce Wireless communication systems Mobile communication systems Computer networks
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1152 , http://hdl.handle.net/10962/d1008184
- Description: Mobile Commerce (MC) can be defined as any transaction carried out over a wireless network, using a wireless device, such as a mobile phone, and that has monetary value (Wang and Liao, 2007). MC is a rapidly developing industry in tenns of its technological capabilities. With these increasing developments, come greater forecasts of potential benefits to societies, economies, industries and individuals. However, the growth and development ofthe underlying MC technology, has not been met by the creation and adoption of the services meant to accompany MC. It is said that the success of MC will ultimately lie in its services. As MC Service Providers (MCSP) are responsible for delivering these MC Services (MCS), the success ofMC can be said to rest on them. In order for MCSs to be successfully adopted, both the initial use and continuous use thereof should be targeted. In other words those that have used MCSs (users) and those that have yet to use MCSs (non-users) should be targeted. It is thus pivotal that an understanding of the factors that generate MCS adoption be sought. This research purposed to uncover the factors that generate MCS adoption within the user and nonuser group. In defining successful adoption ofMCS's, two separate measures were used for each group. User satisfaction is a well accepted construct among researchers for measuring system success among users. User satisfaction is also accepted to be a detenninant of service re-use and loyalty. Intention to use is a measure used for MC success among non-users and is accepted to be a detenninant of actual use. Factors affecting both detenninants, user satisfaction and intention to use, were investigated. After a review ofliterature and current models, ten (10) factors were hypothesised to be significant factors in determining user satisfaction and intention to use namely: ease of use, cost, speed, personalisation, pennission, privacy, security, convenience, relationship (with MCSP) and awareness. A questionnaire was developed to test the hypothesised factors. Not all factors were proven to have a significant impact on both user satisfactions and intention to use. One main recommendation is that both initial and continuous adoption should be the focus ofMC strategy. Services that cater to specific user needs and offer convenience at a low cost should be offered. MCSPs can use the factors proved to be significant to generate and evaluate their service offering, to users and non users, to increase the probability of successful adoption from initial to continuous use. The research concludes that MCSPs need to begin to offer MCSs that meet user needs and add value to their lives in order to realise the professed potential ofMC.
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Government debt levels and the systemic risks associated with post-crisis fiscal policies
- Authors: Koekemoer, Jonathan
- Date: 2013
- Subjects: Finance, Public Debts, Public -- South Africa Fiscal policy Monetary policy -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1031 , http://hdl.handle.net/10962/d1004168
- Description: The study analyses the concepts of intergenerational equity and fiscal sustainability in South Africa. The question raised is whether or not South Africa can adopt stimulatory fiscal measures, with a simultaneous increase in debt, so as to improve long-term growth potential in a sustainable manner without creating an excessive burden on future generations. The debate surrounding the use of stimulatory fiscal policy has come to the fore once again as monetary policy has become a restricted and ineffective macroeconomic policy tool in certain countries after the world-wide financial crisis and the Euro-debt crisis. Fiscal sustainability risks and high debt levels remain a source of concern in the United States and the Euro-zone, while South Africa presently seems to be at no great risk. With South Africa’s intention to become a developmental state, the use and appropriateness of fiscal policy is considered. An overlapping-generations model is used to determine whether or not future generations will be burdened due to current stimulatory policy. The use of fiscal rules in South Africa is discussed and considered in light of various political incentives and constraints. The conclusion given is that the possible use of a procedural fiscal rule, such as the ‘golden rule’, may add credibility to the current regime, while a numerical fiscal rule is seen as unnecessary given South Africa’s responsible use of fiscal policy thus far. As it stands, there is little possibility or risk that the public debt in South Africa will become too high in the near future. Although South Africa has been affected by the crisis, the developmental nature of the economy has been sustained through the use of responsible discretionary fiscal policy, putting South Africa in a positive position to meet its long-run growth potential.
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Investigating the problems experienced by virtual team members engaged in requirements elicitation
- Authors: De Abrew, Upuli Kanchana
- Date: 2013
- Subjects: Virtual work teams Virtual work teams -- South Africa System design System analysis
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1151 , http://hdl.handle.net/10962/d1007845
- Description: The constant acceleration in the rate of technological innovation, and the ever growing emphasis on the importance of information for competition has seen organisations around the world strive for the technologies that give them global customer reach. One of the most pervasive technological innovations developed is the internet, and its unique quality of being able to draw people from across the world together in one virtual space has given birth to the concept of virtual teams. Organisations have seized the advantages of such virtual teams to give them the cost and time reductions they need to stay competitive in the global marketplace. In the software industry, where product and service development is always a race against time, forward thinking software companies in the developed world have taken full advantage of the cost and time saving benefits that virtual teams have to offer. In addition, the rate of expansion of technology and software to support such teams is also growing exponentially, offering increasingly faster ways of virtual working. Despite the immense advantages offered by such teams, South African software development companies do not seem to engage in distributed work to any great degree. The importance of this research rests on the belief that South African software development companies will be unable to avoid engaging in distributed software development if they are to achieve and maintain competitiveness in the global marketplace. This research focuses on a sub-section of the software development process with a specific reference to South African software development. The requirements elicitation phase of software development is one of the initial stages of any software project. It is here that developers work with the users in order to identify requirements for the system to be built. It is acknowledged that other phases of distributed development also bring to bear their own problems, however, in the interests of scoping this research, only the requirements elicitation process is focused on. The research shows that most techniques of requirements elicitation can be adapted for use within the virtual environment, although each technique has its share of advantages and disadvantages. In addition, virtual team members experience problems during their general, day-to-day interactions, many of these arising from the dependence on technology for communication and task performance. The research identifies the problems in both categories, and develops a holistic model of virtual requirements elicitation to prevent or solve the problems experienced by virtual teams engaged in distributed requirements elicitation. The model is made up of three key frameworks, each of which prescribes actions to be taken to ensure the success of the virtual team within the requirements elicitation process. The model is verified through the testing of its critical success factors. Certain aspects of the model were adapted based on the findings of the study, but it was confirmed that the rationale behind the model is sound, indicating that it has the potential to solve the problems of virtual RE when implemented.
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Modelling stock return volatility dynamics in selected African markets
- Authors: King, Daniel Jonathan
- Date: 2013
- Subjects: Rate of return -- Africa Stocks -- Prices -- Africa Finance -- Developing countries -- Econometric models
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1051 , http://hdl.handle.net/10962/d1006452
- Description: Stock return volatility has been shown to occasionally exhibit discrete structural shifts. These shifts are particularly evident in the transition from ‘normal’ to crisis periods, and tend to be more pronounced in developing markets. This study aims to establish whether accounting for structural changes in the conditional variance process, through the use of Markov-switching models, improves estimates and forecasts of stock return volatility over those of the more conventional single-state (G)ARCH models, within and across selected African markets for the period 2002-2012. In the univariate portion of the study, the performances of various Markov-switching models are tested against a single-state benchmark model through the use of in-sample goodness-of-fit and predictive ability measures. In the multivariate context, the single-state and Markov-switching models are comparatively assessed according to their usefulness in constructing optimal stock portfolios. It is found that, even after accounting for structural breaks in the conditional variance process, conventional GARCH effects remain important to capturing the heteroscedasticity evident in the data. However, those univariate models which include a GARCH term are shown to perform comparatively poorly when used for forecasting purposes. Additionally, in the multivariate study, the use of Markov-switching variance-covariance estimates improves risk-adjusted portfolio returns when compared to portfolios that are constructed using the more conventional single-state models. While there is evidence that the use of some Markov-switching models can result in better forecasts and higher risk-adjusted returns than those models which include GARCH effects, the inability of the simpler Markov-switching models to fully capture the heteroscedasticity in the data remains problematic.
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Money supply endogeneity : an empirical investigation of South African data (2000Q1-2011Q4)
- Authors: Schady, Stuart William
- Date: 2013 , 2013-04-29
- Subjects: Monetary policy -- South Africa , Inflation targeting -- South Africa , Gross domestic product -- South Africa , Bank loans -- South Africa , Money supply -- South Africa , Endogenous growth (Economics) , Domestic credit extension
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:928 , http://hdl.handle.net/10962/d1001454 , Monetary policy -- South Africa , Inflation targeting -- South Africa , Gross domestic product -- South Africa , Bank loans -- South Africa , Money supply -- South Africa , Endogenous growth (Economics)
- Description: This study is about whether the money supply in South Africa under a monetary policy regime of inflation‐targeting is exogenously or endogenously determined. The proposition of an exogenous money supply has been offered by monetarists, where the Central Bank determines the quantity of money supplied to the economy and this has a causal influence on income and credit extension. The endogenous money theory is a post‐Keynesian proposition whereby the money creation is determined by banks adjusting their responses to demands for credit‐money from economic agents. The data analysis is from 2000Q1 to 2010Q4 and entails the use of the variables monetary base (MB), domestic credit extension (DCE), M3, and gross national product (GDP). All variables are logged. The empirical tests conducted start with the Augmented Dickey‐Fuller unit root test to determine the variables order of integration. Johansen cointegration tests are done followed by Vector Error‐Correction Models (VECMs) and Granger causality tests to determine whether there is unidirectional or bidirectional causality between variables over the long and short‐run. Based on the results of the testing it was discovered that over the inflation‐targeting regime money supply in South Africa was endogenously determined. Furthermore, the data best supports the Accommodationist analysis of endogenous money as opposed to that of Structuralism and Liquidity Preference , Adobe Acrobat 9.53 Paper Capture Plug-in
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Taxing recurrent services rendered by a foreign company to an associated enterprise in South Africa
- Authors: Costa, David Patrick Anthony
- Date: 2013
- Subjects: Vienna Convention on the Law of Treaties (1969) Tax administration and procedure -- South Africa Double taxation -- South Africa Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:906 , http://hdl.handle.net/10962/d1008269
- Description: The objective of the study was to investigate the right of the South African Government to tax the income earned by a foreign company when rendering services in South Africa to a South African associated enterprise on a recurrent basis, together with the right to tax the amounts paid to the employees of the permanent establishment for services rendered in South Africa. At the same time the research investigated whether the services rendered by a foreign company to an associated enterprise in South Africa on a recurrent basis would constitute a permanent establishment, as this is essential before South Africa may tax either the foreign company or the employees of the permanent establishment (where such employees are not resident in South Africa).The research was conducted by means of a critical analysis of documentary data and data from a limited number of interviews with academics and the authors of textbooks and articles. In order to limit the scope of the research, a number of assumptions were made. Conflicting viewpoints underlying certain of these assumptions were discussed. Some of the important conclusions reached are that the provisions of the Vienna Convention on the Law of Treaties should be taken into account when interpreting South African legislation (including Double Tax Agreements), and that the Organisation for Economic Cooperation and Development (OECD) Commentary may be relied upon when interpreting OECD based Double Tax Agreements in South Africa. No conclusion was reached on whether to apply an ambulatory or a static basis of interpreting the OECD Commentary, however. The final conclusion of the research is that the services rendered in South Africa on a recurrent basis would be geographically and commercially coherent and consequently meet the "location test'. It is clear that as the services are rendered regularly and recurrently, they would be regarded as having the necessary permanence and would meet the 'duration test'. The place of business would therefore be regarded as being fixed (having the necessary degree of permanence). As the services would be rendered at the place of business of the South African entity, they would be regarded as being rendered 'through' the place of business and the foreign entity would be regarded as having a permanent establishment in South Africa (as defined in Article 5(1) of the OECD Model Tax Convention}. The South African Government would therefore be entitled to tax the income attributable to the permanent establishment and the income earned by the non resident employees, who rendered services in South Africa for the permanent establishment. Once the entitlement to tax exists, South African legislative rules determine how South Africa proceeds to tax the income.
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The bank lending and balance sheet channels of monetary policy: a theoretical analysis
- Authors: Gumede, Nomdumiso Beryl
- Date: 2013
- Subjects: Monetary policy Money Bank loans Financial sheets
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:933 , http://hdl.handle.net/10962/d1001864
- Description: The credit channel and its significance in the monetary policy transmission mechanism has been a point of contention among policy makers and economists for many years. In the early stages of this debate the monetarist view shaped thinking on the topic and cultivated the belief that the money supply is exogenously determined and that commercial banks playa minor role in the monetary transmission process. However, over the years, the credit view presented by Bernanke and Blinder (1988) has gained momentum. In contrast to the monetarist view, the credit view abandons the assumption of perfect substitutability and argues that due to their credit provision activities, financial institutions playa significant role in the transmission of monetary policy. The credit channel consists of two sub channels, the bank lending and balance sheet channels. In both, deposits drive loans and changes in monetary policy are effected through interest rates and their impact on borrowers' balance sheets, bank reserves, bank deposits and ultimately the quantity of bank loans supplied. Disyatat (2010) re-examines the conventional view and presents an argument against the foundation upon which the theories are based. Using this as a basis, and motivated by the vast amount of empirical literature that already exists on this topic, both in South Africa and abroad, this research provides a theoretical analysis of the credit channel and its relative importance in the monetary policy transmission mechanism. The exogenous/endogenous nature of money supply is considered and its implications for the existence and operation of the credit channel set out. It is found that, in order for a credit channel to operate efficiently in an economy, money supply should be endogenously determined. Moreover, a theoretical argument supporting Disyatat's (2010) revised credit channel is presented; it is concluded that, with a slight variation to Disyatat's proposed model, a single, unified channel exists.
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The effect of global e-commerce on taxation legislation and the permanent establishment concept in South Africa
- Authors: Young, Nikita Jade
- Date: 2013
- Subjects: Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa , South African taxation , E-commerce , Permanent establishment , Foreign business entity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:876 , http://hdl.handle.net/10962/d1001608 , Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa
- Description: The objective of this thesis was to analyse the effect of the increasing popularity of global e-commerce on the South African legislative framework in respect of the taxation of non-resident enterprises, and to propose a possible solution for the taxation of e-commerce, taking into account previous theories. The methodology utilised comprised of a critical analysis of the legal rules relating to the taxation of a foreign entity's business profits by virtue of the application of the permanent establishment principle, its definition and evolution as a conceptual basis for taxation. Furthermore, an in depth evaluation of the various solutions that have already been proposed and, in some cases, implemented was undertaken. It was concluded that the application of the permanent establishment principle is wholly ineffective as a means to levy tax on the e-commerce business profits of a foreign entity as the principle relies too heavily upon a physical intermediary in the source state, whereas e-commerce transactions are conducted on the intangible trading platform of the Internet. In light of the numerous policy proposals advanced over the years, it was concluded that the most feasible and practical solution for the taxation of foreign e-commerce would be the imposition on a foreign entity in South Africa of a low withholding tax on the active business profits in excess of a pre-determined threshold. Key words: South African taxation; e-commerce; foreign business entity; permanent establishment; withholding tax
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The feasibility of forming a monetary union in SADC : meeting convergence and optimum currency area criteria and evaluating fiscal sustainability
- Authors: Mokoena, Motshidisi Suzan
- Date: 2013
- Subjects: Southern African Development Community Economic and Monetary Union Common Monetary Area (Organization) Economic policy -- Africa, Southern Monetary policy -- Africa, Southern Monetary unions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1073 , http://hdl.handle.net/10962/d1007743
- Description: In conformity with the goal of the African Union to build a monetary union for the entire African continent, one of the goals of the Southern African Development Community (SADC) is the formation of a monetary union with a single central bank. Towards this end certain macroeconomic convergence criteria, which are closely aligned with those used by the European Union (EU), have been set. While empirical research on whether or not SADC would benefit from the formation of a currency union has focused on the optimum currency area criteria, no reference to these criteria is made in the SADC programme. Instead, the SADC approach has been governed by a set of macroeconomic convergence criteria synonymous with those pursued by the European Monetary Union (EMU) prior to its formation. Doubts regarding the future of the EU have recently been raised as a result of debt crises in certain member states, implicitly raising questions about the adequacy of the convergence criteria that were adopted. Accordingly, this study considers the feasibility of establishing a currency union in the SADC region. The proposed convergence criteria are assessed against the theory of optimum currency areas as well as in terms of their adequacy in the light of recent EU experience. In addition, the paper provides a preliminary assessment of the fiscal sustainability of the SADC region by conducting Engle-Granger cointegration tests on the public debt and revenue series for the SADC countries under analysis. It was observed that SADC has made considerable progress towards meeting its macroeconomic convergence criteria in recent years. However, in light of the regions' heavy dependence on commodity exports coupled with recent price fluctuations in this regard, the sustainability of this progress is questioned. Furthermore, a review of the EMU experience to date highlights numerous flaws in its approach and the potential challenges the SADC region should consider in moving forward with its agenda. In essence, the study suggests that almost all the SADC member states are fiscally unprepared for monetary union formation and the recent EMU debt crisis has highlighted the importance of acquiring a state of fiscal sustainability prior to union formation. In addition, it is imperative that the SADC members continue to address issues of product diversification, intraregional trade and political unification, all of which should be governed by a centralised fiscal authoriry.
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The impact of estate planning on the effectiveness of estate duty as a wealth tax in South Africa
- Authors: Ostler, Luise Marie
- Date: 2013
- Subjects: Wealth tax -- Law and legislation -- South Africa Estates (Law) -- South Africa Inheritance and transfer tax -- Law and legislation -- South Africa Estate planning -- South Africa Tax planning -- South Africa Capital gains tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:894 , http://hdl.handle.net/10962/d1003741
- Description: The thesis examined the current system of the taxation of wealth in South Africa with an emphasis on the taxes that apply upon the death of the taxpayer. The focus of the research was on the problems associated with estate duty, namely the issue of double taxation; the alleged cumbersome administration of the tax and the limited revenue that it brings in; it’s questionable efficacy due to extensive estate planning on the part of taxpayers while they are still alive and its lack of uniformity with other wealth taxes. An interpretative research approach was followed which involved analysing documentary data. The conclusions that were reached were that estate duty as a wealth tax in South Africa has been rendered ineffective due to the inherent problems associated with its application, namely the fact that double taxation exists, not only in the context of capital gains tax, but also in that taxpayers resent being taxed upon death after having paid income tax during their lives. The perceived unfairness that is associated with estate duty has caused the creation of a secondary industry of estate planning, with the aim of minimising estate duty, which industry has resulted in the ineffectiveness of estate duty and its limited revenue. No evidence could be found regarding the Treasury’s assertion that estate duty is a cumbersome tax to administer. The final conclusion reached was that the current estate duty regime needs to be overhauled preferably by extending the current system of capital gains tax and abolishing estate duty, with due consideration being given to the consequences associated therewith.
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The interest rate elasticity of credit demand and the balance sheet channel of monetary policy transmission in South Africa
- Authors: Doig, Gregory Graham
- Date: 2013
- Subjects: Monetary policy -- South Africa Banks and banking -- South Africa Bank loans -- South Africa Finance -- South Africa Vector autoregression (VAR) approach to econometric modeling Financial statements Interest rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1052 , http://hdl.handle.net/10962/d1006482
- Description: It has long been accepted that changes in monetary policy have real economic effects; however, the mechanism by which these policy changes are transmitted to the real economy has been the subject of much debate. Traditionally the transmission mechanism of monetary policy has consisted of various channels which include the money channel, the asset price channel and the exchange rate channel. Recent developments in economic theory have led to a relatively new channel of policy transmission, termed the credit channel. The credit channel consists of the bank lending channel as well as the balance sheet channel, and focuses on the demand for credit as the variable of interest. The credit channel is based on the notion that demanders and suppliers of credit face asymmetric information problems which create a gap between the cost of external funds and the cost of internally generated funds, referred to as the wedge. The aim here is to determine the size and lag length effects of changes in credit demand, by both firms as well as households, as a result of changes in interest rates. A secondary, but subordinate, aim is to test for a balance sheet channel of monetary policy transmission. A vector autoregressive (VAR) model is used in conjunction with causality tests, impulse response functions and variance decompositions to achieve the stated objectives. Results indicate that the interest rate elasticity of credit demand, for both firms and households, is interest inelastic and therefore the monetary policy authorities have a limited ability to influence credit demand in the short as well as medium term. In light of the second aim, only weak evidence of a balance sheet channel of policy transmission is found.
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The power of investor sentiment: an analysis of the impact of investor confidence on South African financial markets
- Authors: Argyros, Robert
- Date: 2013
- Subjects: Johannesburg Stock Exchange Stockholders Stocks -- Prices -- South Africa Stock Exchanges Investments
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1032 , http://hdl.handle.net/10962/d1004169
- Description: Whether investor sentiment has any authority over financial markets has long been a topic of discussion in the field of finance. This study investigates the relationship between investor sentiment and share returns in South Africa. Determining this relationship will add to the existing work which has documented important determinants of share returns on the stock exchange in South Africa, as well adding to the inconclusive link between sentiment and the South African financial markets. Does sentiment influence share returns or do share returns influence sentiment? Using quarterly data for the period 1996-2010, the study makes use of the FNB/BER Consumer Confidence Index as a proxy for investor sentiment, and the FTSE/JSE All Share Index to represent the South African financial markets. A regression analysis was conducted along with granger-causality tests, impulse response functions and variance decompositions in order to determine the nature of this relationship. The results showed that investor sentiment has a statistically significant relationship with share returns in South Africa. However, sentiment is only able to account for a very small portion of the variation in returns, with returns able to account for a larger portion of the variation in sentiment. Therefore investor sentiment is not a suitable predictor of share returns in South Africa. In addition, granger-causality tests indicate that returns are actually the leading indicator, suggesting that changes in South African investors’ confidence levels occur following changes in the state of the JSE. The limitations of the study include the infrequent nature of the sentiment measure used, thereby failing to capture important changes in sentiment and their immediate impact on financial markets. In addition, the sentiment of foreign investors must be taken into account due to the large foreign investment in the JSE.
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The tax treatment of receipts and accruals arising from equity option contracts
- Authors: Doidge, Stephen
- Date: 2013
- Subjects: Derivative securities Options (Finance) Swaps (Finance) Income tax -- Law and legislation -- South Africa Taxation -- South Africa Futures
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:903 , http://hdl.handle.net/10962/d1007921
- Description: In this thesis the tax treatment of equity option contracts is examined. The writer gives an overview of the derivatives market in general and discusses the nature and effect of equity options in detail. Limited amendments have been made to the South African Income Tax Act No 58 of 1962 ('the Act') since the emergence of derivative instruments and at present only three types of derivative instruments are recognised: forward exchange and option contracts relating to forward exchange, interest rate swaps based on notional capital amounts and option contracts. Other than section 241 of the Act which deems all receipts and accruals from foreign exchange contracts to be income, the other sections dealing with derivatives do not concern themselves with capital or revenue classification. Accordingly, the classification of receipts and accruals arising from an equity option transaction is generally governed by the ordinary principles of South African tax law with the added problem of there being limited South African case law applying these general prinCiples to such transactions. The research undertaken in this thesis results in the establishment of a framework designed to determine the classification as revenue or capital the receipts and accruals arising from equity option contracts. Speculating, trading and investing in equity options is examined with regard to the general principles of South African tax and available case law. Hedging transactions are analysed with specific reference to their exact nature as well as general tax principles and available case law. The analogy of Krugerrands is used to draw parallels with the tax treatment of receipts and accruals arising from equity options used for hedging purposes. Once the theoretical framework has been established for revenue or capital classification, the actual tax treatment of both revenue and capital receipts is examined with reference to the Act and issues such as the gross income definition, the general deduction formula, trading stock and timing provisions are analysed and applied to receipts and accruals arising from equity option transactions. The thesis concludes with a summary of the findings and recommendations are made based on the research conducted.
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The use of tax incentive measure in conjunction with carbon taxes to reduce greenhouse gas emissions and achieve economic growth: a comparative study with lessons for South Africa
- Authors: Poole, Richard
- Date: 2013
- Subjects: Elasticity (Economics) , Substitution (Economics) , Carbon taxes , Carbon taxes -- South Africa , Greenhouse gas mitigation , Greenhouse gas mitigation--South Africa , United Nations Framework Convention on Climate Change -- (1992). Protocols, etc. -- 1997 Dec. 11 , Kyoto Protocol , Substitution elasticity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:875 , http://hdl.handle.net/10962/d1001607 , Elasticity (Economics) , Substitution (Economics) , Carbon taxes , Carbon taxes -- South Africa , Greenhouse gas mitigation , Greenhouse gas mitigation--South Africa , United Nations Framework Convention on Climate Change -- (1992). Protocols, etc. -- 1997 Dec. 11
- Description: In 1997 industrialized nations, the Third Conference of the Parties to the United Nations Framework Convention on Climate Change, met in Kyoto, Japan to sign a treaty (the “Kyoto Protocol”) in terms of which industrialized nations would be required to reduce their greenhouse gas emission by at least five percent below 1990 levels by the end of the “first commitment period” 2008-2012. South Africa is not regarded as an industrialized nation, but nonetheless acceded to the Kyoto Protocol in 2002. The literature reviewed in the present research reveals that, although idealistic, the Kyoto Protocol has been problematic. Fourteen meetings of the Conference of Parties to the Kyoto Protocol between 1997 and 2011 have achieved little more than to repeatedly defer and redefine Kyoto obligations. This research was undertaken to document the existing environmental taxation policies employed in selected international jurisdictions with a view to providing a framework for environmental tax policy formation in South Africa to assist this country in meeting its “greenhouse gas” emission targets, while at the same time promoting economic growth. A doctrinal research methodology was adopted in this study as it mainly analysed and interpreted legislation and policy documents and therefore the approach was qualitative in nature. An extensive literature survey was performed to document the various environmental policies that have been legislated in the selected jurisdictions. Comparisons were drawn with proposed tax policy measures for South Africa. The literature indicates that in the selected international jurisdictions carbon taxes achieved less-than-optimal results, largely due to political and industry-competitive agendas. With South Africa planning to introduce a carbon tax, it is submitted that the implementation of a carbon tax regime in isolation will be counter-productive, given South Africa’s economic profile. On the basis of the literature reviewed, it was concluded that South Africa should consider “recycling” carbon tax revenues within the economy to fund a broad-based tax incentive regime that will stimulate the change to non-carbon energy whilst promoting growth through sustainable development
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Value and size investment strategies: evidence from the cross-section of returns in the South African equity market
- Authors: Barnard, Kevin John
- Date: 2013
- Subjects: Financial risk -- South Africa , Saving and investment -- South Africa , Stock exchanges -- South Africa , Investments -- Psychological aspects , Investments -- Decision making , Value premium , Size effect , Rational finance , Behavioural finance , South African equity markets
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:874 , http://hdl.handle.net/10962/d1001606 , Financial risk -- South Africa , Saving and investment -- South Africa , Stock exchanges -- South Africa , Investments -- Psychological aspects , Investments -- Decision making
- Description: Value and size related equity investment strategies are supported by a large body of empirical research that shows a persistent premium, both longitudinally and crosssectionally. However, the competing rational and behavioural finance explanations for the success of these strategies are a subject of debate. The rational explanation is that the premium earned on value shares or shares of small companies can be attributed to higher risk. Behaviouralists argue that such shares are not riskier and attribute the premium to cognitive errors and biases in human decision making. The purpose of this study is to determine, firstly, whether the value and size premium exist in South Africa during the period July 2006 to June 2012, which includes one of the worst equity market crises in history. Secondly, this study sets out to determine whether the premium earned on value and size strategies are adequately explained by the principles of rational finance theory. To provide evidence regarding the existence of the value premium and size effect, returns are analysed, cross-sectionally, on portfolios of shares sorted by value and size. For evidence of a rational explanation, returns are regressed on value and size variables, and the relative riskiness of value and small companies is analysed. The results show evidence of a value premium in portfolios of small companies, but not big companies. The size effect is found not to be statistically significant. While regressions do show significant relationships between value and size variables and returns, these variables are found not to be associated with higher levels of risk. The conclusion is that the evidence does not support a rational, risk based explanation of the returns
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What future graduates will value in their leaders: a study across gender and culture
- Authors: Cox, Andrea
- Date: 2013
- Subjects: Leadership -- South Africa Leadership -- Evaluation -- South Africa Culture -- South Africa Social values -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1195 , http://hdl.handle.net/10962/d1008197
- Description: Effective leadership has been found to be a key determinant of organisational success. Effective leadership does not only involve the ability to influence and inspire others, it is the ability to lead subordinates according to the competencies that they value. The focus of this study is on determining what in fact the future South African graduate workforce will value in a leader. Effective leadership and the competencies that subordinate's value is especially relevant today as leadership is forced to contend with an increasingly diverse workforce. This diversity necessitates the need for a leadership style to be congruent with what subordinates of diverse genders and cultures will value, so to be effective. Existing studies have indicated that gender and culture influence what subordinate's value in a leader, however it is evident from the results of this study, that this is not entirely the case. Regarding gender, the female and male respondents in this study value similar competencies in their leader, indicating that there is no distinct set of competencies that will be valued by male and female graduates. With respect to culture, the respondents value a mixture of competencies that combine both African and Western leadership practices, values and philosophies, indicating that there is no distinct set of competencies that will be valued by African, Coloured, Indian and White graduates. On the basis of this research, the recommendation is that for leaders to be effective in the 21 st century, a leader must be loyal and inspirational, have vision and integrity and lastly must be open and honest with their subordinates
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A framework for the development and measurement of agile enterprise architecture
- Authors: Mthupha, Bokang
- Date: 2012
- Subjects: Management information systems -- Research Industrial management -- Technological innovations -- Research Industrial organization -- Technological innovations -- Research System design
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1147 , http://hdl.handle.net/10962/d1002777
- Description: Enterprise architecture is the high-level design of the entire business, facilitated by enterprise architects. "Agile enterprise architecture" is the term used in enterprise architecture to describe an architecture that caters for future unknowns, enabling change to occur rapidly without undue resource utilization, yet in a controlled manner and with minimal adverse impact. Some enterprise architects still use outdated, rigid approaches to enterprise architecture which are incompatible with today‟s business environment. In addition, there is limited research into methods that can be applied to measure the agility of enterprise architecture. The current environment is such that there is a need for a more agile approach to developing and measuring enterprise architecture. This work will lead to the creation of a Framework for The Development and Measurement of Agile Enterprise Architecture. In support of the main goal of the development of the framework, a literature review will be conducted focusing on the necessary sub-goals of the research. The first sub-goal of the literature review is to develop a comprehensive definition for enterprise architecture (referred to as EA), as well as discover how it is currently practiced. Thereafter, the literature review will investigate a comprehensive definition for agility and research why it is emerging as a critical topic. The next chapter of the literature review will research how agility fits within the context of EA, uncovering a comprehensive definition for agile EA and the best practices in agile EA development. The final chapter of the literature review will investigate suitable measurement techniques that can be used to assess the level of agility of EA. On completion of the literature review, a preliminary framework will be created using the most important contributions from the literature. An empirical study will be conducted to explore the definitions for EA, agility, agile EA, the methods to measure the agility of EA and the concepts for the development of agile EA summarised in the preliminary framework. Data analysis follows an interpretive and qualitative approach based on four case studies through interviews with systems experts in four South African organizations in one province. Each interviewee was interviewed once. The initial interview with a Principal Consultant on Enterprise Strategy Consulting at organisation # 1 formed the basis of an exploratory study; the results of which were used to refine the research instrument and preliminary framework. Thereafter, a more rigorous empirical study focused on interviews with the Chief Architect, Senior Manager in Advisory Services and an Enterprise Architect at organizations 2, 3 and 4 respectively was conducted. The research follows an inductive approach to capture the interpretive experiences of participants and develop theoretical propositions from them. Following the exploratory pilot study it became necessary to make changes to the preliminary framework and initial survey instrument created. Thereafter, the empirical study consisting of the remaining three cases was conducted to test the important aspects of the framework and literature definitions. The analysis of the results of the empirical study prompted further changes to the theoretical framework and definitions created. The interviews conducted with each of the organizations confirmed the factors for agile EA development as well as the effectiveness of the definitions created in the literature review. The research uncovered that the need for a more agile approach to developing EA and a way to measure the level of agility of EA has become more and more significant in organizations. This begins with a better understanding of EA, agility, how agility fits within the context of EA, as well as appropriate methods to measure agility.
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A South African perspective on the tax implications of virtual asset accumulation and transactions stemming from persistent virtual worlds
- Authors: Haupt, Alexander
- Date: 2012
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:884 , http://hdl.handle.net/10962/d1001638
- Description: Massively multiplayer online role-playing games are growing in popularity with millions of people participating in these persistent online environments on a daily basis. Accompanying the ever-increasing subscription numbers is an increase in real money trade transactions stemming from these game worlds. The research question to be addressed in this thesis is whether transactions stemming from virtual worlds have real-world taxation consequences. The goal of this research is to determine the taxability of virtual assets obtained in structured as well as unstructured virtual environments and to attempt to establish the differences between capital and revenue receipts in these virtual realms, taking into account the nature of a receipt. The general deduction formula is applied to establish the deductibility of expenditure incurred whilst participating in these virtual environments. Sundry matters such as Value-Added Tax, donations tax, the withholding tax on gambling gains and tax avoidance will also be addressed. The methodology adopted for the research could best be described as interpretative, aimed at analysing and interpreting the relationship between real world taxes and persistent virtual worlds and the transactions that stem from participation therein. The research is based purely on documentary evidence. After applying relevant tax legislation to virtual economies it became evident that merely because virtual assets only exist in virtual reality does not necessarily preclude them real world tax consequences. It was concluded, however, that it is not practical for the South African Revenue Service to monitor all virtual world transactions or for participant taxpayers to calculate the real world value of each and every asset acquired in-world. As a result, it was concluded that real world tax consequences should only be applied in situations where participants actually convert their virtual assets into real world currency.
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An analysis of the determinants and recent decline of private savings in South Africa
- Authors: Linde, Kathryn Leigh
- Date: 2012
- Subjects: Saving and investment -- Research -- South Africa Finance, Personal -- Research -- South Africa Corporations -- Finance -- Research -- South Africa Economic development -- Research -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1007 , http://hdl.handle.net/10962/d1002742
- Description: Low domestic saving rates make South Africa highly dependent on foreign capital inflows to fund higher investment levels. These inflows are highly volatile and may prove to be unsustainable in the long-run. This study analyses the determinants of private saving in South Africa, with specific reference to the decline in private saving rates that occurred at a time of higher economic growth prior to the 2008 global financial crisis. The Johansen cointegration method is used to estimate separate vector error correction models (VECM) in order to assess the effect of specific variables on both corporate and household saving. The results obtained that are common to both corporate and household savmg show that the govemment budget balance negatively impacts private saving rates though the offset is less than one. The real prime overdraft rate positively impacts private saving, although the result is small . The impact of real Gross Domestic Product (GDP) is positive. In recent years, however, private saving rates fell alongside higher economic growth, which may reflect a structural change in corporate saving behaviour. The results distinct to the corporate saving model show that commodity prices have a negative impact on corporate saving. This does not conform to a priori expectations, but is supported by the behaviour of these two variables in recent years. Foreign savings were found to impact negatively on corporate saving. This result is important, since the dependence of the South African economy on foreign capital inflows to fund higher investment levels is reflected by high current account deficits during recent periods of economic growth. Evidence of financial liberalization negatively impacting on private saving in South Africa due to the removal of borrowing constraints was found. A negative relationship was found between corporate saving and investment demonstrating that corporations have reduced levels of retained eamings for funding investment expenditures. The results distinct to the household saving model provide evidence of a negative wealth effect in South Africa, with rising housing wealth found to increase consumption. Evidence of households "piercing the corporate veil" in South Africa was found. Therefore, households view corporate saving behaviour as essentially being conducted on their behalf. This finding and the finding that the offset between the budget deficit and private saving is less than one suggest that counter-cyclical fiscal policy will be an important policy response for achieving higher domestic saving rates in South Africa.
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