Is inflation targeting a viable option for a developing country?: the case of Malawi
- Hompashe, Dumisani MacDonald
- Authors: Hompashe, Dumisani MacDonald
- Date: 2009
- Subjects: Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:943 , http://hdl.handle.net/10962/d1002676 , Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Description: The distinctive features of inflation targeting include the publishing of the formal (official) target band or point target for the rate of inflation at one or more time horizons and the explicit confirmation that low and steady inflation is the long-run objective of monetary policy. There are four main preconditions of inflation targeting: 1) an independent central bank that is free from fiscal and political pressures; 2) a central bank that has both the ability to forecast inflation and the capability to model inflation data; 3) the presence of fully deregulated prices and an economy that is affected by changes of commodity prices, as well as exchange rates; and 4) the presence of sound banking system and well developed capital markets. In most developing countries, the use of seigniorage revenues as a source of financing government debts, the lack of commitment by monetary authorities to low inflation as a primary goal, the absence of the central bank’s functional independence, and of powerful models to make domestic inflation forecasts, prevent the satisfaction of these preconditions. This dissertation investigates the extent to which Malawi meets the preconditions for inflation targeting by comparing the situation in that country to other developing countries, which have already adopted the framework. Malawi is committed to the central bank’s functional independence as well as the pursuit of prudent fiscal policy measures for the attainment of low inflation. Despite the failure to meet all the preconditions, this study recommends that Malawi should adopt an inflation targeting framework due to the strength of commitment of the monetary authorities in satisfying these preconditions.
- Full Text:
- Authors: Hompashe, Dumisani MacDonald
- Date: 2009
- Subjects: Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:943 , http://hdl.handle.net/10962/d1002676 , Inflation (Finance) -- Malawi -- Case studies , Banks and banking, Central -- Malawi , Monetary policy -- Malawi , Finance -- Developing countries , Debts, External -- Developing countries
- Description: The distinctive features of inflation targeting include the publishing of the formal (official) target band or point target for the rate of inflation at one or more time horizons and the explicit confirmation that low and steady inflation is the long-run objective of monetary policy. There are four main preconditions of inflation targeting: 1) an independent central bank that is free from fiscal and political pressures; 2) a central bank that has both the ability to forecast inflation and the capability to model inflation data; 3) the presence of fully deregulated prices and an economy that is affected by changes of commodity prices, as well as exchange rates; and 4) the presence of sound banking system and well developed capital markets. In most developing countries, the use of seigniorage revenues as a source of financing government debts, the lack of commitment by monetary authorities to low inflation as a primary goal, the absence of the central bank’s functional independence, and of powerful models to make domestic inflation forecasts, prevent the satisfaction of these preconditions. This dissertation investigates the extent to which Malawi meets the preconditions for inflation targeting by comparing the situation in that country to other developing countries, which have already adopted the framework. Malawi is committed to the central bank’s functional independence as well as the pursuit of prudent fiscal policy measures for the attainment of low inflation. Despite the failure to meet all the preconditions, this study recommends that Malawi should adopt an inflation targeting framework due to the strength of commitment of the monetary authorities in satisfying these preconditions.
- Full Text:
Labour hire: the impact of labour broking on employee job satisfaction and commitment in a number of Namibian organizations
- Shivangulula, Shirley Euginia
- Authors: Shivangulula, Shirley Euginia
- Date: 2009
- Subjects: Temporary employment -- Namibia , Industrial relations -- Namibia , Employee motivation , Labor market -- Namibia , Labor policy -- Namibia
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:3054 , http://hdl.handle.net/10962/d1002563 , Temporary employment -- Namibia , Industrial relations -- Namibia , Employee motivation , Labor market -- Namibia , Labor policy -- Namibia
- Description: Over decades, job satisfaction has generated active empirical research. Similarly, organizational commitment, another attitudinal variable in the work domain, strongly related to, but distinctly different from job satisfaction, received comparatively equal research scrutiny. However, research on the impact of labour broking on employees’ job satisfaction and organizational commitment is nonexistent in Namibia. Using a quantitative approach, within a positivist paradigm, the purpose of this thesis was to examine the impact of labour broking on employees’ job satisfaction and organizational commitment as well as to determine the dynamics that mediate such experiences. These experiences were examined through a 5-dimensional, 72-item Job Descriptive Index and a 3-dimensional, 12-item Organizational Commitment Questionnaire over a sample size of 108 temporary and permanent employees, drawn through random probability sampling in a number of Namibian organizations that make use of labour hire services. These experiences were further amplified by face-to-face interviews over a sub sample of 20 employees. Data analysis was carried out using the chi-square, correlation, t-tests and multiple regression techniques of the STATISTICA software. Drawing on the principles of the multi dimensional theory of organizational commitment, the Cornell dispositional theory of job satisfaction and the temporary employee stigmatization model, results revealed that variables of employment status, tenure, inadequate income, inappropriate supervision and fear of job losses ahead of a newly proposed piece of legislat st labour hire ractices significantly influenced job satisfaction and organizational commitment of employees. Estimates indicate that for a mere change in tenure, job satisfaction levels will significantly rise by 0.26 units, whereas organizational commitment will augment by 0.03 units. However, for every N$ fall in employees’ pay, we can expect job satisfaction levels to decrease by 26%, but with significant effects. The study recommends that organizations must adopt policies that grant permanent tenure to all their employees, position them in respected and challenging jobs in which they will grow skills and ensure that all employees are remunerated with pay that signals their contribution to the organizations. In doing so, the negative effects of labour broking will disappear and employees will be satisfied with their jobs and Tommitted to their organizations.
- Full Text:
- Authors: Shivangulula, Shirley Euginia
- Date: 2009
- Subjects: Temporary employment -- Namibia , Industrial relations -- Namibia , Employee motivation , Labor market -- Namibia , Labor policy -- Namibia
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:3054 , http://hdl.handle.net/10962/d1002563 , Temporary employment -- Namibia , Industrial relations -- Namibia , Employee motivation , Labor market -- Namibia , Labor policy -- Namibia
- Description: Over decades, job satisfaction has generated active empirical research. Similarly, organizational commitment, another attitudinal variable in the work domain, strongly related to, but distinctly different from job satisfaction, received comparatively equal research scrutiny. However, research on the impact of labour broking on employees’ job satisfaction and organizational commitment is nonexistent in Namibia. Using a quantitative approach, within a positivist paradigm, the purpose of this thesis was to examine the impact of labour broking on employees’ job satisfaction and organizational commitment as well as to determine the dynamics that mediate such experiences. These experiences were examined through a 5-dimensional, 72-item Job Descriptive Index and a 3-dimensional, 12-item Organizational Commitment Questionnaire over a sample size of 108 temporary and permanent employees, drawn through random probability sampling in a number of Namibian organizations that make use of labour hire services. These experiences were further amplified by face-to-face interviews over a sub sample of 20 employees. Data analysis was carried out using the chi-square, correlation, t-tests and multiple regression techniques of the STATISTICA software. Drawing on the principles of the multi dimensional theory of organizational commitment, the Cornell dispositional theory of job satisfaction and the temporary employee stigmatization model, results revealed that variables of employment status, tenure, inadequate income, inappropriate supervision and fear of job losses ahead of a newly proposed piece of legislat st labour hire ractices significantly influenced job satisfaction and organizational commitment of employees. Estimates indicate that for a mere change in tenure, job satisfaction levels will significantly rise by 0.26 units, whereas organizational commitment will augment by 0.03 units. However, for every N$ fall in employees’ pay, we can expect job satisfaction levels to decrease by 26%, but with significant effects. The study recommends that organizations must adopt policies that grant permanent tenure to all their employees, position them in respected and challenging jobs in which they will grow skills and ensure that all employees are remunerated with pay that signals their contribution to the organizations. In doing so, the negative effects of labour broking will disappear and employees will be satisfied with their jobs and Tommitted to their organizations.
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Land reform in South Africa: effects on land prices and productivity
- Authors: Van Rooyen, Jonathan
- Date: 2009
- Subjects: Right of property -- South Africa , Land reform -- South Africa , Agriculture and state -- South Africa , Agricultural prices -- South Africa , Land tenure -- Government policy -- South Africa , Land reform -- Economic aspects -- South Africa , Real property -- Prices -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:987 , http://hdl.handle.net/10962/d1002721
- Description: South Africa’s land redistribution policy (1994-2008) has been widely publicised, and has come under scrutiny of late from the public, private and government spheres, highlighting a need for research in this area. The research examines progress in South Africa’s land redistribution programme in two of KwaZulu-Natal’s district municipalities, Uthungulu and iLembe. Specifically the research investigates whether the government has paid above market prices when purchasing sugarcane farmland for redistribution in these districts. Moreover, it is illustrated how productivity on redistributed farms has been affected with the changes in ownership. To investigate the research questions, reviews of theories pertaining to property rights, land reform and market structures were conducted. Moreover, two cases studies were conducted in the districts of Uthungulu and iLembe, with assistance from the Department of Land Affairs, Inkezo Land Company and the South African Cane Growers Association. The case study data indicate that above ordinary market prices have been paid (2004-2006) by the government for sugarcane farmland in the districts concerned, and further that productivity has been negatively impacted ‘during’ and ‘post‘ transfer, in the majority of cases.
- Full Text:
- Authors: Van Rooyen, Jonathan
- Date: 2009
- Subjects: Right of property -- South Africa , Land reform -- South Africa , Agriculture and state -- South Africa , Agricultural prices -- South Africa , Land tenure -- Government policy -- South Africa , Land reform -- Economic aspects -- South Africa , Real property -- Prices -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:987 , http://hdl.handle.net/10962/d1002721
- Description: South Africa’s land redistribution policy (1994-2008) has been widely publicised, and has come under scrutiny of late from the public, private and government spheres, highlighting a need for research in this area. The research examines progress in South Africa’s land redistribution programme in two of KwaZulu-Natal’s district municipalities, Uthungulu and iLembe. Specifically the research investigates whether the government has paid above market prices when purchasing sugarcane farmland for redistribution in these districts. Moreover, it is illustrated how productivity on redistributed farms has been affected with the changes in ownership. To investigate the research questions, reviews of theories pertaining to property rights, land reform and market structures were conducted. Moreover, two cases studies were conducted in the districts of Uthungulu and iLembe, with assistance from the Department of Land Affairs, Inkezo Land Company and the South African Cane Growers Association. The case study data indicate that above ordinary market prices have been paid (2004-2006) by the government for sugarcane farmland in the districts concerned, and further that productivity has been negatively impacted ‘during’ and ‘post‘ transfer, in the majority of cases.
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Macroeconomic convergence within SADC : implications for the formation of a regional monetary union
- Authors: Johns, Michael Ryan
- Date: 2009
- Subjects: Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1023 , http://hdl.handle.net/10962/d1002758 , Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Description: Given the growing effect that globalisation and integration has had upon economies and regions, the process of monetary union has become an increasingly topical issue in economic policy debates. This has been driven in part by the experience and successes of the European Monetary Union (EMU), which is widely perceived as beneficial to member countries. The Southern African Development Community (SADC) is an example of a group of countries that has realised that there are benefits that may arise from economic integration. This paper makes use of an interest-rate pass through model to investigate whether the pass-through of monetary policy transmission in ten SADC countries has become more similar between January 1990 and December 2007 using monthly interest rate data. This is done to determine the extent of macroeconomic convergence that prevails within SADC, and consequently establish whether the formation of a regional monetary union is feasible. The results of the empirical pass-through model were robust and show that there are certain countries that have a more efficient and similar monetary transmission process than others. In particular, the countries that form the Common Monetary Area (CMA) and the Southern African Customs Union (SACU) tend to show evidence of convergence in monetary policy transmission, especially since 2000. In addition, from analysis of the long-run pass-through, the results reveal that there is evidence that Malawi and Zambia have shown signs of convergence toward the countries that form the CMA and SACU, in terms of monetary policy transmission. The study concludes that a SADC wide monetary union is currently not feasible based on the evidence provided from the results of the pass-through analysis. Despite this, it can be tentatively suggested that the CMA may be expanded to include Botswana, Malawi and Zambia.
- Full Text:
- Authors: Johns, Michael Ryan
- Date: 2009
- Subjects: Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1023 , http://hdl.handle.net/10962/d1002758 , Southern African Development Community , Economic and Monetary Union , Common Monetary Area (Organization) , Economic policy -- Africa, Southern , Monetary policy -- Africa, Southern , Monetary unions , Macroeconomics
- Description: Given the growing effect that globalisation and integration has had upon economies and regions, the process of monetary union has become an increasingly topical issue in economic policy debates. This has been driven in part by the experience and successes of the European Monetary Union (EMU), which is widely perceived as beneficial to member countries. The Southern African Development Community (SADC) is an example of a group of countries that has realised that there are benefits that may arise from economic integration. This paper makes use of an interest-rate pass through model to investigate whether the pass-through of monetary policy transmission in ten SADC countries has become more similar between January 1990 and December 2007 using monthly interest rate data. This is done to determine the extent of macroeconomic convergence that prevails within SADC, and consequently establish whether the formation of a regional monetary union is feasible. The results of the empirical pass-through model were robust and show that there are certain countries that have a more efficient and similar monetary transmission process than others. In particular, the countries that form the Common Monetary Area (CMA) and the Southern African Customs Union (SACU) tend to show evidence of convergence in monetary policy transmission, especially since 2000. In addition, from analysis of the long-run pass-through, the results reveal that there is evidence that Malawi and Zambia have shown signs of convergence toward the countries that form the CMA and SACU, in terms of monetary policy transmission. The study concludes that a SADC wide monetary union is currently not feasible based on the evidence provided from the results of the pass-through analysis. Despite this, it can be tentatively suggested that the CMA may be expanded to include Botswana, Malawi and Zambia.
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The covariation of South African and foreign equity returns during bull and bear runs : implications for portfolio diversification
- Authors: Mhlanga, Godfrey
- Date: 2009
- Subjects: Stock exchanges -- South Africa , Portfolio management -- South Africa , Investments -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:944 , http://hdl.handle.net/10962/d1002678
- Description: This study examines the pattern of covariation of the industrial index returns of South Africa and foreign industrial sectors. This follows recent increase in national equity correlations and increases in the influence of industry effects in portfolio diversification. The covariation pattern in returns across industries and countries during both bull and bear runs is examined using correlation analysis to determine if there is a difference between the two epochs. The study presents preliminary evidence of the covariation between sectors during a bear and a bull run. Return covariation among sectors is impelled to a greater extent by country-specific factors than by industry-specific factors, implying the segmentation of industrial sectors. Thus, South African investors can in general gain more if a portfolio comprising shares across industries and countries is held, even if these investors buy shares from similar industries.
- Full Text:
- Authors: Mhlanga, Godfrey
- Date: 2009
- Subjects: Stock exchanges -- South Africa , Portfolio management -- South Africa , Investments -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:944 , http://hdl.handle.net/10962/d1002678
- Description: This study examines the pattern of covariation of the industrial index returns of South Africa and foreign industrial sectors. This follows recent increase in national equity correlations and increases in the influence of industry effects in portfolio diversification. The covariation pattern in returns across industries and countries during both bull and bear runs is examined using correlation analysis to determine if there is a difference between the two epochs. The study presents preliminary evidence of the covariation between sectors during a bear and a bull run. Return covariation among sectors is impelled to a greater extent by country-specific factors than by industry-specific factors, implying the segmentation of industrial sectors. Thus, South African investors can in general gain more if a portfolio comprising shares across industries and countries is held, even if these investors buy shares from similar industries.
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The development of the stock market and its effect on economic growth: the case of SADC
- Authors: Elliott, Kevin Andrew
- Date: 2009
- Subjects: Stocks -- Africa, Southern , Stock exchanges -- Africa, Southern , Economic development -- Africa, Southern , Stocks -- Economic aspects -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:967 , http://hdl.handle.net/10962/d1002701 , Stocks -- Africa, Southern , Stock exchanges -- Africa, Southern , Economic development -- Africa, Southern , Stocks -- Economic aspects -- Africa, Southern
- Description: Using a pooled panel data set from nine developing countries within the SADC region from 1992 to 2004, this paper empirically examines; firstly, the relationship between stock market development and long-term economic growth, and secondly, the macroeconomic determinants of stock market development, particularly market capitalisation as a percentage of GDP. The results suggest that there is a strong link between stock market development and economic growth, particularly through the liquidity provided by the market. The evidence obtained lends support to the view that a well-developed and functioning stock market can boost economic growth by enhancing faster capital accumulation and allowing for better resource allocation, particularly in developing countries. In terms of the macroeconomic determinants of stock market development, the results support those of Garcia and Liu (1999), in that we found the indicators of financial intermediary development, the value of shares traded as a percentage of GDP and the macroeconomic instability variable to be important determinants of stock market development.
- Full Text:
- Authors: Elliott, Kevin Andrew
- Date: 2009
- Subjects: Stocks -- Africa, Southern , Stock exchanges -- Africa, Southern , Economic development -- Africa, Southern , Stocks -- Economic aspects -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:967 , http://hdl.handle.net/10962/d1002701 , Stocks -- Africa, Southern , Stock exchanges -- Africa, Southern , Economic development -- Africa, Southern , Stocks -- Economic aspects -- Africa, Southern
- Description: Using a pooled panel data set from nine developing countries within the SADC region from 1992 to 2004, this paper empirically examines; firstly, the relationship between stock market development and long-term economic growth, and secondly, the macroeconomic determinants of stock market development, particularly market capitalisation as a percentage of GDP. The results suggest that there is a strong link between stock market development and economic growth, particularly through the liquidity provided by the market. The evidence obtained lends support to the view that a well-developed and functioning stock market can boost economic growth by enhancing faster capital accumulation and allowing for better resource allocation, particularly in developing countries. In terms of the macroeconomic determinants of stock market development, the results support those of Garcia and Liu (1999), in that we found the indicators of financial intermediary development, the value of shares traded as a percentage of GDP and the macroeconomic instability variable to be important determinants of stock market development.
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The impact of macroeconomic and financial factors on the performance of the housing property market in South Africa
- Authors: Kwangware, Debra
- Date: 2009
- Subjects: Microeconomics , Housing -- South Africa , Housing -- Prices -- South Africa , Real property -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1042 , http://hdl.handle.net/10962/d1005641 , Microeconomics , Housing -- South Africa , Housing -- Prices -- South Africa , Real property -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Description: This study exammes the impact of macroeconomic and financial variables on the performance of the housing property market in South Africa using monthly data for the period January 1996 to June 2008. Orthogonalised and non-orthogonalised house price returns and real estate returns are utilised as proxies for the housing property market in separate models. Three main issues were empirically analysed in relation to the linkage between selected variables and the housing property market. The first aspect examined the relationship between selected macroeconomic and financial factors and property returns. Secondly, the study examined the influence that a unit shock to each variable has on property returns over a period of time. The third aspect focused on determining the proportion of property returns variation that results from changes in the macroeconomic and financial variables. VAR modelling was thus adopted to empirically analyse these three aspects. The results reveal that house price returns are influenced by most of the macroeconomic and financial variables used in this study. Specifically, the real effective exchange rate, interest rate spread and manufacturing production positively impact on house price returns while the domestic interest rate, the dividend yield and expected inflation have a negative effect. Furthermore, manufacturing production has a lagged effect on house price returns while the real effective exchange rate and domestic interest rate have a contemporaneous effect. Real estate returns are not influenced by most of the variables except for the domestic interest rate and dividend yield which have a negative effect.
- Full Text:
- Authors: Kwangware, Debra
- Date: 2009
- Subjects: Microeconomics , Housing -- South Africa , Housing -- Prices -- South Africa , Real property -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1042 , http://hdl.handle.net/10962/d1005641 , Microeconomics , Housing -- South Africa , Housing -- Prices -- South Africa , Real property -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Description: This study exammes the impact of macroeconomic and financial variables on the performance of the housing property market in South Africa using monthly data for the period January 1996 to June 2008. Orthogonalised and non-orthogonalised house price returns and real estate returns are utilised as proxies for the housing property market in separate models. Three main issues were empirically analysed in relation to the linkage between selected variables and the housing property market. The first aspect examined the relationship between selected macroeconomic and financial factors and property returns. Secondly, the study examined the influence that a unit shock to each variable has on property returns over a period of time. The third aspect focused on determining the proportion of property returns variation that results from changes in the macroeconomic and financial variables. VAR modelling was thus adopted to empirically analyse these three aspects. The results reveal that house price returns are influenced by most of the macroeconomic and financial variables used in this study. Specifically, the real effective exchange rate, interest rate spread and manufacturing production positively impact on house price returns while the domestic interest rate, the dividend yield and expected inflation have a negative effect. Furthermore, manufacturing production has a lagged effect on house price returns while the real effective exchange rate and domestic interest rate have a contemporaneous effect. Real estate returns are not influenced by most of the variables except for the domestic interest rate and dividend yield which have a negative effect.
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The implementation of the new capital accord (BASEL II) : a comparative study of South Africa, Switzerland, Brazil and the United States
- Makwiramiti, Anthony Munyaradzi
- Authors: Makwiramiti, Anthony Munyaradzi
- Date: 2009
- Subjects: Basel II (2004) , Banks and banking, International , Banks and banking, International -- State supervision , Capital market -- Government policy , Bank capital , Banking law , Financial institutions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:983 , http://hdl.handle.net/10962/d1002717 , Basel II (2004) , Banks and banking, International , Banks and banking, International -- State supervision , Capital market -- Government policy , Bank capital , Banking law , Financial institutions
- Description: The international banking environment has become potentially riskier because of the recent developments in financial services and products which have changed the way banks do their day to day business. Imposing minimum capital adequacy regulations is one way of fostering stability in the global banking system. A number of countries have started to implement the new capital adequacy rules (Basel II) following the worldwide consensus among central bankers that bank‟s capital levels should be regulated to enhance global financial stability. In this study, through the comparative analysis of the general implementation issues it was established that emerging countries apply all Basel II rules uniformly across all the banking institutions that operate in their territories. Developed countries apply these rules only to large and internationally active banks and because of the diversity of their banking industries, they also apply domestically modified rules to the domestically based banks. For the successful implementation of Basel II, properly planning, devoting bank resources and making necessary legislative amendments are prerequisites for incorporating Basel II into the regulatory framework for any country. The study concludes that the current global financial turmoil continues to pose a threat to the effectiveness of the Basel II rules which are aimed at achieving global financial stability.
- Full Text:
- Authors: Makwiramiti, Anthony Munyaradzi
- Date: 2009
- Subjects: Basel II (2004) , Banks and banking, International , Banks and banking, International -- State supervision , Capital market -- Government policy , Bank capital , Banking law , Financial institutions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:983 , http://hdl.handle.net/10962/d1002717 , Basel II (2004) , Banks and banking, International , Banks and banking, International -- State supervision , Capital market -- Government policy , Bank capital , Banking law , Financial institutions
- Description: The international banking environment has become potentially riskier because of the recent developments in financial services and products which have changed the way banks do their day to day business. Imposing minimum capital adequacy regulations is one way of fostering stability in the global banking system. A number of countries have started to implement the new capital adequacy rules (Basel II) following the worldwide consensus among central bankers that bank‟s capital levels should be regulated to enhance global financial stability. In this study, through the comparative analysis of the general implementation issues it was established that emerging countries apply all Basel II rules uniformly across all the banking institutions that operate in their territories. Developed countries apply these rules only to large and internationally active banks and because of the diversity of their banking industries, they also apply domestically modified rules to the domestically based banks. For the successful implementation of Basel II, properly planning, devoting bank resources and making necessary legislative amendments are prerequisites for incorporating Basel II into the regulatory framework for any country. The study concludes that the current global financial turmoil continues to pose a threat to the effectiveness of the Basel II rules which are aimed at achieving global financial stability.
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The relationship between accounting choices and share prices : a study of South African listed companies
- Authors: Bunting, Mark Bevan
- Date: 2009
- Subjects: Financial statements -- South Africa , Accounting -- South Africa , Managerial accounting -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:989 , http://hdl.handle.net/10962/d1002724 , Financial statements -- South Africa , Accounting -- South Africa , Managerial accounting -- South Africa
- Description: It is widely assumed that the managers of companies behave in a self-interested and opportunistic manner when making the discretionary accounting choices that are applied in the preparation of published financial reports. Empirical research has found evidence for this in the United States, Britain, Spain, France and Australia, amongst other countries. There has, however, been no prior work of a similar nature in a South African context. The purpose of this study is to extend this body of work by examining the relationship between a number of potentially opportunistic (profit-increasing, income-smoothing and solvencyimproving) accounting choices made by the managers of South African listed companies, and growth rates in the share prices of those companies. Data in respect of thirty-nine medium-sized South African listed companies are analysed for evidence of the expected positive relationship between opportunistic accounting choices and share price growth. No evidence is found for this relationship. This may be due to limitations in the research design, inadequacies in the interpretation of the agency theory from which the hypotheses are developed, or a combination of both. Refinements in the research design or a re-interpretation of the theory may be successful in addressing these matters as part of future research efforts.
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- Authors: Bunting, Mark Bevan
- Date: 2009
- Subjects: Financial statements -- South Africa , Accounting -- South Africa , Managerial accounting -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:989 , http://hdl.handle.net/10962/d1002724 , Financial statements -- South Africa , Accounting -- South Africa , Managerial accounting -- South Africa
- Description: It is widely assumed that the managers of companies behave in a self-interested and opportunistic manner when making the discretionary accounting choices that are applied in the preparation of published financial reports. Empirical research has found evidence for this in the United States, Britain, Spain, France and Australia, amongst other countries. There has, however, been no prior work of a similar nature in a South African context. The purpose of this study is to extend this body of work by examining the relationship between a number of potentially opportunistic (profit-increasing, income-smoothing and solvencyimproving) accounting choices made by the managers of South African listed companies, and growth rates in the share prices of those companies. Data in respect of thirty-nine medium-sized South African listed companies are analysed for evidence of the expected positive relationship between opportunistic accounting choices and share price growth. No evidence is found for this relationship. This may be due to limitations in the research design, inadequacies in the interpretation of the agency theory from which the hypotheses are developed, or a combination of both. Refinements in the research design or a re-interpretation of the theory may be successful in addressing these matters as part of future research efforts.
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A comparison between the South African "source rules" in relation to income tax and the "permanent establishment rules" as contained in double taxation agreements
- Authors: Fourie, Leonie
- Date: 2008
- Subjects: Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Double taxation -- South Africa , Business enterprises -- Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:905 , http://hdl.handle.net/10962/d1008203
- Description: South Africa's right to tax the income of a non-resident is determined in terms of the South African "source rules" established by court decisions in relation to the imposition of tax in terms of the Income Tax Act. Unless a non-resident's income is captured by the South African "source rules" (on the basis that hi slits income is derived from a South African source), South Africa would have no right to tax such income, even if such non-resident creates a permanent establishment in South Africa by performing business activities within South Africa which could be considered essential (but not dominant) in nature. In such scenario the activities performed by the non-resident in South Africa may utilise the natural resources and the infrastructure of South Africa, but the South African fiscus would be deprived of the right to any tax revenues attributable to the income produced partly by such activities within South Africa. The South African "source rules" refer only to the main or dominant activities giving rise to the income for the purpose of determining the source of such income (and accordingly the right to tax such income). On the other hand, the "permanent establishment rules" as set out under the Organisation for Economic Cooperation and Development Model Tax Convention on Income and on Capital refer to all the taxpayer's essential business activities for the purpose of determining whether or not such activities create a pennanent establishment. The result of the narrow nature of the South African "source rules" is that, under certain circumstances, the South African fiscus would not necessarily be granted the right to tax all income produced partly within South Africa. The research demonstrated that incorporating the principles underlying the "pennanent establishment rules" into South African legislation would be a reasonable and logical solution to the problem of detennining the source of income. In so doing, the South African "source rules" would determine the source of income, and consequently South Africa's taxing rights, with reference to the essential business activities giving rise to such income. In such case South Africa would be afforded the right to tax the income of a non-resident in the event that it performs any of its essential business activities within South Africa, albeit not the dominant or main activities giving rise to the income.
- Full Text:
- Authors: Fourie, Leonie
- Date: 2008
- Subjects: Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Double taxation -- South Africa , Business enterprises -- Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:905 , http://hdl.handle.net/10962/d1008203
- Description: South Africa's right to tax the income of a non-resident is determined in terms of the South African "source rules" established by court decisions in relation to the imposition of tax in terms of the Income Tax Act. Unless a non-resident's income is captured by the South African "source rules" (on the basis that hi slits income is derived from a South African source), South Africa would have no right to tax such income, even if such non-resident creates a permanent establishment in South Africa by performing business activities within South Africa which could be considered essential (but not dominant) in nature. In such scenario the activities performed by the non-resident in South Africa may utilise the natural resources and the infrastructure of South Africa, but the South African fiscus would be deprived of the right to any tax revenues attributable to the income produced partly by such activities within South Africa. The South African "source rules" refer only to the main or dominant activities giving rise to the income for the purpose of determining the source of such income (and accordingly the right to tax such income). On the other hand, the "permanent establishment rules" as set out under the Organisation for Economic Cooperation and Development Model Tax Convention on Income and on Capital refer to all the taxpayer's essential business activities for the purpose of determining whether or not such activities create a pennanent establishment. The result of the narrow nature of the South African "source rules" is that, under certain circumstances, the South African fiscus would not necessarily be granted the right to tax all income produced partly within South Africa. The research demonstrated that incorporating the principles underlying the "pennanent establishment rules" into South African legislation would be a reasonable and logical solution to the problem of detennining the source of income. In so doing, the South African "source rules" would determine the source of income, and consequently South Africa's taxing rights, with reference to the essential business activities giving rise to such income. In such case South Africa would be afforded the right to tax the income of a non-resident in the event that it performs any of its essential business activities within South Africa, albeit not the dominant or main activities giving rise to the income.
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An analysis of exchange rate pass-through to prices in South Africa
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
- Full Text:
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
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An appraisal of basic infrastructural service delivery and community participation at the local level a case study of three municipalities in the Eastern Cape
- Authors: Mamba, Bonginkosi
- Date: 2008
- Subjects: Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:958 , http://hdl.handle.net/10962/d1002692 , Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Description: Housing provision plays a vital role in meeting basic needs. Dwellings provide the security required for basic functioning and are thus essential for both human development and the alleviation of poverty. This study examines the levels and quality of basic infrastructural service delivery (electricity, water and sanitation) at local government level, focusing on housing. The local government areas studied include Grahamstown Fort Beaufort and Duncan Village. This was done for the purposes of analyzing the effectiveness of the existing housing policy with regard to the adequacy of scale, its developmental logic, implementation and coordination. Justification for basic infrastructural service delivery is based on the Basic Needs Approach [BNA] which forms the cornerstone of the World Bank’s delivery framework. The paper makes use of two methods: firstly, secondary sources are used to provide an impression of the broad policy framework focusing around basic service delivery with housing as the centrepiece. Specific attention is thus given to Integrated Development Plans (IDPs) as this is the level of policy-making responsible for the delivery of these services to communities. Secondly, previously un-analysed data drawn from a household social exclusion survey (2005-2006) conducted in three Eastern Cape municipalities (Buffalo City, Makana and Nkonkobe – representing respectively urban, small town, and rural areas) are evaluated. The data are analysed two ways – graphically and through a regression analysis – to test four hypotheses regarding basic service delivery. Graphical analysis demonstrates that services differ according to housing type and location. It was found that brick houses seem more likely to have better basic services than either shacks or mud dwellings. The results also show that there are inequalities in the provision of certain basic services such as water and sanitation between Duncan Village and Grahamstown. Overall, the results of this study show that government is still faced with major challenges in addressing housing backlogs.
- Full Text:
- Authors: Mamba, Bonginkosi
- Date: 2008
- Subjects: Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:958 , http://hdl.handle.net/10962/d1002692 , Municipal services -- South Africa -- Eastern Cape Case studies , Housing policy -- South Africa -- Eastern Cape Case studies , Housing -- South Africa -- Eastern Cape Case studies , Local government -- South Africa -- Eastern Cape Case studies
- Description: Housing provision plays a vital role in meeting basic needs. Dwellings provide the security required for basic functioning and are thus essential for both human development and the alleviation of poverty. This study examines the levels and quality of basic infrastructural service delivery (electricity, water and sanitation) at local government level, focusing on housing. The local government areas studied include Grahamstown Fort Beaufort and Duncan Village. This was done for the purposes of analyzing the effectiveness of the existing housing policy with regard to the adequacy of scale, its developmental logic, implementation and coordination. Justification for basic infrastructural service delivery is based on the Basic Needs Approach [BNA] which forms the cornerstone of the World Bank’s delivery framework. The paper makes use of two methods: firstly, secondary sources are used to provide an impression of the broad policy framework focusing around basic service delivery with housing as the centrepiece. Specific attention is thus given to Integrated Development Plans (IDPs) as this is the level of policy-making responsible for the delivery of these services to communities. Secondly, previously un-analysed data drawn from a household social exclusion survey (2005-2006) conducted in three Eastern Cape municipalities (Buffalo City, Makana and Nkonkobe – representing respectively urban, small town, and rural areas) are evaluated. The data are analysed two ways – graphically and through a regression analysis – to test four hypotheses regarding basic service delivery. Graphical analysis demonstrates that services differ according to housing type and location. It was found that brick houses seem more likely to have better basic services than either shacks or mud dwellings. The results also show that there are inequalities in the provision of certain basic services such as water and sanitation between Duncan Village and Grahamstown. Overall, the results of this study show that government is still faced with major challenges in addressing housing backlogs.
- Full Text:
An empirical analysis of the long-run comovement, dynamic returns linkages and volatility transmission between the world major and the South African stock markets
- Authors: Chinzara, Zivanemoyo
- Date: 2008
- Subjects: Stock exchanges -- South Africa , Globalization -- Economic aspects -- South Africa , International economic relations , Portfolio management -- South Africa , Monetary policy -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:970 , http://hdl.handle.net/10962/d1002704 , Stock exchanges -- South Africa , Globalization -- Economic aspects -- South Africa , International economic relations , Portfolio management -- South Africa , Monetary policy -- South Africa
- Description: The international linkages of stock markets have important implications for cost of capital and portfolio diversification. Recent trends in globalization, financial liberalization and financial innovation raises questions with regard to whether African stock markets are being integrated into world equity markets. This study examines the extent to which the South African (SA) equity market is integrated into the world equity markets using daily data for the period 1995-2007. The study is divided into three main parts, each looking at the different ways in which integration can be considered. The first investigates whether there is long run comovement between the SA and the major global equity markets. Both bivariate and multivariate Johansen (1988) and Johansen and Juselius (1990) cointegration approaches were utilised. Vector Error Correction Models (VECMs) are then estimated for portfolios which show evidence of cointegration. The second part analyses returns linkages using the Vector Autoregressive (VAR), block exogeneity, impulse response and variance decomposition. The third part examines the behaviour of volatility and volatility linkages among the stock markets. Firstly volatility is analysed using the GARCH, EGARCH and GJR GARCH. Simultaneously, the hypothesis that investors receive a premium for investing in more risky stock markets is explored using the GARCH-in mean. The long term trend of volatility is also examined. Volatility linkages are then analysed using the VAR, block exogeneity, impulse response and variance decomposition. The first part established that no bivariate cointegration exists between the SA and any of the stock markets being studied, implying that pairwise portfolio diversification is potentially worthwhile for SA portfolio managers. However, multivariate cointegration exists for some portfolios, with the US, UK, Germany and SA showing evidence of error correction for some of these portfolios. Findings on return linkages is that there are significant returns linkages among the markets, with the US and SA being the most exogenous and most endogenous respectively. Findings regarding volatility are that the volatility in all the markets is inherently asymmetric and that except for the US there is no risk premium in any of the markets. The long term trend of volatility in all the stock markets was found to be relatively stable. The final finding was that significant volatility linkages exist among the markets, with the US being the most exogenous and SA and China showing evidence of bidirectional linkages. Overall, except for volatility linkages, the integration of SA into the global equity markets is still quite low. Thus, both SA and international investors can capitalise on this portfolio diversification potential. On the other hand, policy makers should capitalise on this and make policies that will attract the much needed foreign investors.
- Full Text:
- Authors: Chinzara, Zivanemoyo
- Date: 2008
- Subjects: Stock exchanges -- South Africa , Globalization -- Economic aspects -- South Africa , International economic relations , Portfolio management -- South Africa , Monetary policy -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:970 , http://hdl.handle.net/10962/d1002704 , Stock exchanges -- South Africa , Globalization -- Economic aspects -- South Africa , International economic relations , Portfolio management -- South Africa , Monetary policy -- South Africa
- Description: The international linkages of stock markets have important implications for cost of capital and portfolio diversification. Recent trends in globalization, financial liberalization and financial innovation raises questions with regard to whether African stock markets are being integrated into world equity markets. This study examines the extent to which the South African (SA) equity market is integrated into the world equity markets using daily data for the period 1995-2007. The study is divided into three main parts, each looking at the different ways in which integration can be considered. The first investigates whether there is long run comovement between the SA and the major global equity markets. Both bivariate and multivariate Johansen (1988) and Johansen and Juselius (1990) cointegration approaches were utilised. Vector Error Correction Models (VECMs) are then estimated for portfolios which show evidence of cointegration. The second part analyses returns linkages using the Vector Autoregressive (VAR), block exogeneity, impulse response and variance decomposition. The third part examines the behaviour of volatility and volatility linkages among the stock markets. Firstly volatility is analysed using the GARCH, EGARCH and GJR GARCH. Simultaneously, the hypothesis that investors receive a premium for investing in more risky stock markets is explored using the GARCH-in mean. The long term trend of volatility is also examined. Volatility linkages are then analysed using the VAR, block exogeneity, impulse response and variance decomposition. The first part established that no bivariate cointegration exists between the SA and any of the stock markets being studied, implying that pairwise portfolio diversification is potentially worthwhile for SA portfolio managers. However, multivariate cointegration exists for some portfolios, with the US, UK, Germany and SA showing evidence of error correction for some of these portfolios. Findings on return linkages is that there are significant returns linkages among the markets, with the US and SA being the most exogenous and most endogenous respectively. Findings regarding volatility are that the volatility in all the markets is inherently asymmetric and that except for the US there is no risk premium in any of the markets. The long term trend of volatility in all the stock markets was found to be relatively stable. The final finding was that significant volatility linkages exist among the markets, with the US being the most exogenous and SA and China showing evidence of bidirectional linkages. Overall, except for volatility linkages, the integration of SA into the global equity markets is still quite low. Thus, both SA and international investors can capitalise on this portfolio diversification potential. On the other hand, policy makers should capitalise on this and make policies that will attract the much needed foreign investors.
- Full Text:
Interest rate risk management : a case study of GBS Mutual Bank
- Authors: Williamson, Gareth Alan
- Date: 2008
- Subjects: GBS Mutual Bank , Interest rates -- Case studies , Interest rate risk -- Case studies , Risk management -- Case studies , Financial risk -- Case studies , Banks and banking -- Case studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:986 , http://hdl.handle.net/10962/d1002720 , GBS Mutual Bank , Interest rates -- Case studies , Interest rate risk -- Case studies , Risk management -- Case studies , Financial risk -- Case studies , Banks and banking -- Case studies
- Description: Banks play a pivotal role in the economic growth and development of countries, primarily through the diversification of risk for both themselves and other economic agents. Interest rate risk is regarded as one of the most prominent financial risks faced by a bank. A large portion of private banks’ revenue stems from net interest income that is generated from the difference between various assets and liabilities that are held on the balance sheet. Fluctuations in the interest rate can alter a bank’s interest income and value, making interest rate risk management vital to its success. The asset and liability committee of a bank is the internal committee charged with the duty of managing the bank’s interest rate risk exposure through the use of various hedging strategies and instruments. This thesis uses a case study methodology to analyse GBS Mutual Bank interest rate risk management. Its specific business circumstances, balance sheet structure and the market conditions over a specified period are used to comment on the practicality of a variety of balance sheet positioning strategies and derivative hedging instruments. The thesis also provides recommendations for the bank’s asset and liability committee in terms of its functions and organisation. It is elucidated that the most practical balance sheet hedging strategies are a volume strategy and immunisation, while the most practical derivative hedging instruments are interest rate futures and interest rate collars. It is found that the bank has a well functioning asset and liability committee whose only encumbrance to its functionality is the inadequacy of the informational technology used to measure, control and manage its interest rate risk position. This thesis concludes by summarising the practicality of the various interest rate risk hedging alternatives available to the GBS Mutual Bank. Implementing a particular strategy or instrument depends, of course, on its asset and liability committee’s decision.
- Full Text:
- Authors: Williamson, Gareth Alan
- Date: 2008
- Subjects: GBS Mutual Bank , Interest rates -- Case studies , Interest rate risk -- Case studies , Risk management -- Case studies , Financial risk -- Case studies , Banks and banking -- Case studies
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:986 , http://hdl.handle.net/10962/d1002720 , GBS Mutual Bank , Interest rates -- Case studies , Interest rate risk -- Case studies , Risk management -- Case studies , Financial risk -- Case studies , Banks and banking -- Case studies
- Description: Banks play a pivotal role in the economic growth and development of countries, primarily through the diversification of risk for both themselves and other economic agents. Interest rate risk is regarded as one of the most prominent financial risks faced by a bank. A large portion of private banks’ revenue stems from net interest income that is generated from the difference between various assets and liabilities that are held on the balance sheet. Fluctuations in the interest rate can alter a bank’s interest income and value, making interest rate risk management vital to its success. The asset and liability committee of a bank is the internal committee charged with the duty of managing the bank’s interest rate risk exposure through the use of various hedging strategies and instruments. This thesis uses a case study methodology to analyse GBS Mutual Bank interest rate risk management. Its specific business circumstances, balance sheet structure and the market conditions over a specified period are used to comment on the practicality of a variety of balance sheet positioning strategies and derivative hedging instruments. The thesis also provides recommendations for the bank’s asset and liability committee in terms of its functions and organisation. It is elucidated that the most practical balance sheet hedging strategies are a volume strategy and immunisation, while the most practical derivative hedging instruments are interest rate futures and interest rate collars. It is found that the bank has a well functioning asset and liability committee whose only encumbrance to its functionality is the inadequacy of the informational technology used to measure, control and manage its interest rate risk position. This thesis concludes by summarising the practicality of the various interest rate risk hedging alternatives available to the GBS Mutual Bank. Implementing a particular strategy or instrument depends, of course, on its asset and liability committee’s decision.
- Full Text:
Normative indications for Xhosa-speaking unskilled workers on the trail making test and the stroop test
- Authors: Andrews, Karen Anne Hope
- Date: 2008
- Subjects: Neuropsychology , Neuropsychological tests -- Sex differences , Educational tests and measurements -- Sex differences , Xhosa (African people) -- Education
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:2926 , http://hdl.handle.net/10962/d1002435 , Neuropsychology , Neuropsychological tests -- Sex differences , Educational tests and measurements -- Sex differences , Xhosa (African people) -- Education
- Description: The aim of the study was to produce preliminary normative indications for the Trail Making Test and the Stroop Test, administered in English, on a non-clinical sample of black, Xhosa-speaking, unskilled individuals (N = 33), with an educational level of 11 – 12 years, in two age categories (18 –29 and 30 – 40 years). The sample was equally distributed for gender and level of education. Participants, who were required to have a basic proficiency in English, were from traditionally black township schools with relatively disadvantaged quality of education. Within-sample age and gender effects were investigated. There were no significant age effects on the Trail Making Test, whereas there was one significant difference between age groups on the Stroop Test with respect to the Color-Word task, and a result that strongly approached significance on the Word task, with the younger group performing better than the older group. There were no significant gender effects on the Trail Making Test, whereas there was one significant difference between genders on the Stroop Test with respect to the Word task, and a result that approached significance on the Color task, with females performing better than males. Normative indications for both measures were compared to available normative data on western populations with higher levels and more advantaged quality of education. This comparison revealed consistently poorer performances for both the Trail Making Test and the Stroop Test, confirming the need for localised normative datasets to facilitate accurate neuropsychological diagnoses on culturally disadvantaged individuals.
- Full Text:
- Authors: Andrews, Karen Anne Hope
- Date: 2008
- Subjects: Neuropsychology , Neuropsychological tests -- Sex differences , Educational tests and measurements -- Sex differences , Xhosa (African people) -- Education
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:2926 , http://hdl.handle.net/10962/d1002435 , Neuropsychology , Neuropsychological tests -- Sex differences , Educational tests and measurements -- Sex differences , Xhosa (African people) -- Education
- Description: The aim of the study was to produce preliminary normative indications for the Trail Making Test and the Stroop Test, administered in English, on a non-clinical sample of black, Xhosa-speaking, unskilled individuals (N = 33), with an educational level of 11 – 12 years, in two age categories (18 –29 and 30 – 40 years). The sample was equally distributed for gender and level of education. Participants, who were required to have a basic proficiency in English, were from traditionally black township schools with relatively disadvantaged quality of education. Within-sample age and gender effects were investigated. There were no significant age effects on the Trail Making Test, whereas there was one significant difference between age groups on the Stroop Test with respect to the Color-Word task, and a result that strongly approached significance on the Word task, with the younger group performing better than the older group. There were no significant gender effects on the Trail Making Test, whereas there was one significant difference between genders on the Stroop Test with respect to the Word task, and a result that approached significance on the Color task, with females performing better than males. Normative indications for both measures were compared to available normative data on western populations with higher levels and more advantaged quality of education. This comparison revealed consistently poorer performances for both the Trail Making Test and the Stroop Test, confirming the need for localised normative datasets to facilitate accurate neuropsychological diagnoses on culturally disadvantaged individuals.
- Full Text:
The distinction between tax evasion, tax avoidance and tax planning
- Authors: Tarrant, Greg
- Date: 2008
- Subjects: South African Revenue Service , Tax evasion -- South Africa , Tax planning -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:897 , http://hdl.handle.net/10962/d1004549
- Description: Tax avoidance has been the subject of intense scrutiny lately by both the South African Revenue Service ("the SARS") and the media. This attention stems largely from the recent withdrawal of section 103(1) together with the introduction of section 80A to 80L of the South African Income Tax Act. However, this attention is not limited to South Africa. Revenue authorities worldwide have focused on the task of challenging tax avoidance. The approach of the SARS to tackling tax avoidance has been multi-faceted. In the Discussion Paper on Tax Avoidance and Section 103 (1) of the South African Income Tax Act they begin with a review of the distinction between tax evasion, tax avoidance and tax planning. Following a call for comment the SARS issued an Interim Response followed by the Revised Proposals which culminated in the withdrawal of the longstanding general anti-avoidance rules housed in section 103(1) and the introduction of new and more comprehensive anti-avoidance rules. In addition, the SARS has adopted an ongoing media campaign stressing the importance of paying tax in a country with a large development agenda like that of South Africa, the need for taxpayers to adopt a responsible attitude to the management of tax and the inclusion of responsible tax management as the greatest measure of a taxpayer's corporate and social investment. In tandem with this message the SARS have sought to vilify those taxpayers who engage in tax avoidance. The message is clear: tax avoidance carries reputational risks; those who engage in tax avoidance are unpatriotic or immoral and their actions simply result in an unfair shifting of the tax burden. The SARS is not alone in the above approach. Around the world tax authorities have been echoing the same message. The message appears to be working. Accounting firms speak of a "creeping conservatism" that has pervaded company boardrooms. What is not clear, however, is whether taxpayers, in becoming more conservative, are simply more fully aware of tax risks and are making informed decisions or whether they are simply responding to external events, such as the worldwide focus by revenue authorities and the media on tax avoidance. Whatever the reason, it is now critical, particularly in the case of corporate taxpayers, that their policies for tax and its attendant risks need to be as sophisticated, coherent and transparent as its policies in all other areas involving multiple stakeholders, such as suppliers, customers, staff and investors. How does a company begin to set its tax philosophy and strategic direction or to determine its appetite for risk? A starting point, it is submitted would be a review of the distinction between tax evasion, avoidance and planning with a heightened sensitivity to the unfamiliar ethical, moral and social risks. The goal of this thesis was to clearly define the distinction between tax evasion, tax avoidance and tax planning from a legal interpretive, ethical and historical perspective in order to develop a rudimentary framework for the responsible management of strategic tax decisions, in the light of the new South African general anti-avoidance legislation. The research methodology entails a qualitative research orientation consisting of a critical conceptual analysis of tax evasion and tax avoidance, with a view to establishing a basic framework to be used by taxpayers to make informed decisions on tax matters. The analysis of the distinction in this work culminated in a diagrammatic representation of the distinction between tax evasion, tax avoidance and tax planning emphasising the different types of tax avoidance from least aggressive to the most abusive and from the least objectionable to most objectionable. It is anticipated that a visual representation of the distinction, however flawed, would result in a far more pragmatic tool to taxpayers than a lengthy document. From a glance taxpayers can determine the following: That tax avoidance is legal; that different forms of tax avoidance exist, some forms being more aggressive than others; that aggressive forms of tax avoidance carry reputational risks; and that in certain circumstances aggressive tax avoidance schemes may border on tax evasion. This, it is envisaged, may prompt taxpayers to ask the right questions when faced with an external or in-house tax avoidance arrangement rather than simply blindly accepting or rejecting the arrangement.
- Full Text:
- Authors: Tarrant, Greg
- Date: 2008
- Subjects: South African Revenue Service , Tax evasion -- South Africa , Tax planning -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:897 , http://hdl.handle.net/10962/d1004549
- Description: Tax avoidance has been the subject of intense scrutiny lately by both the South African Revenue Service ("the SARS") and the media. This attention stems largely from the recent withdrawal of section 103(1) together with the introduction of section 80A to 80L of the South African Income Tax Act. However, this attention is not limited to South Africa. Revenue authorities worldwide have focused on the task of challenging tax avoidance. The approach of the SARS to tackling tax avoidance has been multi-faceted. In the Discussion Paper on Tax Avoidance and Section 103 (1) of the South African Income Tax Act they begin with a review of the distinction between tax evasion, tax avoidance and tax planning. Following a call for comment the SARS issued an Interim Response followed by the Revised Proposals which culminated in the withdrawal of the longstanding general anti-avoidance rules housed in section 103(1) and the introduction of new and more comprehensive anti-avoidance rules. In addition, the SARS has adopted an ongoing media campaign stressing the importance of paying tax in a country with a large development agenda like that of South Africa, the need for taxpayers to adopt a responsible attitude to the management of tax and the inclusion of responsible tax management as the greatest measure of a taxpayer's corporate and social investment. In tandem with this message the SARS have sought to vilify those taxpayers who engage in tax avoidance. The message is clear: tax avoidance carries reputational risks; those who engage in tax avoidance are unpatriotic or immoral and their actions simply result in an unfair shifting of the tax burden. The SARS is not alone in the above approach. Around the world tax authorities have been echoing the same message. The message appears to be working. Accounting firms speak of a "creeping conservatism" that has pervaded company boardrooms. What is not clear, however, is whether taxpayers, in becoming more conservative, are simply more fully aware of tax risks and are making informed decisions or whether they are simply responding to external events, such as the worldwide focus by revenue authorities and the media on tax avoidance. Whatever the reason, it is now critical, particularly in the case of corporate taxpayers, that their policies for tax and its attendant risks need to be as sophisticated, coherent and transparent as its policies in all other areas involving multiple stakeholders, such as suppliers, customers, staff and investors. How does a company begin to set its tax philosophy and strategic direction or to determine its appetite for risk? A starting point, it is submitted would be a review of the distinction between tax evasion, avoidance and planning with a heightened sensitivity to the unfamiliar ethical, moral and social risks. The goal of this thesis was to clearly define the distinction between tax evasion, tax avoidance and tax planning from a legal interpretive, ethical and historical perspective in order to develop a rudimentary framework for the responsible management of strategic tax decisions, in the light of the new South African general anti-avoidance legislation. The research methodology entails a qualitative research orientation consisting of a critical conceptual analysis of tax evasion and tax avoidance, with a view to establishing a basic framework to be used by taxpayers to make informed decisions on tax matters. The analysis of the distinction in this work culminated in a diagrammatic representation of the distinction between tax evasion, tax avoidance and tax planning emphasising the different types of tax avoidance from least aggressive to the most abusive and from the least objectionable to most objectionable. It is anticipated that a visual representation of the distinction, however flawed, would result in a far more pragmatic tool to taxpayers than a lengthy document. From a glance taxpayers can determine the following: That tax avoidance is legal; that different forms of tax avoidance exist, some forms being more aggressive than others; that aggressive forms of tax avoidance carry reputational risks; and that in certain circumstances aggressive tax avoidance schemes may border on tax evasion. This, it is envisaged, may prompt taxpayers to ask the right questions when faced with an external or in-house tax avoidance arrangement rather than simply blindly accepting or rejecting the arrangement.
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The influence of organisational culture on organisational commitment at a selected local municipality
- Van Stuyvesant Meijen, Jolise
- Authors: Van Stuyvesant Meijen, Jolise
- Date: 2008
- Subjects: Local government -- South Africa , Corporate culture -- South Africa , Organizational change -- South Africa , Municipal services -- South Africa , Employee loyalty
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1172 , http://hdl.handle.net/10962/d1002788
- Description: Since 2000, local municipalities have been through a process of transformation which amalgamated a number of smaller local municipalities into larger municipalities. The amalgamation of a number of municipalities brings together an array of people, and therefore a myriad of organisational cultures are combined. The organisational culture of an organisation has an effect on the organisational commitment of its employees. A fit between the organisational culture and the employees will increase the organisational commitment of those employees and contribute towards improved service delivery. A survey conducted in South Africa indicated that the local municipalities have been delivering poor standards of service to the community; therefore there is a need to increase the service delivery within local municipalities. The importance of looking at the organisational commitment of a local municipality is because if there is commitment within the organisation, then employees will identify with their organisation and its goals, and will deliver the service more effectively and efficiently. Therefore, increasing the service delivery of local municipalities can be achieved through diagnosing the organisational commitment and organisational culture of employees within the selected municipality. The primary objective of this research was therefore to diagnose the relationship between organisational culture and the organisational commitment of employees at the selected municipality. In order to achieve this objective, a survey was conducted to canvas the opinions of respondents (N = 148) from the selected local municipality regarding their perceptions of the existing organisational culture, their preferences regarding the organisational culture within the selected municipality, and finally the organisational commitment. The main findings of this research conducted at a selected municipality can be summarised as follows: The dominant existing organisational culture is the power culture, while the dominant preferred organisational culture is the support culture; There is an organisational culture gap between the existing and preferred organisational cultures at the selected municipality; The dominant organisational commitment within the selected municipality is normative commitment; The findings pertaining to the relationship between organisational culture and organisational commitment of employees within the selected municipality can be stated as follows: The existing organisational cultures have significant effects on the organisational commitment of employees; The preferred organisational cultures do not have significant effects on the organisational commitment of employees; and The organisational culture gap does not have a significant effect on the organisational commitment of employees; The findings pertaining to the relationship between the biographical variables and the existing and preferred organisational culture, organisational commitment and the organisational culture gap can be stated as follows: There is no significant relationship between biographical variables and the existing organisational culture; There are significant relationships between the biographical variables, namely the departments in which respondents work, and the education level of respondents, and the preferred organisational culture; There are significant relationships between the biographical variables and organisational commitment; and The average organisational culture gap scores of the organisational culture scales for the biographical variables are significantly different. It can be concluded that organisational culture has a significant effect on the organisational commitment of employees within the selected municipality and therefore can affect the service delivery of the selected municipality.
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- Authors: Van Stuyvesant Meijen, Jolise
- Date: 2008
- Subjects: Local government -- South Africa , Corporate culture -- South Africa , Organizational change -- South Africa , Municipal services -- South Africa , Employee loyalty
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1172 , http://hdl.handle.net/10962/d1002788
- Description: Since 2000, local municipalities have been through a process of transformation which amalgamated a number of smaller local municipalities into larger municipalities. The amalgamation of a number of municipalities brings together an array of people, and therefore a myriad of organisational cultures are combined. The organisational culture of an organisation has an effect on the organisational commitment of its employees. A fit between the organisational culture and the employees will increase the organisational commitment of those employees and contribute towards improved service delivery. A survey conducted in South Africa indicated that the local municipalities have been delivering poor standards of service to the community; therefore there is a need to increase the service delivery within local municipalities. The importance of looking at the organisational commitment of a local municipality is because if there is commitment within the organisation, then employees will identify with their organisation and its goals, and will deliver the service more effectively and efficiently. Therefore, increasing the service delivery of local municipalities can be achieved through diagnosing the organisational commitment and organisational culture of employees within the selected municipality. The primary objective of this research was therefore to diagnose the relationship between organisational culture and the organisational commitment of employees at the selected municipality. In order to achieve this objective, a survey was conducted to canvas the opinions of respondents (N = 148) from the selected local municipality regarding their perceptions of the existing organisational culture, their preferences regarding the organisational culture within the selected municipality, and finally the organisational commitment. The main findings of this research conducted at a selected municipality can be summarised as follows: The dominant existing organisational culture is the power culture, while the dominant preferred organisational culture is the support culture; There is an organisational culture gap between the existing and preferred organisational cultures at the selected municipality; The dominant organisational commitment within the selected municipality is normative commitment; The findings pertaining to the relationship between organisational culture and organisational commitment of employees within the selected municipality can be stated as follows: The existing organisational cultures have significant effects on the organisational commitment of employees; The preferred organisational cultures do not have significant effects on the organisational commitment of employees; and The organisational culture gap does not have a significant effect on the organisational commitment of employees; The findings pertaining to the relationship between the biographical variables and the existing and preferred organisational culture, organisational commitment and the organisational culture gap can be stated as follows: There is no significant relationship between biographical variables and the existing organisational culture; There are significant relationships between the biographical variables, namely the departments in which respondents work, and the education level of respondents, and the preferred organisational culture; There are significant relationships between the biographical variables and organisational commitment; and The average organisational culture gap scores of the organisational culture scales for the biographical variables are significantly different. It can be concluded that organisational culture has a significant effect on the organisational commitment of employees within the selected municipality and therefore can affect the service delivery of the selected municipality.
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The role of experience in the development of bar managers' social competencies
- Authors: Dhaya, Jateen
- Date: 2008
- Subjects: Hospitality Industry -- Management , Bars (Drinking establishments) -- Management , Social skills , Executive ability , Interpersonal communication , Experience
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1177 , http://hdl.handle.net/10962/d1002794 , Hospitality Industry -- Management , Bars (Drinking establishments) -- Management , Social skills , Executive ability , Interpersonal communication , Experience
- Description: This research study analysed the role that experience played in the development of bar managers’ social competencies. Given the social nature of the bar environment, social competencies were perceived to be essential managerial competencies that enable bar managers to manage employees and consumers to ensure that employee and consumer satisfaction is maintained. The literature reviewed discussed the importance of managerial competencies and the composition of social competencies. Experience was conceptualized to develop an understanding of the informal learning method through which competency development occurs. Data was captured through face-to-face interviews, which were based on the Critical Incident Technique (CIT). The data was analysed using the open coding procedures of grounded theory. This research study proposed a process to explain how experience contributed to the development of social competencies. The proposed process, which is called the Social Competency Cache Development Process (SCCD Process), ultimately indicated that experience contributed to bar managers’ social competencies through a reflection process, the residues of experience, and through the familiarity of situations and results. This research study found that experience contributed to the development of bar managers’ social competencies within a process that established an awareness of unfamiliar social competencies or reinforced the effects of familiar effective social competencies. Experience was also found to promote the transition between novel situations and familiar situations, which in turn enabled bar managers to effectively assess social situations and select effective responses to social situations. Consequently, experience improved the probability of bar managers implementing effective social competencies to ensure employee and consumer satisfaction. In essence, experience shaped bar managers’ accumulation of social competencies by promoting the addition of new social competencies or the reinforcement of existing social competencies.
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- Authors: Dhaya, Jateen
- Date: 2008
- Subjects: Hospitality Industry -- Management , Bars (Drinking establishments) -- Management , Social skills , Executive ability , Interpersonal communication , Experience
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1177 , http://hdl.handle.net/10962/d1002794 , Hospitality Industry -- Management , Bars (Drinking establishments) -- Management , Social skills , Executive ability , Interpersonal communication , Experience
- Description: This research study analysed the role that experience played in the development of bar managers’ social competencies. Given the social nature of the bar environment, social competencies were perceived to be essential managerial competencies that enable bar managers to manage employees and consumers to ensure that employee and consumer satisfaction is maintained. The literature reviewed discussed the importance of managerial competencies and the composition of social competencies. Experience was conceptualized to develop an understanding of the informal learning method through which competency development occurs. Data was captured through face-to-face interviews, which were based on the Critical Incident Technique (CIT). The data was analysed using the open coding procedures of grounded theory. This research study proposed a process to explain how experience contributed to the development of social competencies. The proposed process, which is called the Social Competency Cache Development Process (SCCD Process), ultimately indicated that experience contributed to bar managers’ social competencies through a reflection process, the residues of experience, and through the familiarity of situations and results. This research study found that experience contributed to the development of bar managers’ social competencies within a process that established an awareness of unfamiliar social competencies or reinforced the effects of familiar effective social competencies. Experience was also found to promote the transition between novel situations and familiar situations, which in turn enabled bar managers to effectively assess social situations and select effective responses to social situations. Consequently, experience improved the probability of bar managers implementing effective social competencies to ensure employee and consumer satisfaction. In essence, experience shaped bar managers’ accumulation of social competencies by promoting the addition of new social competencies or the reinforcement of existing social competencies.
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The tax implications of non-resident sportspersons performing and earning an income in South Africa
- Authors: Wessels, Jacques
- Date: 2008
- Subjects: South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:893 , http://hdl.handle.net/10962/d1003719 , South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Description: As the number of non-resident sports persons competing in South Africa increases so does the need to tax them more effectively. It was for this reason that the South African legislature decided to insert Part IlIA into the Income Tax Act which regulates the taxation of non-resident sports persons in South Africa. The new tax on foreign sports persons, which came into effect during August 2006, is a withholding tax placing the onus upon the organizer of the event to withhold the tax portion of the payment to the non-resident sportsperson and pay it over to the revenue services. The rate of taxation has been set at 15 percent on all amounts received by or accruing to a foreign sportsperson. The question which the research addressed is whether this new tax will prove to be an effective tax, both from the point of view of its equity and the administration of the tax. In order to determine the impact of the new tax, it was compared to similar taxes implemented in the United Kingdom and Australia and also to other withholding taxes levied in South Africa. The new tax was also measured against a theoretical model for effectiveness, compared to the pre-August 2006 situation and to the taxation of resident sportsmen and women, using hypothetical examples. The major shortcomings of the new withholding tax are the uncertainty with regard to the intention of the legislature on matters such as the taxation of capital income versus revenue income, the question whether payments to support staff are included in the ambit of the new tax, the taxation of the award of assets in lieu of cash payments and the definition of a resident. A further area of concern is that the rate of taxation of 15 percent appears to be too low and creates horizontal inequity between the taxation of resident and non-resident sports persons. The new tax on non-resident sports persons may have its shortcomings but, depending upon the administrative and support structures put in place to deal with it, will be an effective tax. The rate at which the tax is levied could result in a less tax being collected than before but, with the reduced administrative cost of tax collection, the effective/statutory ratio of the tax could well be much higher than it was. This is a new tax in South Africa and certain initial problems are inevitable and will undoubtedly be solved as the administrators gain experience and as the case law governing this tax develops. , KMBT_363
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- Authors: Wessels, Jacques
- Date: 2008
- Subjects: South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:893 , http://hdl.handle.net/10962/d1003719 , South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Description: As the number of non-resident sports persons competing in South Africa increases so does the need to tax them more effectively. It was for this reason that the South African legislature decided to insert Part IlIA into the Income Tax Act which regulates the taxation of non-resident sports persons in South Africa. The new tax on foreign sports persons, which came into effect during August 2006, is a withholding tax placing the onus upon the organizer of the event to withhold the tax portion of the payment to the non-resident sportsperson and pay it over to the revenue services. The rate of taxation has been set at 15 percent on all amounts received by or accruing to a foreign sportsperson. The question which the research addressed is whether this new tax will prove to be an effective tax, both from the point of view of its equity and the administration of the tax. In order to determine the impact of the new tax, it was compared to similar taxes implemented in the United Kingdom and Australia and also to other withholding taxes levied in South Africa. The new tax was also measured against a theoretical model for effectiveness, compared to the pre-August 2006 situation and to the taxation of resident sportsmen and women, using hypothetical examples. The major shortcomings of the new withholding tax are the uncertainty with regard to the intention of the legislature on matters such as the taxation of capital income versus revenue income, the question whether payments to support staff are included in the ambit of the new tax, the taxation of the award of assets in lieu of cash payments and the definition of a resident. A further area of concern is that the rate of taxation of 15 percent appears to be too low and creates horizontal inequity between the taxation of resident and non-resident sports persons. The new tax on non-resident sports persons may have its shortcomings but, depending upon the administrative and support structures put in place to deal with it, will be an effective tax. The rate at which the tax is levied could result in a less tax being collected than before but, with the reduced administrative cost of tax collection, the effective/statutory ratio of the tax could well be much higher than it was. This is a new tax in South Africa and certain initial problems are inevitable and will undoubtedly be solved as the administrators gain experience and as the case law governing this tax develops. , KMBT_363
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Trends and determinants of inward foreign direct investment to South Africa
- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
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- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
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