An analysis of integrated reporting on the governance of selected State-Owned Enterprises (SOEs)
- Authors: Songxaba, Bathabile Liberty
- Date: 2023-03-31
- Subjects: Government business enterprises Management , Integrated reporting , Integrative thinking , Corporate governance Law and legislation South Africa , Good governance , Business ethics South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419112 , vital:71617
- Description: The research investigated how integrated annual reports (IARs) can enhance the governance of state-owned enterprises (SOEs). Governance of SOEs is crucial to achieving the county’s socio-economic objectives. The SOEs listed on Schedule 2 of the Performance Finance Management Act (PFMA), Act No. No.1 of 1999, as amended in March 2017, represents, among many, the electricity, transportation, and telecommunication sectors. This study analysed the integrated reporting (IR) governance of selected schedule 2 of PFMA SOEs. The researcher adopted the qualitative approach for the study. Firstly, the analysis was to identify and describe the governance disclosures as evident in IARs using the King IV principles. Secondly, the study analysed the reporting trends associated with governance practices over 2018 – 2020. Integrated reports from Eskom, Transnet, and Telkom were selected for three years. Relevant concepts discussed in the literature review include corporate governance, King reports on corporate governance, King IV principles, the principle of materiality on governance disclosures, corporate reporting, integrated reporting, integrated thinking, benefits of integrated reporting, theoretical underpinnings of the study, and a conclusion. The disclosures were summarised per year and SOE per King IV principle, resulting in nine (9) excel spreadsheets, which were combined excel spreadsheets sorted into a logical structure based on coding to keep track of the source data sequence. The data was systematically manually coded using Ose's (2016) Microsoft Word and Excel method. Findings included seven themes which were ethics, irregular expenditure, internal controls, accountability, governance structures, reputation, and sustainability. Themes were transferred to subtopics for comparative analysis to assess trends and the SOEs’ governance disclosures. The results found that all three SOEs have disclosed using King IV principles guided by the 2013 International Integrated Reporting Council’s (IIRC) framework. All SOEs disclosed their governance in their reports and practice explained. There are noticeable differences, Eskom and Transnet are solely government-owned, and Telkom is partially privatised and run privately as the majority holding is mostly private. Eskom and Transnet reflected more similarities in terms of their operational and financial challenges, whereas Telkom operates in a more competitive environment and is run as a private company which is portrayed to be profitable and restricted to Johannesburg Stock Exchange (JSE) requirements. Disclosures indicate progress on material matters and links associated with functional areas such as strategy and risks. Materiality is a guiding principle in the IIRC framework, which assist discloses information that significantly affects the organisation’s ability to create value over time. The similarities in all three SOEs include challenges in retaining competent and ethical leaders, which is critical for enhancing good governance. The study recommended how the integrated report can be viewed as a management and accounting tool for the governing body and stakeholders to focus on drivers that create value and consider drivers that erode or preserve value. This feedback may assist in informing strategy, business model, and decision-making for the governing body to set governing structures that support the organisation to create sustained value. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2023
- Full Text:
- Authors: Songxaba, Bathabile Liberty
- Date: 2023-03-31
- Subjects: Government business enterprises Management , Integrated reporting , Integrative thinking , Corporate governance Law and legislation South Africa , Good governance , Business ethics South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419112 , vital:71617
- Description: The research investigated how integrated annual reports (IARs) can enhance the governance of state-owned enterprises (SOEs). Governance of SOEs is crucial to achieving the county’s socio-economic objectives. The SOEs listed on Schedule 2 of the Performance Finance Management Act (PFMA), Act No. No.1 of 1999, as amended in March 2017, represents, among many, the electricity, transportation, and telecommunication sectors. This study analysed the integrated reporting (IR) governance of selected schedule 2 of PFMA SOEs. The researcher adopted the qualitative approach for the study. Firstly, the analysis was to identify and describe the governance disclosures as evident in IARs using the King IV principles. Secondly, the study analysed the reporting trends associated with governance practices over 2018 – 2020. Integrated reports from Eskom, Transnet, and Telkom were selected for three years. Relevant concepts discussed in the literature review include corporate governance, King reports on corporate governance, King IV principles, the principle of materiality on governance disclosures, corporate reporting, integrated reporting, integrated thinking, benefits of integrated reporting, theoretical underpinnings of the study, and a conclusion. The disclosures were summarised per year and SOE per King IV principle, resulting in nine (9) excel spreadsheets, which were combined excel spreadsheets sorted into a logical structure based on coding to keep track of the source data sequence. The data was systematically manually coded using Ose's (2016) Microsoft Word and Excel method. Findings included seven themes which were ethics, irregular expenditure, internal controls, accountability, governance structures, reputation, and sustainability. Themes were transferred to subtopics for comparative analysis to assess trends and the SOEs’ governance disclosures. The results found that all three SOEs have disclosed using King IV principles guided by the 2013 International Integrated Reporting Council’s (IIRC) framework. All SOEs disclosed their governance in their reports and practice explained. There are noticeable differences, Eskom and Transnet are solely government-owned, and Telkom is partially privatised and run privately as the majority holding is mostly private. Eskom and Transnet reflected more similarities in terms of their operational and financial challenges, whereas Telkom operates in a more competitive environment and is run as a private company which is portrayed to be profitable and restricted to Johannesburg Stock Exchange (JSE) requirements. Disclosures indicate progress on material matters and links associated with functional areas such as strategy and risks. Materiality is a guiding principle in the IIRC framework, which assist discloses information that significantly affects the organisation’s ability to create value over time. The similarities in all three SOEs include challenges in retaining competent and ethical leaders, which is critical for enhancing good governance. The study recommended how the integrated report can be viewed as a management and accounting tool for the governing body and stakeholders to focus on drivers that create value and consider drivers that erode or preserve value. This feedback may assist in informing strategy, business model, and decision-making for the governing body to set governing structures that support the organisation to create sustained value. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2023
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The moderating effect of socioeconomic factors on the relationship between financial inclusion and poverty among South African vulnerable households
- Authors: Khalane, Pontso Violet
- Date: 2023-03-31
- Subjects: Financial inclusion , Poverty South Africa , Socioeconomic status South Africa , Financial sector , South Africa. Financial Sector Regulation Act, 2017
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419451 , vital:71645
- Description: Vulnerable households are often excluded from the formal financial sector, subsequently experiencing more poverty. Vulnerable households are those that face higher chances of experiencing higher levels of poverty due to their socioeconomic factors. This study aimed to determine the moderating effect of socioeconomic factors on the relationship between financial inclusion and poverty among South African vulnerable households. Poverty is the involuntary lack of monetary and other resources that can afford households with basic human needs and a decent standard of living above a chosen poverty measure. This study measured poverty using a multidimensional measure that incorporated a household’s deprivation of health, education and a decent standard of living. Financial inclusion refers to a process of incorporating vulnerable households into the formal financial sector by ensuring that they receive timely and adequate access to regulated financial products at an affordable price, regardless of their socioeconomic status. This study measured financial inclusion multidimensionally using access to four basic regulated financial products. Socioeconomic factors included gender, race, first or home language, age, the highest level and many more factors. This study was supported by theoretical framework of the vulnerable group theory of financial inclusion, financial development theory, the credit rationing theory and the public goods theory of financial inclusion. The study adopted a quantitative research design. The study used existing data from the FinMark FinScope 2016 South Africa database, which collected data on households’ demographics and their ownership of financial products. Using a closed-ended questionnaire, FinMark FinScope collected the data across South Africa through a multi-probability sampling technique. The final database used in this study after data cleaning contained a sample of 2759 households. The study used descriptive statistics, Pearson’s product-moment correlation, ANOVA and Multiple regression to investigate the factors of the study. The results of the study found a statistically significant relationship between financial inclusion and vulnerable households. The results also found a statistically significant relationship between poverty and vulnerable households. The results further showed a statistically significant negative relationship between financial inclusion and poverty. Lastly, the study found that only socioeconomic factors such as marital status, age as it relates to children and old people moderating effect on the relationship between financial inclusion and poverty among South African vulnerable households. Subsequently, it was concluded that vulnerable households experienced higher levels of poverty in South Africa, and these vulnerable households were less financially included in South Africa. Additionally, it was found that increasing vulnerable households’ access to all regulated financial products could help decrease their poverty levels. The study made several recommendations, which included inter-alia that formal financial institutions design products that specifically meet the needs of vulnerable households. This study also recommended that banks play a central role in facilitating vulnerable households’ affordability of health in South Africa (e.g., offering affordable healthcare products to vulnerable households). Theoretically, this study contributed to the body of literature using multidimensional financial inclusion and poverty, as well as determining the moderating effect of socioeconomic factors. Practically, this study provided insights to the banks on how to develop their products to meet the needs of vulnerable households, help alleviate poverty, and increase the banks’ market into previously unbanked or underbanked segments of the population of South Africa. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
- Full Text:
- Authors: Khalane, Pontso Violet
- Date: 2023-03-31
- Subjects: Financial inclusion , Poverty South Africa , Socioeconomic status South Africa , Financial sector , South Africa. Financial Sector Regulation Act, 2017
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419451 , vital:71645
- Description: Vulnerable households are often excluded from the formal financial sector, subsequently experiencing more poverty. Vulnerable households are those that face higher chances of experiencing higher levels of poverty due to their socioeconomic factors. This study aimed to determine the moderating effect of socioeconomic factors on the relationship between financial inclusion and poverty among South African vulnerable households. Poverty is the involuntary lack of monetary and other resources that can afford households with basic human needs and a decent standard of living above a chosen poverty measure. This study measured poverty using a multidimensional measure that incorporated a household’s deprivation of health, education and a decent standard of living. Financial inclusion refers to a process of incorporating vulnerable households into the formal financial sector by ensuring that they receive timely and adequate access to regulated financial products at an affordable price, regardless of their socioeconomic status. This study measured financial inclusion multidimensionally using access to four basic regulated financial products. Socioeconomic factors included gender, race, first or home language, age, the highest level and many more factors. This study was supported by theoretical framework of the vulnerable group theory of financial inclusion, financial development theory, the credit rationing theory and the public goods theory of financial inclusion. The study adopted a quantitative research design. The study used existing data from the FinMark FinScope 2016 South Africa database, which collected data on households’ demographics and their ownership of financial products. Using a closed-ended questionnaire, FinMark FinScope collected the data across South Africa through a multi-probability sampling technique. The final database used in this study after data cleaning contained a sample of 2759 households. The study used descriptive statistics, Pearson’s product-moment correlation, ANOVA and Multiple regression to investigate the factors of the study. The results of the study found a statistically significant relationship between financial inclusion and vulnerable households. The results also found a statistically significant relationship between poverty and vulnerable households. The results further showed a statistically significant negative relationship between financial inclusion and poverty. Lastly, the study found that only socioeconomic factors such as marital status, age as it relates to children and old people moderating effect on the relationship between financial inclusion and poverty among South African vulnerable households. Subsequently, it was concluded that vulnerable households experienced higher levels of poverty in South Africa, and these vulnerable households were less financially included in South Africa. Additionally, it was found that increasing vulnerable households’ access to all regulated financial products could help decrease their poverty levels. The study made several recommendations, which included inter-alia that formal financial institutions design products that specifically meet the needs of vulnerable households. This study also recommended that banks play a central role in facilitating vulnerable households’ affordability of health in South Africa (e.g., offering affordable healthcare products to vulnerable households). Theoretically, this study contributed to the body of literature using multidimensional financial inclusion and poverty, as well as determining the moderating effect of socioeconomic factors. Practically, this study provided insights to the banks on how to develop their products to meet the needs of vulnerable households, help alleviate poverty, and increase the banks’ market into previously unbanked or underbanked segments of the population of South Africa. , Thesis (MCom) -- Faculty of Commerce, Accounting, 2023
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