Political cost hypothesis and earning management : evidence from the South African construction industry
- Authors: Booi, Vuyo Happy
- Date: 2017
- Subjects: Construction industry - South Africa , Construction industry - Economic aspects - South Africa , Construction industry - Finance , Earnings management - South Africa , Managerial accounting - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/245809 , uj:25467
- Description: M.Com. (International Accounting) , Abstract: This study investigated the political cost hypothesis in the South African construction industry during periods of political scrutiny (event period). Specifically, it investigated whether JSE listed construction firms used earnings-decreasing accruals to manage earnings in order to reduce political visibility and associated costs during the Competition Commission’s investigations. It tested the political cost hypothesis for the full industry, for the large and mid-cap firms and for the firms fined by the Competition Commission. The discretionary component of total accruals was used as proxy for earnings management – calculated by using the Modified Jones Model. It was found that, in the event period, no earnings-decreasing discretionary accruals could be detected for the full industry and the large-mid cap firms. However, there were earnings-decreasing accruals for firms fined by the Competition Commission although the results were not statistically significant.
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Implementation of sustainable construction in the South African construction industry
- Authors: Thobakgale, Machela Esther
- Date: 2016
- Subjects: Sustainable construction - South Africa , Construction industry - Economic aspects - South Africa , Sustainable construction - Standards - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/269589 , uj:28640
- Description: M.Tech. (Construction Management) , Abstract: In most developed countries, the construction industry accounts for over 50% of the fixed capital generation each year. Therefore, the construction industry is very important to the development of any country, as it is in South Africa. However, the industry has not escaped the challenges of implementing sustainable construction as the creation and responsible maintenance of a healthy built environment, based on ecological principles and by means of an efficient use of resources in South Africa. This study assesses the effects of and barriers to non-compliance within the construction industry, hence encouraging the construction industry to move towards achieving sustainable construction in South Africa. The data used in this study was derived from both primary and secondary sources. The secondary data was collected via detailed review of related literature. The primary data was collected through a questionnaire which was distributed to construction professionals. Out of the 150 questionnaires sent out, 111 were received, representing a 74% response rate. Findings revealed that better quality of working conditions, education and training on sustainable practices, were the major social dimensions that influence the promotion of sustainable construction. Furthermore, the study also showed that the major economic dimensions that influence the promotion of sustainable construction thinking in Gauteng Province included: increasing client awareness and enhanced efficiency policies in design and construction. Additionally, it was observed that major design dimensions that influence the promotion of sustainable construction thinking were flexible and adaptable designs. The study also revealed that the major environmental dimensions that influence the promotion of sustainable construction thinking were the education of potential pollution and efficient use of water during construction. Furthermore, the study revealed that clients’ approval, more financial incentives towards sustainable construction, and water use reduction were the major driver for the implementation of sustainable construction practices. Additionally, it was observed that the major current construction industry practices that adversely affected the sustainability idea were designing to obtain minimum waste, specifying materials with low environmental impact and sourcing of building materials locally to reduce truck deliveries. The study also revealed the that the major critical barriers to the implementation of sustainable construction were the lack of technical understanding on the part of project team members, the high cost of construction and the...
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Performance evaluation of contractor development programmes in South Africa
- Authors: Dapaah, Ambrose Denteh
- Date: 2016
- Subjects: Construction industry - South Africa - Management , Construction industry - Economic aspects - South Africa , Construction contracts - South Africa , Civil engineering contracts - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/243061 , uj:25087
- Description: M.Tech. (Construction Management) , Abstract: Contractor development programmes (CDPs) are aimed at creating an enabling environment for the continued existence and sustainability of small, medium and micro enterprise (SMME) contractors. Literature shows that the views of beneficiaries of these CDPs have not been sufficiently evaluated to access their effect. The purpose of this study was to establish from the beneficiaries what their expectations of the CDPs are and whether they believed the CDPs are meeting those expectations. A questionnaire survey, consisting of closed-ended as well as open-ended questions, was administered to, and structured interviews were conducted with the respondents to establish their views on the CDPs and whether they have benefited from the CDPs. Based on the findings, recommendations were made on how CDPs could be improved. The study showed that the beneficiaries were fairly satisfied with the CDPs and regarded them as adding some value to their upgrade and sustainability; however, gaps exist within the CDPs that require the implementing agencies’ attention to ensure the successful implementation of the CDPs. Evidence from the study showed that CDPs which had a strong mentorship programme also had a higher number of contractor upgrades. Information from interviews also revealed that contractors believed that continuous mentorship programmes would be the solution to the lack of CDPs performance. Therefore continuous contractor mentorship (CCM) programmes were found to be vital to a successful CDP and these were found to be lacking in most South African CDPs. Therefore the study will aid in improving the quality of the CDPs and achieving their goals of developing a contractor. The research focused on contractors as a whole who had undergone the CDPs and did not separate them into their fields of specialities such as general building, engineering or specialised contractors. The questionnaire survey was conducted only in the Gauteng Province of South Africa and not the entire country.
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