The effectiveness of traditional taxation methods on e-commerce
- Authors: Coertse, Cornelius Johannes
- Date: 2013-05-01
- Subjects: Taxation , Electronic commerce
- Type: Mini-Dissertation
- Identifier: uj:7488 , http://hdl.handle.net/10210/8347
- Description: M.Comm. (Business Management) , Traditional taxation methods do not cope effectively in collecting government revenue from e-commerce, and governments face the possibility of suffering further significant monetary losses if such methods are not modified (Kobrin, 2002). The characteristics of e-commerce are as follows: it is boderless; transmissions have insensitivity to physical distance; the taxation methods that may be applied to e-commerce are inconsistent; the nature of some product/service offerings available in e-commerce is distinct; and it can fall under multiple tax jurisdictions. All challenge the traditional territorial or 'brick-and-mortar' boundaries of taxation methods currently in use internationally.
- Full Text: false
- Authors: Coertse, Cornelius Johannes
- Date: 2013-05-01
- Subjects: Taxation , Electronic commerce
- Type: Mini-Dissertation
- Identifier: uj:7488 , http://hdl.handle.net/10210/8347
- Description: M.Comm. (Business Management) , Traditional taxation methods do not cope effectively in collecting government revenue from e-commerce, and governments face the possibility of suffering further significant monetary losses if such methods are not modified (Kobrin, 2002). The characteristics of e-commerce are as follows: it is boderless; transmissions have insensitivity to physical distance; the taxation methods that may be applied to e-commerce are inconsistent; the nature of some product/service offerings available in e-commerce is distinct; and it can fall under multiple tax jurisdictions. All challenge the traditional territorial or 'brick-and-mortar' boundaries of taxation methods currently in use internationally.
- Full Text: false
Debt and deleveraging during a financial crisis : a South African perspective
- Authors: More, Tebogo Paulina
- Date: 2013-07-25
- Subjects: Corporate debt , Financial leverage , Financial crises
- Type: Thesis
- Identifier: uj:7699 , http://hdl.handle.net/10210/8565
- Description: M.Comm. (Financial Management) , The purpose of this study is to show the influence of corporate debt on financial distress particularly during and after an economic/financial crisis on South African companies. It is assumed that companies that are highly leveraged prior to a crisis will experience financial distress during as well as after the crisis and that they will go through a process of deleveraging sometime after the financial crisis. The financial statements of 47 capital intensive companies that are traded on the main board of the JSE Limited are analysed for two crises that took place between 1994 and 2010. These crisis points coincide with the Asian crisis and the Dot.com bubble crash. The 2008 sub-prime crisis is excluded from the analyses due to the absence of post-crisis financial information for some of the companies sampled. The analysis examines the relationship between debt and financial distress and between debt and profitability before, during and after the crises. The evolution of debt levels before, during and after the crises is also examined. The empirical findings of the study are a departure from international literature and experience that suggest that during times of economic prosperity companies become over-indebted due to expansion plans and therefore in most cases experience financial distress as they are unable to meet their obligations or meet these with great difficulty during and after the crisis.
- Full Text:
- Authors: More, Tebogo Paulina
- Date: 2013-07-25
- Subjects: Corporate debt , Financial leverage , Financial crises
- Type: Thesis
- Identifier: uj:7699 , http://hdl.handle.net/10210/8565
- Description: M.Comm. (Financial Management) , The purpose of this study is to show the influence of corporate debt on financial distress particularly during and after an economic/financial crisis on South African companies. It is assumed that companies that are highly leveraged prior to a crisis will experience financial distress during as well as after the crisis and that they will go through a process of deleveraging sometime after the financial crisis. The financial statements of 47 capital intensive companies that are traded on the main board of the JSE Limited are analysed for two crises that took place between 1994 and 2010. These crisis points coincide with the Asian crisis and the Dot.com bubble crash. The 2008 sub-prime crisis is excluded from the analyses due to the absence of post-crisis financial information for some of the companies sampled. The analysis examines the relationship between debt and financial distress and between debt and profitability before, during and after the crises. The evolution of debt levels before, during and after the crises is also examined. The empirical findings of the study are a departure from international literature and experience that suggest that during times of economic prosperity companies become over-indebted due to expansion plans and therefore in most cases experience financial distress as they are unable to meet their obligations or meet these with great difficulty during and after the crisis.
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Problem-solving techniques : a barrier in financial management learning
- Authors: Joubert, Dewald Hendrik
- Date: 2013-12-09
- Subjects: Financial management - Study and teaching
- Type: Thesis
- Identifier: uj:7838 , http://hdl.handle.net/10210/8733
- Description: M.Comm. (Financial Management) , At the University of Johannesburg (UJ), the subject financial management is taught on various programmes across various disciplines. Lecturers find many students struggling with this subject and particularly with applying their knowledge to practical scenarios. If the problem (practical scenario) is not similar to a scenario previously encountered, many students struggle to solve these problems by themselves. This article will attempt to identify and explain key principles that need to be considered by lecturers in order to improve the problem-solving performance of their students in financial management. Most aspects identified and elaborated on lie within the field of educational psychology. This article will attempt to create an awareness of the key underlying principles of a problem-based pedagogy.
- Full Text:
- Authors: Joubert, Dewald Hendrik
- Date: 2013-12-09
- Subjects: Financial management - Study and teaching
- Type: Thesis
- Identifier: uj:7838 , http://hdl.handle.net/10210/8733
- Description: M.Comm. (Financial Management) , At the University of Johannesburg (UJ), the subject financial management is taught on various programmes across various disciplines. Lecturers find many students struggling with this subject and particularly with applying their knowledge to practical scenarios. If the problem (practical scenario) is not similar to a scenario previously encountered, many students struggle to solve these problems by themselves. This article will attempt to identify and explain key principles that need to be considered by lecturers in order to improve the problem-solving performance of their students in financial management. Most aspects identified and elaborated on lie within the field of educational psychology. This article will attempt to create an awareness of the key underlying principles of a problem-based pedagogy.
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A historical analysis of electronic trading system implementation: the case of the Johannesburg Stock Exchange (1990-2000)
- Authors: Strydom, Nicolaas Tjaart
- Date: 2014-06-10
- Subjects: Electronic trading of securities , JSE Limited , JSE Securities Exchange South Africa
- Type: Thesis
- Identifier: uj:11442 , http://hdl.handle.net/10210/11138
- Description: M.Com. (Financial Management) , Electronic trading systems are increasingly implemented by stock exchanges instead of maintaining the traditional floor trading system. This study uses the Historical case study method to examine original minute book volumes from the archives of the Johannesburg Stock Exchange (JSE). The purpose of the study is to identify and examine the antecedents and consequences of the shift to an electronic trading system in the case of the JSE from 1989 to 2000. The study also produces an accurate historical account of the process that the JSE underwent to implement an electronic trading system, for use in further studies concerning the shift from floor to electronic trading. The main antecedents identified in the study were the JSE’s need to automate menial tasks; the need for increased trading capacity; the need for proper information dissemination; the need to dematerialise physical share certificates; international trends with regard to electronic trading; the T + 3 clearing and settlement standard; the establishment of South Africa’s National Payment System; legislative changes to the Securities Exchange Control Act; the need for market liquidity; and the need for investor protection. The main consequences of the abolishment of the floor trading system in favour of the electronic trading system were examined and grouped in four categories, namely the consequences for society, the consequences for the operation of the stock market, the consequences for the liquidity of the market, and the consequences for investor protection. The results of this study could be used as a foundation for a follow-up study to measure the effects of electronic trading implementation on the liquidity and efficiency of a stock market.
- Full Text:
- Authors: Strydom, Nicolaas Tjaart
- Date: 2014-06-10
- Subjects: Electronic trading of securities , JSE Limited , JSE Securities Exchange South Africa
- Type: Thesis
- Identifier: uj:11442 , http://hdl.handle.net/10210/11138
- Description: M.Com. (Financial Management) , Electronic trading systems are increasingly implemented by stock exchanges instead of maintaining the traditional floor trading system. This study uses the Historical case study method to examine original minute book volumes from the archives of the Johannesburg Stock Exchange (JSE). The purpose of the study is to identify and examine the antecedents and consequences of the shift to an electronic trading system in the case of the JSE from 1989 to 2000. The study also produces an accurate historical account of the process that the JSE underwent to implement an electronic trading system, for use in further studies concerning the shift from floor to electronic trading. The main antecedents identified in the study were the JSE’s need to automate menial tasks; the need for increased trading capacity; the need for proper information dissemination; the need to dematerialise physical share certificates; international trends with regard to electronic trading; the T + 3 clearing and settlement standard; the establishment of South Africa’s National Payment System; legislative changes to the Securities Exchange Control Act; the need for market liquidity; and the need for investor protection. The main consequences of the abolishment of the floor trading system in favour of the electronic trading system were examined and grouped in four categories, namely the consequences for society, the consequences for the operation of the stock market, the consequences for the liquidity of the market, and the consequences for investor protection. The results of this study could be used as a foundation for a follow-up study to measure the effects of electronic trading implementation on the liquidity and efficiency of a stock market.
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The effects of financial liberalisation on the sustainable growth rate of dual listed companies on the JSE Limited
- Authors: Serithi, Legoabe Tumelo
- Date: 2014-06-10
- Subjects: Capital market , Economic development , Sustainable development , JSE Limited , Johannesburg Stock Exchange , Dual listed companies
- Type: Thesis
- Identifier: uj:11438 , http://hdl.handle.net/10210/11134
- Description: M.Com. (Financial Management) , In 1995, the South African government needed to address the widening poverty gap. The manner in which they would do so was through the process of financial market liberalisation of the JSE. The intention behind the process of financial liberalisation on the JSE was to increase the liquidity of the JSE. The significance of this study is that it would provide regulators of financial markets, policy makers and academics information on the effectiveness of the liberalisation of the JSE on dual listed companies’ ability to grow in a sustainable manner. Previous literature has found the risk sharing benefit associated with financial market liberalisation. With the increased number of participants in market would increase the chance of successful trades. Previous studies have found that there is a positive correlation with financial market liberalisation and market liquidity. Exchange controls have been put in place to prevent capital flight in sudden economic down turns. Certain studies have found that financial market liberalisation on has had minimal impact on the market capitalisation This study investigates the effects the financial liberalisation on the JSE had on dual listed companies’ sustainable growth rates. A purposive sampling technique was used in this study and a sample of 28 dual listed companies was selected. The approach to this study was an explanatory approach and the research paradigm was archival. The statistical tools which were utilised in the study were broken into two components, namely, the descriptive statistics and the inferential statistics. The data that were used in the study were secondary data collected from I-Net Bridge. The results of this study indicated that the financial liberalisation of the JSE did have an impact on the sustainable growth rates of dual listed companies on the JSE. Recommendations were made in this study for the dual listed companies to improve their net profit margins. The methods in which the dual listed companies are able to improve their net profit margins are by finding competitive sustainable advantages. It was further recommended that the Income Tax Act No. 58 of 1962 needs to be amended to create a conducive economic environment for the dual listed companies to grow sustainably. It was further recommended that the dual listed companies on the JSE invest in human capital in order to improve their sustainable growth rate.
- Full Text:
- Authors: Serithi, Legoabe Tumelo
- Date: 2014-06-10
- Subjects: Capital market , Economic development , Sustainable development , JSE Limited , Johannesburg Stock Exchange , Dual listed companies
- Type: Thesis
- Identifier: uj:11438 , http://hdl.handle.net/10210/11134
- Description: M.Com. (Financial Management) , In 1995, the South African government needed to address the widening poverty gap. The manner in which they would do so was through the process of financial market liberalisation of the JSE. The intention behind the process of financial liberalisation on the JSE was to increase the liquidity of the JSE. The significance of this study is that it would provide regulators of financial markets, policy makers and academics information on the effectiveness of the liberalisation of the JSE on dual listed companies’ ability to grow in a sustainable manner. Previous literature has found the risk sharing benefit associated with financial market liberalisation. With the increased number of participants in market would increase the chance of successful trades. Previous studies have found that there is a positive correlation with financial market liberalisation and market liquidity. Exchange controls have been put in place to prevent capital flight in sudden economic down turns. Certain studies have found that financial market liberalisation on has had minimal impact on the market capitalisation This study investigates the effects the financial liberalisation on the JSE had on dual listed companies’ sustainable growth rates. A purposive sampling technique was used in this study and a sample of 28 dual listed companies was selected. The approach to this study was an explanatory approach and the research paradigm was archival. The statistical tools which were utilised in the study were broken into two components, namely, the descriptive statistics and the inferential statistics. The data that were used in the study were secondary data collected from I-Net Bridge. The results of this study indicated that the financial liberalisation of the JSE did have an impact on the sustainable growth rates of dual listed companies on the JSE. Recommendations were made in this study for the dual listed companies to improve their net profit margins. The methods in which the dual listed companies are able to improve their net profit margins are by finding competitive sustainable advantages. It was further recommended that the Income Tax Act No. 58 of 1962 needs to be amended to create a conducive economic environment for the dual listed companies to grow sustainably. It was further recommended that the dual listed companies on the JSE invest in human capital in order to improve their sustainable growth rate.
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Price setting behaviour in the market for ‘Fine Art’
- Authors: Baur, Peter Walther
- Date: 2015
- Subjects: Arts- Economic aspects
- Language: English
- Type: Masters (Thesis)
- Identifier: http://ujcontent.uj.ac.za8080/10210/383926 , http://hdl.handle.net/10210/70359 , uj:17994
- Description: Abstract: This research takes an in-depth approach, to analysing the relationship between the price for 'Fine Art' that is acquired in the secondary art market and the return to an investor who invests in 'Fine Art' in the primary art market. The approach taken is to understand the concepts of ‘meaning’ and how this ‘meaning’ is interpreted from symbolic images. An analysis of the market for art and ‘shared value’ are explored pointing out that the market for 'Fine Art' is highly inefficient and besieged by pricing rigidities induced through informational constraints. Information is a key feature in determining the ‘real’ value for art, and the role of information in determining value and ultimately a price is explored within the pages of this text. The 'Value of Information' is used to map the relationship that exists between the secondary art market and the primary art market, particularly the forward and backward transmission mechanisms between the two independent, yet interrelated markets. Problems associated with a price index for art is examined, and the internationally accredited Artprice index is used to test the interrelationship between the art market and other key international indicators to better understand the construct of the investor who chooses to invest in art. The research demonstrates that an investor who chooses to invest into 'Fine Art' is very different from one who chooses to invest in the stock market. While an investor may choose to invest in either or both of the markets, the decision-making process involved in investing in 'Fine Art' is different from the decision-making process of investing into the stock market. The findings of this research suggest that an in-depth assessment of the decision-making process of the investor should be built into the pricing index for 'Fine Art' so as to better capture the fundamentals of the art market and thus improve on the efficiency of an art price index. , M.Com.
- Full Text:
- Authors: Baur, Peter Walther
- Date: 2015
- Subjects: Arts- Economic aspects
- Language: English
- Type: Masters (Thesis)
- Identifier: http://ujcontent.uj.ac.za8080/10210/383926 , http://hdl.handle.net/10210/70359 , uj:17994
- Description: Abstract: This research takes an in-depth approach, to analysing the relationship between the price for 'Fine Art' that is acquired in the secondary art market and the return to an investor who invests in 'Fine Art' in the primary art market. The approach taken is to understand the concepts of ‘meaning’ and how this ‘meaning’ is interpreted from symbolic images. An analysis of the market for art and ‘shared value’ are explored pointing out that the market for 'Fine Art' is highly inefficient and besieged by pricing rigidities induced through informational constraints. Information is a key feature in determining the ‘real’ value for art, and the role of information in determining value and ultimately a price is explored within the pages of this text. The 'Value of Information' is used to map the relationship that exists between the secondary art market and the primary art market, particularly the forward and backward transmission mechanisms between the two independent, yet interrelated markets. Problems associated with a price index for art is examined, and the internationally accredited Artprice index is used to test the interrelationship between the art market and other key international indicators to better understand the construct of the investor who chooses to invest in art. The research demonstrates that an investor who chooses to invest into 'Fine Art' is very different from one who chooses to invest in the stock market. While an investor may choose to invest in either or both of the markets, the decision-making process involved in investing in 'Fine Art' is different from the decision-making process of investing into the stock market. The findings of this research suggest that an in-depth assessment of the decision-making process of the investor should be built into the pricing index for 'Fine Art' so as to better capture the fundamentals of the art market and thus improve on the efficiency of an art price index. , M.Com.
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Financial factors influencing the sustainability of South African information communication technology, small and medium sized enterprises
- Authors: Kloke, Adrian George
- Date: 2016
- Subjects: Small business - Information technology - South Africa , Small business - Economic aspects - South Africa , Social responsibility of business - Economic aspects - South Africa , Sustainability - Economic aspects - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/225553 , uj:22783
- Description: Abstract: Given the relative infancy and nature of the information communication technology (ICT industry), there is a gap in research surrounding sustainability and financial success factors driving the ICT industry sustainability practices. As an infant the industry is subject to overnight success stories of small and medium sized enterprises becoming successes with their innovative solutions to this ever-evolving industry. The aim of this study is to determine which critical success factors are perceived to be dominant in small and medium sized enterprises (SMEs) in the South African information communication technology (ICT) industry delivering fibre to the home (FTTh) offerings to the market. Furthermore, this exploratory study seeks to determine whether sustainable development is perceived as inherent to the traditional critical success factors (CSFs) or whether sustainable development results from premeditation at the start-up of the company. The study also seeks to explore the perceived significance of financial performance as a CSF for SMEs in the ICT industry of South Africa. The author conducted semi-structured interviews and measured the interviewees’ perceptions of critical success factors against traditional models such as the KITE project and new venture template (NVT). All interviewees echoed in unison the importance of financial control and good governance as critical and augmented by strong financial management. However, the core of the focus on finance was on the cash flow management of the SME. Some 60% of interviewees indicated that sustainability in an SME is inherent to the establishment or rather objectives of an SME and that it cannot be separated from doing business. The remaining interviewees held a profitdriven focus. The least successful SME held to a focus on profits whilst the most successful held to an inherent view and offered a chicken or egg analogy, finally concluding that an SME’s success and ultimately sustainable success is inherently interwoven with the enterprise and is rooted in the establishment of the entity. The profit-driven focused interviewees did acknowledge that an SME cannot remain profit-focused into perpetuity and all indicated that an equilibrium point is to be reached where profit focus would shift to include the other dimensions of sustainable business practices such as people and the planet. All interviewees also emphasised the importance of remaining compliant with legislated practices with particular reference to environmental laws. , M.Com. (Finance)
- Full Text:
- Authors: Kloke, Adrian George
- Date: 2016
- Subjects: Small business - Information technology - South Africa , Small business - Economic aspects - South Africa , Social responsibility of business - Economic aspects - South Africa , Sustainability - Economic aspects - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/225553 , uj:22783
- Description: Abstract: Given the relative infancy and nature of the information communication technology (ICT industry), there is a gap in research surrounding sustainability and financial success factors driving the ICT industry sustainability practices. As an infant the industry is subject to overnight success stories of small and medium sized enterprises becoming successes with their innovative solutions to this ever-evolving industry. The aim of this study is to determine which critical success factors are perceived to be dominant in small and medium sized enterprises (SMEs) in the South African information communication technology (ICT) industry delivering fibre to the home (FTTh) offerings to the market. Furthermore, this exploratory study seeks to determine whether sustainable development is perceived as inherent to the traditional critical success factors (CSFs) or whether sustainable development results from premeditation at the start-up of the company. The study also seeks to explore the perceived significance of financial performance as a CSF for SMEs in the ICT industry of South Africa. The author conducted semi-structured interviews and measured the interviewees’ perceptions of critical success factors against traditional models such as the KITE project and new venture template (NVT). All interviewees echoed in unison the importance of financial control and good governance as critical and augmented by strong financial management. However, the core of the focus on finance was on the cash flow management of the SME. Some 60% of interviewees indicated that sustainability in an SME is inherent to the establishment or rather objectives of an SME and that it cannot be separated from doing business. The remaining interviewees held a profitdriven focus. The least successful SME held to a focus on profits whilst the most successful held to an inherent view and offered a chicken or egg analogy, finally concluding that an SME’s success and ultimately sustainable success is inherently interwoven with the enterprise and is rooted in the establishment of the entity. The profit-driven focused interviewees did acknowledge that an SME cannot remain profit-focused into perpetuity and all indicated that an equilibrium point is to be reached where profit focus would shift to include the other dimensions of sustainable business practices such as people and the planet. All interviewees also emphasised the importance of remaining compliant with legislated practices with particular reference to environmental laws. , M.Com. (Finance)
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Restructuring in the Richemont Group : a consequential historical analysis, 1988-2013
- Authors: Gӧbel, Bianca Christine
- Date: 2017
- Subjects: Reengineering (Management) , Tobacco industry , Tobacco industry - Finance , Tobacco industry - Economic aspects , Richemont Group
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/261907 , uj:27627
- Description: M.Com. (Finance) , Abstract: Corporate restructuring has become increasingly popular in recent years as many businesses have had to refocus on their core competencies in order to remain relevant and competitive. Despite this, the consequences of restructuring in specific business examples remain underrepresented. This study uses the documentary analysis method to examine the annual financial records of Richemont in order to determine which investments and divestments allowed the Company to restructure itself from five business areas towards a sole focus on the luxury goods market between 1988 and 2013. These investments and divestments are investigated in a chronological manner. The study further investigates a number of determinants for restructuring such as free cash flow, corporate governance and takeover threat as well as the types of restructuring: financial-, portfolio- and operational restructuring. However, in the case of Richemont, its restructuring was largely driven by changes in its business portfolio. The methods with which these restructuring are effected are also investigated. In addition to the investments and divestments that allowed Richemont to restructure, the effect of the restructuring on Richemont’s market capitalisation is also discussed. The study can further be used as a basis for future research on the liquidity effect of these transaction on Richemont.
- Full Text:
- Authors: Gӧbel, Bianca Christine
- Date: 2017
- Subjects: Reengineering (Management) , Tobacco industry , Tobacco industry - Finance , Tobacco industry - Economic aspects , Richemont Group
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/261907 , uj:27627
- Description: M.Com. (Finance) , Abstract: Corporate restructuring has become increasingly popular in recent years as many businesses have had to refocus on their core competencies in order to remain relevant and competitive. Despite this, the consequences of restructuring in specific business examples remain underrepresented. This study uses the documentary analysis method to examine the annual financial records of Richemont in order to determine which investments and divestments allowed the Company to restructure itself from five business areas towards a sole focus on the luxury goods market between 1988 and 2013. These investments and divestments are investigated in a chronological manner. The study further investigates a number of determinants for restructuring such as free cash flow, corporate governance and takeover threat as well as the types of restructuring: financial-, portfolio- and operational restructuring. However, in the case of Richemont, its restructuring was largely driven by changes in its business portfolio. The methods with which these restructuring are effected are also investigated. In addition to the investments and divestments that allowed Richemont to restructure, the effect of the restructuring on Richemont’s market capitalisation is also discussed. The study can further be used as a basis for future research on the liquidity effect of these transaction on Richemont.
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Shareholder protection and stock market development in South Africa
- Authors: Thlako, Mmaudu Herman
- Date: 2017
- Subjects: Stockholders - South Africa , Stock exchanges - South Africa , Johannesburg Stock Exchange
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272060 , uj:28947
- Description: M.Com. (Finance) , Abstract: The purpose of this study is to examine the long-run relationship between shareholders’ protection and stock market development in South Africa, using time series data from 1975 to 2016. Shareholders’ protection rights were coded from the Companies Act of South Africa and the King Report on Corporate Governance in order to develop the Shareholder Protection Index (SPI). Stock market development was measured using the Johannesburg Stock Exchange (JSE) data, and the indicators include stock market capitalisation, total value of shares traded and the turnover ratio. In order to measure the long-term relationship or cointegration between these selected time series data, the Johansen cointegration test was performed. The study found that there is a cointegrated long-term relationship between shareholders’ protection rights and stock market development in South Africa. Furthermore, the study used a vector error correction model (VECM) to examine whether there is short- and long-term relationship between all the selected variables. The study found no short-term relationship between market capitalisation and the shareholder protection index, but did find short-term relationship between total value of shares traded and SPI. Lastly, the relationship between the turnover ratio and the SPI was examined and a short-term relationship between the two was found to exist.
- Full Text:
- Authors: Thlako, Mmaudu Herman
- Date: 2017
- Subjects: Stockholders - South Africa , Stock exchanges - South Africa , Johannesburg Stock Exchange
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272060 , uj:28947
- Description: M.Com. (Finance) , Abstract: The purpose of this study is to examine the long-run relationship between shareholders’ protection and stock market development in South Africa, using time series data from 1975 to 2016. Shareholders’ protection rights were coded from the Companies Act of South Africa and the King Report on Corporate Governance in order to develop the Shareholder Protection Index (SPI). Stock market development was measured using the Johannesburg Stock Exchange (JSE) data, and the indicators include stock market capitalisation, total value of shares traded and the turnover ratio. In order to measure the long-term relationship or cointegration between these selected time series data, the Johansen cointegration test was performed. The study found that there is a cointegrated long-term relationship between shareholders’ protection rights and stock market development in South Africa. Furthermore, the study used a vector error correction model (VECM) to examine whether there is short- and long-term relationship between all the selected variables. The study found no short-term relationship between market capitalisation and the shareholder protection index, but did find short-term relationship between total value of shares traded and SPI. Lastly, the relationship between the turnover ratio and the SPI was examined and a short-term relationship between the two was found to exist.
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The effects of bank regulation and supervision on bank performance and risk taking in South Africa
- Authors: Taranhike, Edmore
- Date: 2017
- Subjects: Banks and banking - South Africa , Banks and banking - Risk management - South Africa , Basel II (2004 June 26)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/271746 , uj:28908
- Description: M.Com. (Finance) , Abstract: The effects of bank regulation and supervision on bank performance and risk taking have recently been subject to a number of empirical studies. However, these studies have largely produced conflicting and inconclusive results and very few such studies have been conducted in South Africa. Although aspects of bank regulation and supervision are quite broad, scholars have recently focused on the four aspects based on the three pillars of the Basel II Accord, namely, capital requirements, official supervision, private sector monitoring of banks and restrictions on banking activities. A quantitative approach was adopted in this study to establish the nature and significance of the relationships between aspects of bank regulation and supervision variables and bank performance and risk taking variables. Panel data regression techniques were applied to the variables obtained from historic data for the period 1999 to 2010. The main regression results indicated that bank regulation and supervision do not have statistically significant effects on bank performance and risk taking in South Africa when all fifteen banks in the sample are analysed collectively. When banks are grouped and analysed separately, the results indicated that for large banks only capital requirements regulation improves bank performance by enhancing net interest margins and lowering operating costs but other aspects do not affect bank performance. Only restrictions on banking activities and official supervisory power reduce credit risk taking for large banks. For medium-sized banks, only capital requirements regulation improves cost efficiency while restrictions on bank activities and official supervisory powers increase operating costs. Capital requirements regulation reduces credit risk taking and overall bank risk taking; however, restrictions on banking activities and official supervisory power increase credit risk taking for medium banks although they do not affect overall bank risk taking. The performance of small banks is negatively affected by restrictions on banking activities. Restrictions on banking activities and official supervisory power reduce credit risk taking for small banks but capital requirements regulation increases credit risk taking. This study concludes that bank regulation and supervision do not have uniform effects across all bank sizes in South Africa. Therefore policies should be designed to target different categories of bank sizes for them to be more effective in achieving their desired outcomes.
- Full Text:
- Authors: Taranhike, Edmore
- Date: 2017
- Subjects: Banks and banking - South Africa , Banks and banking - Risk management - South Africa , Basel II (2004 June 26)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/271746 , uj:28908
- Description: M.Com. (Finance) , Abstract: The effects of bank regulation and supervision on bank performance and risk taking have recently been subject to a number of empirical studies. However, these studies have largely produced conflicting and inconclusive results and very few such studies have been conducted in South Africa. Although aspects of bank regulation and supervision are quite broad, scholars have recently focused on the four aspects based on the three pillars of the Basel II Accord, namely, capital requirements, official supervision, private sector monitoring of banks and restrictions on banking activities. A quantitative approach was adopted in this study to establish the nature and significance of the relationships between aspects of bank regulation and supervision variables and bank performance and risk taking variables. Panel data regression techniques were applied to the variables obtained from historic data for the period 1999 to 2010. The main regression results indicated that bank regulation and supervision do not have statistically significant effects on bank performance and risk taking in South Africa when all fifteen banks in the sample are analysed collectively. When banks are grouped and analysed separately, the results indicated that for large banks only capital requirements regulation improves bank performance by enhancing net interest margins and lowering operating costs but other aspects do not affect bank performance. Only restrictions on banking activities and official supervisory power reduce credit risk taking for large banks. For medium-sized banks, only capital requirements regulation improves cost efficiency while restrictions on bank activities and official supervisory powers increase operating costs. Capital requirements regulation reduces credit risk taking and overall bank risk taking; however, restrictions on banking activities and official supervisory power increase credit risk taking for medium banks although they do not affect overall bank risk taking. The performance of small banks is negatively affected by restrictions on banking activities. Restrictions on banking activities and official supervisory power reduce credit risk taking for small banks but capital requirements regulation increases credit risk taking. This study concludes that bank regulation and supervision do not have uniform effects across all bank sizes in South Africa. Therefore policies should be designed to target different categories of bank sizes for them to be more effective in achieving their desired outcomes.
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Transformation of the South African short-term insurance industry : the case of Santam, 1918-2011
- Authors: Hagedorn-Hansen, Yolande
- Date: 2017
- Subjects: Insurance companies - South Africa , Financial services industry - South Africa , Santam
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://ujcontent.uj.ac.za8080/10210/385793 , http://hdl.handle.net/10210/270657 , uj:28772
- Description: Ph.D. (Finance) , Abstract: At the turn of the twentieth century, the South African short-term insurance industry was dominated by foreign, mostly British, insurers. Almost a century later, all insurers were registered in South Africa in accordance with regulatory requirements and by 2011, the leading insurers and brokers were traditional South African companies. The political environment had shaped the future of this insurance industry, following the voluntary exit of foreign investors during and after periods of political turmoil. Until then, the regulatory environment in South Africa had primarily been directed at protecting policyholders by means of minimum asset and solvency requirements; however, direct government intervention was seen in 1963 and 1976 to counter the large outflow of funds resulting from disinvestment. This led to the domestication of the short-term insurance industry in South Africa. This research explains the transition from foreign dominance within the context of the development of Santam, a leading short-term insurer. Santam traces its origins back to 1918, almost a century ago. In 1967, when foreign and local insurers shared equal market control, Santam was recognized as the largest short-term insurer (measured in terms of gross premium), and again in 1976, when a large reduction in foreign company branches occurred. Measured in terms of premium income, Santam remained the dominant short-term insurer in South Africa at the end of this period under review. This study investigates the almost century-long development of Santam from short-term insurer and trust company to bank holding company and manager of various subsidiary financial services companies, until the company returned to its original core business of short-term insurance in the late 1970s. Santam subsequently emerged as the largest short-term insurance company in South Africa. After some years of lost focus, the company regained strategic direction and ultimately outperformed its competitors. Santam was finally placed under the controlling shareholding of its erstwhile subsidiary, Sanlam. This change in management and control structure represented a reversal of control yet Sanlam chose to provide strategic guidance to allow Santam independent management control. This study encompasses the developmental history of the local financial services industry of South Africa, as represented by the case of Santam.
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- Authors: Hagedorn-Hansen, Yolande
- Date: 2017
- Subjects: Insurance companies - South Africa , Financial services industry - South Africa , Santam
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://ujcontent.uj.ac.za8080/10210/385793 , http://hdl.handle.net/10210/270657 , uj:28772
- Description: Ph.D. (Finance) , Abstract: At the turn of the twentieth century, the South African short-term insurance industry was dominated by foreign, mostly British, insurers. Almost a century later, all insurers were registered in South Africa in accordance with regulatory requirements and by 2011, the leading insurers and brokers were traditional South African companies. The political environment had shaped the future of this insurance industry, following the voluntary exit of foreign investors during and after periods of political turmoil. Until then, the regulatory environment in South Africa had primarily been directed at protecting policyholders by means of minimum asset and solvency requirements; however, direct government intervention was seen in 1963 and 1976 to counter the large outflow of funds resulting from disinvestment. This led to the domestication of the short-term insurance industry in South Africa. This research explains the transition from foreign dominance within the context of the development of Santam, a leading short-term insurer. Santam traces its origins back to 1918, almost a century ago. In 1967, when foreign and local insurers shared equal market control, Santam was recognized as the largest short-term insurer (measured in terms of gross premium), and again in 1976, when a large reduction in foreign company branches occurred. Measured in terms of premium income, Santam remained the dominant short-term insurer in South Africa at the end of this period under review. This study investigates the almost century-long development of Santam from short-term insurer and trust company to bank holding company and manager of various subsidiary financial services companies, until the company returned to its original core business of short-term insurance in the late 1970s. Santam subsequently emerged as the largest short-term insurance company in South Africa. After some years of lost focus, the company regained strategic direction and ultimately outperformed its competitors. Santam was finally placed under the controlling shareholding of its erstwhile subsidiary, Sanlam. This change in management and control structure represented a reversal of control yet Sanlam chose to provide strategic guidance to allow Santam independent management control. This study encompasses the developmental history of the local financial services industry of South Africa, as represented by the case of Santam.
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Constraints to discretionary saving and investment in South Africa
- Authors: Van Rensburg, Eugene
- Date: 2018
- Subjects: Saving and investment - South Africa , South Africa - Economic policy , South Africa - Economic conditions
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/282545 , uj:30439
- Description: Ph.D. (Finance) , Abstract: This research sets out to elucidate the constraints to discretionary savings and investments in South Africa. The research identifies and explores three key themes, their underlying core variables and in turn the core variable category variables, driving the current undesirably low household discretionary saving in South Africa. These being i) physical aspects of constraints variables; ii) the behavioural approach to the constraints variables; and iii) the policy mechanisms constraints variables. The key question of this research is: What are the constraints to discretionary saving and investment in South Africa? This research deals with the key concern behaviour over time being the overall undesirably low actual level and decline over time, of specifically South Africa’s household savings as a key contributor to the National Savings Rate (NSR). This has been the smallest contributor to the NSR for more than a decade and currently does not contribute at all to the NSR. The NSR is important for the following reasons: i) it is a very good indicator of the general financial health of the public and private sector; and ii) it is a very good indicator of potential future economic growth capacity as domestic savings is converted into investments. Household discretionary saving and investment is important for the following two economic and social reasons: i) investment-led behaviour lies at the heart of renewed economic growth and prosperity for the South Africa and ensures a more sustainable economically resilient future than a consumption-driven economy; and ii) an investment- led economy is the foundation of the individual’s social democratic constitutional right to equal opportunity through participation in the returns from investments into the economy. The situation, in which South Africa finds itself, with regard to the NSR could be classified as a wicked problem requiring a strong normative management approach. The qualitative research methodology of this study follows a structured grounded theory method underpinned by the philosophy of critical realism. This rigorous qualitative research methodology is complemented by the inclusion of the Delphi method, facilitated by means of technology, and various systems thinking tools and disciplines. For its theory building process the research draws on traditional economic theory and behavioural economics. The parent discipline for...
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- Authors: Van Rensburg, Eugene
- Date: 2018
- Subjects: Saving and investment - South Africa , South Africa - Economic policy , South Africa - Economic conditions
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/282545 , uj:30439
- Description: Ph.D. (Finance) , Abstract: This research sets out to elucidate the constraints to discretionary savings and investments in South Africa. The research identifies and explores three key themes, their underlying core variables and in turn the core variable category variables, driving the current undesirably low household discretionary saving in South Africa. These being i) physical aspects of constraints variables; ii) the behavioural approach to the constraints variables; and iii) the policy mechanisms constraints variables. The key question of this research is: What are the constraints to discretionary saving and investment in South Africa? This research deals with the key concern behaviour over time being the overall undesirably low actual level and decline over time, of specifically South Africa’s household savings as a key contributor to the National Savings Rate (NSR). This has been the smallest contributor to the NSR for more than a decade and currently does not contribute at all to the NSR. The NSR is important for the following reasons: i) it is a very good indicator of the general financial health of the public and private sector; and ii) it is a very good indicator of potential future economic growth capacity as domestic savings is converted into investments. Household discretionary saving and investment is important for the following two economic and social reasons: i) investment-led behaviour lies at the heart of renewed economic growth and prosperity for the South Africa and ensures a more sustainable economically resilient future than a consumption-driven economy; and ii) an investment- led economy is the foundation of the individual’s social democratic constitutional right to equal opportunity through participation in the returns from investments into the economy. The situation, in which South Africa finds itself, with regard to the NSR could be classified as a wicked problem requiring a strong normative management approach. The qualitative research methodology of this study follows a structured grounded theory method underpinned by the philosophy of critical realism. This rigorous qualitative research methodology is complemented by the inclusion of the Delphi method, facilitated by means of technology, and various systems thinking tools and disciplines. For its theory building process the research draws on traditional economic theory and behavioural economics. The parent discipline for...
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Determinants of financial performance of commercial banks and other financial institutions in South Africa
- Authors: Moyo, Irvine Tafadzwa
- Date: 2018
- Subjects: Banks and banking - South Africa , Financial institutions - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/296002 , uj:32243
- Description: Abstract: The closure of African Bank Investments Limited (ABIL) in 2014 and also a myriad of challenges facing the commercial banks and other financial institutions led to this research. The major aim was to address the badgering question: What are the drivers/determinants of financial performance of commercial banks and other financial institutions? The main objective of the research is to find these determinants of financial performance of commercial banks and then compare them with other factors found in other financial institutions which are non-commercial banks (i.e. financial institutions which do not have a commercial banking licence, but are still in the same industry). The literature was drawn from South African studies on the financial performance of financial institutions. They included other sources in Africa and also from the rest of the world. The literature helps in building up the appropriate methodology to be used to answer the basic hypotheses questions: Do bank-specific factors determine the financial performance of financial institutions, is it the macroeconomic factors which are the major determinants, or is it both? These hypotheses were broken down into sub-hypotheses (which are anchored on the explanatory variables). The explanatory variables used in the study are: bank-specific factors (i.e. bank size, solvency, capital adequacy, liquidity asset quality, debt management, management efficiency) and macroeconomic factors (economic growth, inflation and interest rates). The dependent variables for the research are: return on equity, return on assets, and net interest margin. The proposed methodology was drawn from three distinct models using the dependent variable – ROE Model, ROA Model and NIM Model. The data range is biannual from 2007:1 to 2017:1. The econometric model employed was the panel regression model, pooling together three commercial banks and three other financial institutions. The panel regression models, i.e. fixed effects and random effects models, were implemented to analyse the relationship between dependent and independent variables. However, the Hausman test on both models was used to determine which of the two regression analysis was more appropriate. In all instances, the fixed effects model was chosen. There were two scenarios which the research employed in order to fully test the hypotheses and also achieve its goal of comparative analysis. Scenario 1 (Combined scenario) was pooling all the financial institutions together in a six cross sectional panel regression analysis. Scenario 2 (Comparative scenario) was pooling three commercial banks and three other financial intuitions separately. The results showed that the financial performance was diverse for both commercial banks and other financial institutions... , M.Com. (Finance)
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- Authors: Moyo, Irvine Tafadzwa
- Date: 2018
- Subjects: Banks and banking - South Africa , Financial institutions - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/296002 , uj:32243
- Description: Abstract: The closure of African Bank Investments Limited (ABIL) in 2014 and also a myriad of challenges facing the commercial banks and other financial institutions led to this research. The major aim was to address the badgering question: What are the drivers/determinants of financial performance of commercial banks and other financial institutions? The main objective of the research is to find these determinants of financial performance of commercial banks and then compare them with other factors found in other financial institutions which are non-commercial banks (i.e. financial institutions which do not have a commercial banking licence, but are still in the same industry). The literature was drawn from South African studies on the financial performance of financial institutions. They included other sources in Africa and also from the rest of the world. The literature helps in building up the appropriate methodology to be used to answer the basic hypotheses questions: Do bank-specific factors determine the financial performance of financial institutions, is it the macroeconomic factors which are the major determinants, or is it both? These hypotheses were broken down into sub-hypotheses (which are anchored on the explanatory variables). The explanatory variables used in the study are: bank-specific factors (i.e. bank size, solvency, capital adequacy, liquidity asset quality, debt management, management efficiency) and macroeconomic factors (economic growth, inflation and interest rates). The dependent variables for the research are: return on equity, return on assets, and net interest margin. The proposed methodology was drawn from three distinct models using the dependent variable – ROE Model, ROA Model and NIM Model. The data range is biannual from 2007:1 to 2017:1. The econometric model employed was the panel regression model, pooling together three commercial banks and three other financial institutions. The panel regression models, i.e. fixed effects and random effects models, were implemented to analyse the relationship between dependent and independent variables. However, the Hausman test on both models was used to determine which of the two regression analysis was more appropriate. In all instances, the fixed effects model was chosen. There were two scenarios which the research employed in order to fully test the hypotheses and also achieve its goal of comparative analysis. Scenario 1 (Combined scenario) was pooling all the financial institutions together in a six cross sectional panel regression analysis. Scenario 2 (Comparative scenario) was pooling three commercial banks and three other financial intuitions separately. The results showed that the financial performance was diverse for both commercial banks and other financial institutions... , M.Com. (Finance)
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Developing an optimisation model for the cost of working capital for SMEs
- Stroucken, Jacob Gerhard Marie
- Authors: Stroucken, Jacob Gerhard Marie
- Date: 2018
- Subjects: Working capital , Small business , Small business - Finance
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/262056 , uj:27652
- Description: Ph.D. (Finance) , Abstract: Small and Medium enterprises (SMEs) are at a considerable disadvantage when seeking finance for their businesses. They are at the mercy of both financiers and powerful trading partners who are able to impose stringent conditions on the terms of finance or trade. The impact is felt, mostly, on the working capital of the firms. This study seeks, firstly, to show that it is possible for firms, who collaborate financially, to optimise the cost of their working capital, at no net cost to any party and, secondly, to develop a model to measure the financial benefits that can be thus obtained. The literature argues that individual firms, who optimise their working capital, increase their profits. It is shown, however, that this is usually done at the expense of their trading partners. Research also shows why trade credit is used and how expensive it is. Both topics are developed to achieve the objectives of this study. It is shown that it is possible to optimise working capital in a supply chain. The Working Capital Cost Optimisation (WCCO) model is developed from a dyadic trading system to a full supply chain to calculate the benefit of financial collaboration. A supply chain is simulated from data obtained from a bank in SA and the WCCO model is tested. Three scenarios are considered 1) a benchmark scenario in which every firm trades with another, 2) a scenario in which SMEs and large enterprises (LEs) trade only with each other, and, 3) a scenario where the cost of trade credit is introduced to trade between SMEs and LEs. The output is analysed to determine the impact of the resulting financial benefits on key financial ratios of the firms. It is found that the financial benefit, especially for SMEs, increases as collaborative trade is focussed towards trade with LEs in a trade credit situation. The WCCO model can be applied to any situation where firms agree to collaborate using their financial resources. State-owned Enterprises (SOEs) and government departments who have a mandate to assist SOEs could be persuaded to implement the findings of this study to the benefit of SME suppliers.
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- Authors: Stroucken, Jacob Gerhard Marie
- Date: 2018
- Subjects: Working capital , Small business , Small business - Finance
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/262056 , uj:27652
- Description: Ph.D. (Finance) , Abstract: Small and Medium enterprises (SMEs) are at a considerable disadvantage when seeking finance for their businesses. They are at the mercy of both financiers and powerful trading partners who are able to impose stringent conditions on the terms of finance or trade. The impact is felt, mostly, on the working capital of the firms. This study seeks, firstly, to show that it is possible for firms, who collaborate financially, to optimise the cost of their working capital, at no net cost to any party and, secondly, to develop a model to measure the financial benefits that can be thus obtained. The literature argues that individual firms, who optimise their working capital, increase their profits. It is shown, however, that this is usually done at the expense of their trading partners. Research also shows why trade credit is used and how expensive it is. Both topics are developed to achieve the objectives of this study. It is shown that it is possible to optimise working capital in a supply chain. The Working Capital Cost Optimisation (WCCO) model is developed from a dyadic trading system to a full supply chain to calculate the benefit of financial collaboration. A supply chain is simulated from data obtained from a bank in SA and the WCCO model is tested. Three scenarios are considered 1) a benchmark scenario in which every firm trades with another, 2) a scenario in which SMEs and large enterprises (LEs) trade only with each other, and, 3) a scenario where the cost of trade credit is introduced to trade between SMEs and LEs. The output is analysed to determine the impact of the resulting financial benefits on key financial ratios of the firms. It is found that the financial benefit, especially for SMEs, increases as collaborative trade is focussed towards trade with LEs in a trade credit situation. The WCCO model can be applied to any situation where firms agree to collaborate using their financial resources. State-owned Enterprises (SOEs) and government departments who have a mandate to assist SOEs could be persuaded to implement the findings of this study to the benefit of SME suppliers.
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Perceived characteristics of security analysts : a market participant’s perspective
- Authors: Marynowska, Samantha Teresa
- Date: 2019
- Subjects: Portfolio management , Financial crises , Investment analysis
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/414808 , uj:34999
- Description: Abstract: This study investigates the perceived characteristics of security analysts viewed by market participants, as vital in their decision making process, which leads to final investment decisions. The decision-making process is complicated by the elements that facilitate the accuracy of said security analysts. Many factors play a vital role in the competency portrayed by security analysts and thus market participants need to be aware of and evaluate such factors when selecting the relevant evaluations (or recommendations) provided to the public. A cross-sectional survey study methodology was applied to gather the relevant data. One hundred surveys were completed by South African market participants, which were collected and upon which the findings were based. The study focuses on eight categories that could possibly lead to a change in a market participants’ perspective of security analysts, mainly: (i) regulatory environment and conflicts of interest, (ii) information exchange, (iii) inherent bias, (iv) reporting standards, (v) incentives and optimism, (vi) experience and reputation, (vii) managerial guidance, and (viii) forecast drift. The results indicated that market participants, on average, would consult at least four analyst reports prior to making a final investment decision, and a majority would monitor their investments at least bi-quarterly. Furthermore, market participants are not more likely to purchase an investment that holds a buy recommendation to that of a hold or sell recommendation. A majority of market participants believe that conflicts of interest between buy-side and sell-side analysts exist, and would thus create overly optimistic investment recommendations. In addition, market participants believe that forecast accuracy is increased with each successive follower forecast made by security analysts. Analyst compensation, experience and reputation does influence the majority of market participants when making a final investment decision. Lastly the level of corporate governance and reporting standards upon which the recommendation is based also influences their final investment decision. This study could contribute to the growing body of research on investment, security analysts and market participants within South Africa. , M.Com. (Finance)
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- Authors: Marynowska, Samantha Teresa
- Date: 2019
- Subjects: Portfolio management , Financial crises , Investment analysis
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/414808 , uj:34999
- Description: Abstract: This study investigates the perceived characteristics of security analysts viewed by market participants, as vital in their decision making process, which leads to final investment decisions. The decision-making process is complicated by the elements that facilitate the accuracy of said security analysts. Many factors play a vital role in the competency portrayed by security analysts and thus market participants need to be aware of and evaluate such factors when selecting the relevant evaluations (or recommendations) provided to the public. A cross-sectional survey study methodology was applied to gather the relevant data. One hundred surveys were completed by South African market participants, which were collected and upon which the findings were based. The study focuses on eight categories that could possibly lead to a change in a market participants’ perspective of security analysts, mainly: (i) regulatory environment and conflicts of interest, (ii) information exchange, (iii) inherent bias, (iv) reporting standards, (v) incentives and optimism, (vi) experience and reputation, (vii) managerial guidance, and (viii) forecast drift. The results indicated that market participants, on average, would consult at least four analyst reports prior to making a final investment decision, and a majority would monitor their investments at least bi-quarterly. Furthermore, market participants are not more likely to purchase an investment that holds a buy recommendation to that of a hold or sell recommendation. A majority of market participants believe that conflicts of interest between buy-side and sell-side analysts exist, and would thus create overly optimistic investment recommendations. In addition, market participants believe that forecast accuracy is increased with each successive follower forecast made by security analysts. Analyst compensation, experience and reputation does influence the majority of market participants when making a final investment decision. Lastly the level of corporate governance and reporting standards upon which the recommendation is based also influences their final investment decision. This study could contribute to the growing body of research on investment, security analysts and market participants within South Africa. , M.Com. (Finance)
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The impact of capital structure on the profitability of the industrial metals and mining sector on the JSE
- Authors: Sibanda, Mthokozisi
- Date: 2019
- Subjects: Capital investments , Corporations - Finance , Mineral industries - South Africa , Metals
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/402989 , uj:33749
- Description: Abstract : The study seeks to investigate the relationship between company capital structure and profitability with special reference to the industrial metals and mining industry of South Africa. Out of the 22 companies listed on the Johannesburg Stock Exchange under the industrial metals and mining industry, 14 companies were selected to be analysed in this study. Secondary data in the form of published financial statements relating to the period 1994 to 2017 of the selected companies was used. The study used return on equity (ROE), net profit margin (NPM), and return on assets (ROA) as proxies for profitability (dependent variables), while short-term to total debt (STDTA) ratio, long term as a ratio of total assets (LTDTA), and the total debt as a ratio of total assets (TTDTA) were used as proxies for capital structure (independent variables). The study employed panel data regression with pooled, random effects and fixed effects regression; however, the fixed effects regression was found to be the most appropriate. The results indicate that short-term debt is statistically insignificant as an independent variable of company profitability. Long-term debt was found to be more significant as a determinant of profitability for companies listed in the industrial metals and mining industry on the JSE. The results of the study show that the profitability of companies listed in the industrial metals and mining industry on the JSE is negatively related to the use of long-term debt over the period 1994 to 2017, implying that an increase in the company’s long-term debt would adversely affect the return of shareholders. , M.Com. (Finance)
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- Authors: Sibanda, Mthokozisi
- Date: 2019
- Subjects: Capital investments , Corporations - Finance , Mineral industries - South Africa , Metals
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/402989 , uj:33749
- Description: Abstract : The study seeks to investigate the relationship between company capital structure and profitability with special reference to the industrial metals and mining industry of South Africa. Out of the 22 companies listed on the Johannesburg Stock Exchange under the industrial metals and mining industry, 14 companies were selected to be analysed in this study. Secondary data in the form of published financial statements relating to the period 1994 to 2017 of the selected companies was used. The study used return on equity (ROE), net profit margin (NPM), and return on assets (ROA) as proxies for profitability (dependent variables), while short-term to total debt (STDTA) ratio, long term as a ratio of total assets (LTDTA), and the total debt as a ratio of total assets (TTDTA) were used as proxies for capital structure (independent variables). The study employed panel data regression with pooled, random effects and fixed effects regression; however, the fixed effects regression was found to be the most appropriate. The results indicate that short-term debt is statistically insignificant as an independent variable of company profitability. Long-term debt was found to be more significant as a determinant of profitability for companies listed in the industrial metals and mining industry on the JSE. The results of the study show that the profitability of companies listed in the industrial metals and mining industry on the JSE is negatively related to the use of long-term debt over the period 1994 to 2017, implying that an increase in the company’s long-term debt would adversely affect the return of shareholders. , M.Com. (Finance)
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