School of Accounting, Economics and Finance
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Item A qualitative analysis of auditors' responsibility in South African corporate scandals.(2023) Govender, Kenthran.; Lathleiff, Charmaine.For time immemorial, the audit profession has faced backlash from the users of the annual financial statements (AFS) for not doing enough. The calls for the auditor to do more come at times when the entities being audited go into liquidation, business rescue or become corporate failures and these entities were audited with no issues being detected and reported to the users in the audit report. This resulted in financial losses to the users of the AFS who made economic decisions based on the AFS that were audited. The response by auditors is often that it is not their job to prevent corporate scandals or to detect fraud. The role of the auditor in contributing to the corporate scandals not being detected and reported was explored in this study. This study employed a qualitative document analysis approach to analyse the contents of documents relating to the performance of the audit on corporate scandals that occurred in South Africa since 2000 and for which information on the performance of the audit was publicly available. A total of three corporate scandals were explored to determine the contribution of the auditor to the corporate scandal not being detected and reported. A self-developed index was used to categorise the findings into the standard of audit work performed to answer the research questions and achieve the research objectives. It was found that in all three corporate scandals that were analysed, an inappropriate audit opinion was issued and therefore, an audit failure existed. Further, it was found that the audit partner was not independent and detected the material misstatements in the AFS but failed to report the misstatements in the audit report in all three instances. This study sought to provide an understanding of the contribution of the auditor to the corporate scandal. This study provided insight to the role of the auditor in not detecting and preventing corporate scandals and specifically where the problem lies. To the best of the author's knowledge, this study was the first study that explored the contribution of the auditor to corporate scandals not being detected and reported. Future research could explore the role of auditors in more corporate scandals as more information becomes available as well as exploring the role of auditors in corporate scandals in other countries.Item Credit referencing, bank lending methodologies and SME access to finance in Ghana=Ukubheka izikweletu, Izindlela Zokuboleka ebhange, kanye Nokufinyelela Kwama-SME Kwezezimali eGhana.(2021) Gyimah, Kofi Nyarko.; Muzindutsi, Paul-Francois.; Akande, Joseph Olorunfemi.Academic as well as policymakers acknowledge the importance that access to credit to entrepreneurs plays in stirring the economic growth and development in both developed and developing countries. Despite the increasing use of use different lending methodologies in their dealings with Small and Medium Scale Enterprises (SMEs), a significant segment of SMEs are yet to benefit from these methodologies. This study examined the association between bank lending methodologies, Credit Reference Information (CRI), and SMEs ' access to credit in Ghana. This study adopted a mixed-methods research approach characterised by the quantitative (cross-sectional) approach and qualitative technique. The accessible population of SMEs was 2,354, out of which a sample of 1,061 SMEs was determined using the simple random sampling method. The sample applied to the qualitative aspect of the study was eight managers who were selected using the purposive sampling method. A survey questionnaire and interview were used to gather data. Quantitative data were analysed using Pearson’s correlation test, Exploratory Factor Analysis (EFA), and Ordinary Least Squares (OLS) regression analysis. Thematic analysis was employed to analyse qualitative data from interviews. Data analysis revealed that two domains of methodologies, namely Collateral Based Records (CBRs) and Personal Business Characteristics (PBCs), were applied to the participants to a great extent. The average scores associated with these dimensions were significantly higher than the median of the measurement scale. Furthermore, responses from the qualitative analysis suggest that CBRs as a methodology were more applied, but financial institutions also applied PBCs. Applying the two methodologies is necessary as they play unique roles in lending, though CBRs better cushions banks against default. This implies that both transaction-based and relationship-based lending methodologies are applied mainly by banks in Ghana though transaction-based lending is the most applied. The study contributed to the literature by proposing a framework of steps that SMEs in Ghana can take towards successful loan applications. Iqoqa Ucwaningo luhlole ukuhlobana phakathi kwezindlela zokuboleka amabhange, i-CRI, nama-SME ukuthola isikweletu e-Ghana. Nakuba izincwadi zangaphambili zenza ukungabaza emandleni alezi zindlela ezimbili zokubikezela ngempumelelo ukufinyelela kwezikweletu kumafemu ama-SME, lolu cwaningo lubonisa ukuthi i-CRI inyusa amandla alezi zindlela zokuboleka ukuze zisize ukuthuthukisa ukufinyelela kwesikweletu. Lolu cwaningo lwamukele indlela yocwaningo exubile ebonakala ngendlela yobuningi (i-cross-sectional) kanye nezindlela zekhwalithi. Inani labantu abafinyelelekayo lama-SME laliyizinkulungwane ezimbili amakhulu amathathu namashumi amahlanu nane (2,354) lapho isampula lama-SME liyinkulungwane eyodwa namashumi ayisithupha nanye (1,061) anqunywa kusetshenziswa indlela elula yokusampula engahleliwe. Isampula esetshenziswe esicini sekhwalithi yocwaningo bekungabaphathi abayisiyishiyagalombili (8) abakhethwe kusetshenziswa indlela yesampula eyinhloso. Imininingo yaqoqwa ngokusetshenziswa kwemibuzo yocwaningo kanye nezingxoxo. Imininingo yobuningi yahlaziywa ngokuhlolwa kokuhlobanisa kuka-Pearson, ukuhlaziya i-Exploratory Factor Analysis (EFA), kanye nokuhlaziywa kokuhlehla kwe-Ordinary Least Squares (OLS). Ukuhlaziywa ngokwengikimba kwasetshenziswa ukuze kuhlaziywe imininingo yekhwalithi evela ezingxoxweni. Ukuhlaziywa kwemininingo kuthole ukuthi izizinda ezimbili zezindlela, okuyi-Collateral Based Records (CBRs) kanye nezimo zebhizinisi lomuntu siqu, phecelezi, i-Personal Business Characteristics (PBC), zisetshenziswe kubahlanganyeli ngezinga eliphezulu. Okusho ukuthi, izikolo ezimaphakathi ezihlotshaniswa nalezi zilinganiso beziphezulu kakhulu kunemidiyeni yesikali sokulinganisa. Izimpendulo ezivela ekuhlaziyweni kwekhwalithi ziphakamisa ukuthi ama-CBR njengendlela yokusebenza asetshenziswa kakhulu kodwa ama-PBC nawo asetshenziswa izikhungo zezezimali. Ukusetshenziswa kwalezi zindlela ezimbili kuyadingeka njengoba zidlala indima eyingqayizivele ekubolekeni, nakuba ama-CBR evikela kangcono amabhange ngokuzenzakalelayo. Umthelela walokhu ukuthi amabhange womabili izindlela zokuboleka ezisekelwe ekwenziweni kanye nezisekelwe ebudlelwaneni zisetshenziswa kakhulu amabhange aseGhana nakuba imali ebolekiwe esekelwe entendeni isetshenziswa kakhulu. Ucwaningo lube negalelo ekubhalweni ngokuphakamisa uhlaka lwezinyathelo ama-SME aseGhana angazithatha ukuze afake isicelo semalimboleko esiyimpumelelo.Item Equity super sectors connectedness and its determinants: evidence from the Johannesburg Stock Exchange.(2023) Babatunde, Samuel Lawrence.; Doorasamy, Mishelle.; Obalade, Adefemi A.Everything depends on everything else. More importantly, macroeconomic and financial connections have proved to be more fundamental compared with others. The reality of dynamic connectedness and time varying correlation as precursors to contagion and systemic risk are proven through the super sectors, namely the Automobile and Parts, Chemical, Telecommunication, Technology, Energy, Health, Finance, Insurance and General Industrial super sectors of the Johannesburg Stock Exchange, with daily sample period from 1 January 2006 to 31 December 2021. The first objective is to determine the systematically important super sectors in the different extreme periods. The second objective is to determine the return linkages of the equity super sector, while the third objective is to examine the dynamic connectedness and the shock propagation among the super sectors during the extreme risk events. Finally, the fourth objective is to evaluate the determinants of volatility connectedness of the JSE equity super sectors. The different extreme events considered alongside the full sample periods for this study are the 2007/2008 Global financial crisis (GFC), the 2009-2011 European Debt Crisis (EDC), the 2017-2018 U.S-China trade war (U.S-China TWR) and the late 2019-2021 COVID-19 pandemic. This study employs the Page et al., (1999) model with the Granger causality model of Billio et al., (2012) to accomplish objective one. While in objective two, the DECO-GARCH model of Engle and Kelly (2012) was employed to establish the time varying equicorrelations status of the super sectors through the rolling window analysis. For objective three, the realised volatilities of the super sectors were obtained through the Garman and Klass (1980) model and thereafter, the dynamic connectedness and direction of propagation were determined through the Diebold and Yilmaz (2009, 2012 and 2014) model alongside the TVP-VAR of Antonakakis et al., (2020). The study further employed the nonlinear autoregressive distributed lag (NARDL) model to determine the asymmetrically significant determinants of total sectorial volatility connectedness of the JSE market in the fourth objective. Findings from this study revealed the Telecommunication super sector is the most systematically important super sector during the full sample size analysis. It was revealed that the equicorrelation of the super sectors is positive and high, this was also the case for the rolling window results except for the years not within the extreme period, yet the least equicorrelation was 0.1491 for the year 2012-2013, while the highest was 0.7022 for the COVID-19 pandemic period. It was also established that the total connectedness of the sample period and the different extreme periods were high, suggesting a high interconnectedness of the super sectors. Lastly, the determinant estimation results show LSAVI, LDMR and LEPU as the asymmetrically significant drivers of total sectorial volatility connectedness on the JSE market. This study is the first to investigate sectorial connectedness, equicorrelation and the determinants of volatility connectedness in South Africa and in Africa at large. This study contributes to the limited literature on systemically important equity super sectors and sectorial dynamic connectedness and dynamic equicorrelation in the emerging market. First the result shows that the Telecommunication sector is the most important node for the EDC, the U.SChina trade war and the COVID-19 pandemic periods. While the Insurance and the Energy are the highest ranked super sectors amongst the network of super sectors for the full sample period and for the GFC period, hence making these super sectors the most systemically important nodes during these selected periods. It also shows that the sectorial common equicorrelation on the JSE is high and time varying with higher values for the year where extreme events occurred such as the GFC, EDC, and the COVID-19 pandemic period. This result is also a revelation that during the period of financial or economic crisis correlation of sectors are high compared to non-crisis periods. Third, the dynamic connectedness results show that the sectors on the JSE are interconnected and a shock to one sector can have a spillover effect on another close sector in the value-chain. Fourth, the South African volatility index, the Economic Policy Uncertainty and the Domestic Market Return are symmetrically and asymmetrically significant determinants of the sectorial volatility connectedness of JSE market. These findings from this study have implications for economic policy makers, portfolio and fund managers, foreign and local investors, sector regulators and researchers/academics in the field of finance.Item Tax equity perceptions, compliance intention and compliance behaviour among small and medium enterprises in Ghana=Izinkolelo Ngokulingana ngentela, Izinhloso zokuvumelekile, Ukuziphatha ngokuvumelekile Kosomabhizinisi abancane nabaphakathi nendawo eGhana.(2023) Mbilla, Simon Akumbo Eugene.; Sibanda, Mabutho.; Mqadi, Siphiwe.Abstract This study aimed to examine the influence of tax equity perceptions (vertical, horizontal and exchange) on compliance behaviour among small and medium enterprises in Ghana. Also, the mediation and moderation role of compliance intention and tax knowledge on the relationship between tax equity and compliance behaviour was respectively examined in this study. In addition, the study looked at other motivators of tax compliance besides tax equity perceptions. A sequential explanatory mixed-methods approach was employed for this study. Data was collected through questionnaire surveys and complemented with focus group interviews from small and medium enterprises. A multi-stage sampling technique involving probability and non probability sampling was implored for the study. Nine (9) focus groups, using quota sampling, were engaged for the qualitative sample and 391 small and medium enterprises for the quantitative sample. The study found a direct positive and statistically insignificant relationship between all three equity dimensions (vertical, horizontal and exchange) and compliance behaviour. However, the study found no mediation role of compliance intention but found a statistically significant moderation effect of tax knowledge on the relationship between tax equity and compliance behaviour. For the other motivators of tax compliance, the study found a positive and statistically significant relationship between economic, institutional and social motivators and compliance behaviour. However, the relationship between individual motivators and compliance behaviour was positive but statistically insignificant. The study objectives were analysed with smart partial least squares structural equation model version 3, while the focus group interviews/discussions were transcribed for the qualitative phase. This study is aligned with previous studies and offers theoretical insights into the tax equity and compliance framework. This scholarly work would aid policymakers, academic institutions and the understanding of small and medium enterprises and the general public. More specifically, government borrowings would be reduced, and tax revenue would be increased when an equitable and fair tax system is implemented. Tax authorities and future researchers should examine the role that media and opinion leaders play in promoting voluntary tax compliance behaviour. Iqoqa Lolu cwaningo luhlose ukuhlola umthelela wezinkolelo zokuligana ngentela (okuya phezulu, nokuvundlayo kanye nokushintshiseleka) emikhubeni yokwenza okuvumelekile kosomabhizinisi abancane nabaphakathi nendawo eGhana. Kanjalo, neqhaza lokungenelela ngenhloso yokwenza okuvumelekile kanye nolwazi ngentela ebudlelwaneni obuphakathi kokulingana ngentela kanye nokuziphatha ngokulindelekile kuye kwacutshungulwa kulolu cwaningo. Ngaphezu kwalokho, ucwaningo lubuye lwabheka ezinye zezikhuthazi ngaphandle kwezinkolelo zokulingana nentela. Kwase kulandela incazelo yendlela yocwaningo exubile esetshenziswe kulolu cwaningo. Ukuqoqwa lwemininingo kwenziwe ngesaveyi yenhlolombuzo kanye nezingxoxo zamaqoqo zosomabhizinisi abancane nabaphakathi nendawo. Iqhinga lokuthathwa kwamasampula okuzigagaba kusebenzise i-probability ne-non-probability sampling kulolu cwaningo. Amaqoqo ayisishiyagalolunye, esebenzisa amasampula ayikota, asetshenziselwe amasampula ayikhwalithethivu kanye nabamabhizinisi abancane nabaphakathi nendawo abangama-391 kwenziwa amasampula ekhwalithethivu. Ucwaningo luthole ubudlelwano obuqondile nobuhle nokungabaluleki kwezibalo phakathi kwalezi zinto ezintathu (okuya phezulu, okuvundlayo kanye nokushintshiseleka) kanye nokuziphatha okulindelekile. Kepha, ucwaningo kaluzange luthole iqhaza lwenhloso yokungenelela kepha ubumqoka bokungenelela kolwazi lwentela ebudlelwaneni bokulingana ngentela kanye nokuziphatha ngokulindelekile. Kwezinye izikhuthazi zokulindelekile enteleni, ucwaningo luthole ukuthi kunobudlelwano obuhle ngokwamanani phakathi komnotho, izikhungo kanye nezikhuthazi zenhlalo kanye nokuziphatha ngokulindelekile. Kepha, ubudlelwano phakathi kwezikhuthazi zomuntu ngamunye kanye nokuziphatha kokulindelekile kube kuhle kakhulu kepha ngokwamanani akunamthelela. Izinjongo zocwaningo zicutshungulwe kusetshenziswa i-smart partial least squares structural equation model version 3, kwase kuthi izingxoxo zamaqoqo zicutshungulwe kusetshenziswa isigaba sekhwalithethivu. Lolu cwaningo luhlobene nocwaningo olwedlule ebese luba nemibono yezinjulalwazi zokulingana ngentela nohlaka lokwenza okulindelekile. Lo msebenzi ungasiza ababumbi bezinqubomgomo, izikhungo zemfundo, kanye nokuqonda amabhizinisi amancane naphakathi nendawo kanye nomphakathi. Ngokukhethekile, imalimboleko kaHulumeni izonciphiseka kanti inzuzo yentela izokhula kahle kuphinde nohlelo lwentela lulandeleke kahle. Iziphathimandla zentela, kanye nabacwaningi bangomuso kumele bahlole iqhaza lemidiya nemibono yabaholi ekuthuthukiseni umkhuba wokwenza okulindelekile.