School of Accounting, Economics and Finance

Permanent URI for this communityhttps://hdl.handle.net/10413/6779

Browse

Now showing 1 - 20 of 401

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.
A survey of South African registered Accountants' and Auditors' attitudes towards differential corporate reporting.
(2004) Wells, Michael John Cuthbert.; Stainbank, Lesley June.
The aim of this dissertation is to investigate aspects of the differential corporate reporting debate in South Africa. The dissertation summarises the background to the current position and findings in respect of all previous South African research and selected previous international research. The dissertation reports the results of a postal survey of South African registered accountants' and auditors' perceptions of the suitability of selected South African statements of generally accepted accounting practice to a range of South African entities varied by size, legal form and financial statement user base. The dissertation provides evidence of (i) the need for differential corporate reporting in South Africa, (ii) the need for multiple differential reporting thresholds in South Africa, and (iii) the need for differential reporting options to include both presentation and disclosure and recognition and measurement concessions. The dissertation also raises some questions for future research.
Accounting and finance professionals’ perception on the current state of the accountancy profession in South Africa.
(2022) Mdhluli, Sthandiwe Charity Kholiwe.; Mkhize, Msizi Vitalis.
Background: Accountants, auditors, and other finance professionals have traditionally been well respected and held in high regard by the public. They are regarded as financial reporting overseers because they are responsible for ensuring that organisations follow relevant regulations and financial laws. Globally, accounting and finance professions have been tarnished by scandals involving intentional manipulation of financial information. The professional ethics of finance professionals are under scrutiny by the concerned public at large. The importance of ethics to accounting professionals stems from the need to make ethical decisions on a regular basis. This study is informed by the repercussions of these scandals and how they have influenced the public view of the profession. Purpose and method: The study investigates how South African accounting and finance professionals perceive their ethical knowledge, compatriots’ ethical responsibility and the role of the professional bodies in maintaining ethical responsibility. The study adopted a quantitative approach using systematic sampling. The population of the study comprises 165 accounting and finance professionals at government, corporate institutions and audit firms. An anonymous online questionnaire was the instrument used for the collection of data. Main Finding: The study found that the majority of accountants and finance professionals agree in general that they perceive themselves to have a strong knowledge of ethics. They also perceive their fellow accounting and finance professionals to be ethically responsible. It also found that being a member of professional accounting bodies also influences on the ethical behaviour and professional conduct of accounting and finance professionals. The majority of accountants and finance professionals agree in general that they face a considerable amount of pressure to compromise on ethics Conclusion: The current level of ethical knowledge of accounting and finance professionals must be maintained and improved upon via training programmes such as the continuous professional development programme. Improved knowledge of ethics can reduce perceived pressures to compromise on ethics among accounting and finance professionals. Based on this contribution, this study further concluded that accounting and finance professionals should improve their ethical knowledge in order to reduce their perceived pressures to compromise on ethics.
The accounting firms' managers' and trainees' perceptions of Chartered Accountancy Profession Charter in KwaZulu-Natal, South Africa.
(2019) Nxumalo, Bhekikhaya Henry.; Mkhize, Msizi Vitalis.
The aim of B-BBEE initiatives in the CA Sector is therefore to significantly increase the number of Black People who manage, own and control enterprises in the sector as well as to contribute to decreases in income inequalities in the country in general. This is to be achieved by means of an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa. Within the CA Sector, the first step and primary focus will be on dramatically increasing the numbers of all Black participants (Africans, Indians and Coloureds) and particularly African CA(SA)s. (CA Charter, 2018). The purpose of this study was to determine the accounting firm’s managers and trainees perceptions of Chartered Accountancy Profession Charter in KwaZulu – Natal, South Africa and to examine the relationship between the accounting firms’ managers’ and trainees’ perceptions of Chartered Accountancy Profession Charter in KwaZulu–Natal and demographic variables such as age, gender and race. The setting for this study is accounting firms in KwaZulu–Natal. A systematic sampling was used. The responses of 30 accounting firm’s managers and 73 trainees were analyzed. Both managers and trainees perceived the seven key elements (ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development) of B-BBEE important in KwaZulu-Natal, South Africa. Ownership, employment equity and enterprise development were rated highly by trainees, while ownership, management control and employment equity were highly rated by managers. In terms of gender, both males and females rated higher management control. Males rated lower in socio-economic development while females rated lower preferential procurement. The variation and ratings were found of how managers and trainees view the importance of B-BBEE elements but all the variations were positive. This research finding requires the accounting profession to recognize B-BBEE ratings by managers and trainees as this will assist accounting profession in complying with the CA Charter. Incongruities between managers and trainees perceptions of the CA Charter call for the accounting profession to conduct awareness in all the accounting firms in KwaZulu-Natal.
Acting out the myths : the power of narrative discourse in shaping the Zimbabwe Conflict of Matabeleland, 1980-1987.
(2009) Stauffer, Carl Swarr.; Harris, Geoffrey Thomas.
This thesis interrogates the Matabeleland disturbances of 1980-1987 by analysing the conflict narratives promulgated by the ZANU-PF and how these narratives directly impacted the socio-political construction of violence that was enacted during that period. Of critical relevance is the interplay between the revolutionary narratives manufactured and imposed by the ZANU-PF regime and the myriad of contrasting, yet subjugated counter-narratives that were formulated as alternative resistances by the recipient communities. Through in-depth interview and document analysis methodologies, this research deconstructs the generative nature of scripted violence through the exploration of five salient themes employed by the ZANU-PF to produce its political meta-narrative: Ethnicity, Nationalism, Loyalty, Legitimacy and Unity. This study explores the power and function of narrative discourse in the formulation of ethnic identities, nation-state ordering, historical exclusion, political discipline, and social uniformity. The premise of this dissertation suggests that durable peace in Zimbabwe will only be realised to the degree that the silenced victims of the Matabeleland massacres are afforded a public voice and a sustained recognition in the historic, collective memory of that nation.
Adaptive market hypothesis and calendar anomalies in selected African stock markets.
(2019) Obalade, Adefemi Alamu.; Muzindutsi, Paul-Francois.
It takes a theory to beat a theory. However, whether the adaptive market hypothesis (AMH) offers better explanations for stock return behaviour than the popular efficient market hypothesis (EMH) still remains a question for serious empirical investigation. This question informed the analyses of efficiency and calendar anomalies in the selected African stock market, namely the Nigerian Stock Exchange (NGSE), the Johannesburg Stock Exchange (JSE), the Stock Exchange of Mauritians (SEM), the Casablancan Stock Exchange (MOSE) and the Tunisian Stock Exchange (TSE) with the sample period spanning from January 1998 to February 2018. The first objective of this study is to investigate whether market efficiency changes in cyclical version over time, according to the AMH. The second objective is to evaluate the effect of market conditions (up, down, bull, bear, normal) on return predictability. The third objective is to analyse whether calendar anomalies disappear and reappear over time. The fourth objective is to determine how the anomalies behave under different bull and bear market conditions. Various linear testing tools such as the variance ratio test, the autocorrelation test, the unit root tests and the nonlinear of BDS were implemented in rolling window approach to track time-variation in efficiency. A dummy regression model was used to evaluate the market condition effect on return predictability. This study also explored rolling window analyses of several alternative variants of nonlinear models of the GARCH family, to track variation in the behaviour of days-of-the-week (DOW), months-of-the-year (MOY) and intra-month effects. Lastly, the study modelled the switching behaviour of the calendar anomalies under bull and bear conditions by using the Markov switching model (MSM), which is able to generate regime-specific regression results for the calendar anomalies under consideration. Findings from the various linear and nonlinear tests revealed that there are cycles of significant linear and nonlinear dependence and independence in each of the five markets, suggesting bouts of predictability and unpredictability. The regression analyses of return predictability against series of market condition dummies revealed that highIt takes a theory to beat a theory. However, whether the adaptive market hypothesis (AMH) offers better explanations for stock return behaviour than the popular efficient market hypothesis (EMH) still remains a question for serious empirical investigation. This question informed the analyses of efficiency and calendar anomalies in the selected African stock market, namely the Nigerian Stock Exchange (NGSE), the Johannesburg Stock Exchange (JSE), the Stock Exchange of Mauritians (SEM), the Casablancan Stock Exchange (MOSE) and the Tunisian Stock Exchange (TSE) with the sample period spanning from January 1998 to February 2018. The first objective of this study is to investigate whether market efficiency changes in cyclical version over time, according to the AMH. The second objective is to evaluate the effect of market conditions (up, down, bull, bear, normal) on return predictability. The third objective is to analyse whether calendar anomalies disappear and reappear over time. The fourth objective is to determine how the anomalies behave under different bull and bear market conditions. Various linear testing tools such as the variance ratio test, the autocorrelation test, the unit root tests and the nonlinear of BDS were implemented in rolling window approach to track time-variation in efficiency. A dummy regression model was used to evaluate the market condition effect on return predictability. This study also explored rolling window analyses of several alternative variants of nonlinear models of the GARCH family, to track variation in the behaviour of days-of-the-week (DOW), months-of-the-year (MOY) and intra-month effects. Lastly, the study modelled the switching behaviour of the calendar anomalies under bull and bear conditions by using the Markov switching model (MSM), which is able to generate regime-specific regression results for the calendar anomalies under consideration. Findings from the various linear and nonlinear tests revealed that there are cycles of significant linear and nonlinear dependence and independence in each of the five markets, suggesting bouts of predictability and unpredictability. The regression analyses of return predictability against series of market condition dummies revealed that high predictability is associated with the bull, volatility and financial crisis periods, especially in NGSE, SEM and TSE and not in others. It suggests that the effect of market condition cannot be generalised for all markets. Further, rolling GARCH estimations showed that calendar anomalies disappear and reappear over time in line with the AMH. The evaluation of calendar anomaly under AMH provides a clearer picture of the behaviour of African stock markets as adaptive. Finally, the empirical results revealed that regime-switching is an important feature of calendar anomalies and that a calendar anomaly that is found in a bull regime tends to disappear or weaken in a bear regime and vice versa, depending on the market and the calendar anomaly in question. This study adds to the extant literature on the AMH in Africa and global markets. First, it shows that African stock markets are adaptive. Thus, it is more appropriate to describe African markets as adaptive markets rather than inefficient markets. Secondly, it provides empirical evidence of efficiency cum market condition in African stock markets. Thirdly, the study represents a timely contribution on calendar anomalies under AMH in African stock market. Fourthly, by evaluating DOW, MOY and HOM effects under AMH, this study extends the existing works on Monday and January effects in developed markets. Additionally, this study shows the usefulness of MSM in evaluating calendar anomalies under AMH.
Adoption of Islamic banking amongst Muslim accountants and lawyers in KwaZulu-Natal.
(2018) Vanker, Salma.; Deodutt, Jugjith.
Sub-Saharan Africa accounts for less than 2% of total Islamic Banking assets despite its 500 million Muslim population. As a consequence of low adoption in Africa, particularly in South Africa, there is a need to navigate this challenge and understand what drives the development of Islamic Banking in order to identify ways to stimulate its growth. Given the role and esteem of Muslim Accountants and Lawyers in the business sector of KwaZulu-Natal, this quantitative study aimed to determine the motivational factors for adopting Islamic Banking amongst Muslim Accountants and Lawyers in KwaZulu-Natal. A self-administered questionnaire was used, which contained specific questions relating to knowledge, perceptions and bank selection criteria. The study identified a lack of understanding and scepticism about the underlying principles of Islamic Banking. The original contribution of the study is the availability of a set of ranked factors that increase adoption of Islamic Banking. Further, the study addressed effective ways to bridge the education gap and promoted a collaboration between various stakeholders to find solutions to implement Islamic Banking in the ever-complex and dynamic business environment, whilst still adhering to the principles of Islam. The study identified the need for a single unified regulatory body and provided insights about its role and composition thus provides policy makers with useful information to inform policy formulation and implementation.
Agents of peace or violence: an appraisal of youth participation in peace-building initiatives, Jos, Nigeria, (2000 –2010).
(2018) Obaje, Timothy Aduojo.; Uzodike, Nwabufo Okeke.; Maeresera, Sadiki.
The thesis explores peace-building processes in the city of Jos, Plateau State, Nigeria with a specific focus on the depth of youth participation in peace-building initiatives. The study revolves around the 2000 to 2010 era bearing in mind that this epoch was characterised by unceasing outbursts of conflicts in the city. It employed a qualitative design with thirty purposively selected respondents. Respondents were interviewed using a semi-structured interview instruments. The interviews generated detailed empirical data that illuminated various peace-building initiatives and the depth of youth participation in these initiatives in Jos. Academics and practitioners have identified peace-building as a potential technique could ensure sustainability of peace in conflict-prone societies. Since the early 90s, the United Nations have popularised peace-building efforts via its peace-building frameworks in making available a strategic response to violent conflicts and its causes. Guided by the human security conceptual framework and civic participatory theory, this study contributes to the debate on how the youth can genuinely and adequately participate in peace-building initiatives in Jos and globally. The comprehension of the concept of human security introduces a shift away from the traditional state-oriented security approach which gives rise to the utilization of military power based on the quest for state security. Human security draws attention to humans, both as individuals and groups, in a society. Findings from this study demonstrate that the Nigerian government and the Plateau State government in particular, are progressively subscribing to the idea of the human security oriented approach to peacebuilding over the State security approach. Although a lot need to be done in this respect, the identified peace-building initiatives are indicative of developments in the right direction. Included in some of the notable forms of peace-building initiatives that emerged from the analysis of the study’s empirical data, are the establishment of commissions of inquiry, the formation of inter-religious council, the appointment of the Special Advisor to the Governor on peace-building and trust and capacity building programs. Analysis of these initiatives revealed the strategic marginalisation of youth in peace-building processes. Peace-building endeavours such as trust and capacity building programs were manipulated and exploited rather than making a credible effort towards peace. These elements in some of the peacebuilding initiatives coupled with the total neglect of youth in other peace-building initiatives summed up the unscrupulous nature of the identified peace-building initiatives in Jos and consequently remaining stuck to the perimeter of Arnstein’s non-participation and tokenism in the ladder of participation. This study therefore, recommends the development of a comprehensive peace-building policy and civic participatory framework. A framework that facilitates and guides stakeholders effort towards genuine youth participation in peace-building initiatives. This will include but not limited to the prioritization of public participation in peace-building and other communal and societal affairs, the enhancement of the government’s commitment to peace-building efforts and civic participation, the development of stakeholders’ capacity, and finally, the enhancement of a culture of accountability with a focus on peace-building and genuine youth participation in decision-making processes. In so doing, the study contributes to extant literature about the youth as agents of positive change rather than instruments of violence.
Agricultural cooperatives as strategy for rural development in Rwanda: a case study of COVEPAR.
(2005) Uwantege, Emma-Carine.; Tenza, Themba.
When agricultural cooperatives are very well organized and implemented with sufficient means and committed people, then they can help to achieve rural development. COVEPAR- Cooperative for Valorization and Exportation of Rwandan Agricultural Products- created by local people of Butare Province in October 2001, aimed to participate in the process of poverty reduction in rural areas by increasing the value and exportation of Rwandan products. The main hypothesis of the research was that COVEPAR allows for diversification of individual farmers' income and increases markets for the members. This study was undertaken in order to see the contribution of COVEPAR in achieving solutions for problems of agriculture in general and farmers in particular. Particularly, the focus was on its contribution in poverty reduction in Butare Province. The results of this research showed that in two years of activities (having started its activities in April 2003) COVEPAR has managed to introduce a new cash crop (chilli pepper) in Rwanda in general and in Butare in particular. Also, farmers who used to sell their production at local markets are now selling at international markets through COVEPAR. However, they are still complaining about the price at which COVEPAR buys their production. Cassava, an old food crop in Rwanda, is also one of the two products that COVEPAR is interested in. The experience of COVEPAR showed that it is also revenue generating at international market (European market). This is real when cassava is transformed into good quality cassava flour or starch. The research also showed that COVEPAR participates in agriculture intensification. It is the second source of modem inputs for its members not taking into consideration household residues. It also sensitises its members to use modem inputs and agricultural techniques through PEARL Project agronomists, one of its main supporter projects. About the addition of value, COVEPAR processed cassava roots into cassava flour and obtained 12 tons that in turn were sold on the European market. However, this cassava had not come from associations. COVEPAR had bought it at short notice from any producer who was selling, because it was an urgent situation of exploring the European market's response to their product. Fortunately, the European buyers approved the product and guaranteed the market. At present, COVEPAR is constructing a modern transformation unit that will help to obtain good quality cassava flour, ready for export, in Butare Province. It is also in the stage of sensitising its members to cultivate improved seedlings of cassava in order to obtain high production. So, as the market is already identified, the additional value process will continue. In future production the focus will be mainly on cassava roots obtained from its members. For chilli pepper, COVEPAR sells a non-finished product. The chilli pepper is only put it into packages after it is thoroughly dried and sorted. However, members of the chilli pepper associations have improved their lives more than that of the cassava associations. Apart from buying food and clothes like cassava associations, they have also covered other important needs like buying livestock, bicycles, new farms, new house, etc. COVEPAR has also contributed to job creation in Butare Province. Although the achievements have been many in the relatively short period of two years, COVEPAR is also facing many problems. It is inadequately organized with some very important institutions such as general assembly, board of management and auditors still being absent from its managerial structure. Also, it has lack of financial capital that puts it in the unfortunate situation of bringing about misunderstanding with members because of delays in payments. The other problems are poor communication and collaboration with members. In addition, COVEPAR works with a lot of associations that are more than its financial and technical means can afford. Therefore, if these shortcomings are not corrected as soon as possible, COVEPAR objectives will not be reached and it will inevitably share the same fate as other cooperatives that have existed and failed in Rwanda.
An analysis of the trends in integrated reporting by South African government-owned enterprises.
(2023) Omarjee, Ayesha.; Vanker, Salma.
In recent times, government-owned enterprises have faced a deficit in terms of accountability. Addressing this issue, there has been a call for an oversight mechanism to enhance governance and consequently, accountability within state-owned companies (IOD and PWC, 2011). Integrated reporting has emerged as a response to this demand, primarily due to its capacity to offer a comprehensive perspective on the factors that contribute to value creation for an organisation over different time frames. Recognising the advantages that integrated reporting brings to corporate governance, South African government-owned enterprises have acknowledged its potential and subsequently incorporated integrated reporting in accordance with King IV principles and the IR Framework. The objective of this research is to analyse the patterns in integrated reporting among government-owned enterprises according to The Public Finance Management Act of 1999, focusing on the financial periods of 2018, 2019, and 2020. This study assesses the depth of information disclosed by government-owned enterprises and its alignment with the suggestions and criteria set forth by the King IV guidelines and IR Framework for integrated reporting. This evaluation utilizes a scorecard methodology to gauge the degree of disclosure achieved by each individual government-owned enterprise. Based on the empirical facts from the analysis, it is clear and conclusive that the level of reporting and disclosure of government-owned enterprises has improved consistently over the years. This assertion is based on the evident adoption and the upward trend in the application of the Integrated Reporting Framework for integrated reporting by government-owned enterprises. Whilst the overall average level of disclosure is good, there is without debate a necessity for improvement in some critical areas highlighted in this research . Notable among these areas are leadership, governance, stakeholder relationships, organizational ethics, and corporate citizenship.
Analysing the need for financial literacy in micro-enterprises in the City of uMhlathuze, KwaZulu-Natal.
(2021) Soldat, Anne Margaret.; Gurr, Kerry-Lee.; Doorasamy, Mishelle.
Small, Medium and Micro-Enterprises (SMMEs) have a fundamental role to play in the South African Government’s National Development Plan. Jobs created by this sector are expected to alleviate poverty and drive economic transformation. Financial literacy is key to the sustainability of SMMEs. The main objective of the study was to establish the financial literacy needs of micro-entrepreneurs in the City of uMhlathuze, KwaZulu-Natal. The participants' financial literacy level was measured, and areas of financial literacy weakness were identified. The possibility of a significant relationship between financial literacy and the gender, age, education, and years in business of micro-entrepreneurs was also explored. A quantitative research approach was used to gather and analyse primary data collected from fifty micro-entrepreneurs in the City of uMhlathuze. A non-probability sampling technique was used, and hence the results are unique to these participants and should not be generalised. The study revealed a high level of financial literacy. The weakest domains of financial literacy were financial planning, budgeting and control; risk management; and understanding funding sources. Additional weaknesses include insufficient use of digital technologies and inefficient use of financial investment products. Inadequate knowledge of external funding sources and prevalent macro-environmental conditions were also revealed. Lastly, the study concluded that the demographic factors tested do not serve as suitable predictors of an individual’s financial literacy score. Financial education interventions are recommended to support the sustainability of SMMEs.
An analysis of alternate consumption hypotheses in South Africa.
(1996) Govinden, Marylla G.; Contogiannis, Eleftherios.
The first half of this research is an attempt to provide a solid theoretical foundation of the various theories of the consumption function and the empirical evidence. Both the theoretical foundation and the empirical evidence is wide-ranging, spanning a period of over fifty years, with a discussion on the early Keynesian consumption function through to the influence of the rational expectations approach to economic modelling. The emphasis is both on the macro as well as micro aspects of the consumption function. The second half of this research considers the nature of the consumption function in South Africa. This is done with the application of time-series data to three particular models that could provide some insight, and answer certain broad questions about the behaviour of consumption in South Africa. More specifically this is achieved through disaggregation by considering demand functions for specific items of consumption.
An analysis of bank competition and financial stability: evidence from the South African banking sector.
(2021) Vilakazi, Mzamo Perceviere.; Muzindutsi, Paul-Francois.; Meyiwa, Ayanda.
There is a crucial role that the banking in terms of play and serve as central to the economy. Thus, competition is vital to the banking industry. However, while competition is perceived to be vital to the banking industry, it is claimed to have both positive and negative implications on the financial stability of banks. This study investigated the link between bank competition and financial stability in South Africa. The study utilized panel regression to examine the associations between different measures of bank competition and financial stability for the major five banks over the sample period spinning from 2009 to 2019. This study employed three different models namely, the Boone indicator, Lerner index, and fluctuating H-statistics to test for bank competition theories. The study further investigated the level of competition in the South African banking sector by unpacking the concept of concentration in the South African banking sector, using Concentration Ratios (CR) and Herfindahl-Hirschman Index (HHI). The study used the Z-score and profitability as dependent variables to proxy for financial stability in the banking sector. The economic activity and the bank size were used as the control variables in the competition and stability models to account for any uncounted variables. The findings indicated that less competition in the banking market causes banks to engage in risky activities, face regulatory intervention, or, worse, fail, consistent with the competition stability hypothesis. Furthermore, more competition and access to related financial services can be applauded to produce a competing environment in the South African banking services industry. Overall, this study concluded by supporting that more competition enhances financial stability.
An analysis of export support measures with special reference to South Africa, and the impact of the general export incentive scheme.
(1996) Gouws, Andre.; Holden, Merle Gwendoline.
South Africa, in common with many other developing countries, embarked on an import substitution policy to promote development and industrialisation. Although initially successful, it was recognised in the late 1960s that the scope for further import substitution was limited and that alternative development strategies should be embarked upon. Unfortunately, the years of import substitution resulted in high levels of protection and consequently an anti-export bias. In 1972, under the leadership of Dr Reynders, a commission found that South Africa should embark upon a policy of export promotion. In 1980 a new form of export incentive was introduced, viz. Category A and B. Category A incentives were aimed at neutralising the effects of import substitution and compensated exporters fifty per cent of the duty payable on inputs, regardless of whether the inputs were imported or not. Category B incentives compensated exporters for the consequences of cost increasing on non-intermediate inputs because of the import substitution policy and was calculated on the value added. Exporters also enjoyed various grants and tax breaks to enable them to undertake export marketing. The schemes were unsuccessful and were replace by a General Export Incentive Scheme (GElS) in 1990. The main aim of the GElS was to encourage the export of manufactured products. With the means of an econometric model, the success of GElS is evaluated on a sectoral basis. GElS brought with it rent seeking, corruption, lobbying, and threats of countervailing duties. In addition to the enormous costs, exceeding R6 billion, there were other bureaucratic costs. In general, the GElS was not successful. The sectors that did benefit from receiving GElS benefits were the tobacco industry, footwear, furniture, metal products, and electrical machinery. In most cases, exporters would have exported with or without GElS. GElS was simply a windfall. Policy-makers failed to recognise the dynamics of exporting. GElS contributed neither to additional exports, export capacity nor to a sustained competitive advantage. import substitution policy to promote development and industrialisation. Although initially successful, it was recognised in the late 1960s that the scope for further import substitution was limited and that alternative development strategies should be embarked upon. Unfortunately, the years of import substitution resulted in high levels of protection and consequently an anti-export bias. In 1972, under the leadership of Dr Reynders, a commission found that South Africa should embark upon a policy of export promotion. In 1980 a new form of export incentive was introduced, viz. Category A and B. Category A incentives were aim.ed at neutralising the effects of import substitution and compensated exporters fifty per cent of the duty payable on inputs, regardless of whether the inputs were imported or not. Category B incentives compensated exporters for the consequences of cost increasing on non-intermediate inputs because of the import substitution policy and was calculated on the value added. Exporters also enjoyed various grants and tax breaks to enable them to undertake export marketing. The schemes were unsuccessful and were replace by a General Export Incentive Scheme (GElS) in 1990. The main aim of the GElS was to encourage the export of manufactured products. With the means of an econometric model, the success of GElS is evaluated on a sectoral basis. GElS brought with it rent seeking, corruption, lobbying, and threats of countervailing duties. In addition to the enormous costs, exceeding R6 billion, there were other bureaucratic costs. In general, the GElS was not successful. The sectors that did benefit from receiving GElS benefits were the tobacco industry, footwear, furniture, metal products, and electrical machinery. In most cases, exporters would have exported with or without GElS. GElS was simply a windfall. Policy-makers failed to recognise the dynamics of exporting. GElS contributed neither to additional exports, export capacity nor to a sustained competitive advantage.
An analysis of herd behaviour in the South African stock exchange.
(2013) Niyitegeka, Olivier.; Tewari, Devi Datt.
The stock market is an important part of the economy of a country. It plays a crucial role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. This is the reason that the government, industry and the country in general keep a close watch on the happenings of the stock market. It is in this frame of mind that the current study investigates the presence of herd behaviour in the South African stock market. Herd behaviour occurs when investors disregard their individual information and base their trading decision on the actions of others. Herd behaviour was measured by testing whether or not there is a negative relationship between the dispersion of stock returns and the market return. The study also investigates whether herd behaviour is asymmetric in different market conditions, namely bull versus bear markets, highly volatile markets versus less volatile markets and high trading volumes versus low trading volumes. The results point towards a considerable presence of herd behaviour among investors at the Johannesburg Stock Exchange (JSE). An analysis of the asymmetric effect of herding on various market conditions reveals that herding is more pronounced during a bull market than a bear market, during low trading volume rather than high trading volume periods and is more prevalent during periods of low market volatility than in highly volatile markets. This study also used the Autoregressive Distributed Lag (ARDL) approach to cointegration in order to examine short- and long- term dynamics of investors’ herd behaviour at the JSE. The study noted that herd behaviour is not instantaneous; rather it takes place with a lapse in time. However, the unrestricted error correction results suggest that herd behaviour has a rather high speed of adjustment, implying that herding is a short-lived phenomenon.
An analysis of herd behaviour in the South African stock exchange.
(2013) Niyitegeka, Olivier.; Tewari, Devi Datt.
The stock market is an important part of the economy of a country. It plays a crucial role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. This is the reason that the government, industry and the country in general keep a close watch on the happenings of the stock market. It is in this frame of mind that the current study investigates the presence of herd behaviour in the South African stock market. Herd behaviour occurs when investors disregard their individual information and base their trading decision on the actions of others. Herd behaviour was measured by testing whether or not there is a negative relationship between the dispersion of stock returns and the market return. The study also investigates whether herd behaviour is asymmetric in different market conditions, namely bull versus bear markets, highly volatile markets versus less volatile markets and high trading volumes versus low trading volumes. The results point towards a considerable presence of herd behaviour among investors at the Johannesburg Stock Exchange (JSE). An analysis of the asymmetric effect of herding on various market conditions reveals that herding is more pronounced during a bull market than a bear market, during low trading volume rather than high trading volume periods and is more prevalent during periods of low market volatility than in highly volatile markets. This study also used the Autoregressive Distributed Lag (ARDL) approach to cointegration in order to examine short- and long- term dynamics of investors’ herd behaviour at the JSE. The study noted that herd behaviour is not instantaneous; rather it takes place with a lapse in time. However, the unrestricted error correction results suggest that herd behaviour has a rather high speed of adjustment, implying that herding is a short-lived phenomenon.
An analysis of household and government spending on education in South Africa.
(2021) Sejake, Alice Tlalane.; Muller, Colette Lynn.
Education is one of the largest components of government spending across developing and developed countries. Differences in spending on education are often cited as the key contributors to achievement gaps between countries and individuals in the same country. In South Africa, education has been central to government’s socio-economic redistributive policies following the end of apartheid. The problem of insufficient funding particularly for higher education combined with a high demand for education have led to shared costs between households and government. To this effect, the study analyses the relative roles of spending across schooling levels between households and the government. The study further examines attendance and expenditure pattens on education between private and public institutions. Using household level data from the South African Living Conditions Survey 2014/2015, Tobit regressions using a number of household characteristics (such as the gender of the household head, their employment status, population group, level of education, the number of children attending and settlement type of the household) are estimated to examine if and to what degree the determinants of educational expenditure differ by income groups. In addition, income elasticities of education spending are calculated to determine the sensitivity of household’s spending to changes in income. The results show that spending of richer households on education is likely to be more sensitive to changes in household income than poorer households.
An analysis of information technology risks and governance disclosure: evidence from the top 40 JSE listed companies.
(2022) Nyagope, Taurayi Stephen.; Rajaram, Rajendra.; Oloyede, Obagbuwa.
The study analysed the extent to which information technology risks and governance is disclosed by top 40 JSE-listed companies in their 2021 integrated reports as part of the risk governance practices. It also conducted a review to identify similarities and differences between King IV and other international standards such as ISO 27002, 38500, COBIT 5, SOX, and ISA 315 on IT governance and risk disclosure requirements. The results revealed that 32 out of the top 40 JSE-listed companies (80%) fully complied with King IV and other international standards on the disclosure of their IT governance and risk management in the integrated and corporate governance reports. The results further revealed that 8 out of the top 40 JSE-listed companies (20%) partially complied with King IV on disclosure of IT governance and risk management. Furthermore, the results indicated that King IV and other international standards were similar on 19 out 24 (79%) of the IT governance and risk management disclosure requirements and differed on 5 out of 24 (21%) requirements. The study confirmed the extent of IT and risk governance disclosure of the selected companies and determined areas of similarities and differences. The study adds to the debate on King IV disclosure requirements with regards to IT governance and risk management by public companies in corporate reporting and further adds to the debate on stakeholder theory.
An analysis of money demand stability in Rwanda.
(2005) Sayinzoga, Aussi.; Simson, Richard Andrew.
A stable money demand function and exogeneity of prices is at the core of planning and implementing a monetary policy of monetary targets. This thesis examines both the stability of M2 money demand and price exogeneity in Rwanda for the years 1980 to 2000. We estimate and test the elasticities of the determinants of Rwandan money demand function. We include in this demand function those variables which economic theory indicates must be part of any empirical investigation of money demand. All coefficients had the signs as required by economic theory. We estimate the money demand function for Rwanda using cointegration analysis and an error correction mechanism. The results show real income, prices and M2 to be cointegrated. We employ three tests to show that the estimated demand function for Rwanda is stable. We then test the second requirement for coherence in monetary aggregate targeting that money determines prices. The results show that prices are exogenous to money. But before we can definitely conclude that an inflation targeting regime is feasible from monetary policy perspective, we point out that future research on this important topic must account for exchange rate movements, measure permanent income and specify interest rate changes correctly.
An analysis of real exchange rate disequilibrium in developing countries, with an empirical focus on South Africa.
(1999) Tembo, George.; Mainardi, Stefano.
Since the early 1970s, exchange rate fluctuations have characterised the behaviour of the external value of many currencies in both high- and low-income countries. Up-and-down movements in real exchange rates have been observed under fixed as well as flexible arrangements. This is in spite of the fact that many less developing countries (until the 1980s), unlike the major industrialised countries, opted to retain relatively rigid exchange rate systems after the collapse of the Bretton Woods system. Exchange rate volatility has been a subject of much concern in government, business and academic circles because it has been associated with negative effects on the performance of developing economies. Consequences of these large swings in exchange rates have included uncertainty and delays in business decisions, resource misallocation, interest rate volatility and real exchange rate misalignments. For the period, from 1970 to 1996, this study investigates the phenomenon of real exchange rate disequilibrium in developing countries, with an empirical and econometric examination of South African data. Using the ordinary least squares and the EngleGranger cointegration techniques, this investigation found that government consumption of nontradables, the price of gold in rand, the overall terms of trade and the rate of depreciation are important determinants of the short-run behaviour of the real effective exchange rate in South Africa. With regard to the long-run the permanent componen1ts ofthe fundamentals - namely, technological or productivity improvement, trade policy, governm1ent consumption of nontradables, disposable income, capital flows, the terms of trade excluding gold and the rand price of gold, were found to be significantly related to the equilibrium conduct of the real effective exchange rate. Instances of real exchange rate misalignment were found in both periods of fixed and flexible exchange rate management.

Browse

Browsing School of Accounting, Economics and Finance by Title