bluuebunny/crossref_metadata_2025 huggingface dataset:
Employee susceptibility to experiencing job insecurity
Authors: Paul Dachapalli Leigh-Anne , Parumasur Sanjana Brijball
Published: April 2017

Employees attach value to their job features/total job and when they perceive threats to these and experience feelings of powerlessness, their level of job insecurity increases.  Since job insecurity is a subjective phenomenon, the study aims to assess who is more susceptible to experiencing job insecurity by assessing biographical correlates.  The research adopts a formal, hypothesis-testing approach where quantitative data were collected using a cross-sectional, survey method from a sample of 1620 employees.  The results, generated using the ANOVA model, indicate that biographical influences do exist in terms of job insecurity. The implication is that change managers need to take cognisance of these influences and develop suitable strategies for each group to reduce the prevalence of job insecurity.  Recommendations are made in this regard.
The study of venture capital finance and investment behaviour in small and medium-sized enterprises
Authors: Mbhele Patmond
Published: April 2017

Small and medium-sized enterprises (SMEs) are often credited with innovative entrepreneurial practices and conceiving new market opportunities. Government has reinforced these positive economic externalities through policy programmes and designated support structures. Venture capital organisations often galvanise innovative knowledge by entrenching and sustaining nascent businesses through value-creating funding behaviours. In this way, the venture capital industry financially supports entrepreneurial activity for economic growth and governs and nurtures the growth of the SMEs. These show that the venture capital industry embraces value-creating opportunities on the basis of rational partnerships with enterprises that have limited track records and less formal control mechanisms. The tentative factor analysis findings suggest an integrated framework for the venture capital industry from the significant intercorrelations among the variables. The most important focus of this article, however, is its attempt to examine the behavioural traits of SMEs and venture capitalists regarding systematic finance and investment for inclusivity and due diligence.
Identifying risks facing the South African tourism industry
Authors: Shaw Gordon , Saayman Melville , Saayman Andrea
Published: April 2017

Even though risks certainly influence  travel and tourism patterns, very little research has been conducted  into how the industry generally perceives and manages risks.  This article aims to (i) identify the risks the South African tourism industry deems important; (ii) construct a matrix for assessing the various risks identified and (iii) determine whether sectors of the industry rate the importance of risks differently. In total, there were 212  responses to the questionnaire in the survey on South African tourism businesses.  The statistical analysis included a factor analysis and an ANOVA (analysis of variance). Nine factors were identified and the ANOVA confirmed that sectors do perceive differing levels of importance in the various risks. The risk assessment matrix showed that internal risks are rated among the most important, even though little attention is paid to these in the literature.
Basel III countercyclical capital rules: implications for South Africa
Authors: Van Vuuren Gary Wayne
Published: April 2017

The financial crisis has been blamed on many entities, institutions and individuals as well as the Basel II accord which had just begun to be implemented globally when the crisis erupted. The criticisms resulted in the construction of Basel III, a series of measures designed to augment and repair (but not replace) the Basel II accord. One of these adjuncts addresses the problem of economic procyclicality and suggests ways to mitigate it through capital charge increases when economies overheat and capital charge reduction in economic contractions. The consequences of this proposed measure's introduction for South African banks is explored.
Empirical study of national technological innovation capability in Africa
Authors: Mayor Mónica García-Ochoa , Blázquez de la Hera María Luisa , De Diego Ruiz Enrique
Published: April 2017

This paper performs an analysis of the technological innovation capability in 30 African countries. Based on the literature about national innovation capability and economy of technological change, an empirical study using clusters’ analysis technique and the technological innovation indicators published in the Global Competitiveness Report 2010-2011 (WEF, 2010) has been performed in order to explore the existence of groups of countries characterized by different technological innovation levels, deepening in their characteristics and the distance that separates them. The results show the existence of four groups of countries defined by different technological innovation capabilities in three factors, which are the Governmental and business technological policy, the Technological infrastructure and human capital (Available Base) and the Protection of intellectual property and innovation results.
Prevalence of sustainability reporting practices of listed companies on established and emerging stock exchanges
Authors: Turk Brendan K. , Shackleton Charlie , Whittington-Jones Kevin
Published: April 2017

The business sector has a substantial role in addressing current environmental issues and concerns. Consequently, there is a growing adoption of corporate sustainability principles and practices across all market sectors. This study examined four developed and four emerging stock markets and the sustainability reporting practices of the top 20 and bottom 20 companies in each. The results illustrate that the developed market sector was more advanced in its corporate sustainability reporting, both in the proportion of companies issuing a sustainability report (approximately 60 per cent) and the proportion of company webpages dedicated to sustainability reporting. This difference was largely due to the effect of the top 20 companies. There was little difference between developed and developing markets when only the bottom 20 companies were considered, of which less than one-third provided sustainability reports.  These results show that sustainability reporting is prevalent in both developed and developing markets, especially among market leading companies, but that overall, most developing markets have some catching up to do.
To report or not to report
Authors: Maroun Warren , Wainer Harvey
Published: April 2017

Whistle-blowing can play an important role in enhancing the effectiveness of corporate governance processes. In particular, legislation mandating that auditors blow the whistle on their clients’ transgressions can assist in overcoming agency-related costs and improve confidence in external audit. This is, however, only the case if regulatory reform enjoys cohesion. The Companies Act No. 71 of 2008, by introducing a definition of ‘reportable irregularities’ different from that in the Auditing Profession Act No. 26 of 2005 (APA); excluding ‘independent reviews’ from the scope of APA; and effectively exempting the majority of South African companies from the requirement either to be audited or reviewed, may materially undermine whistle-blowing by auditors in South Africa. In turn, this begs the question: for how long will South Africa rank first globally for the quality of its auditing practices?
Performance satisfaction, shareholder and stakeholder orientations: Managers´ perceptions in three countries across continents
Authors: Angelopoulos Georgios , Parnell John A , Scott Gregory J
Published: April 2017

Managers working in South Africa, Peru and the United States were classified as stakeholder- and/or shareholder-oriented along the Perceived Role of Ethics and Social Responsibility (PRESOR) scale. The relationship between stakeholder/shareholder orientation and perceptions of organisational performance was further explored. In South Africa and overall, respondents with both high stakeholder and low shareholder orientations reported the greatest performance satisfaction. In Peru, managers with a high stakeholder orientation reported the greatest satisfaction with organisational performance. A significant link between stakeholder or shareholder orientation and performance satisfaction was not found in the United States, however. Directions for future research are outlined.
Travel or technology? Business factors influencing management decisions
Authors: Douglas Anneli , Lubbe Berendien , Rotelli Inger Fabris
Published: April 2017

There is an on-going debate on the use of technology as an alternative to business travel, with industry and academia differing in their views on such substitution. This study investigates the trend towards substitution and identifies the factors and barriers that play a role in either supporting or limiting such substitution. The results provide management with an evaluation of the benefits of replacing business trips with videoconferencing and other alternatives, against the potential disadvantages of using these alternatives.
Product innovation of private health insurers in South Africa and the impact of entrepreneurial orientation
Authors: Urban Boris
Published: April 2017

Recognising that health insurer product innovation plays a critical role in aligning incentives among all stakeholders in the healthcare value chain, this study investigates the relationship between the level of health insurer product innovation and entrepreneurial orientation (EO). Taking cognisance of the importance of external collaboration between health insurers and healthcare service providers, the study is able to diagnose perceptions of strategic regulatory factors and their impact on levels of EO. The focus of the study is on the demand (financing) and supply (healthcare delivery) structures of the healthcare value chain, incorporating health insurers, health insurer administrators and healthcare service providers. A conceptual model is formulated on the basis of literature and tested using confirmatory factor analysis. The results indicate that EO at organisational level is a strong predictor of health insurer product innovation and that external collaboration between health insurers and healthcare service providers is a weak predictor of health insurer product innovation. Practical implications are that both the supply and demand side structures indicate that the restructuring of relationships between health insurers and healthcare service providers is a necessary driver for collaboration in terms of health insurer product innovation progress and success. Healthcare executives need to work with, and actively lobby regulators to ignite both demand and supply side innovation activities in the healthcare value chain of the private healthcare industry of South Africa.
Ending the myth of the St Petersburg Paradox
Authors: Vivian Robert
Published: April 2017

Nicolas Bernoulli suggested the St Petersburg game, nearly 300 years ago, which is widely believed to produce a paradox in decision theory. This belief stems from a long standing mathematical error in the original calculation of the expected value of the game. This article argues that, in addition to the mathematical error, there are also methodological considerations which gave rise to the paradox. This article explains these considerations and why because of the modern computer, the same considerations, when correctly applied, also demonstrate that no paradox exists. Because of the longstanding belief that a paradox exists it is unlikely the mere mathematical correction will end the myth. The article explains why it is the methodological correction which will dispel the myth.
A new method for interpolating yield curve data, with applications to the South African market
Authors: Du Preez Paul , Mare Eben
Published: April 2017

This paper presents a method for interpolating yield curve data in a manner that ensures positive and continuous forward curves. As shown by Hagan and West (2006), traditional interpolation methods suffer from problems: they posit unreasonable expectations, or are not necessarily arbitrage-free. The method presented in this paper, which we refer to as the “monotone preserving r(t)t  method", stems from the work done in the field of shape preserving cubic Hermite interpolation, by authors such as Akima (1970), de Boor and Swartz (1977), and Fritsch and Carlson (1980). In particular, the monotone preserving r(t)t method applies shape preserving cubic Hermite interpolation to the log capitalisation function. We present some examples of South African swap and bond curves obtained under the monotone preserving  r(t)t method.
Derivation of a framework for annual financial statements of a property-casualty insurance firm: From Adam Smith to the modern insurance firm
Authors: Vivian Robert , Hutcheson Hugh-David
Published: April 2017

This article derives a framework for annual financial statements of a property-casualty insurer from first principles using Adam Smith’s statement of the operation of an insurer as the point of departure.  The derivation incorporates’ current standard accounting principles and regulatory requirements.  In the end it will be seen that a substantial correlation exists between the final derived framework and current published statements of a modern property-casualty insurer.  It remains to be seen if a similar correlation will continue to exist once the long awaited international accounting standard for insurers is finalised. The article accordingly demonstrates that Adam Smith’s statement can be used to derive a workable framework for the accounting and hence management of modern property-casualty insurers.  A number of important conclusions flow from the article.  Firstly the distinction between provisions and reserves must be understood and maintained failing which solvent insurers may be portrayed as being insolvent, second a new provision should be raised, a Year to Close Provision where it is unclear that existing provisions adequately cover outstanding liabilities and third the IBNR provision should be restricted to claims in the pipeline for the year under consideration.
Cost-effective infrastructure choices in education: Location, build or repair
Authors: Jenkins Glenn P , Zeinali Armin
Published: April 2017

The purpose of this study is to develop a model to arrive at a joint optimising strategy for capital budgeting for the construction of new school buildings and for the renovation of existing schools. This model provides a practical tool for ranking construction projects so as to yield the maximum positive impact on the education system. A key aspect of the model is that it provides the optimal mix of renovation and new construction that should be undertaken under a fixed budget constraint.The model is applied to a sample dataset from the education sector of Limpopo province, South Africa, in order to quantify the benefits of using the model. The benefits from using this model for decision making on the evaluation of new and renovation investments in school infrastructure is estimated to increase the effectiveness of these investments by up to 300 percent over the counterfactual system for making these decisions.
Implementing the countercyclical capital buffer in South Africa: Practical considerations
Authors: Burra Pravin , De Jongh Pieter Juriaan , Raubenheimer Helgard , Van Vuuren Gary , Wiid Henco
Published: April 2017

The Basel II regulatory framework significantly increased the resilience of the banking system, but proved ineffective in preventing the 2008/9 financial crisis. The subsequent introduction of Basel III aimed, inter alia, to supplement bank capital using buffers. The countercyclical buffer boosts existing minimum capital requirements when systemic risk surges are detected. Bolstering capital in favourable economic conditions cushions losses in unfavourable conditions, thereby addressing capital requirement procyclicality. This paper contains an overview of the countercyclical capital buffer and a critical discussion of its implementation as proposed in Basel III. Consequences of the buffer's introduction for South African banks are explored, and in particular, potential systemic risk indicator variables are identified that may be used by the South African Reserve Bank (SARB) as early warning indicators of imminent systemic financial distress. These indicators may be of value to the SARB, which could use them in taking decisions on the build-up and release of the countercyclical buffer for South African banks.
CEO pay-performance sensitivity in the South African context
Authors: Bussin Mark
Published: April 2017

The topic of executive pay-performance sensitivity has resulted in mixed research findings. Literature related to executive remuneration constructs, company performance measures and the underlying theories is critically reviewed in this article. The literature is compared to research findings within the South African context pre, during and post the Global Financial Crisis of 2008. The researcher found similar results in the South African context compared to research in other countries and industries. The research challenges the notion that there is one dominant theory driving CEO compensation. The principal-agent theory, supported by the optimal contract theory, are foremost during periods of strong economic performance, while the influence of managerial power and other behavioural theories appear to prevail during periods of weak economic performance. This article proposes some critical considerations in order to manage this tension.
Cointegration and stock market interdependence: Evidence from South Africa, India and the USA
Authors: Thangamuthu Mohanasundaram , Parthasarathy Karthikeyan
Published: April 2017

The purpose of this study is to explore the nature of the association and the possible existence of a shortrun and long-run relationship between the stock-market indices of South Africa, India and the USA. The idea behind this combination is to know how the stock markets of these three prominent countries are related to each other. The study employs monthly data from the stock indices, namely JALSH (South Africa), NIFTY (India) and NASDAQ (USA) composite from April 2004 to March 2014. After testing for the normality of the data distribution and the stationarity of the time series data, this paper discovered a strong correlation between the stock market indices of South Africa, India and the USA. The correlation among the stock markets is high, particularly between South Africa and India. In addition, the paper attempts to discover the presence of any predictive ability among these markets by applying the Granger causality test. The result indicates that the NASDAQ index has no predictive ability as far as the JALSH and NIFTY indices are concerned. However, the JALSH index has a predictive ability on the NIFTY index. After testing the Granger cause relationship, the existence of a long-run and short-run relationship is tested. The long-run relationships among the stock market indices are analysed, following the Johansen and Juselius multivariate cointegration approach. The result suggests the absence of a long-run relationship among the three stock market indices. Short-run relationship is investigated with the Vector Autoregression (VAR) model, and the outcome obtained shows that both the USA and the South African stock markets are predicted only by their own past lags. However, the Indian stock market is seen to be a function of its own past lags and the past lags of the South African stock index.
Value relevance and corporate responsibility reporting in the South African context: An alternate view post King-III
Authors: Marcia Adrian , Callaghan Chris , Maroun Warren
Published: April 2017

This study tests for the value relevance of corporate responsibility reporting (CRR) based on a sample of companies listed on the Johannesburg Stock Exchange (JSE). It also provides evidence of the statistical significance of the potential contribution of CRR to share price values in the South African context at a particular point. On the basis of a sample of 82 companies on the JSE, hierarchical regression analysis was used to test the contribution of levels of corporate social responsibility disclosures to company share prices, over and above the contribution of the size of a firm’s equity and net income. In contrast with other findings which predict a positive relationship between company share price and levels of corporate social responsibility disclosures, the latter are found to have no significant association with company share price over and above the associations of the size of a firm’s equity and net income. Bivariate associations, however, indicate a significant association between share price and levels of corporate social responsibility disclosures. On the basis of these findings, it is argued that disclosures increase for firms with larger endowments of equity, yet corporate social responsibility disclosures do not necessarily add value to company share price.
The synergistic and complementary effects of supply chain justice and integration practices on supply chain performance: A conceptual framework and research propositions
Authors: Ziaullah Muhammad , Yi Feng , Akhter Shumaila Naz
Published: April 2017

In recent years, firms have been using their supply chain integration (SCI) as a competitive weapon in the intensive, globalised competitive arena. The contingent perspective in supply chain management maintains that it is necessary to observe the interaction between SCI practices and supply chain justice. A critical issue to be resolved is whether this fit leads to synergistic and complementary effects on supply chain performance. In order to contribute to this research problem, we analysed supply chain justice instances in order to determine the importance of supply chain justice, as well as highlights complementary role in SCI and its influences on supply chain performance. A conceptual framework has been developed and five propositions established to verify the contents of a theoretical study. Accordingly, balancing the adoption of SCI practices and supply chain justice will lead to the generation of greater benefits relative to the effect of both independent driving forces on supply chain performance. Furthermore, the proposed framework has been analysed in order to examine its applicability in the South African context. The study thereby suggests the empirical research guidelines and the paper concludes with a discussion of future research.
Relationship intention and satisfaction following service recovery: The mediating role of perceptions of service recovery in the cell phone industry
Authors: Kruger L , Mostert P , De Beer LT
Published: April 2017

In an industry characterised by fierce competition, cell phone network providers find it increasingly difficult to retain their customers after service failure. It is therefore essential for cell phone network providers to offer effective service recovery when they attempt to restore customer satisfaction following service failure. As it has been argued that relationships between customers and service providers should be considered a key determinant of the service recovery required to restore post-recovery attitudes and behavioural intentions, the purpose of this study was to determine the relationships between South African cell phone customers’ relationship intentions, their perceptions of service recovery and their satisfaction following service recovery. Personal in-home interviews were conducted to collect data from 605 cell phone customers residing in the Johannesburg metropolitan area. In addition to the significant positive relationships found between cell phone users’ relationship intentions, perceived service recovery and satisfaction after service recovery, this study found that perceived service recovery played a mediating role in the relationship between relationship intention and satisfaction following service recovery. The study concludes that, although a direct relationship exists between relationship intention and satisfaction following service recovery, perceived service recovery plays an additional indirect complementary role in this relationship. It is recommended that, in addition to focusing their relationship efforts on customers with relationship intentions, cell phone network providers also offer positively perceived service recovery to these customers, as this would lead to greater satisfaction following service recovery.
Foreign aid on economic growth in Africa: A comparison of low and middle-income countries
Authors: Alemu Aye Mengistu , Lee Jin-Sang
Published: April 2017

Previous empirical studies on the effects of foreign aid on economic growth have generated mixed results that make it difficult to draw policy recommendations. The main reason for such mixed results is the choice of a single aggregate list of countries, regardless of the disparities in levels of development. This study therefore fills the development gap by disaggregating the African data into a panel of 20 middle- income and 19 low- income African countries over a period of 15 years between 1995 and 2010, and employing a dynamic generalized method of moments (GMM) model to address the dynamic nature of economic growth as well as the problems of endogeneity. The results of this study support the theoretical hypothesis that a positive relationship between aid and GDP growth exists, but only for low-income African countries, not middle-income ones. On the other hand, the study reveals that middle- income African countries tend to experience a greater impact on their economic growth from foreign direct investment (FDI) and natural resources revenues, mainly oil exports. This implies that the frequent criticism that foreign aid has not contributed to economic growth is flawed, at least in the case of low-income African countries. In fact, foreign aid has played a critical role in stimulating economic growth in such countries through supplementing domestic sources of finance such as savings, thus increasing the amount of investment and capital stock in them.
Earnings management through loss avoidance: Does South Africa have a good story to tell?
Authors: Pududu Mangakane Lehlogonolo , De Villiers Charl
Published: April 2017

The purpose of this study is to determine whether South African managers manage earnings to avoid reporting small losses (small earnings decreases). The study covers all the companies listed on the Johannesburg Stock Exchange (JSE) from 2003 to 2011. In line with Burgstahler and Dichev (1997), the cross-sectional distributions of earnings and changes in earnings are examined and the distributions are shown in histograms. Previous research (using data from the United States) has shown that the distribution curve for both the earnings and the change in earnings variable had noticeably fewer observations just below zero than would normally be expected, and a significantly higher number of observations just above zero. This pattern in the distributions suggests that managers manage reported earnings to ensure that earnings do not fall below a specific threshold, this being zero or the previous year’s performance. Interestingly, and in contrast with  the previous  literature, using the Burgstahler and Dichev (1997) research model of analysis, our results show no evidence in South Africa of managers managing earnings to avoid reporting small losses or small decreases in earnings. A possible reason for this could be the relatively smaller size of the JSE (compared with stock exchanges in the United States). In addition, and more important, is the possibility that investors and analysts in South Africa may be fixated on other performance indicators, such as revenue and headline earnings per share, rather than on earnings (profits).  This study adds to the limited research on earnings management in South Africa, which is a developing economy. Furthermore, previous research shows an inverse relationship between earnings management and earnings quality. The results of this study may therefore be useful to the users and the regulators of financial reports, both are concerned with earnings for the purposes of assessing the cost of capital and how companies utilise their resources.
Contract farming risks: A quantitative assessment
Authors: Kabungo Arkins M , Jenkins Glenn P
Published: April 2017

The objective of this study is to identify the key risks facing each of the stakeholders in the export-focused paprika value chain in Zambia. Although a deterministic cost-benefit analysis indicated that this outgrower scheme would have a very satisfactory net present value (NPV), a Monte Carlo analysis using an integrated financial–economic–stakeholder model identifies a number of risk variables that could make this system unsustainable. The major risks include the variability of the real exchange rate in Zambia; the international price of paprika; and the farm yield rates. This analysis points out that irrigation systems are very important for both stabilising and increasing yields. The analysis also shows the limitations of loan financing for such outgrower arrangements when at the sector level it is difficult or even impossible to mitigate the risks from real exchange rate movements and changes in international commodity prices. This micro-level analysis shows how critical real exchange rate management policies are in achieving sustainability of such export-oriented value chains.
Challenges with the financial reporting of biological assets by public entities in South Africa
Authors: Scott Deon , Wingard Christa , Van Biljon Marilene
Published: April 2017

Fair value accounting of biological assets in the public sector was introduced with the adoption of the public-sector-specific accounting standard: Generally Recognised Accounting Practice (GRAP) 101. The public sector currently reports on various bases of accounting. Public entities and municipalities report in terms of accrual accounting, and government departments report on the modified cash basis. The lack of a uniform basis of accounting impedes the comparability of financial information. The implementation of GRAP 101 in the public sector is important in facilitating comparability of financial information regarding biological assets. This paper is based on a content analysis of the annual reports of 10 relevant public entities in South Africa and specifically details the challenges that public entities encounter with the application of GRAP 101. These challenges, and how they were addressed by a public entity that adopted and applied GRAP 101, namely the Accelerated and Shared Growth Initiative South Africa – Eastern Cape (AsgiSA-EC), are documented in this research.
A proposed quantitative credit-rating methodology for South African provincial departments
Authors: Fourie Erika , Verster Tanja , Van Vuuren Gary Wayne
Published: April 2017

The development of subnational credit-rating methodologies affords benefits for subnationals, the sovereign and its citizens. Trusted credit ratings facilitate access to financial markets and above-average ratings allow for the negotiation of better collateral and guarantee agreements, as well as for funding of, for example, infrastructure projects at superior (lower) interest rates. This paper develops the quantitative section of a credit-rating methodology for South African subnationals. The unique characteristics of South African data, their assembly, and the selection of dependent and independent variables for the linear-regression model chosen, are discussed. The methodology is then applied to the provincial Department of Health using linear regression modelling.
An exploration of the online investor relations (IR) practices of companies listed on the Johannesburg Stock Exchange (JSE)
Authors: Esterhuyse Leana , Wingard Christa
Published: April 2017

Prior research has found that having better investor relations (IR) practices contributes towards improved share prices, liquidity of shares and analyst following. The main aim of this study was to determine the extent to which JSE-listed companies comply with international best practice guidelines for IR practices via the company’s website. A secondary objective was to arrive at an opinion regarding the stage of internet adoption for IR practices in which JSE-listed companies find themselves, based on Hedlin’s (1999) three-stage model. A checklist of 201 items was used to assess the websites of 205 JSE-listed companies from the beginning of July to mid-September 2012. The average online IR score for all 205 companies was found to be disappointing, although the top 100 companies in South Africa performed better than companies in other emerging and developing economies, but worse than companies in advanced economies, where size is probably the main differentiator. Bandwidth is also a constraining factor for online IR quality in South Africa. We conclude that instead of moving towards stage III (HTML, video and audio) of Hedlin’s model (1999), JSE listed companies still seem to find themselves in stage II (paper-equivalent PDF’s). This should concern Chief Financial Officers (CFOs), as effective and efficient communication with investors could contribute towards attaining optimal share prices and improved liquidity and analyst following.
The income and price elasticity of demand for housing in Ghana: Empirical evidence from household level data
Authors: Tandoh Francis , Tewari Devi Datt
Published: April 2017

Housing is a challenging issue in Ghana, due to the rising demand and sluggish supply which has led to a deficit of more than two million housing units. This study aimed to estimate and analyse the determinants of the demand for housing in Ghana. The estimated elasticities show that owner and rental demand for housing is price and income inelastic. Permanent income elasticities were greater in each case than current income elasticity. The quantile regression showed that permanent income, current income and price were significant for all quantiles of housing units consumed. It is recommended that all these factors be taken into account when addressing the housing supply challenges facing Ghana to help clear the existing deficit and to provide for the anticipated increase in demand due to increasing income, since demand for housing in the country is income inelastic.
Analysis of Nigerian insurers’ perceptions of climate change
Authors: Elum Zelda Anne , Simonyan Judith
Published: April 2017

In recent times, global agricultural productivity has been increasingly affected by climate change. It is believed that societal adoption of insurance as an adaptive response to climate change can have significant implications for insurers. The study investigates empirically insurers’ perceptions of climate change and the challenges they face in Nigeria. It examines the proposition that insurance firms in Nigeria are not mindful of the impact of climate change. The study applied the use of descriptive statistics, Kendall’s coefficient of concordance and principal component analysis on collected primary data. It was found that insurers in Nigeria were highly aware of climate change and its impact but did not believe it affects their operational costs and payments of claims. Although there is great scope for insurers to increase their client base in the Nigerian market, insurers face challenges of insurance rate-cutting, low patronage and environmental factors. The study concludes that there is a need for insurance regulators to enforce a level playing field for all firms. It also advocates for public support of private insurers to enhance insurance coverage for agriculture, the largest employer of labour in the country.
A nutritional goods and a complete consumer demand system estimation for South Africa using actual price data
Authors: Van Oordt Marius Louis
Published: April 2017

Empirical analysis of South African indirect tax policy reform and the welfare consequences of such reform has been limited by a lack of reliable consumer demand system estimations. One reason for potentially unreliable demand estimations is not using actual price data in estimation. In this paper, the results of a nutritional goods demand system estimation and a complete demand system estimation are reported. Both systems were estimated with the use of the quadratic almost ideal demand system (QUAIDS) model incorporating demographic variables and using actual price and expenditure data. Subsequent to estimations, expenditure, own and cross-price elasticities of demand were calculated for both demand systems. The coefficients estimated provided largely statistical significant results and all elasticities calculated seem plausible in sign and magnitude.
The co-operative model as a means of stakeholder management: An exploratory qualitative analysis
Authors: Hammond Darrell , Luiz John
Published: April 2017

The South African economy has for some time been characterised by high unemployment, income inequality and a skills mismatch, all of which have contributed to conflict between business, government and labour. The co-operative model of stakeholder management is examined as a possible mitigating organisational form in this high-conflict environment. International experience indicates some success with co-operative models but they are not easy to implement effectively and face severe obstacles. Trust and knowledge sharing are critical for enabling a co-operative model of stakeholder management, which requires strong governance and adherence to strict rules. The model must balance the tension between optimisation of governance structures and responsiveness to members' needs. Furthermore, support from social and political institutions is necessary. We find barriers to scalability which manifest in the lack of depth of business skills, negative perception of the co-operative model by external stakeholders, government ambivalence, and a lack of willingness on the part of workers to co-operate for mutual benefit.
The effect of institutional trust on internet banking acceptance: Perspectives of South African banking retail customers
Authors: Maduku Daniel
Published: April 2017

Transactions carried out in the uncertain and impersonal conditions of the Internet require substantial levels of trust. Obtaining customers’ trust is therefore imperative to cultivating and nurturing long-lasting and profitable customer-firm relationships in online environments. Surprisingly however, there is currently a dearth of research on the effects of trust on customers’ acceptance of e-commerce in Africa. This paper investigates the effects of the components of institutional trust on perceptions of ease of use and usefulness, as well as attitudes towards use on customers’ intentions to use Internet banking services. An integrated research model based on the Technology Acceptance Model (TAM) was built and empirically tested using data obtained from 390 retail banking customers in South Africa. The results show that the proposed model possesses high explanatory capabilities as it could explain 61 per cent of the variance in Internet banking use intentions. The study results further show that situational normality is neither a salient determinant of customers’ attitudes towards use of internet banking nor their use intention, whereas structural assurance is. By examining the effects of institutional trust on the TAM’s variables, especially in a developing African country, this study does not only provide insights for managers in their efforts to achieve rapid adoption of Internet banking, but also contributes to the literature on the topic.
The impact of monetary policy on the economic growth of a small and open economy: The case of South Africa
Authors: Khabo V , Harmse C
Published: April 2017

This study evaluates the impact of monetary policy on the economic growth of a small and open economy like that of South Africa. Structuralists contend that changes in money supply (M3) and inflation (CPI) are not significantly related to changes in economic growth (GDP), while orthodox economists argue that they are. Stucturalists also hold that monetary authorities cannot control M3, whereas orthodox economists believe they can. To structuralists, when monetary authorities pursue an expansionary policy, the opposite effect is achieved. Orthodox economists counter this argument. The ADT test statistic against the McKinnon critical values was used and it was found (i) that money supply changes and inflation are significantly related to changes in economic growth, and (ii) whereas monetary authorities can control M3 through the repo rate,  they cannot keep it within set targets.
The relative efficiency of bank branches in lending and borrowing: An application of data envelopment analysis
Authors: Van der Westhuizen G
Published: April 2017

The relative efficiency of fifty-two branches of a small South African bank was estimated using Data Envelopment Analysis (DEA).  A factor responsible for the difference in efficiency between branches might be the difference in managing the asset (loans) and the liability (deposit) side of the balance sheet.  For this reason, the relative efficiency of the lending and borrowing activities was also estimated and compared to the relative efficiency of the combined (lending and borrowing) activities.In the case of the efficiency estimates for loans and deposits, the indications are that the branches were more efficient in managing the liability side (deposits) than  in managing the asset side (loans).  This means that purchased funds were not utilised efficiently.
Investigating whether a lack of marketing and managerial skills is the main cause of business failure in South Africa
Authors: Radipere S , Van Scheers L
Published: April 2017

The literature reveals that 40 per cent of new business ventures fail in their first year, 60 per cent in their second year, and 90 per cent in their first 10 years of existence. The research problem of this study is suggested by this high rate of business failure. This study investigates whether lack of marketing and managerial skills in business owners contributes to the high rate of business failure in South Africa.It is evident from the results that small business owners lack certain managerial skills, including financial, marketing and human-resource management skills, needed to operate their businesses successfully. The findings confirm that small business owners are in need of support services such as training, counselling, and financial assistance.  They also show that small businesses are constrained not only by financial factors but also specifically by non-financial factors such as lack of education, inadequate managerial skills, poor access to markets, lack of information and unreliable infrastructure.  The analysis also indicates that the managerial skills possessed by the respondents do not correlate with those that they preferably should have to run a successful business.The study concludes that a lack of marketing and managerial skills has a negative impact on the success, viability and development of small businesses.  The challenge is to improve the managerial skills of small business owners, since the small business sector is widely considered to be the ideal site for the solving of South Africa’s unemployment problems and the rejuvenation of its stagnating economy.
The financing and capital structure of small and medium-scale enterprises: The importance of enterprise characteristics and gender financing constraints
Authors: Migiro SO
Published: April 2017

This paper investigates the determinants of the financing structure of SMEs. The evidence on SMEs’ financing structure is based on existing empirical surveys and literature review. The paper provides testable implications developed from economic finance theory. The presentations in the paper utilise data from a previously unexamined source, complementing existing evidence that has been dominated by studies from more developed countries.  The results from the empirical survey reveal that there are strong relationships between enterprise size and age, and SME financing structure.
Entrepreneurial orientation in a franchised home entertainment system
Authors: Maritz A , Nieman G
Published: April 2017

This paper fills the gap in the research undertaken into the entrepreneurial orientation of franchisees. The study identifies entrepreneurial orientation within a defined franchise system, using the entrepreneurial character theme matrix developed by Thompson (2002). Research methodology comprises the survey approach, using electronic media and Surveypro analysis (Dillman, 2000). Hypothesis tests highlight the absence of statistically significant entrepreneurial orientation in the franchise system, despite a significant orientation in a multiple-outlet proposition analysis. Conclusions and recommendations include mobilising and communicating the action factors associated with entrepreneurial orientation, involving all franchisees within the system. Managerial implications include the motivation of developing multiple-outlet franchise systems. Future research involves broadening the data set across industries and borders.
An analysis of strategic performance measures of companies listed on the JSE securities exchange South Africa
Authors: De Wet JHvH , Hall JH
Published: April 2017

This study highlights the importance of economic profits (EVA) and their long-term effects on shareholder value (MVA). South African companies listed on the JSE were analysed and it is evident that the relative measure of internal performance (spreads) can be used to rank companies in terms of value creation. Individual companies and sectors were also placed on a financial strategy matrix, which evaluated companies according to spreads and cash management. The sales growth less the SGR percentage, was used to indicate cash management. Statistical tests (regression analysis) were done on the data to test the validity of the financial strategy matrix model. The results showed that there is a positive relationship between spreads and shareholder value, but sales growth less the sustainable growth rate does not contribute significantly to shareholder value.
The South African long distance trucking industry’s response to the HIV/AIDS epidemic
Authors: Fourie DJ , Schoeman R
Published: April 2017

The aim of the paper is to provide substantiated information to the long distance trucking industry on the impact that HIV/AIDS has or may have on their businesses.   The current and future impact of the HIV/AIDS epidemic on the long distance trucking industry is unknown. The extent any action taken within the industry to mitigate and manage the effects of HIV/AIDS is also unknown, but thought to be minimal. Unless businesses and other entities in business (trade unions or associations) together with government become informed and proactive regarding the impact of HIV/AIDS on their businesses, the epidemic could run the worst course within the sector.
The relationship between employee and customer satisfaction in the balanced scorecard
Authors: Gouws DG , Habtezion A , Vermaak FNS , Wolmarans H P
Published: April 2017

This paper reports evidence of a direct relationship between employee satisfaction and customer satisfaction as they are linked in the balanced scorecard. The objective was to propose a framework that shows the linkage between employee satisfaction and customer satisfaction and to undertake some preliminary testing of this framework. An empirical study was undertaken in an airline business which investigated these relationships between employee and customer satisfaction and the correlations between these performance measures. The relationship between the key drivers of employee satisfaction and the key drivers of customer satisfaction was also investigated. The study provides empirical evidence supporting several linkages.