bluuebunny/crossref_metadata_2025 huggingface dataset:
The role of hunting in village livelihoods in the Ashanti region, Ghana
Authors: Crookes D , Humphreys D , Masroh F , Tarchie B , Milner-Gulland EJ
Published: April 2017

The article describes the results of two surveys conducted in six villages in the Ashanti region of Ghana.  The first was undertaken in August 2002 and the second during July 2004.  A total of 468 hunters and non-hunters were surveyed using targeted and systematic interviewing techniques.  The results indicate that hunting is an important contributor to total income in the villages, particularly for poorer households.  We find some evidence that hunting increases during lean periods, especially for hunters in the household survey.  Distance to Kumasi is a significant determinant of the number of animals sold on the market, and also influences the type of gear used for hunting.  Compliance with wildlife laws, notably species restrictions and the closed season is low, particularly amongst professional hunters.
Globalisation and global economic governance: Contextualising the interpretations and the debate. A review of literature
Authors: Van Niekerk AJ
Published: April 2017

As one of the most contentious and fascinating issues of modern times, globalisation is a notion in desperate need of conceptual clarification. By creating a theoretical framework and adding historical depth to the analysis of the globalisation thesis, this article attempts first to provide a contextual basis on which to weigh up the credence of globalisation as a process that is transforming the contemporary world economy. Secondly, it highlights the significance of global economic governance in performing both a somewhat regulatory function and a rather stimulating role in the advancement of globalisation. In essence, the article provides a survey of the literature concerned with theories and the historical context for globalisation and global economic governance. The third aim is to emphasise the importance of the debate surrounding globalisation and global economic governance. The evolution and outcome of this debate is seen to be a factor that will make a significant impact on the future direction of the world economy, mainly in terms of helping to shape leading economic thinking.
Evaluating the macroeconomic ımpacts of IMF programmes in Latin America, 1975-2004: a GEE analysis
Authors: Ozturk Ilhan
Published: April 2017

Using panel data for 21 Latin Americancountries over the period 1975–2004, this paper analyzes macroeconomic effects of IMF programmes by using GEE methodology. In line with the results of previous studies, it is shown that these programmes have positive effects on the balance of payments, current account and investment. However, they negatively affect budget deficit, per capita GDP, FDI, inflation and consumption.
The Sasol/Engen (Uhambo) merger-foreclosure and white fuel demand growth rates
Authors: Theron Nicola
Published: April 2017

During October 2005, the Competition Tribunal heard evidence on the proposed merger between two large oil companies, Sasol Oil (Pty) Ltd and Engen Ltd. During the hearing it emerged that major aspects that would determine the outcome of the matter were:Potential foreclosure;Demand growth rates of white fuel; andLogistics.The aim of this paper is to examine how the Tribunal dealt with the issue of potential foreclosure, by examining the expected growth rates of white fuels. The Tribunal had to consider the extent to which foreclosure in the oil industry would be profitable. This depended partly on expected growth rates in the demand for petrol and diesel. It will be argued that although there was conflicting evidence on this point, a proper analysis of economic variables such as expected economic growth rates, petrol demand elasticities and income elasticities, provided sound reasons for the Tribunal to prohibit the merger.
Small business owner-managers’ perceptions of entrepreneurship in the emfuleni district
Authors: Van der Merwe Stephan P , De Swardt G
Published: April 2017

The primary objective of this study was to analyse small business owner-managers’ perceptions of entrepreneurship and their motives to start their businesses in the Emfuleni district in South Africa. A total of 307 useable questionnaires were gathered and utilised for the statistical analysis. There were three statements that small business owner-managers perceived to be most applicable to them, i.e. entrepreneurs work longer hours and harder than managers in large companies; money is the most important start-up ingredient; and entrepreneurs experience a great deal of stress and as a consequence pay a high price of their health. With regard to the entrepreneurial motives, an Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. Two factors with eigenvalues greater than one were extracted describing the theoretical dimensions of the entrepreneurial motive and the non-entrepreneurial motive. The owner-managers indicated that the entrepreneurial motives, to have more satisfaction in work, to be independent, and to use own creative skills, were the most important motives for them venturing into entrepreneurship. No practically significant relationship could be found between the extracted factor, the entrepreneurial motive, and the demographical variables in this study. Practical recommendations are offered to entrepreneurs, the government and business educators.
An augmented gravity model of South Africa’s exports of motor vehicles, parts and accessories
Authors: Sichei Moses , Erero Jean-Luc , Gebreselasie Tewodros
Published: April 2017

The study applies an “augmented” gravity model to South Africa’s exports of motor vehicles, parts and accessories to 71 countries over the period 1994 to 2004.  A static panel data model is specified and estimated.  Several conclusions are drawn from the study.  First, a number of variables, namely, importer income, distance, level of import tariffs, government effectiveness, regulatory quality, use of right-hand drive vehicles are important determinants of bilateral trade flows for motor vehicles, parts and accessories.  Second, solving the gravity model deterministically, we show that export potential exists in a number of countries like Malawi, Zambia, Kenya and Malaysia.  A number of barriers hinder the members of the National Association of Automobile Manufacturers of South Africa (NAAMSA) from exploiting these export markets. These include very high import tariffs, lack of South Africa’s diplomatic mission in the trading partner and the uncertainty regarding what happens at the expiry of the Motor Industry Development Programme (MIDP) in 2012. Finally, the export potential identified by the gravity model should be regarded only as an indication since it is sensitive to the model specification and sample of countries.
Work-home interaction of employees in the mining industry
Authors: Mostert Karina , Oldfield GR
Published: April 2017

This study aimed to test the construct validity, factorial invariance and reliability of the Survey Work-Home Interaction-NijmeGen (SWING) and to explore whether and how the work-home interaction of various socio-demographic groups differ. Random samples (n = 320) were taken of employees in the mining industry. The confirmatory factor analysis results supported the proposed four-factor structure measuring negative/positive work-home interference and negative/positive home-work interference. The multi-group invariance analyses’ results for two language and ethnic groups also supported the factorial invariance of the SWING. All the scales were found to be reliable. Statistically significant differences in work-home interaction were found, based on age, ethnicity, gender, education, marital status, parental status, language, flexibility at work and individuals who had a partner with a paid job.
Celebrity endorsements versus created spokespersons in advertising: a survey among students
Authors: Van der Waldt Delarey , M van Loggerenberg M , Wehmeyer L
Published: April 2017

In this study the use of endorsements in advertising was investigated.  Endorsements can either be in the form of a celebrity acting as a spokesperson for an organisation or the organisation can create a spokesperson to act as an endorser.  The problem that faces marketers is that little scientific proof exists if students perceive celebrity endorsements and creative spokespersons differently with regard to their expertise and trustworthiness.  The aim of this study was to determine the attitudes of respondents with regard to expertise, trustworthiness and attractiveness of created spokesperson and celebrity endorsements in advertisements. This knowledge will provide marketing professionals with the strategic advantage of how and when to make use of an endorser.Ohanian’s (1990) measurement scale of perceived expertise, trustworthiness and attractiveness was adopted in a self-administrative questionnaire for this article.  Respondents (n=185) were exposed to six visual images of endorsers namely:  three celebrities and three created spokespersons.  It was found that attractiveness should not be used as a factor when comparing created endorsers with celebrity endorsers.  The respondents perceived both endorsement applications as highly credible and professionals need to consider each application’s advantages and disadvantages when deciding which application will be more effective for their advertising strategy.  In the long term the organisation might find it more cost effective to create its own spokesperson due to the risk of possible characteristics changes or negative associations of celebrity endorsers.  Revoking advertisements after celebrity endorsers have received negative publicity or changed character can lead to great financial losses.  Created endorsers, on the other hand, provide the organisation with greater control and the ability to change to adapt to the organisations market and advertising needs.
The term structure of interest rates and inflation forecast targeting
Authors: Schaling Eric , Verhagen Willem , Eiffinger Sylvester
Published: April 2017

This paper examines the implications of the expectations theory of the term structure of interest rates for the implementation of inflation targeting. We show that the responsiveness of the central bank’s instrument to the underlying state of the economy is increasing in the duration of the long-term bond.  On the other hand, an increase in duration will make long-term inflationary expectations - and therefore also the long-term nominal interest rate - less responsive to the state of the economy. The extent to which the central bank is concerned with output stabilisation will exert a moderating influence on the central bank’s response to leading indicators of future inflation. However, the effect of an increase in this parameter on the long-term nominal interest rate turns out to be ambiguous. Next, we show that both the sensitivity of the nominal term spread to economic fundamentals and the extent to which the spread predicts future output, are increasing in the duration of the long bond and the degree of structural output persistence. However, if the central bank becomes relatively less concerned about inflation stabilisation the term spread will be less successful in predicting real economic activity.
The economic consequences of a fuel levy reform in South Africa
Authors: Mabugu Ramos , Chitiga Margaret , Amusa Hammed
Published: April 2017

This paper assesses the economic effects of a hypothetical fuel levy imposed by South African provinces. The welfare effects of increasing the fuel levy by 10 per cent are negative but very small. Similarly, the marginal excess burdens for efficiency and equity (poverty) are quite low, suggesting much smaller impacts of the intervention on both economic activity and equity.  Furthermore, a fiscal policy reform that raises fuel levy by 10 per cent is progressive as it has stronger negative effects on higher income households than the lower income households. A potential source of instability for the macroeconomy and total government revenue is the negative effect on economic activity induced by the fuel levy increase. The remedies suggested are that policymakers should make tax room elsewhere in the intergovernmental fiscal system to accommodate the fuel levy increase.
Using the competing values framework (CVF) to investigate organisational culture in a major private security company
Authors: Kokt D , Van der Merwe C
Published: April 2017

The proliferation of crime, especially in the South African context, has placed considerable emphasis on the private security industry.  This has also increased fierce competition in the private security domain with both national and international private security companies infiltrating the South African market.  Like public policing private security has an important role to play in combating crime and other transgressions, with the exception that private security owes its existence to paying customers.  By using the Competing Values Framework (CVF) as conceptual guide, the researchers are able to provide the managers of the company under investigation with insight on how their cultural orientation affects their functioning and ultimately their competitive advantage.
The determinants of public expenditure and expenditure on education in particular in a selection of African countries
Authors: Akanbi Ayo , Schoeman Niek
Published: April 2017

This study reports on research aimed at measuring the drivers behind public expenditure with specific reference to education expenditure in Africa. The empirical estimations are carried out using a public choice model on a panel of 15 selected African countries over the period 1995-2004. The results show that government expenditure on education is resilient to shocks and the education sector is not seriously affected by allocative changes that favour corruption. Expenditure on education in the countries included in the study generally complies with the guidelines set by the IMF in terms of their fiscal adjustment programs.
Making sense of the disclosure of latent defects in financial statements and company acquisition contracts
Authors: Killian Cornelius
Published: April 2017

This paper analyses the statement made by the South African Appeal Court Judge Holmes in the Phame v Paizes (1973) case and, using economic and unique South African legal principles, it examines the true legal nature of a contract to regulate company acquisitions.1 Two solutions are offered for financial managers in South Africa: (1) the contract to regulate company acquisitions is a forward contract and (2) the difficulty in identifying latent defects should not be grounds for reducing the price paid for a company or enterprise in the South African legal system.
A more subtle set of information in corporate annual reports for disadvantaged stakeholders
Authors: Cronje Christo
Published: April 2017

The traditional corporate annual report consists of two types of disclosures, that is, mandatory and contextual disclosures. The research problem focuses on the issue whether full disclosure in corporate annual reports could entail mandatory and contextual disclosures as well as a more subtle set of information for disadvantaged stakeholders. To solve the research problem, use was mainly made of a literature review dealing with certain aspects of decision-useful financial reporting. The literature review was complemented by exploratory empirical research. It was found that full disclosure in corporate annual reports could consist of mandatory and contextual disclosures as well as a more subtle set of information for disadvantaged stakeholders.
The determinants of the readiness to let go among senior generation owner-managers of small and medium-sized family businesses
Authors: Van der Merwe Stephan P
Published: April 2017

The objective of this study was to assess the determinants of the readiness of the senior generation owner-managers to finally transfer the management and control of the family business to the younger generation. Data from 504 questionnaires linked to 81 family businesses were collected and analysed. An Oblimin oblique rotation was carried out on the principal components of the exploratory factor analysis. Five factors with eigen-values greater than one, explaining 62.64 per cent of the variance, were extracted. These five factors describing the theoretical dimensions of the dependent variable were: the senior generation owner-manager’s readiness to let go, and the independent variables of retirement planning, perceived suitability of the successor, estate planning, and the perceived liquidity of the business after the transfer. No significant practical differences relating to these five factors could be found between the perceptions of male and female respondents, the senior and younger generation family members or family members involved in medium-sized or small businesses. Practical recommendations are suggested to ensure a smooth final transfer of the management and control of the business to the younger generation family members.
Value at Risk in the South African equity market: a view from the tails
Authors: Milwidsky C , Mare Eben
Published: April 2017

Traditional parametric Value at Risk (VaR) estimates assume normality in financial returns data.  However, it is well known that this distribution, while convenient and simple to implement, underestimates the kurtosis demonstrated in most financial returns.  Huisman, Koedijk and Pownall (1998) replace the normal distribution with the Student’s t distribution in modelling financial returns for calculation of VaR.  In this paper we extend their approach to the Monte Carlo simulation of VaR on both linear and non-linear instruments with application to the South African equity market.  We show, via backtesting, that the t-distribution produces superior results to the normal one.
Entrepreneurship in an emerging and culturally diverse economy: a South African perspective
Authors: Luiz John , Mariotti Martine
Published: April 2017

Of all the developing countries that participated in the Global Entrepreneurship Monitor survey, South Africa was ranked the lowest, in terms of entrepreneurial activity. It is clear that South Africa is not producing a sufficiently entrepreneurial economy and this needs to be addressed so as to create employment, expand markets, increase production and revitalize communities. This paper examines the entrepreneurial traits of a diverse group of young adults in South Africa. It looks at their attitudes towards and perceptions of entrepreneurship, entrepreneurial opportunities and the broader environment in an attempt to clarify how South Africans view entrepreneurship.
Assessing entrepreneurship perceptions of high school learners in Pietermaritzburg, KwaZulu-Natal
Authors: Mahadea Darma , Ramroop Shaun , Zewotir Temesgen
Published: April 2017

Although South Africa achieved positive economic growth rates since the advent of democracy in 1994, the formal sector has not been able to absorb the annual increasing number of job-seekers on the market and solve the unemployment problem. The exercise of entrepreneurship, through business formations and expansions, is regarded as a vehicle for job creation and output expansion. According the Global Entrepreneurship Monitor (GEM) reports, South Africa’s level of early stage total entrepreneurial activity (TEA) is rather low relative to other countries at a similar level of development. This is partly owing to skills and resource limitations. If more individuals could realistically be exposed to practical entrepreneurship education at the secondary school level, South Africa’s base for entrepreneurial capacity can be enhanced. This study uses quasi logistic regression to examine the probability of secondary school learners, in Pietermaritzburg, the capital of Kwazulu-Natal province in South Africa, to start their own business in the future. It also probes the association between the socio-economic attributes of these learners and entrepreneurship. On the basis of a survey of 275 senior school learners from 5 schools, the regression results indicate that gender, ethnic background and having a role model as well as acquiring personal skills to run one’s own business are significant factors influencing an individual’s propensity to venture into small firm self-employment in the future. Black learners are perceived to have a significantly greater disposition to enter into business than other groups, and male scholars are found to have a greater probability of starting their own business than female. As potential entrepreneurs do not necessarily come exclusively from a business family background, the supply of effective entrepreneurship can be augmented, if more young individuals with the relevant skills endowment can start opportunity firms and necessity ventures.
A critical analysis of the contents of the IFRS for SMEs - a South African perspective
Authors: Schutte Daniel Petrus , Buys Pieter
Published: April 2017

The International Financial Reporting Standards (IFRS) for Small and Medium Enterprises (SMEs) was developed to address the reporting needs of SMEs worldwide. Furthermore, SMEs from different parts of the world are exposed to different conditions and environments. Although the IFRS for SMEs was not intended for a specific user group,the majority of the respondents to the Exposure Draft on IFRS for SMEs were from Europe and other developed countries while only limited respondents from Africa and developing countries were involved.  This study considered the relevance of the contents of the IFRS for SMEs in the South African environment based on user requirements. Since SMEs do not necessarily have functional accounting departments and because they rely on external accountants to compile financial statements, we included accounting practitioners and trainee accountants from the SME sector in our survey. As a result we classified the contents of the IFRS for SMEs, from a South African perspective, into different levels of importance or relevance.
Organisational commitment in the era of the new psychological contract
Authors: Theron Anthonie , Dodd Nicole Marguerite
Published: April 2017

The aim of this study was to investigate organisational commitment in an organisation that had recently experienced organisational restructuring (a merger). The psychological contract that exists between employees and organisations is brittle due to many organisational changes that stem from organisational restructuring.  When psychological contracts are breached, employees may experience reduced commitment to the organisation.  The target population for this study consisted of all employees working at three recently-merged higher education institutions in the Nelson Mandela Metropolis (n=100) and a self-administered questionnaire was distributed amongst staff.  The results indicated that an increase in the number of positive human resource management (HRM) practices reported by respondents correlated with a decrease in violation and breach of the psychological contract, despite organisational restructuring.  It was further revealed that effective management of the psychological contract is crucial during organisational restructuring, in order to maintain the commitment and loyalty of employees.
An analysis of specialist surgeons and their practices
Authors: Koch Steve , Slabbert Jean D
Published: April 2017

A purposive sample of South African specialist doctors provided data for an empirical analysis of revenues, costs and earnings associated with specialist surgical medicine. The empirical analysis includes both parametric and nonparametric regression. Parametric estimates of revenues per new patient range between R689 to R818, while cost per new patient estimates range between R694 and R749; average surgeon income per new patient falls within a similar range.  Furthermore, costs per surgery follow a cubic specification, implying increasing marginal costs at the practice level. Returns to experience are estimated to be quadratic, although imprecisely so, given limited observations. Due to the low response rate in the survey, there is a need to conduct further research into this topic, to provide better information to both specialists and the South African Department of Health, which sets pay packages for public sector health workers.
Nature of the relationship between strategic leadership, operational strategy and organisational performance
Authors: Serfontein Kobus , Hough Johan
Published: April 2017

Since the mid-1980s a growing body of leadership research has focused on strategic leadership, in contrast to managerial and visionary leadership. It focused on how top leadership makes decisions in the short term that guarantees the long-term viability of the organisation. The best performing organisations are consciously strategic in their leadership planning. These top leaders also have the ability to align human resources in an effective way directly to the business strategy. This article identifies some of the direct and indirect pathways in which strategic leadership influences the operational strategy and performance of business organisations in South Africa. This research pinpointed theoretical and substantively meaningful endogenous organisational capabilities that mediated this relationship and exogenous organisational factors that moderated this relationship.
Innovation outcomes of South African new technology-based firms: a contribution to the debate on the performance of science park firms
Authors: Chan Kai-Ying Alice , Oerlemans Leon , Pretorius Thinus
Published: April 2017

Science parks are often established to drive regional economic growth, especially in countries with emerging economies. However, mixed findings regarding the performances of science park firms are found in the literature. This study tries to explain these mixed findings by taking a relational approach and exploring (un)intended knowledge transfers between new technology-based firms (NTBFs) in the emerging South African economy. Moreover, the innovation outcomes of these NTBFs are examined by using a multi-dimensional construct. Results show that science park location plays a significant role in explaining innovative sales, but is insignificant when a different indicator of innovation outcomes is used. Furthermore, only for innovations that are new to the firms, both science park location and intended knowledge transfer via informal business relationships have a positive impact; whereas social relationships have a negative impact.
A comparison of ethical perceptions of earnings-management practices
Authors: Jooste Leonie
Published: April 2017

In 1990, Bruns and Merchant (1990) surveyed earnings-management practices and asked the readership of the Harvard Business Review to rate the acceptability of those practices. Prior to the Bruns and Merchant (1990) study, the morality of short-term earnings-management was of little concern to researchers and accounting practitioners. However, in the light of increased financial frauds and failures, new and increased emphasis has been placed on the importance of the concepts of earnings quality and earnings-management practices.Despite increased research focusing on business ethics since 1990, there is little evidence that the profession is educating accountants about earnings-management practices. This study compares the results of studies on earnings-management practices. Students and business managers were surveyed at the Nelson Mandela Metropolitan University (NMMU) and these results were compared to studies prior to the Sarbanes-Oxley Act 2002 in the USA. The aim of the study is to determine if there have been changes in attitudes towards earnings-management practices since the acceptance of the Sarbanes-Oxley Act.
The prevalence and magnitude of job insecurity
Authors: Paul Dachapalli Leigh-Anne , Parumasur Sanjana Brijball
Published: April 2017

This study investigates the prevalence and magnitude of job insecurity experienced by employees in an organisation undergoing major transformation, while taking cognisance of intercorrelations among its sub-dimensions. The research adopted a formal, hypothesis-testing approach whereby quantitative data was collected using a cross-sectional survey method from a sample of 1620 employees. The findings indicate that threats to salient job features/total job and feelings of powerlessness trigger the potential for job insecurity. This study identifies conditions that increase the potential for job insecurity. Recommendations are presented for reducing the prevalence and magnitude of job insecurity.
Towards inflation targeting in Egypt: the relationship between exchange rate and inflation
Authors: Khodeir Aliaa
Published: April 2017

Since the Egyptian economy has recently moved towards inflation targeting, it became very important to know whether exchange rate movements have serious inflationary implications or not. To investigate this subject, the study aims to analyse the relevance of inflation with the exchange rate by using the Granger-causality test. Two indicators of inflation will be used, the consumer price index (CPI) and wholesale price index (WPI). In general, the results show a strong relationship between the two variables in a way that may give support to the application of ‘flexible inflation targeting regime instead of strict inflation targeting regime’.
The scope for mobilising public opinion against corruption: The attitudes of KwaZulu-Natal university students
Authors: Harris Geoff , Van der Merwe Alexander Dawid
Published: April 2017

The aim of this study is to ascertain perceptions of public sector corruption that university students, as potentially influential members of society, hold. The study is based on a purposive sample of 509 first- and second-year university students. Descriptive and non-parametric bivariate analysis suggests that students overwhelmingly regard public sector corruption as an important issue. In addition, there appear to be remarkable degrees of consensus as to what actions are perceived as corrupt even if there is evidence of mismatches between students’ beliefs and likely actions. At least some of this dissonance may be explained by the finding that respondents' corruption perceptions are biased by gender and ethnicity. These are challenges that programmes aimed at inspiring mass public opinion to join the fight against corruption may have to address.
Tracking the venture creation phases in terms of entrepreneurial self-efficacy: links to competitiveness of South African ventures
Authors: Urban Boris
Published: April 2017

Examining entrepreneurial self-efficacy across venture creation phases is important as research indicates that behaviours to which self-efficacy corresponds are largely concerned with new-venture formation processes and as such are required of entrepreneurs well beyond the point of founding. Hypotheses are formulated, which take into account the sequential nature of entrepreneurial tasks in the venture process. A multidimensional instrument is used to collect data from medium businesses (n = 199). Correlational and regression analysis are performed where empirical evidence supports that entrepreneurial self-efficacy during searching, planning, marshalling resources and implementing people phases of venturing are significantly associated with the competitiveness of the venture. Implications of this study can be advanced to the policy domain where it needs to be stressed that government initiatives will affect venture sustainability only if these policies are conceived in a way that influences entrepreneurial self-efficacy.
Trade structure, trade mode and the urban-rural income gap in China
Authors: Wei Hao , Wang Xi
Published: April 2017

This paper analyses the effect of foreign trade in China on the urban-rural income gap from certain angles including trade scale, trade structure and trade mode at the national and provincial levels. The empirical results indicate that, from the perspective of trade scale, the export and import in the eastern and national regions have an expansion effect on the urban-rural income gap, and, in the central regions, they have a reduction effect. Furthermore, export in the western regions has a reduction effect while import in these regions did not have a significant effect. From the perspective of trade structure, the trade of high-tech products and labour-intensive products in the national and eastern regions has an expansion effect, and the trade of the above-mentioned products in the central regions has a reduction effect. The trade of labour-intensive products in the western regions has a reduction effect, and that of high-tech products an expansion effect. From the perspective of trade mode, processing trade and general trade in the national and eastern regions have an expansion effect, while in the central regions they have a reduction effect. General trade in the western regions would expand the urban-rural income gap, and processing trade does not have a significant effect. Consequently, when the South African Government is working out trade multiplicative and corresponding policy, they should consider the development of foreign trade and should pay attention to the labour market structure.
Ownership governance and performance in Spanish-Moroccan joint ventures
Authors: Lopez-Perez Maria Victoria , Perez-Lopez Maria Carmen , Rodriguez-Ariza Lazaro
Published: April 2017

This paper analyses the impact of ownership on performance by SMEs formed as Spanish-Moroccan international joint ventures (IJVs). In such SMEs, the functions and persons involved at different levels of governance – ownership, board and managers – often overlap. The results obtained from 210 SMEs suggest that owners often exert control by participating in the other mechanisms of governance. Their participation as members of the board has a positive influence on performance and thus the success of the IJV, but when owners form part of the management team (a less frequent situation), the influence on performance is negative and not significant. Participation by owners in the management team is not associated with the IJV’s performance.
Book review: Export promotion. A decision support model approach
Authors: De Pelsmacker Patrick
Published: April 2017

Editors: Ludo Cuyvers and Wilma Viviers. ISBN 978-0-9870096-3-0. Pages: 276. Format:Softcover. Sun Press: +27 (0)21 808 3942. To order: www.sun-e-shop.co.za. Price: R 180.00(online) and R 285.00 (hard copy)
A review of operational risk in banks and its role in the financial crisis
Authors: De Jongh Erika , De Jongh Riaan , De Jongh Dawie , Van Vuuren Gary
Published: April 2017

The role of operational risk in the 2007/2008 financial crisis is explored. The factors that gave rise to the crisis are examined and it is found that although the event is largely regarded as a credit crisis, operational risk factors played a significant role in fuelling its duration and severity. It is concluded that, from an operational risk perspective, 2008 was the worst on record. Considering the extensive role of operational risk in global financial calamities, suggestions are made to improve the management of this risk type.
Economic inequality as a source of interpersonal violence: Evidence from sub-Saharan Africa and South Africa
Authors: Harris Geoff , Vermaak Claire
Published: April 2017

This article examines whether the close association of income inequality and violence identified for high income countries applies also to sub-Saharan Africa and, in particular, to South Africa. Cross sectional analysis across sub-Saharan countries provided no evidence of such an association. However, using homicide rates and several measures of inequality across South Africa’s 52 districts does provide evidence of a significant positive relationship between homicide rates and expenditure inequality. A one per cent increase in inequality is associated with an increase in the homicide rate of 2.3 to 2.5 per cent. This relationship remains significant after controlling for other characteristics of the district.
The role of cost of capital in regulatory capital discrepancies among developing countries
Authors: Jacobs Johann , Van Vuuren Gary
Published: April 2017

Capital as a regulatory instrument has been shown to contribute to competitiveness distortions between developed and developing countries. There is a dearth of literature that analyses the possibility of further competitiveness discrepancies to which capital requirements may contribute among developing countries.This article explores whether regulatory capital requirements lead to unequal competitive conditions between developing countries based on their costs of capital. It also attempts to identify drivers of such discrepancies. Data of 52 financial institutions from 20 countries spread across 4 geographical regions are used for the analysis.
Revisiting the relationship between different financial risk measures and the market return on ordinary shares in South Africa
Authors: Du Toit Elda
Published: April 2017

The main aim of this study was to test whether there is a positive relationship between different financial risk measures and the expected return of a share. This study was performed in 1995 by Brümmer and Wolmarans, who obtained results contrary to those of a similar study in the United States of America in 1988. The reasons for the difference were not established. This study follows up the one by Brümmer and Wolmarans to determine whether the passing of 19 years could have brought about any difference in the results. This process was initiated by testing a set of variables from a sample size of 107 JSE-listed companies from 2002 to 2012 for linearity. As there was no such linear relationship between any of the variables, no assumptions can be made about any relationship between share return and the risk measures tested here. If investors were risk averse, one would expect a positive relationship between different financial risk measures and the expected return of a share. This is not the case in the South African market.
The influence of entrepreneurial intensity and capabilities on internationalisation and firm performance
Authors: Urban Boris , Sefalafala Mpho R
Published: April 2017

International entrepreneurship represents the process of discovering and creatively exploiting opportunities that exist outside a firm’s national borders in order to obtain a competitive advantage. Firms in emerging economies are increasingly looking towards internationalisation since they are faced with rising competition in their domestic markets and attracted to opportunities in foreign markets. This article investigates international entrepreneurship by examining how the influence of entrepreneurial intensity and capabilities at the firm level influence performance, while at the same time considering environmental influences on this relationship. Based on past theoretical and empirical findings, hypotheses are formulated and then tested using correlational and regression analysis. Generally, the results support the hypotheses where both entrepreneurial intensity and capabilities are positively related to internationalisation and firm performance, while weak evidence is found for environmental hostility as a moderating influence. Several recommendations are made in light of the findings, where it is suggested that firms foster higher levels of innovativeness, risk-taking and proactiveness while developing human, social and technology related capabilities in order to enhance their performance and increase their levels of internationalisation.
Influences on happiness and subjective well-being of entrepreneurs and labour: Kwazulu-Natal case study
Authors: Mahadea Darma , Ramroop Shaun
Published: April 2017

Globally, individuals seek happiness, but not everybody is happy.  Economic reasoning suggests that rising incomes with expansions in GDP enhance the quality of life and subjective well-being.  This paper examines the influences on individual happiness, using ordinal logistic regression and chi-square analyses.  Based on the findings of a small case study, the chi-square test indicated that a significant relationship exists between gender, education, ethnicity, children, marital status, employment relations, income and self-reported happiness. The study also found that, on average, happier people tended to be educated, married with children, and treated fairly at work.  But having too many children produced a decrement in individual happiness.   The ordinal regression results indicate that an individual’s education, gender, age distribution and work environment are influential in producing higher levels of happiness.  Entrepreneurs were found to have a significantly higher mean level of happiness than employees.  In the workplace, individuals who experienced personal growth and were able to contribute their ideas tended to be happier, relative to others who perceived themselves to be ‘restricted’.
Measuring the impact of marginal tax rate reform on the revenue base of South Africa using a microsimulation tax model
Authors: Jordaan Yolande , Schoeman Nicholaas J
Published: April 2017

This paper is primarily concerned with the revenue and tax efficiency effects of adjustments to marginal tax rates on individual income as an instrument of possible tax reform. The hypothesis is that changes to marginal rates affect not only the revenue base, but also tax efficiency and the optimum level of taxes that supports economic growth. Using an optimal revenue-maximising rate (based on Laffer analysis), the elasticity of taxable income is derived with respect to marginal tax rates for each taxable-income category. These elasticities are then used to quantify the impact of changes in marginal rates on the revenue base and tax efficiency using a microsimulation (MS) tax model. In this first paper on the research results, much attention is paid to the structure of the model and the way in which the database has been compiled. The model allows for the dissemination of individual taxpayers by income groups, gender, educational level, age group, etc. Simulations include a scenario with higher marginal rates which is also more progressive (as in the 1998/1999 fiscal year), in which case tax revenue increases but the increase is overshadowed by a more than proportional decrease in tax efficiency as measured by its deadweight loss. On the other hand, a lowering of marginal rates (to bring South Africa’s marginal rates more in line with those of its peers) improves tax efficiency but also results in a substantial revenue loss. The estimated optimal individual tax to gross domestic product (GDP) ratio in order to maximise economic growth (6.7 per cent) shows a strong response to changes in marginal rates, and the results from this research indicate that a lowering of marginal rates would also move the actual ratio closer to its optimum level. Thus, the trade-off between revenue collected and tax efficiency should be carefully monitored when personal income tax reform is being considered.
An industry analysis of the power of human capital for corporate performance: Evidence from South Africa
Authors: Morris Carla
Published: April 2017

Even in industrialised emerging economies, the value-generating competencies of a workforce, known as its human capital efficiency, are a key resource for commercial success. The objective of this research is to empirically investigate the relationship between human capital efficiency (as measured by value-added human capital) and the financial and market performance of companies listed on the Main Board and Alternative Exchange (ALT-X) of the Johannesburg Stock Exchange. Return on assets, revenue growth and headline earnings per share were used as financial performance indicators; while market-to-book ratio and total share return were used to measure market performance. Multivariate regressions were performed, with panel data covering 390 companies in the financial, basic materials, consumer services, consumer goods, industrial and technology industries from 2001 to 2011. First, human capital efficiency was found to have no effect on the market performance of listed companies in South Africa. Secondly, higher human capital efficiency was found to result in the extraction of greater returns from both tangible and intangible assets in all industries. Thirdly, higher profitability was found to be associated with higher human capital efficiency in almost every industry in South Africa, with the exception of the technology industry, where human capital efficiency was found to be independent of headline earnings per share. Finally, higher revenue growth was found to be positively associated with human capital efficiency in those industries which are not consumer-driven. In the consumer-driven industries, human capital efficiency contributes to bottom line profitability even though it is not a driver for revenue growth. Overall, the results of this study confirm that human capital efficiency enhances a company’s financial performance, whether it be through a greater capacity for production and service delivery, tighter cost controls or better use of company resources. Management in all South African industries are encouraged to develop the value-creating abilities of their employees through employer-driven personnel enrichment and training programs and by incentivising workers to pursue further education.
The effects of hybrid pay incentives on work-team performance: A longitudinal study
Authors: Dlamini Mbusi , Sutherland Margie , Werbeloff Merle
Published: April 2017

Despite the widespread use of pay incentives to drive performance, few studies empirically demonstrate their long-term benefits within work-team settings in field studies; even fewer studies incorporate hybrid pay incentives in their design. This longitudinal field study explored the effects on individual work performance of allocating tellers to teams with supervisors who received hybrid pay incentives, where 60 per cent of their incentive was based on the individual performance of each of their team members and 40 per cent on their own performance. It was conducted on bulk-cash tellers working in 19 centres, using a time-series design. The results, derived from quantitative data collected from 82 individual tellers over 24 months, showed that hybrid pay incentives for supervisors of teams of tellers, some of whom were individually incentivised, were associated with significant increases in the volume, speed and accuracy of deposit processing by all the tellers. The findings empirically demonstrate the long term sustainability of improved performance associated with the introduction of hybrid pay incentive structures within work teams.
Can South Africa sustain and diversify its exports?
Authors: Matthee Marianne , Idsardi Ernst , Krugell Waldo
Published: April 2017

The aim of this paper is to examine the diversification of South Africa’s exports over the period 1994 to 2012. A decomposition of export growth shows that exports of non-fuel primary commodities as well as medium-skill and technology-intensive manufactured products increased. The largest decrease was in the export of resource-intensive manufactures. These changes reflect South Africa’s endowment of relatively low levels of physical and human capital. The analysis shows that export products that are further from the country’s comparative advantage, make smaller contributions to growth in the intensive margin. It clearly shows the challenge of sustainably diversifying the export basket.