bluuebunny/crossref_metadata_2025 huggingface dataset:
Non-tariff barriers faced by South African firms: Are there any lessons?
Authors: Koch SF , Peet MA
Published: April 2017

Exports and export growth are cornerstones of South African economic development policy, although they are not explicitly mentioned in ASGISA. One implication of an export-orientated economy is that many of its exporters must, of necessity, conform to the technical requirements in export markets.  Here, it is shown that local exporters, particularly smaller firms, often incur export delays associated with meeting foreign technical requirements. The research, therefore, supports policies aimed at increasing the use of local conformity- assessment activities and improving information availability for local firms looking to meet foreign technical requirements.
Calculating operational value-at-risk (OpVaR) in a retail bank
Authors: Esterhuysen Ja'nel , Styger Paul , Van Vuuren Gary Wayne
Published: April 2017

The management of operational value-at-risk (OpVaR) in financial institutions is presented by means of a novel, robust calculation technique and the influence of this value on the capital held by a bank for operational risk. A clear distinction between economic and regulatory capital is made, as well as the way OpVaR models may be used to calculate both types of capital. Under the Advanced Measurement Approach (AMA), banks may employ OpVaR models to calculate regulatory capital; this article therefore illustrates the differences in regulatory capital when using the AMA and the Standardised Approach (SA), by means of an example. Economic capital is found to converge with regulatory capital using the AMA, but not if the SA is used.
The experience of work-life interaction in the Northern Cape mining industry: an exploratory study
Authors: Jacobs Dezré , Mostert Karina , Pienaar Jaco
Published: April 2017

The objective of this research was to investigate how Afrikaans and Setswana employees in the Northern Cape mining environment experience the interaction between their work and personal lives and to determine which major strategies employees use to deal with work-life interaction (WLI). A non-probability purposive voluntary sample of 25 mineworkers was taken in the Northern Cape Province. Male and female participants were stratified in terms of language (Afrikaans and Setswana) and interviews were conducted with them. Interview questions focused on the main interacting dimensions in the lives of mineworkers and major strategies that employees use to deal with WLI. Content analyses were used to analyse the data. Several preceding factors  (like work pressure, heavy workload, stress, and family obligations) that led to definite consequences (e.g. lack of quality time for self and family, physical and emotional strains, and low levels of productivity), as well as coping strategies (e.g. prioritising, time management, communication, and planning) were explored during the interviews. Although there were similarities, it seemed that there were definite differences between gender and language groups regarding their experiences of WLI.
South African exporter performance: new research into firm-specific and market characteristics
Authors: May Christopher , O'Neill Charles
Published: April 2017

The export marketing performance of any firm is influenced by a multitude of different factors. Given the multi-faceted nature of the export market, this research study investigated specific factors such as how firm-specific characteristics, product characteristics, market characteristics and export marketing strategies impact on the export marketing performance of South African manufacturing firms. Some of the findings of this research study indicated that firm size, investment commitment and careful planning, as firm-specific characteristics, had a significant influence on export marketing performance. The relationship between export experience and export marketing performance was insignificant. The degree of pricing adaptation and product adaptation had a significant effect on export marketing performance, while this was not the case with respect to the degree of promotion adaptation and distributor support.
Annual tax compliance costs for small businesses: a survey of tax practitioners in South Africa
Authors: Smulders Sharon , Stiglingh Madeleine
Published: April 2017

This study provides a baseline measurement for annual tax compliance costs for small businesses. An empirical study performed amongst tax practitioners to identify and measure the annual tax compliance costs for small businesses throughout South Africa revealed that R7 030 per annum is the average fee that tax practitioners charge their small business clients to ensure that their tax returns (for four key taxes – income tax, provisional tax, value added tax and employees’ tax) are prepared, completed and submitted as SARS requires. From the perspective of time and cost, preparing, completing and submitting VAT returns takes the longest and costs the most. It is evident that, overall, the compliance costs are regressive: the smaller the business, the heavier the burden.
Companies’ investment determinants: comparison of different panel data estimators
Authors: Serrasqueiro Zelia , Mendes Silvia , Nunes Paulo Maçãs
Published: April 2017

In this study, Aivazian, Ge and Qiu’s (2005) analysis using static panel models is extended to using dynamic panel estimators, considering data for listed Portuguese companies. The results confirm Aivazian et al.’s (2005) conclusion that an ordinary Least Squares (OLS) regression is not the best way to estimate the investment/determinant relationship. Investment decisions are probably dynamic, so the most suitable way to estimate the investment/determinant(s) relationship is using dynamic panel estimators. Alternatively a fixed effect panel model can be used, consistent with a first order autocorrelation. In this way, firstly, it is possible to determine more accurately the positive impact of sales (Neo-classic theory) and cash flow (Free Cash Flow theory) on the investments of listed Portuguese companies. Secondly, the positive effect of growth opportunities (Agency theory) is not overestimated when it seems to be the consequence of a first order autocorrelation. Using dynamic panel estimators permits correct measurement of dynamism in company investment decisions by examining the relationship between investment in the previous and the current periods.
Risk and FDI flows to developing countries
Authors: Van Wyk Jay , Lal Anil
Published: April 2017

The explanatory power of institutional and macroeconomic variables for FDI stock accumulation in developing countries is investigated. Hypotheses are tested by means of pooled least squares regressions. The impact of institutional variables on FDI flows produced mixed results: levels of economic freedom facilitate inward FDI; political risk dampens investment. Some macroeconomic variables displayed significant explanatory power: market size (as measured by per capita income in the base year) and absolute growth of GDP positively impacts FDI inflows.  Other key macroeconomic variables, such as lower current account balance, appreciation of host country’s currency, and lower inflation rate stimulate FDI inflows.
Financial development and economic growth: literature survey and empirical evidence from sub-Saharan African countries
Authors: Acaravci Songul Kakilli , Ozturk Ilhan , Acaravci Ali
Published: April 2017

In this paper we review the literature on the finance-growth nexus and investigate the causality between financial development and economic growth in Sub-Saharan Africa for the period 1975-2005. Using panel co-integration and panel GMM estimation for causality, the results of the panel co-integration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a bi-directional causal relationship between the growth of real GDP per capita and the domestic credit provided by the banking sector for the panels of 24 Sub-Saharan African countries. The findings imply that African countries can accelerate their economic growth by improving their financial systems and vice versa.
Real exchange rate behaviour and economic growth: evidence from Sierra Leone
Authors: Tarawalie Abu
Published: April 2017

The main focus of this paper is to examine the impact of the real effective exchange rate on economic growth in Sierra Leone. First an analytical framework is developed to identify the determinants of the real effective exchange rate. Using quarterly data and employing recent econometric techniques, the relationship between the real effective exchange rate and economic growth is then investigated. A bivariate Granger causality test was also employed as part of the methodology to examine the causal relationship between the real exchange rate and economic growth. The empirical results suggest that the real effective exchange rate correlates positively with economic growth, with a statistically significant coefficient. The results also indicate that monetary policy is relatively more effective than fiscal policy in the long run, and evidence of the real effective exchange rate causing economic growth was profound. In addition, the results showed that terms of trade, exchange rate devaluation, investment to GDP ratio and an excessive supply of domestic credit were the main determinants of the real exchange rate in Sierra Leone.
Factors affecting forward pricing behaviour: implications of alternative regression model specifications
Authors: Jordaan Henry , Grové Bennie
Published: April 2017

Price risk associated with maize production became a reason for concern in South Africa only after the deregulation of the agricultural commodities markets in the mid-1990s, when farmers became responsible for marketing their own crops. Although farmers can use, inter alia, the cash forward contracting and/or the derivatives market to manage price risk, few farmers actually participate in forward pricing. A similar reluctance to use forward pricing methods is also found internationally. A number of different model specifications have been used in previous research to model forward pricing behaviour which is based on the assumption that the same variables influence both the adoption and the quantity decision. This study compares the results from a model specification which models forward pricing behaviour in a single-decision framework with the results from modelling the quantity decision conditional to the adoption decision in a two-step approach. The results suggest that substantially more information is obtained by modelling forward pricing behaviour as two separate decisions rather than a single decision. Such information may be valuable in educational material compiled to educate farmers in the effective use of forward pricing methods in price risk management. Modelling forward pricing behaviour as two separate decisions  is thus a more effective means of modelling forward pricing behaviour than modelling it as a single decision.
Estimating the value of a positive change in trout fly-fishing quality in the Rhodes trout fishery, Eastern Cape, South Africa
Authors: Du Preez Mario , Lee DE
Published: April 2017

The Rhodes trout fishery, located in the North Eastern Cape, is one of South Africa’s premier fly-fishing destinations. The integrity of the fishery is, however, under threat due to various land-use practices, which could weaken its appeal as a tourist attraction. The aim of this study is to estimate the amount recreational users are willing to pay for a project to improve the trout habitat of waters managed by the Wild Trout Association (WTA) in this fishery in order to improve its fish population density by 100 per cent. Data were collected from a biased sample of 96 respondents via a questionnaire during September 2006 to September 2007. The median estimated willingness-to-pay (WTP) for the project was R245 per annum per person, and the total WTP was estimated at R171 500 per annum. A valuation function to predict WTP responses was also estimated, and showed that gross annual pre-tax income and the number of visits per annum were positive determinants of WTP. The results of this study show that policy-makers should take heed of the importance trout fly fishers attach to this fishery when declaring trout zones in the upper catchments of South Africa. The aggregate WTP estimation, however, constitutes only a partial analysis of value. A number of other factors and environmental value streams need to be analysed and compared with the value estimates generated by this study if adequate holistic decision-making is to take place with regard to trout stream improvement. More specifically, the aggregate WTP estimated in this study must be viewed as only one input into a comprehensive social cost-benefit analysis to determine the desirability of trout stream improvement for wider society.
The impact of female business leaders on the performance of listed companies in South Africa
Authors: Mkhethwa Mkhize , Msweli Pumela
Published: April 2017

The purpose of this study is to determine the impact of female business leaders in JSE-listed companies on the financial performance of those companies. This is as result of the proposition that women, over and above men, bring unique skills to the workplace. However, it is hypothesized in this study that JSE-listed companies led by a high percentage of women do not outperform similar companies led by a low percentage of women. The Lean Modigliani and France Modigliani measure (M2) was used to test this hypothesis. Results of this study indicate that companies led by women do not outperform similar companies led by men. As a result, the null hypothesis is not rejected. Implications of these results are discussed.
Application of the Attitude Toward Enterprise (ATE) test on scondary school learners in South Africa
Authors: Van der Merwe Stephan P , Steenekamp Andre G , Athayde Rosemary
Published: April 2017

The main aim of this research paper was to discuss the application of the Attitude Toward Enterprise (ATE) Test1 developed by Kingston University, London on secondary school learners in South Africa. A total of 1 748 usable questionnaires were gathered from grade 10 learners in the Sedibeng District and utilised for statistical analysis. Five factors with eigen-values greater than one describing the entrepreneurial attitudes of young learners were extracted during exploratory factor analysis. Tests for reliability and construct correlation produced satisfactory results to recommend the Enterprise Attitude Questionnaire for further use on young learners in South Africa. A comparison of the mean differences between the constructs for demographic variables produced statistically significant differences in a number of instances, but no visible effects or practical significance to suggest that these differences have any effect in practice. Practical recommendations are offered for further employment of the Enterprise Attitude Questionnaire in entrepreneurship research on young learners.
Measuring the impact of trade finance on country trade flows: a South African perspective
Authors: Kohler Marcel , Saville Adrian
Published: April 2017

Trade finance (or short-term credit) plays a crucial role in facilitating international trade yet is particularly vulnerable to financial crises as banks increase the pricing on all trade finance transactions to cover increased funding costs and higher credit risks. Whereas South Africa’s financial institutions largely managed to strengthen their capital positions during the global financial crisis, the country’s trade flows and access to capital (in particular trade finance & its costs) were hard hit by the crisis. Little is known about the extent of shortages or ‘gaps’ in trade finance and the impact of this on South Africa’s recent trade performance. Whilst our research recognises that access to trade finance is not the main cause of South Africa’s trade contraction, our research suggests that a one percentage point increase in the interbank lending rate of our trade partner could reduce exports by approximately ten percent, all else equal.
Psychological capital, a requisite for organisational performance in South Africa
Authors: Du Plessis Yvonne , Barkhuizen Nicolene
Published: April 2017

Scholars argue that to address the social, economic and political challenges facing South Africa since 1994, organisational managers/leaders should adopt a positive approach, based on sound organisational behaviour. This study administered the Psychological Capital Questionnaire (PCQ) to determine whether human resources practitioners (N=131) as custodians of change and positive behaviour in organisations in South Africa embrace core elements of Positive Organisational Behaviour (POB). Exploratory factor analysis resulted in a three-factor model for the PCQ, renamed the Potential South African PsyCap (PSA-PsyCap) instrument. All dimensions displayed acceptable reliabilities. Statistically significant differences exist in the POB of demographic groups, relating to age, marital status, home language, seniority and qualifications. This research reveals that South African HR practitioners and managers should fully embrace psychological capital to effectively create caring workplaces taking cognizance of the broader economic and social issues affecting employees and their performance.
The strategic implications of black empowerment policy in South Africa: a case study of boundary choice and client preferences in a small services firm
Authors: Boshoff Willem H
Published: April 2017

This paper studies the relationship between a firm’s boundary choices within its value chain and the BEE pressures it faces from its clients. The paper shows that BEE policy alters the value chain preferences of a firm’s clients. These changes in client preferences motivate the firm to altering its boundaries. More important, boundary changes due to BEE are implemented in a way that ensures that the firm retains crucial architectural knowledge, which preserves its competitive advantage. Firms therefore do not respond passively to BEE-induced changes in client preferences, but aim to meet BEE aims within their broader strategic environment.
On the psychological consequences of unemployment in South-Africa
Authors: De Witte Hans , Rothmann Sebastiaan , Jackson Leone TB
Published: April 2017

The objective of this study was to investigate the affective experiences, attitudes to work, and job application behaviour of unemployed people. A survey design was used and samples (N = 381) were drawn from unemployed people in the North West Province. The Experiences of Unemployment Questionnaire was administered. Regarding affective experiences, being unemployed was described as very unpleasant and it was associated with boredom, loneliness, uncertainty about the future, concerns about financial matters, emptiness and conflict. When it came to the participants’ attitudes to work, the results showed that almost 96 per cent of them regarded work as important, particularly because it provides meaning. Regarding job application behaviour, the results showed that most of the participants would like to find a job within the month, and they expected to do so. Almost 78 per cent of the participants were asking people for a job at least once a week or more often. Most of them asked friends and acquaintances for employment information, but unemployed people also reported that they looked out for advertisements. People with poor education had the most negative experiences of unemployment and saw work as more important than did those with better education.
Corruption and multinational companies’ entry modes. Do linguistic and historical ties matter?
Authors: Grande Marlene , Teixeira Aurora AC
Published: April 2017

The literature on FDI entry modes and corruption tends to convey the idea that corruption leads to a choice between low equity modes, i.e. joint ventures with local partners, and non-equity modes, namely exports and contracting, in order to avoid contact with corrupt state officials. Recently, some studies have argued that despite corruption, linguistic and historical ties between home and host countries lead MNCs to prefer high-equity modes. Focusing on a rather unexplored setting, the African countries, most specifically the Portuguese-speaking ones (PALOP – Países Africanos de Língua Oficial Portuguesa), which include countries where levels of corruption are very high (e.g., Guinea-Bissau and Angola), high (e.g., Mozambique, Sao Tome and Principe), and intermediate (e.g., Cape Verde), maintaining also close linguistic and historical ties with Portugal, we found that the FDI entry mode is associated with the less corrupt markets. Thus, our results do not support the recent contention that cultural and historical links are likely to perform a mediating role, by fostering foreign direct investment, in supporting African countries to overcome the dismal growth some have been facing in the last few decades. On the contrary, our findings highlight the pressing need for these countries to combat corruption if higher economic growth via FDI attraction is envisioned.
The impact of socially responsible investment index constituent announcements on firm price: evidence from the JSE
Authors: Chipeta Chimwemwe , Gladysek Olga
Published: April 2017

This paper examines whether Socially Responsible Investment (SRI) Index constituent announcements have any impact on the returns of firms listing on the JSE SRI Index. The event study methodology is utilised to estimate abnormal returns for the firms included in the Index. The results indicate insignificant average abnormal returns (AARs) for the years 2004, 2006, 2007, 2008 and 2009, suggesting no significant shareholder gains over the entire event window. However, the year 2005 is associated with positive and significant abnormal returns. Post announcement cumulative average abnormal returns (CAARs) are positive for the years 2005 and 2007. However, the year 2008 exhibited extreme swings in CAARs with a general declining trend in the latter part of the event window. These swings are attributed to the global financial crisis of 2008. Furthermore, the cumulative returns for the total sample show no clear outperformance of the SRI over the JSE All Share Index.
A return to the traveling salesman model: a network branch and bound approach
Authors: Munapo Elias
Published: April 2017

This paper presents a network branch and bound approach for solving the traveling salesman problem. The problem is broken into sub-problems, each of which is solved as a minimum spanning tree model. This is easier to solve than either the linear programming-based or assignment models.
Market driving behaviour in organisations: Antecedents and outcomes
Authors: Van Vuuren Jurie , Wörgötter Nadin
Published: April 2017

Previous research suggests that the market driving behaviour of firms is linked to exceptional performance. However, the elements of market driving, its antecedents and outcomes, have so far not been empirically measured. The primary objectives of this study are to identify factors that describe market driving, develop a conceptual model, and then consider influencing factors and performance indicators drawn from the entrepreneurship and marketing literature. The model has been empirically tested using a sample of managers in the South African healthcare industry. A fully structured questionnaire was used to address the objective of this study. The realised sample of n=328 was used to analyse the conceptual model applying a partial least squares path modelling approach (PLS-PM). The results revealed that market driving is a firm behaviour and is distinguished by three distinct concepts: market sensing, influencing customer preferences and alliance formation. Three out of four antecedents: strategic orientation, entrepreneurial capital and entrepreneurial behaviour, influenced market driving ability positively. The study also demonstrated that market driving behaviour positively influences firm performance and relative competitive strength
The cost-effectiveness of intervening in low and high HIV prevalence areas in South Africa
Authors: Mbonigaba Josue
Published: April 2017

This research compared the cost-effectiveness of a set of HIV/AIDS interventions in a low HIV prevalence area (LPA) and in a high HIV prevalence area (HPA) in South Africa. The rationale for this analysis was to assess the interaction dynamics between a specific HIV/AIDS intervention and an area of implementation and the effects of these dynamics on the cost-effectiveness of such an HIV/AIDS intervention. A pair of Markov models was evaluated for each intervention; one model for a HPA and another for an LPA and the cost-effectiveness of that intervention was compared across an LPA and a HPA. The baseline costs and health outcomes in each area were collected from the literature. To depict interaction dynamics between an HIV/AIDS intervention and an area of implementation, baseline health outcomes collected in each area, were adjusted over time based on the patterns of the projections observed in the AIDS model of the Actuarial Society of South Africa (ASSA2008). The study found that the VCT and treatment of STDs were equally cost-effective in an LPA and in a HPA while PMTCT and HAART were more cost-effective in an LPA than in a HPA. As a policy proposal, resources earmarked to non-ARV based interventions (VCT and treatment of STDs) should  be equally shared across an LPA and a HPA while  more of the resources reserved for ARV-based interventions (PMTCT and HAART) should go in an LPA in order to increase efficiency.
Private equity and venture capital in South Africa: A comparison of project financing decisions
Authors: Portmann David , Mlambo Chipo
Published: April 2017

This paper investigates the manner in which private equity and venture capital firms in South Africa assess investment opportunities. The analysis was facilitated using a survey containing both Likert-scale and open-ended questions. The key findings show that both private equity and venture capital firms rate the entrepreneur or management team higher than any other criterion or consideration. Private equity firms, however, emphasise financial criteria more than venture capitalists do. There is also an observable shift in the investment activities away from start-up funding, towards later-stage deals. Risk appetite has also declined post the financial crisis.
Towards a listed real estate investment valuation model
Authors: Boshoff Douw Gert Brand
Published: April 2017

This paper presents a Listed Real Estate Investment Valuation Model that was developed to investigate the movement in indirect real estate investment through the consideration of the underlying assets of property loan stock companies. Specific reference is given to information that is made available to shareholders by way of annual financial statements in order to determine the extent to which shareholders can make investment decisions based on this information. The study enhances the knowledge of direct vs. indirect real estate investment behaviour and provides more insight into price discovery in the property sector.
Where the two logics of institutional theory and entrepreneurship merge: are family businesses caught in the past or stuck in the future?
Authors: Brundin Ethel , Vigren-Kristoferson Caroline
Published: April 2017

The aim of this article is to investigate how owners of family businesses combine their traditional heritage with changes in a new competitive arena. This is done by allowing the owners and managers of six vineyards to give voice to their concerns about the past, present, and future. The findings suggest that family businesses in the South African wine industry are subject to a process of institutionalisation in which entrepreneurial activities, which are part of this process, may not be as entrepreneurial as they appear at first. It is found that the two forms of logic behind the institutionalisation of the family firm and entrepreneurial activities in the context of the post-apartheid era can be successfully merged. Theoretical and practical implications bring the article to a close.
The influence of volatility spill-overs and market beta on portfolio construction
Authors: Heymans André , Brewer Wayne Peter
Published: April 2017

This study adds to Modern Portfolio Theory (MPT) by providing an additional measure to market beta in constructing a more efficient investment portfolio. The additional measure analyses the volatility spill-over effects among stocks within the same portfolio. Using intraday stock returns from five top-40 listed stocks on the JSE between July 2008 and April 2010, volatility spill-over effects were estimated with a residual- based test (aggregate shock [AS] model) framework. It is shown that when a particular stock attracted fewer volatility spill-over effects from the other stocks in the portfolio, the overall portfolio volatility decreased as well. In most cases market beta showcased similar results. Therefore, in order to construct a more efficient risk- adjusted portfolio, one requires both a portfolio that has a unit correlation with the market (beta-based), and stocks that showcase the least amount of volatility spill-over effects amongst one another. These results might assist portfolio managers to construct lower mean variance portfolios.
Effects of intellectual capital on qualitative and quantitative performance: Evidence from Turkey
Authors: Özer Gökan , Ergun Ercan , Yılmaz Osman
Published: April 2017

Intellectual capital is among the new, advanced management notions developed to overcome the inadequacy of previous administrations, to adapt to new situations and forge ahead of the competition. Intellectual capital means the information, experience and skills that offer advantage in competition and reveal the values existing within the structure of an enterprise. These values also exist in the relationship between  the enterprise and the environment  and  with the employees. Although some research studies on intellectual capital (IC) have been conducted, to date no research has been carried out on the effects of IC on qualitative and quantitative organizational performance. For this reason, IC and its effects on firm performance (both qualitative and quantitative) were evaluated in this study. Following the evaluation of the intellectual capital and its sub-elements, the differentiation of the sub-elements is made. Then the reliability and validity of these sub-factors are calculated. The intellectual capital model has been tested by the structural equality model (SEM).  According to research results, IC explains 92  per cent of a firm’s performance. The effect of IC on qualitative performance is 0,84, while on quantitative performance it is 0,72. RC impresses qualitative performance with coefficient 0,94, quantitative performance with coefficient 0,60; HC impresses qualitative performance with coefficient 0,92, quantitative performance with coefficient 0,54 less; SC impresses qualitative performance with coefficient 0,90, quantitative performance with coefficient 0,53. According to the results of the research, IC affects both the qualitative and the quantitative performance of firms by supplying extensive knowledge to the managers.
Gender-based discrimination in South Africa: A quantitative analysis of fairness of remuneration
Authors: Steyn Renier , Jackson Leon
Published: April 2017

Equity is important to most individuals and its perceived absence  may impact negatively on individual and organisational performance. The concept of equity presupposes fair treatment, while discrimination implies unfair treatment. The perceptions of discrimination, or being treated unfairly, may result from psycho-social processes, or from data that justifies discrimination and is quantifiable. Objectives: To assess whether differences in post grading and remuneration for males and females are based on gender, rather than on quantifiable variables that could justify these differences. Method: Biographical information was gathered from 1740 employees representing 29 organisations. The data collected included self-reported post grading (dependent variable) and 14 independent variables, which may predict the employees’ post gradings. The independent variables related primarily to education, tenure and family responsibility. Results: Males reported higher post gradings and higher salaries than those of females, but the difference was not statistically significant and the practical significance of this difference was slight. Qualification types, job specific training, and membership of professional bodies did not affect post grading along gender lines. The ways in which work experience was measured had no influence on post grading or salary for either males or females. Furthermore, family responsibility, union membership and the type of work the employees performed did not influence the employees’ post grading. The only difference found concerned the unfair treatment of males, particularly those who were well-qualified.   Conclusions: Objective evidence of unfair gender-based discrimination affecting post grading and salary is scarce, and the few differences that do occur have little statistical and practical significance. Perceptions of being discriminated against may therefore more often be seen as the result of psycho-social processes and are not necessarily the result of justifiable differences in education, tenure and family responsibility.
Human resources managers as custodians of the King III code
Authors: De Beer Frank , Du Toit Daniel Hercules
Published: April 2017

The objective of this research was to perform an exploratory study on the knowledge and understanding of the King III code among Human Resources (HR) managers in South African companies. The King III code is a comprehensive international corporate governance regime which addresses the financial, social, ethical and environmental practices of organisations. HR management plays a role in managing corporate governance by using the King III code as a guideline. The main research questions were: Does HR management know, understand, apply, and have the ability to use the King III code in terms of ethical decision-making? What role does HR management play in corporate governance? A random sample of available HR managers, senior HR consultants and HR directors was taken and semi-structured interviews were conducted. The results indicated that the respondents had no in-depth knowledge of the King III code. They did not fully understand the King III code and its implications nor did they use it to ensure ethical management. The themes most emphasised by the participants were: culture, reward and remuneration, policies and procedures and performance management. The participants emphasised the importance of these items  and HR’s role in managing them.
Institutional forces and divestment performance of South African conglomerates: Case study evidence
Authors: King David , Coldwell David , Joosub Tasneem , McClelland David
Published: April 2017

The history of South Africa serves as a natural experiment in how a changing institutional environment impacts corporate structure. Based on institutional theory, we anticipate higher performance through emulating successful strategies or through restructuring consistent with mimetic isomorphism. Conversely, coercive isomorphism results from restructuring driven by regulation, and we anticipate that they are associated with lower performance. To examine these relationships, we consider divestment by South African firms over two periods, using mixed methods. We find tentative support for our predictions, and we outline implications for policymakers, as well as for management research and practice.
Evaluation of banks’ commercial credit applications using the analytic hierarchy process and Grey relational analysis: A comparison between public and private banks
Authors: Kaygısız Ertuğ Zeliha , Girginer Nuray
Published: April 2017

The purpose of this study is to develop an evaluation model that considers the quantitative and qualitative criteria for the appropriate selection of firms demanding commercial credit for both public and private banks. In this paper, the authors propose an integrated model that combines the Analytic Hierarchy Process (AHP) and Grey Relational Analysis (GRA) into a single evaluation model. The model is illustrated with a case study on bank experts to demonstrate the effectiveness of this integrated method for four firms that applied for a commercial loan. In this study, AHP is applied to determine the weight of the criteria, and GRA is performed to determine the most appropriate firm. The results of this study indicate that, whereas firm morality and news criteria are the main criteria with the highest priority, sale and marketing constructions are the main criteria with the lowest priorities for both public and private banks. In addition, according to the results of GRA, the most appropriate firm for a public bank is Firm 1, and the most appropriate firm for a private bank is Firm 2.
Raising the bar on the foreign portfolio to 25 per cent: Strategic implications for South African investors
Authors: Bradfield David John , Munro Brian
Published: April 2017

Regulation 28 of the Pension Funds Act now permits an increased allocation of 25 per cent to foreign investments. The regulation previously only permitted a 20 per cent allocation. Establishing the optimal foreign allocation for South African portfolio managers given the 25 per cent upper bound is an important consideration for strategic portfolio planning. In this paper we consider two methodological approaches to establish a strategic foreign allocation weight. Our first approach considers the strategic role of foreign investment in South African global balanced portfolios by using a mean-variance efficient frontier framework over a long-term period. We also implement a second assessment methodology that utilises a nonparametric procedure. Both the mean-variance and the non-parametric methodology yield compelling evidence for the foreign allocation to be set at the maximum allowable bound of 25 per cent.
Financial indicators of company performance in different industries that affect CEO remuneration in South Africa
Authors: Bussin Mark , Blair Chris
Published: April 2017

In an attempt to address the growing gap between chief executive officer (CEO) remuneration and that of the general worker, reign in rising CEO remuneration, and justify the portion of long-term incentive pay that makes up the bulk of CEO remuneration, shareholders and other stakeholders are trying to find definitive factors that will link CEO remuneration to company performance. Finding this link has become central to all executive remuneration issues. The results of the studies linking CEO remuneration to company performance are varied and inconclusive, particularly in South Africa. The reason for this is that previous studies have not looked at whether the company performance measures chosen have definite relationships with CEO remuneration in each industry. This study investigated eleven financial indicators of company performance to determine which of them have significant and positive relationships to CEO remuneration in different industries in South Africa. 254 South African listed companies, spread over 5 industries, were analysed for the period 2008 to 2012 using panel data analysis and statistical tests. The results were conclusive, finding performance metrics that had a positive and significant relationship to CEO remuneration in 4 of the 5 industries investigated, as well as over the aggregate of all the industries.
Justice perceptions of performance management practices in a company in the chemical industry
Authors: Govender Thanasagree , Grobler Anton , Joubert Yvonne Trintje
Published: April 2017

The sustainability of corporations globally is becoming increasingly problematic. Combined with the unique challenges of an operating entity, this could potentially expose the profitability of sustainable businesses on a daily basis. The purpose of this study is to evaluate employees’ justice perceptions of performance management practices in a company in the chemical industry. The population includes all the employees in the chemical industry that was used in this study. A total of 140 questionnaires were issued to all the employees in an organisation which had undergone a performance appraisal and 102 respondents completed the surveys, giving a response rate of 72 per cent. A cross-sectional survey design was used in this study. The justice perceptions were measured according to an existing framework developed by Thurston and McNall (2010). The framework is founded on a hypothesised four-factor model constructed according to theories on organisational justice. The employees of the organisation in the chemical sector were involved in this study. Descriptive statistical analyses were used to measure perceptions of justice based on theories on organisational justice. The measuring instrument used was based on recognised models and theories. The study supports the construct validity of the measuring instrument and the reliability of the scales used. The justice constructs were used to identify specific items in the performance management practice that required improvement. The implications of the results are that continual interventions are required if employee commitment and productivity levels are to improve, resulting in a positive impact on business performance. Significant differences in perceptions by demographic groups were reported and discussed. This study explored the importance of understanding justice perceptions of performance management practices as an enabler for sustained business performance. Further, the study confirmed that justice perceptions have a direct impact on both the organisational climate and employee morale.
Market concentration trends in South Africa’s private healthcare sector
Authors: Erasmus Marine , Theron Nicola
Published: April 2017

The Competition Commission (CC) commenced with an enquiry into South Africa’s private healthcare sector at the beginning of 2014, the outcome of which could have far-reaching consequences for the medical industry in South Africa. The panel appointed to consider competition in the private healthcare sector has indicated that they are interested in understanding increased consolidation in the private hospital market and the effect this may have on competitive dynamics. This article considers historical concentration trends in the private hospital market from 2000 to 2012. In addition it also deals with changes in market structure in the medical scheme and administrator markets. These trends provide a complete picture of market structure changes and the implications for relative bargaining power of the various parties. It finds that whereas the market concentration of private hospitals has remained relatively stable since 2004, the market concentration of medical schemes and administrators has increased over this period.
Bringing Pankaj Ghemawat to Africa: Measuring African economic integration
Authors: Saville Adrian David , White Lyall
Published: April 2017

A wealth of literature dealing with trade liberalisation, capital market liberalisation, labour mobility and related issues concerning globalisation asserts that economies that are more integrated with the global economy and, more specifically with their neighbours, tend to enjoy higher sustained levels of growth. Empirical evidence with solid quantitative findings recently conducted by Pankaj Ghemawat has confirmed that more ‘open and connected’ economies display higher rates of economic growth, higher per capita income levels and greater levels of human welfare. Against this backdrop, it is notable that the available evidence – whilst incomplete – suggests that African economies are amongst the least integrated in the world. Given that integration and connectedness matter, and that there are material gaps in the evaluation of integration for African economies, it is important to develop better measures of African economies’ connectedness with their neighbours and with the world, how this connectedness is evolving and establish more comprehensive and robust means of economic integration compared to those historically available. Using Ghemawat’s framework, which measures flows of trade, capital, information and people (TCIP) to determine connectedness, we develop the Visa Africa integration index to provide a more comprehensive and detailed gauge of economic integration for 11 African countries in three clusters: East Africa, West Africa and Southern Africa. The index results suggest that African economies are emerging off a modest base, with some economies demonstrating progressive structural improvements toward higher levels of integration with their respective regions and the world. East Africa, in particular, shows signs of rising connectedness over the survey period. The index also illustrates that some countries are more integrated globally than regionally and vice versa, which is important information for policy makers toward improving deeper and broader integration in their respective regions. The index builds on previous research in the broad area of integration and helps us better understand the challenges and opportunities presented by Africa’s economic changes and some of the implications for economic growth.
Price discrimination in two-sided markets
Authors: Zhang Kai , Liu Weiqi
Published: April 2017

The use of a price discrimination strategy is an important tool in competition. It can hurt firms and benefit consumers in a one-sided market. However, in two-sided markets, its primary goal is to attract more agents or increase profits. Here, the performance of a second-degree price discrimination strategy in the context of duopoly two-sided platforms is analysed. Two exogenous variables, which include the discount rate and the price discrimination threshold, are used in order to examine whether the price discrimination strategy could help two-sided platforms achieve their objective, which is to maximise their market value. Three cases are considered, and we demonstrate that the price discrimination strategy cannot attract more agents and at the same time increase the profits; a lower price discrimination threshold cannot ensure larger markets shares; a higher discount rate is detrimental to the profit of a platform. However, this is good for its market shares. Moreover, discriminative pricing increases the competition.
Fair pricing, and pricing paradoxes
Authors: Swart Barbara
Published: April 2017

The St Petersburg Paradox revolves round the determination of a fair price for playing the St Petersburg Game. According to the original formulation, the price for the game is infinite, and, therefore, paradoxical. Although the St Petersburg Paradox can be seen as concerning merely a game, Paul Samuelson (1977) calls it a “fascinating chapter in the history of ideas”, a chapter that gave rise to a considerable number of papers over more than 200 years involving fields such as probability theory and economics. In a paper in this journal, Vivian (2013) undertook a numerical investigation of the St Petersburg Game. In this paper, the central issue of the paradox is identified as that of fair (risk-neutral) pricing, which is fundamental in economics and finance and involves important concepts such as no arbitrage, discounting, and risk-neutral measures. The model for the St Petersburg Game as set out in this paper is new and analytical and resolves the so-called pricing paradox by applying a discounting procedure. In this framework, it is shown that there is in fact no infinite price paradox, and simple formulas for obtaining a finite price for the game are also provided.