Theses and Dissertations (School of Economics and Finance)

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Effectiveness of branded mobile apps on brand loyalty among Generation Y consumers
(2016) Chalomba, Nakuze
The increasing level of consumer engagement with smartphones and tablets or ipods, and the proliferation of mobile applications in recent years have seen a rapid growth in branded apps. Marketers are creating branded mobile apps as a brand communication channel to attract new customers and potentially increase brand loyalty among current customers. Previous research has measured initial adoption or intention to adopt branded apps rather than continuance adoption. In South Africa, few studies have explored adoption of branded apps among generation Y consumers. To fill this gap, this research aims to determine the effectiveness of branded mobile apps in driving brand loyalty among generation Y consumers. To achieve this goal, the research uses Expectation Confirmation Theory (ECT) to explore the factors influencing satisfaction, continuance adoption of branded apps and brand loyalty. Using a quantitative research approach, a total of 406 valid self-administered questionnaires were collected by survey method, and structural equation modelling was employed in the data analysis. The results indicate that confirmation of expectations–functional value, social value and satisfaction significantly influence brand loyalty. When consumers confirmed expectations of branded apps, it directly led to positive perceptions of value and satisfaction. Consumer satisfaction was a significant driver of behavioural loyalty. Results also suggested that consumer confirmation of expectations and perceptions of value impacted on continuance intention indirectly through satisfaction. Perceived functional value was found to be an important direct booster of consumer’s decisions and behaviour to continue using branded apps, while social value was found to be an inhibitor of continuance intention. The relationship between continuance intention and brand loyalty was insignificant. Continuance intention was simply an intermediate response following satisfaction with prior usage. This study therefore confirmed and extended the (ECT), that satisfaction with a product or service was a prerequisite for establishing continuance intention and brand loyalty among consumers.
Social influence, eco-literacy’s and perceived benefit impact on attitude and purchase intention of herbal cosmetics by generation Y cohort
(2016) Chinomona, Rudo Cynthia Christine
In today’s knowledge society, the promotion of herbal products and the subsequent consumer purchase of herbal products has been on the rise recently. This is mostly attributed to the growing believe that organic or natural products are safer to use and promote a health life style. In the same vein, the understanding of consumer motivations, attitudes and the purchase behaviour of herbal cosmetics purchase has attracted attention worldwide from both academicians and business practioners – especially marketing managers in the herbal cosmetic industry. The current study is one of the few studies in African context to investigate the predictors of consumer purchase intentions of herbal cosmetics in South Africa. This study sought to examine the effects of social influence, perceived benefits of herbal cosmetics on consumer attitude towards herbal cosmetics and their purchase intention. In total seven hypotheses were postulated and to empirically test these hypotheses a data set of 246 collected from Generation Y female cohort at the University of the Witwatersrand was used for the purpose. A structural equation modelling approach using AMOS 23 statistical software was used to empirically test the proposed seven hypotheses using the collected data set. The research findings supported all the proposed hypotheses in a significant way except one hypothesis H5 (eco-literacy and purchase intention relationship) which although positive - was insignificant. However, the results also indicated that eco-literacy has a significant influence on purchase intention via its effects on consumer attitude towards herbal cosmetics. Based on the current study findings, both academic and practical managerial contributions are made. On the academic front, new literature on a rarely researched subject of herbal cosmetics purchase intention predictors - in an oftenmost neglected research context – Africa context is generated. On the managerial front, recommendations on the possible strategies that can be adopted by marketing managers in the herbal cosmetic industry are provided based on the research findings. Finally, future research avenues are also proposed.
Integration of tax and internal audit functions to improve tax risk management
(2017) Sambo, Sanelisiwe Mondy
Risk management is an important part of business as some risks can threaten the continuity of the business. As part of risk management, organisations need to manage tax risks as tax errors have the potential to cause significant financial loss and also carry reputational and other business risks which can threaten the continuity of the business. When considering tax risks in general, it can be said that taxpayers have a risk that they are not paying the correct amount of tax. This could be could be the result of applying the law incorrectly or configuring the system incorrectly to determine the tax results of the business activities and operations. Tax professionals have the expertise to identify tax risks and recommend corrective measures from a tax technical / legal point of view, which can address both past and future risks. Internal auditors on the other hand, have the expertise to detect tax risks and recommend corrective measures from a procedure and systems point of view, which may often only address future risks. The aim of this research is to gain a better understanding of the concepts of tax risks, tax risk management, as well as the process of designing, implementing and testing internal controls to manage those risks. This will specifically include an analysis of the role of the tax function and internal audit function in effectively managing tax risks, particularly through integration. Key words: Tax, internal audit, tax risks, controls, internal controls, tax risk management
The influence of political party branding on voting brand preference among the youth in South Africa
(2017) Omo-Obas, Promise
With an increase in competition in the political sector, there is a paradigm shift as parties revert to branding to influence voters’ political party brand preference. Political marketing is one of the most important aspects of developing industry which affects institutions, people and the involvement of successful candidates in the modern generation of politics. Therefore, it is of interest to examine how political party branding can enhance brand preference of the voters. Although several studies have explored political marketing and factors influencing university students’ intention to vote using various mediums, few studies have explored distinctive cues as a holistic concept in investigating the effect on youth of brand image and brand preference. More precisely, few studies have explored this topic in a political context among the youth in South Africa. This research purpose is to determine whether political party branding influences voting brand preference among the youth in South Africa, through the means of the proposed conceptual model, brand identity, positive word of mouth and brand authenticity as the predictors, brand image as the mediating variable, and brand preference as the outcome variable. The current study undertakes a quantitative approach, where 379 questionnaires were received from the respondents, (University of the Witwatersrand students), to explore the influence of political party branding on voting brand preference among the youth in South Africa. The data was analysed using structural equation modelling and Amos 23.0. Findings support all five proposed hypotheses. Hence indicating that brand identity, positive word of mouth and brand authenticity, influences brand image and brand preference. The contribution of this study is to provide general information to guide political parties or politics in South Africa in developing marketing / branding strategies based on the concept of brand preference. These contributions will help different types of political parties in having the knowledge of the critical role of brand preference and its implementation in the political marketing context. Theoretically, it is positioned in political marketing and adds to empirical literature that focuses on political branding, branding and voters’ preference in political parties. Lastly, by examining the predictors’ variables and their influence on brand image and brand preference, the findings provide political parties with a better understanding of branding strategies that can be implemented to influence voters’ preference before, during and after a campaign through comprehensive political branding.
The optimally diversified equity portfolio in South Africa: an artificial intelligence approach
(2017) Block, Aaron Eliyahu
Diversification has remained a central tenet in investment theory over multiple decades due to its demonstrated value as a risk mitigation technique. Increasing the number assets in a portfolio, where the magnitude of correlation is relatively slim, increases the amount of diversification while also encountering increased costs in the form of transaction costs, taxes and the like. Thus, it is imperative to solve for the optimal point of diversification to ensure an investor does not encounter unnecessary costs. This study aims to solve for the point of optimal diversification in an equity portfolio, focusing on the South African environment. This is achieved by employing a framework using both the traditional simulation method as well as more advanced mathematical techniques, namely: genetic programming and particle swarm optimisation. Marked improvements are realised in this study with regards to the methodology and results through the application of advanced mathematical approaches in addition to removing the restriction of equal weightings being applied to each share in the portfolio. The results revealed that an optimal portfolio can be constructed using up to only 15 shares. Secondly, the genetic programming approach demonstrated increased strength compared to the traditional simulation and particle swarm optimisation approaches, obtaining a greater level of diversification with fewer shares. Finally, although the aim of the study is focused on modelling the relationship between the number of shares in a portfolio and the achievable diversification benefits, it is also established that the portfolios indicated as being optimally diversified achieved market beating returns.
Standards and programmes designed to mitigate tax evasion: an international appraisal
(2017) De Souza, Michelle Adriana
As a result of a weakening and slow global economy and rising debt, many foreign governments are finding it difficult to implement strategies to ensure continued inclusive and sustainable growth. It is based on this troubling perspective of global uncertainty that tax authorities worldwide have unanimously persisted in their fight against tax evasion through the under-declaration of income from foreign assets, the illegal movement of money abroad, the misapplication and / or manipulation of transfer pricing legislation and mistreatments of tax treaties. The G20 Leaders together with the Organisation for Economic Co-operation and Development (“OECD”) have developed standards such as the Common Reporting Standard (“CRS”) for the Automatic Exchange of Information (“AEOI”) between tax authorities to enhance the sharing of information and transparency of information between tax authorities worldwide. South Africa has pledged to implement the CRS and automatically share tax information with other jurisdictions on an annual basis in the fight against tax evasion and avoidance. Of significance, in terms of timing for South African tax residents, is that South Africa has undertaken to be one of the early adopters of the CRS and committed to commence the first exchange of information from 2017. In light of the standards and actions coming into place, it has become clear that before long the likelihood of the South African Revenue Services (“SARS”) and the South African Reserve Bank (“SARB”) detecting tax evasion and avoidance is increasingly high. Based on this, non-compliant taxpayers have a limited timeframe to manoeuvre freely in and what may be their last opportunity to voluntarily disclose these assets and the income derived therefrom to SARS and SARB without facing heavier penalties and possible criminal prosecution.
Exploring the determinants of entitlement mentality among Generation Y in two tertiary institutions in Johannesburg, South Africa
(2017) Nkomo, Emmanuel
For the past two years, South Africa has been gripped by a spate of demonstrations by university students demanding free university education. These demonstrations have been violent, and mediation efforts have not succeeded in yielding long-term results. According to the theory of rising expectations, in an economy that is improving and where the people are not oppressed, their expectations often outstrip the pace of actual change (Gale, 2008). When there is a mismatch between what people expect and what they actually get, theory suggests that rising expectations lead to civil unrest as demands for improvement continue to grow. It is the contention of this thesis that the theory of rising expectations is associated with the behaviour of the university students as they make demands for free education, better employment opportunities and more accountability from the government. Also associated with the behaviour of these university students in South Africa is generational cohort theory, which predicts that certain significant national and global events have a long-lasting impact on value systems of individual groups and social orders resulting in the formation of new generational cohorts (Smolla & Sutton, 2002). These individuals then share enduring distinctive sets of values, beliefs, and behaviours (Strauss & Howe, 2000). Furthermore, research suggests that Generation Y are materialistic, which is the value individuals place on possessions (Belk, 1985), have a high entitlement mentality, and their work values are mostly extrinsic. Entitlement has been defined as a “pervasive sense that one deserves more and is entitled to more than others” (Campbell, Bonacci, Shelton, Exline, & Bushman, 2004, p. 31). In the absence of literature that relates to the potential influence of the theory of rising expectations and generational cohort theory on the behaviour of Generation Y in South Africa, this research seeks to: (i) investigate whether Generation Y are indeed materialistic and entitled; (ii) investigate the potential influence of demographic factors on work centrality, work values, materialism, and an entitlement mentality; (iii) investigate the potential influence of work centrality, work values, and materialism on an entitlement mentality; and (iv) investigate the mediating effect of materialism on the relationship between demographic factors, work values, work centrality, and an entitlement mentality in the context of a private college and a public university in South Africa. This research employed a two-stage approach. The first stage, a quantitative study, applied a descriptive approach to validate and justify the research findings that link Generation Y with materialism and entitlement mentality. Entitlement mentality was measured using two dimensions: exploitative and nonexploitative entitlement. Based on a literature review, a model was then developed and tested in the second stage of the study using Structural Equation Modelling. Findings from Stage Two suggested that Generation Y are materialistic and highly entitled, but that their entitlement is non-exploitative. Men were found to be more materialistic than women, but women were found to be more entitled than men. However, both genders were found to have low levels of exploitative entitlement, albeit with men showing slightly higher levels of exploitative entitlement. Gender and age were also significantly associated with materialism and entitlement. However, gender and age were found not to be significantly associated with work centrality. Work centrality was found to be significantly associated with entitlement mentality. Work values, on the other hand, were found not to be significantly associated with entitlement mentality, but were significantly associated with materialism. Materialism was found to be significantly associated with entitlement mentality. On the basis of all of these results, it was concluded that the theory of rising expectations and generational cohort theory might be responsible for the entitlement mentality and materialism, which literature often associates with Generation Y. The results also suggested that for organisations to attract and retain Generation Y employees, managers need to pay attention to extrinsic aspects of the job, such as pay.
Measuring customer-based brand equity of Samsung mobile phones among Generation Y
(2017) Diniso, Chumo
Keywords: brand equity, Samsung mobile phones, Generation Y, brand awareness, brand image, perceived quality, brand loyalty, brand satisfaction, brand love and consumption values. Samsung is the leading brand in the mobile phone industry, and is dominant over fierce competitors, such as Apple, Nokia, Huawei and Blackberry. This is evident from the 2016 global market share figures, where Samsung occupies the top position with 21.6%. The Samsung brand is also dominant in South Africa, having captured 46% of the market share. Consumers are also willing to pay a price premium for Samsung mobile phones. For example, as at June 2017, the Samsung S8 smartphone retailed for up to R14,799, with consumers still willing to pay this price. While from an organisation’s perspective the success of Samsung in the mobile phone industry is accredited to the global establishment of production bases, overhaul of quality standards, paradigm shift in management philosophies and substantial investment in marketing and product design, there is a need to understand what drives Samsung’s brand equity from consumers’ perspective. The understanding of Samsung’s brand equity is even more important among Generation Y, due to the fact that they constitute 25% of South Africa’s population, have a high purchasing power for luxury and technological products, and 95% of them own a mobile phone in South Africa. They use their phones to communicate with family and friends, listen to music and watch YouTube videos. For the measurement of brand equity, so that marketers are informed of the performance of their marketing and brand strategies, researchers recommend the examination of its sources. Models devised by Aaker (1996) and Keller (1998) provide various sources of brand equity, but how and which of these sources best influence brand equity has not been determined. Esch, Langner, Schmitt and Geus (2006) recommend that in order to measure brand equity holistically, sources of brand equity, including brand awareness, brand image, perceived quality, brand associations and brand loyalty should be measured in conjunction with other important brand relationship factors such as brand trust, brand satisfaction and brand attachment or love. This is particularly so, because consumers who have a strong relationship with a brand are likely to demonstrate positive attitude towards it. Despite this view, most researchers who have adopted the Aaker (1996) and Keller (1998) models to measure CBBE have not considered the explanatory roles of the brand relationship variables. iv Another important factor ignored in the measurement of sources CBBE are the various values (such as functional, monetary, emotional, customisation, and relational), as proposed by Chuah, Marimuthu and Ramayah (2014), consumers enjoy from the consumption of a brand. Recognising the importance of uncovering the value inferences that consumers hold of a brand, Keller (2003) suggests three types of values or benefits (functional, experiential, and symbolic benefits) consumers may enjoy from a brand. The monetary value, according to other authors, can also be important. How these values lead to brand equity, if at all, were, however, not further explored. This study therefore integrated the Aaker and Keller’s brand equity models, Esch et al. and Chuah et al. brand relationship and consumer value models, respectively, to propose an integrated conceptual model with eighteen hypotheses to measure the sources of Samsung’s mobile phones brand equity among Generation Y. Quantitative methodologies were used to collect data from 651 undergraduate and postgraduate students studying at the University of Johannesburg and University of the Witwatersrand to empirically test the proposed model. The hypothesised relationships in the model were empirically tested using structural equation modeling. The results revealed that out of the eighteen hypotheses tested, twelve were accepted. Specifically, brand awareness, brand image, perceived quality, monetary value and functional value had a positive effect on brand satisfaction. Brand satisfaction positively drives brand love. Consumers who expressed love for the Samsung mobile phone brand were found to be loyal. Brand loyalty, which was found to have a positive impact on brand equity, was influenced positively by monetary value. In addition to brand loyalty, brand equity was influenced positively by perceived quality, monetary value and symbolic value. Overall, 56% of Samsung mobile phone brand equity was explained by brand awareness, brand image, perceived quality, monetary value, functional value, symbolic value, brand satisfaction, brand love and brand loyalty. While it will be important for future studies to identify other factors, which may increase the explanatory power of Samsung’s brand equity among Generation Y in South Africa, this study’s theoretical contribution suggests an integrated conceptual model to holistically measure customer-based brand equity not only in the telecommunication sector, but for other products and sectors. Practically, Samsung and other marketers responsible for managing competing v brands such as iPhone, Nokia, Huawei can use these findings to develop relevant marketing strategies that resonate with this large and lucrative Generation Y market segment.
Power and influence of information technology project teams : an empirical study in a South African context
(2017) Kobedi, Mpho David
Information systems development (ISD) project teams are involved in requirements elicitation, analysis, development, testing and deployment of various information technology solutions. These teams often compete with each other for limited resources in an attempt to fulfil their organisational mandate. As a result, project teams can exert power over each other and employ various influence tactics in attempt to gain and maintain positions of power which allow them to control key resources and influence decision making processes. This study examined the strategic environmental and structural conditions of fulfilment which influence the power of ISD project teams, and the extent to which influence tactics can impact on team power level. Data was collected using a structured questionnaire instrument. A sample of 106 teams from five companies was obtained. The companies operate in the financial services and government sectors. A single key informant responded on behalf of their team. Correlation and regression analysis was used to test the hypothesized links between power and the structural conditions of fulfilment namely centrality and substitutability, as well as, the environmental condition of coping with uncertainty. The moderating effects of influence tactics on these relationships was tested via hierarchical moderated regression. Results indicated that the strategic condition of coping with uncertainty significantly and positively affects perceived team power, whilst substitutability significantly and negatively affects perceived team power. Support for the structural condition of centrality was not found to be significant. Additionally, the influence tactic of rational persuasion was found to moderate the relationship between power and coping with uncertainty such that rational persuasion interacts with coping with uncertainty to affect power. Results also indicated that the influence tactic of collaboration was not a moderator but rather has significant direct effects on perceived team power. The study concluded that ISD project teams who cope with project uncertainties and whose tasks and functionalities are difficult to replace, as well as, those who effectively collaborate with other teams will have greater power within project settings. Moreover, ISD project teams can combine rational persuasion tactics with coping with uncertainty to exert even stronger effects on power. The outcomes of this study help to bring an understanding of the impact of the strategic conditions factors on perceived team power within ISD project settings, as well as the role of specific influence tactics in the formation of power.
Data charges, delivery dependability, geographical distance, product risk and information quallity as predictors of online purchase intention in the South African retail sector
(2017) Luthuli, Menelisi Minenhle
The continuous growth of e-commerce has led to a keen interest in the uptake of online shopping. This phenomenon is even more prevalent in developed western countries. However, penetration has taken place at a lessor rate in developing countries in most parts of Africa including South Africa. Apart from infrastructural capability and adequate online store reputation, the success of online shopping fundamentally rests upon e-tailers who are able to capture consumers by understanding what variables drive them to shop online. Although several studies have explored factors that drive online purchase intention, few have explored variables of interest as done in this present study. More specifically, this sort of research is scarce within the South African general merchandise online retail sector. This study aims to determine whether data charges, delivery dependability, geographical distance, product risk and information quality have any influence on consumers‘ online purchase intention. The conceptual model adopted in this study selected data charges, delivery dependability, geographical distance, product risk and information quality as predictor variables, online shopping satisfaction and trust as mediating variables and online purchase intention as the outcome variable. This is a quantitative study whereby 20 000 online survey questionnaires were distributed to a base of two renowned South African online retailers who predominately specialize in general merchandise. Of those distributed, 924 were complete and thus deemed useable by the researcher. The findings support all eight proposed hypotheses, therefore indicating that the aforementioned variables indeed influence online purchase intention at varying levels of significance. The study seeks to contribute new contextual knowledge, adding to the existing literature linked to online retailing and to contribute new empirical and theoretical findings. The research findings highlight new insights to marketing practitioners who, with better understanding of consumer decision making theory, will be able to create strategies that can be employed to influence consumers‘ online purchase intention in the South African general merchandise online retail sector. Keywords: E-commerce, online shopping, purchase intention, general merchandise retail.
Volatility and the asset allocation decision
(2017) Schwalbach, Joao Bruno
This dissertation investigates the inclusion of volatility into the asset allocation decision, first as an asset class, and second as a tool for dynamic equity allocation. An examination on whether volatility exposure as an asset class has the necessary characteristics to form part of the broader investment universe is conducted. This is accomplished by comparing the risk-return characteristics of three naked option-selling strategies, a bull put spread strategy and a VIX futures strategy with the S&P 500 Index. Each volatility strategy is also included as part of a 30/30/40 volatility/equity/bond portfolio and compared to a traditional 60/40 equity/bond portfolio. Historically, the results indicate that all individual volatility strategies generated superior Sharpe ratios and exhibited less severe drawdowns than the S&P 500 Index, particularly during the 2008 Global Financial Crisis. Additionally, all volatility blended portfolios experienced better tail-risk profiles than the 60/40 equity/bond portfolio, with the naked option-selling strategies also generating similar returns as the 60/40 portfolio both over the full sample period as well during the period of recovery following the 2008 Global Financial Crisis. The results suggest that the returns associated with option-selling strategies are consistent, and have resulted in strong long-run risk-adjusted performance, qualifying short volatility exposure attained through option-selling strategies as an asset class. It however remains unclear whether the VIX futures strategy qualifies as an asset class given that it aims to exploit a market anomaly in the form of potentially non-priced volatility clustering in the S&P 500 Index. While the strategy generated considerable outperformance from 2004 to 2009, it underperformed from 2009 to 2016 suggesting that much of the non-priced volatility clustering has since been traded away. Drawing on the evidence of volatility clustering in equity markets, a managed volatility trading rule that regulates portfolio exposure between cash and equity based on how high the prevailing volatility level was relative to historical volatility levels is developed. Although transaction costs were not accounted for, the results indicated that the managed volatility trading rule has historically generated considerably superior Sharpe ratios than equity in developed and developing markets. In conclusion, volatility exposure attained through option-selling strategies has proven to be an attractive asset class, and historical evidence suggests that its inclusion into a traditional 60/40 equity/bond portfolio is likely to reduce the risk of future risk-adjusted underperformance relative to what had been achieved in the past. Additionally, the managed volatility trading rule remains an attractive alternative to investors who are precluded from investing in volatility as an asset class.
Green marketing, green corporate governance commitment, and its impact on firm performance : the case of electronic manufacturers in South Africa.
(2017) Atud, Vivian Abit
The purpose of this research was to study the relationship between firm‟s commitment to green, green marketing capability, green relationship learning, green human resource investments and firm performance for electronics manufacturers in South Africa. Despite the increased focus on on green marketing, there has been little focus on research relating corporate commitment to green and how it relates to green marketing capabilities and firm performance. This study fills this research gap by proposing and testing hypotheses relating firm commitment to green, green marketing capability, green relationship learning, green human capital investment and a firm‟s performance. To answer the research questions, primary data for n=212 respondents covering a range in firm size, gender, race, and age for electronics manufacturers in South Africa was used to test the hypothesis relating corporate commitment to green, green marketing capability, and a firm‟sperformance. The structural equation modeling approach was used to test the model fit and hypothesis testing. The software SPSS 24 was used to analyse the descriptive statistics and AMOS 24 was used to test the research model. The results showed that firm commitment to green was a predictor of firm performance and green marketing capability, green relationship learning, and green human capital investments was found to be mediators in the relationship between firm commitment to green and firm performance. Indeed, the hypotheses stated in this study were found to be true. The main contribution of this study is showing how corporate governance commitment to green can enable firm performance (both marketing and financial) through mediating variables of green marketing capability, green relationship learning and green human capital investment. The study further shows that corporate commitment to green influences green corporate social investment positively. Key words: corporate commitment to green, green marketing capability, green relationship learning, green Human Capital Investment, Green CSI, firm performance
Towards an understanding of post-adoption usage behaviours in the context of m-health pregnancy support applications
(2017) Chakabuda, Tendai Carol
Mobile health applications are fast becoming an influential source of information for pregnant women. Studies have shown that pregnant women download 3 such apps on average on their cellphones. These mobile technologies have been shown to help women monitor their progress during their pregnancy and personalise healthcare to suit their needs. To date, llimited research has been directed towards understanding usage behaviours with these apps. Various authors have argued that there is a need to expand the scope of research from simple usage behaviour to deeper levels as technology becomes more sophisticated and easily available. M-health technologies are increasingly becoming more varied and sophisticated and as such this study aims to explore post-adoption usage specifically of mobile health pregnancy applications in the South African context. This study specifically looked at post adoption usage behaviours and used Hsieh and Zmud’s (2006) framework as a basis of understanding these behaviours. The potential influences on these behaviours were sourced from various studies done on pregnant women usage of ICT in general. These influences were then investigated to see whether they were relevant in the context of m-health pregnancy support applications. The primary method of data collection was open ended semi structured interviews with twelve pregnant women. Data analysis was done using the iterative model for qualitative data analysis proposed by Miles and Huberman (1994). The findings revealed that pregnant women displayed post adoption usage behaviours of routine use and IS continuance. With regards to the infusion stage, the study found that pregnant women engaged in the first set of post adoption usage behaviours i.e. extended usage and deep usage. They did not engage in second stage behaviours namely emergent use, feature extension or intention to explore behaviours. The influences identified in the literature were found to be relevant in the context of m-health applications and additional influences such as cost of seeing gynaecologist, number of features on the app and social structures were found to have an influence on usage of the apps. This study provides unique insights into the views of pregnant women’s experiences with m-health apps. Specifically, by using interpretive research it uncovers the subjective meanings around post adoption usage behaviours, understanding how pregnant women engage in these behaviours and subsequently how these behaviours are sustained during their pregnancy. The study recognises m-health pregnancy support apps as important tools in the pregnancy journey. It highlights how pregnant women value these apps and view them as huge information sources, reassurance and comfort during their pregnancy. It is argued that medical professionals cannot distance themselves away from these apps and need to work in conjunction with them to provide robust maternity care to their patients. 5 Theoretically, this study adds to our understanding of post adoption usage behaviours specifically in the context of m-health pregnancy apps. Limited studies have been done in this field specifically in the South African context and the study provides a foundation for further research. Further research can be done to understand how these apps are changing the relationship between pregnant women and medical professionals and furthermore, whether the information received from these apps is reliable and credible.
A critical analysis from a South African perspective of advance pricing agreements for multinational enterprises
(2017) Gray, Mariska
Tax Base Erosion and Profit Shifting (BEPS)1 has become an epidemic of global legal tax avoidance being used by Multinational Enterprises (MNEs). BEPS has resulted in the structuring of transactions within groups of companies, with these including: transfer pricing, manipulating prices of goods, services, management fees, professional fees, royalties, interest and dividends. This study is a critical analysis of South African legislation in relation to the Double Taxation Agreement (DTA) with the United Kingdom (UK). Reference is made to the Mutual Agreement Procedure (MAP) as proposed by the Organisation for Economic Co-operation and Development (OECD).2 Even though South Africa follows the OECD guidelines (2010),3 Advance Pricing Agreements (APA) are not included in South African legislation, which may result in double non-taxation or double taxation and disputes. Recourse in the event of double taxation is examined in this research report. The application of APA legislation in the UK, as a leading tax authority,4 is analysed, as well as Davis Tax Committee recommendations in relation to Transfer Pricing. KEYWORDS Advance Pricing Agreement, Arm’s length price, Base Erosion and Profit Shifting, Davis Tax Committee, Double Taxation, Double Taxation Agreement, Multinational Enterprises, Mutual Agreement Procedure, OECD, South African Revenue Service, Transfer Pricing. 1 Organisation for Economic Co-operation and Development (OECD). (n.d.a), ‘About BEPS and the inclusive framework’, , retrieved 5 November 2016. 2 Organisation for Economic Co-operation and Development (OECD). (2010b), Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Paris: OECD. 3 Supra note 2. 4 Broomberg, E. B. (2007), Tax avoidance then and now, Tax Planning Corporate and Personal, vol. 21, no. 5, pp112-118.
The role of the internal audit function (IAF) in integrated reporting and possible challenges and barriers to internal audit’s involvement
(2017) Engelbrecht, Lindie
The purpose of this research is to explore the roles of the internal audit function (IAF) in integrated reporting and identify the possible challenges and barriers to internal audit’s involvement. The research was conducted to fulfill three main purposes: to determine if the IAF has any role to play in integrated reporting; to identify the potential challenges and barriers of internal audit’s involvement; and to identify and recommend best practices for internal audit’s involvement. The potential roles of the IAF in integrated reporting is predicted through current practices and literature. The research approach required an understanding and contextualisation of current practices by interviewing Chief Audit Executives (CAEs), following a qualitative approach within an interpretivist paradigm. The results were analysed using a data analysis spiral.The main conclusion drawn was that the involvement of the IAF in integrated reporting is closely linked to the maturity of the integrated reporting process. The research sample consisted of CAEs of listed companies that are recognised as producing good integrated reports and whose integrated reporting processes are in varying stages of maturity. The practical implications for CAEs are to apply best practices in becoming involved in the integrated reporting process and to avoid potential challenges and barriers. The role of the IAF in integrated reporting has not yet been identified through prior studies and this can be considered as the most significant contribution of this study. Key words – Assurance, Integrated reporting, Internal audit
Factors influencing the purchase intention of the black middle-class in emerging markets for global brands: the case of fashion brands in South Africa
(2017) Van den Berg, Annekee
With the rise of globalisation, consumers are increasingly faced with having to make purchase decisions between domestic and foreign products or brands. Therefore, it is important to gain a better understanding of what factors influence consumer decisions when considering a local or global product or brand. Although a number of studies have explored similar topics, a lack of research remains regarding a comprehensive theoretical model that provides a holistic view of factors influencing the decision to buy a global product. Therefore, the purpose of this study is to investigate those factors that influence the purchase decisions of global fashion brands among black middle-class women in South Africa. More specifically, by means of a conceptual model, the present study proposes that ethnocentrism, price, brand knowledge (comprising of brand awareness and brand image), self-image, fashion involvement, brand love, attitude, and perceived quality influence consumers’ buying decisions. The findings of this study seek to fill the gap in literature regarding how emerging black middle-class consumers in South Africa make buying decisions with regard to (global) fashion products. An empirical study was undertaken, in which 500 black middle-class females were asked to complete an online survey to determine which factors influence their choice of global fashion clothing. The obtained data was analysed by means of Structural Equation Modelling (SEM) using Partial Least Squares. The findings support all proposed hypotheses, but not all hypotheses were found to be significant. The strongest relationships were found between brand knowledge and perceived quality, brand knowledge and attitude, and self-image and attitude. The weakest relationships were between ethnocentrism and purchase intention, price perception and perceived quality and finally brand love and purchase intention. Furthermore, the findings revealed that quality is the main reason for consumers to consider buying global fashion-branded clothing. On the other hand, price is the biggest drawback of sales of global fashion brands. This study is of significant importance to fashion marketers since it provides adequate insight into how global fashion brands can position themselves and influence consumers’ decisions to buy global fashion products. This study further provides a comprehensive model, adds to knowledge gaps, and provides several managerial implications and directions for future research.
Investor sentiment as a factor in an APT model: an international perspective using the FEARS index
(2017) Solanki, Kamini Narenda
Traditional finance theory surrounding the risk-return relationship is underpinned by the CAPM which posits that a single risk factor, specifically market risk, is priced into asset returns. Even though it is a popular asset pricing model, the CAPM has been widely criticised due to its unrealistic assumptions and the APT was developed to address the CAPM’s weaknesses. The APT framework allows for a multitude of risk factors to be priced into asset returns; implying that it can be used to model returns using either macroeconomic or microeconomic factors. As such, the APT allows for non-traditional factors, such as investor sentiment, to be included. A macroeconomic APT framework was developed for nine countries using the variables outlined by Chen, Roll, and Ross (1986) and investor sentiment was measured by the FEARS index (Da, Engelberg, & Gao, 2015). Regression testing was used to determine whether FEARS is a statistically significant explanatory variable in the APT model for each country. The results show that investor sentiment is a statistically significant explanatory variable for market returns in five out of the nine countries examined. These results add to the existing APT literature as they show that investor sentiment has a significant explanatory role in explaining asset prices and their associated returns. The international nature of this study allows it to be extended by considering the role that volatility spill-over or the contagion effect would have on each model.
Competing theories of the wage-price spiral and their forecast ability
(2017) Mokoka, Tshepo
This thesis contains three main chapters. The rst chapter employs wageprice spirals to generate ination forecasts for Australia, Canada, France, South Korea, South Africa, United Kingdom and the United States. We use three competing specications of the wage-price spirals, and test which specication provides the best forecasts of price ination. For each specication we provide one quarter, four quarter and eight quarter ahead dynamic forecasts of price ination. The rst two wage-price spirals in the rst chapter are from the Keynesian tradition from te standpoint of expectations formation. The chapter also considers the New Keynesian wage-price spiral. We use the Root Means Square Error and the Clark and West statistic to compare the performance of ination forecasts from the three competing wage-price spirals that we consider in the rst chapter of the thesis. We nd that the New Keynesian wage and price specication su⁄ers from the wrong sign problem, and its forecasts of price ination generally outperform those from the old Keynesian wage price spiral for the eight quarter ahead time horizon. The usefulness of this nding to the conduct of monetary policy is limited due to the wrong sign problem of the forcing variable in the New Keynesian wageprice spiral. We also nd that the Flaschel type specication of price and wage ination produce four and eight quarter head ination forecasts that are better than those from the Fair type specication. We further nd that the Fair type specication price and wage equation produce the best forecasts of ination for the one quarter ahead time horizon. In the second chapter, we estimate natural variables and test their ability to explain the ination process for the eight countries that we consider. We use the traditional Keynesian wage-price spiral and the triangle system approaches to estimate the NAIRU and potential output. In the case of the traditional Keynesian wage-price spiral, the price Phillips curve, which can be specied as a triangle Phillips curve, features backward looking ination expectations and nominal wage ination, the output gap and supply shocks. The nominal wage Phillips curve features ination expectations and price ination and the unemployment gap. The presence of price ination in the nominal wage Phillips curve and the presence of nominal wage ination in the price Phillips curve leads to the interaction between the two Phillips curves. The separate demand pressure terms allows for their identication since, as someauthorsintheliteraturearguethatthegoodsandlabourmarketsdonot move in line with each other. To compute the NAIRU and potential output using the Keynesian approach, we rstly exploit the information contained in vector of unobservable by estimating the wage-price spiral in di⁄erence form using the Seemingly Unrelated Regression method. We use this regression method in order to control for any correlation that may exist between errors in the price and wage Phillips curves. This allows us to solve for the vector of potential output and the NAIRU. We then the moving average technique in order to avoid problems associated with the HP lter for smoothing. Due to data availability, use the MA (20) approximation of the low pass lter after padding the endpoints with forecasts from an AR(4) process. We follow a similar procedure in the estimation of the estimation of the NAIRU and potential output for the triangle system approach. To test which method produces the best natural variables, we t the gaps that are computed from the NAIRU and potential output in a simple single equation price Phillips curve. To test which specication produces the best natural varibles we use a simple single equation triangle price Phillips curve. We nd that the output gaps computed from the two competing approaches are signicantly correlated, the same applies to the unemployment gaps computed from the two approaches. We nd that the quality of unemployment rate gaps computed from the Keynesian and triangle system approach to produce similar quality of results when tted to a single equation triangle price Phillips curve. The Keynesian approach slightly outperforms the triangle systems approach in the when considering the output gap as a proxy for the demand pressure. These results indicate that the wage-price spiral still remains an important tool in the determination of the dynamics ination. In the third chapter, we analyze the relationship between monetary policy and natural variables for Australia, Canada, France, South Korea, South Africa, United Kingdom and the United States. We do this by specifying a relationship between natural rates and the real interest rate. The theoretical relationship between the two variables is positive in the case of the NAIRU and negative through Okuns law in the case of potential output. We regress the natural variable against a constant and the MA(8) of the real interest rate. We nd that the parameter of the real interest rate generally has a correct sign when considering the Keynesian approach computed NAIRUs, with only four being signicant. In the case of the triangle system approach NAIRU, we nd that the real interest rate parameter has a correct sign and signicant four countries. We nd that NAIRUs computed using di⁄erent methodologies can produce a di⁄erent reference point for policy makers. We then introduce hysteresis in the relationship between monetary policy and the NAIRU. We then nd that the interest rate parameter generally has a incorrect sign across the three approaches. The HP ltering approach which we include in our study for comparison purposes produces incorrect correlation for all the countries, while the Keynesian approach negative correlation for seven countries, and the triangle system approach in six countries. In the case of the relationship between monetary policy and potential output, we nd that the real interest rate parameter has an incorrect sign. When introducing hysteresis in the relationship between monetary policy and potential we nd that, unlike in the case of the NAIRU this plays signicant role in the relationship.
An analysis of the income tax consequences attendant upon the transfer of contingent liabilities in the sale of a business as a going concern
(2017) Hansraj, Shivona
The transfer of contingent liabilities as part of a sale of business transaction has always been a contentious issue. In particular, there is still a measure of uncertainty in whose hands, if any, contingent liabilities transferred as part of a sale of business may be deductible. Sale of business agreements may be structured in various ways, for example, the purchaser may acquire the seller’s business in exchange for cash, the creation of a loan account, or the assumption of liabilities. Furthermore, in the context of intra-group transactions to which the group roll-over relief provisions apply, the Income Tax Act 19621 (‘the Income Tax Act’) does not specifically address the transfer of contingent liabilities. This research report addresses the income tax consequences arising from the transfer of contingent liabilities from the seller to the purchaser, including an analysis of the relevant group roll-over relief provisions. Key words: Ackermans Judgment, Actually Incurred, Contingent Liabilities, Free-standing Contingent Liabilities, General Deduction Formula, Group roll-over relief, Interpretation Note 94, Sale of Business Transaction, SARS.
Sustainability of low-cost airlines within South Africa
(2017) Denga, Dumolwakhe
Based on the significant amount of entries and exits of low-cost airlines in the commercial airline industry within South Africa, this brought on the question of whether such business models are sustainable in an emerging market. Incidents such as the exits of 1time and Velvet Sky brought about a high degree of concern. Analysts have suggested that the main reasons for airlines departing are the global financial crisis in 2009 which led to a decrease in passenger numbers, decreasing market size, the volatility of the fuel price, route density on major routes, market size and currency risk. (1time Holdings, 2010; South African Airways, 2014; Comair Limited, 2014; Hedley, 2012). These factors are all external and indicate possible reasons for low-cost airline market exit. However, the business model of the airline is not considered as a possible reason for a low-cost airline’s exit from a market. Johnson, Christensen and Kagermann (2008) stated that the business model has four key components and, when these components are combined, they deliver value. These components are customer value proposition, profit formula, key resources, and key processes. Using the components provided by Johnson et al (2008) as a basis for the theoretical model, the study aimed to investigate key factors that enable or inhibit a disruptive innovation, such as a low-cost airline, in an emerging market like South Africa, and propose a conceptual model (that will be empirically tested in a subsequent study) for sustainability within the context of disruptive innovations, such as a low-cost airline, in a developing country setting. Five managers of leading low-cost airlines and airline consulting firms in South Africa were selected using judgmental sampling method and were requested to participate in separate individual in-depth interviews. The data from the interviews was analysed using the Glaserian coding method. Based on the data analysis, three themes were developed. These themes were: the business model, business model evaluation and external factors. From the themes, a conceptual model was developed. The model alleged that specific elements of the airline business model (the organisation, the product, costs and cash sources) have a possible influence on the competitive advantage of an airline while the competitive advantage of an airline has a possible contribution to its sustainability.

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