Faculty of Commerce, Law and Management (ETDs)

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The Impact of Employee Shareholding Option Plans on Company Performance in South Africa
(University of the Witwatersrand, Johannesburg, 2009-07) Motswenyane, Papillon; Ncube, Mthuli
Employee Share Option Plans (ESOPs) are widely applied in the South African context to disseminate wealth to Historically Disadvantaged South Africans (HDSAs). This opinion is affirmed by an increased application of the concept on a number of Broad Based Black Economic Empowerment (BBBEE) transaction deals concluded recently. The research explored the impact of these schemes on company performance and also investigated the resultant economic impact on participating employees. Data was collected from JSE-listed companies that have implemented these schemes over an eight year period between the years 2000 and 2008. Tobin's Q ratios were constructed using data from various sources with annual reports as the primary source of data. An event analysis was undertaken by measuring Tobin's Q of the said companies before and after the implementation of the respective schemes. A secondary process collated data from a survey of employees participating in the schemes to measure their increased productivity and also to ascertain financial employee spin-offs from the schemes. The research found inconclusive evidence that ESOPs impact positively on company performance. However evidence of a strong correlation between potential productivity increases and the schemes was confirmed . Also, a relationship between an employee's level and term of participation to financial reward was established. This research will assist companies in structuring their ESOPs in relation to individual employee contribution to enhance company performance and will also provide guidance on ESOPs financial impact on employees.
The Development of Social Capital in the Judiciary through mentorship
(2011-04-06) Engelbrecht, Naomi Annette
This study analyses the concept of mentoring as used in the South African Judiciary. Mentoring has been adopted by the South African judiciary in order to enhance the potential of acting Regional Magistrates to address their often repeated grievances regarding capacity building. The research attempts a quick evaluation of the process so far.
Success Drivers for Independent Feature Filmmaking in South Africa
(University of the Witwatersrand, Johannesburg, 2011-06) Heatlie, Damon; Marcelle, Gillian
This qualitative research addresses the central research question ‐ why is the South African feature film industry uncompetitive, and what are the key drivers for producing profitable films in the South African context? The central conceptual framework used is value chain analysis. The study limits its scope to focusing specifically on the development and distribution stages of the independent feature film value chain. The study commences by investigating the historic poor performance of South African films, which typically were not able to recoup costs and move into profitability. The study interrogates the critical role of the independent film producer as a ‘creative entrepreneur’ and looks at examples of successful film industry development in other emerging economies. The research then examines what international research indicates as success factors at the development stage, followed by an exploration of the rapidly changing digital landscape of film distribution and its associated opportunities. The empirical research component comprises of the analysis of semi-‐structured expert interviews with 12 industry stakeholders – producers, distributors and funder‐investors involved in feature filmmaking in South Africa. The data analysis involved thematic encoding, a reduction of 10 open–ended questions to four key thematic domains that presented in the findings: ‘understanding the market’, ‘finding a business model’, ‘government support’ and ‘embracing distribution challenges’. Conclusions drawn from the findings were that producers have historically misunderstood audience needs and market volumes for their films, that profitability is achievable if one targets local markets modestly, that government support is critical but deficient in the South African environment, and that South African films need committed local distributors and exhibitors even before serious investment in Internet based distribution mechanisms. This study adds empirical data to an under researched field and contributes to understanding the nature of creative industries and their dynamics.
Caught in a gap? An examination and human rights assessment of immigration detention laws and practices in South Africa
(2013-03-19) Tay, Roanna
Abstract: This study examines the laws and practices relating to immigration detention in South Africa. It provides an in-depth examination of the legislation, with reference to known state practices and cases where migrants have been subjected to prolonged and repeated periods of immigration detention. The study highlights gaps in South African law that contribute to certain categories of migrants being especially vulnerable to immigration detention. Four categories are identified: (1) asylum seekers; (2) persons with difficulty obtaining travel documents; (3) stateless person; and (4) persons subject to other prohibitions against refoulement. The study offers recommendations for legislative reforms to fill the gaps in the law that contribute to these migrants’ vulnerability to immigration detention
Human Resources Development at Tumela Mine
(University of the Witwatersrand, Johannesburg, 2014-01-21) Mphahlele, Matuku
In the context of the South African mining and mineral sector this study explores the human resource development measures to transform mentoring programmes at Tumela Mine. Despite the legislative stipulations that seek to promote equitable access to participation in the creation, development and sharing of the South African economy and natural resources through the establishment of a workplace environment conducive for learning to take place, little is known on how Tumela Mine implements mentoring programmes to foster effective human resource development. The study explored and analysed participants’ perceptions regarding the implementation of the Tumela Mine Mentoring Programme. The research was conducted through the use of a case study approach, and primary data was collected from respondents, and secondary data was gathered from relevant policies, minutes of meetings and company annual reports. The research questioned the successful aspects in the Human Resource Development unit, challenges and management’s responses to impediments to the implementation of mentoring programmes at Tumela Mine. The findings indicate that two key issues to improve implementation of mentoring programmes at the Tumela Mine are a transformational style of management and strategic repositioning of the mentoring programmes. The research argues that although company corporate strategic policy formulation and planning seek to promote equal participation of all employees in mentoring relationships, programme interventions at an operational level make it difficult to promote mentoring programmes. The key recommendation is that in order to implement effective mentoring programmes the company should review the corporate business strategy focused on strategic repositioning of mentoring programmes and inspire visionary leadership to implement a transformational style of management.
Human Resources Development at Tumela Mine
(University of the Witwatersrand, Johannesburg, 2014-01-21) Mphahlele, Matuku
In the context of the South African mining and mineral sector this study explores the human resource development measures to transform mentoring programmes at Tumela Mine. Despite the legislative stipulations that seek to promote equitable access to participation in the creation, development and sharing of the South African economy and natural resources through the establishment of a workplace environment conducive for learning to take place, little is known on how Tumela Mine implements mentoring programmes to foster effective human resource development. The study explored and analysed participants’ perceptions regarding the implementation of the Tumela Mine Mentoring Programme. The research was conducted through the use of a case study approach, and primary data was collected from respondents, and secondary data was gathered from relevant policies, minutes of meetings and company annual reports. The research questioned the successful aspects in the Human Resource Development unit, challenges and management’s responses to impediments to the implementation of mentoring programmes at Tumela Mine. The findings indicate that two key issues to improve implementation of mentoring programmes at the Tumela Mine are a transformational style of management and strategic repositioning of the mentoring programmes. The research argues that although company corporate strategic policy formulation and planning seek to promote equal participation of all employees in mentoring relationships, programme interventions at an operational level make it difficult to promote mentoring programmes. The key recommendation is that in order to implement effective mentoring programmes the company should review the corporate business strategy focused on strategic repositioning of mentoring programmes and inspire visionary leadership to implement a transformational style of management.
The effect of employee share ownership on company performance in South African mining
(University of the Witwatersrand, Johannesburg, 2014-08) Khan, Shameegh
This study investigates the effects of Employee Share Ownership Plans (ESOP’s) on company profitability in the South African mining industry for companies listed on the Johannesburg Stock Exchange (JSE). The South African mining industry has been in the global spotlight since the Marikana miners’ strike of 2012 and the subsequent killing of 34 people on 16 August 2012. ESOP’s can be used to stabilize the sector by alleviating some of the tension that is present between workers, shareholders, management and government. This research uses the same measurement as Spiess and Affleck-Graves (1995), who measure share price performance as a cumulative average of returns (CAAR) over a five year period. Regression analysis is used to test for correlations and descriptive statistics is used to explain findings (Spiess & Affleck-Graves, 1995). The difference between companies that do not have ESOP’s in place is negative for (CAAR) compared to those who have an ESOP in place. This is consistent with the theory and findings of studies such as Robinson and Zhang (2005). It has been applied to the South African context within the JSE listed mining sector. The theory that ESOP’s will improve profitability of a company listed on the JSE within South African mining has been found to be statistically significant. ESOP’s can help improve cumulative profits and help transform the industry through share ownership of workers which will help decrease the gap between CEO’s remunerations and the lowest paid workers.
Leadership and resilience at the Islamic University of Gaza, 1978-2012
(2016) EL-Namrouti, Said Ahmed
Leadership in Higher Education Institutions (HEIs) in turbulent times has been undertheorised. A qualitative case study based on document analysis of 70 documents, 39 interviews and 2 focus groups was the vehicle for examining the role of the leadership at the Islamic University of Gaza (IUG). IUG has operated under complex conditions of occupation and ongoing turbulence from its inception in 1978 to the present. This study examines the period 1978-2012. In this time the university grew from 25 men studying Sharia in a tent to 20,000 students (63.7% female) studying across 11 faculties and 112 different specialisations. The study documents and labels four phases of development of the university. The patterns of leadership uncovered in the study include transformational, transactional, heroic, post-heroic and on some specific occasions authoritarian styles, with transformational being the most important. The way in which the leadership resolved short term crises, as well as their long-term and big-picture focus, shaped the development of the university. Resilience theory was applied alongside leadership theory to analyse the responses of IUG leadership. Resilience was taken beyond surviving to capitalising on disruption. Twenty three markers of resilience were found which worked independently and interactively to support resilient responses to the challenges IUG faced. These factors were initially developed from the literature, and new factors were added based on this research. The relationship between leadership styles and the promotion of resilience was examined. The thesis describes a mutual shaping and supporting role between university and society in Gaza, and discusses some of the paradoxes of help and harm coming from players and belief systems external to the university. The paradox of faith which can provide a cohesive, binding set of beliefs to support staff and students, as well as being the source of conflict and harm, is also discussed. A definition of a university as an educational community functioning beyond place, buildings, external recognition, or physical destruction was developed.
The principles governing 'place of effective management' and 'permanent establishments' and their application to the digit al economy: a South African perspective
(2016) Boel, Katherine
The purpose of this research report is to consider the application of existing 'place of effective management' (POEM) and 'permanent establishment' (PE) principles to a company operating in a digital economy in order to determine its appropriateness and limitations. This paper is broadly divided into four parts. The first part of the paper provides a brief background to the above taidng principles and the digital economy. The second part considers, in detail, the guidance and factors that are currently available on how the POEM and the creation of a PE for a company may be determined both internationally and from a South African tax perspective, including the role of the residency tie-breaker article and the PE article in most double taxation agreements (DTA's) with South Africa. The third part of the paper considers how these guidelines and factors may apply to the digital economy and the practical challenges which arise. Finally, the paper seeks to identify possible alternatives to overcome the pitfalls in the POEM and PE interpretations and to highlight aspects which require further consideration.
Employee-owned companies: A potential solution to minimising industrial action in South Africa
(University of the Witwatersrand, Johannesburg, 2016-03) Sebesho, Bonga; Horne, Renee
The purpose of this research was to assess the employee-owned company model as a potential solution to minimise industrial action in South Africa. Employee ownership, positioned as a key pillar of broad-based black economic empowerment (BBBEE) (Mosai & Reynolds, 2003), is linked to increased employee participation and ultimately to improved industrial relations as a result of increased engagement between employers and employees. Research was undertaken through a study of the multiple methods in which employee ownership is implemented across various industries in South Africa taking into account the reasons for the implementation of employee ownership. This research attempted to cover a wide spectrum of employee ownership models ranging from once-off employee share ownership schemes (ESOPs) to closed employee ownership schemes. Qualitative data was collected through in-depth interviews, utilising the Delphi technique, with a sample of 11 respondents who have been involved in the implementation of employee ownership schemes. The data was content-analysed and the findings suggested that employee ownership has the ability to engender increased participation. The findings of the study suggest that the successful implementation of employee ownership in South Africa has been severely impacted by historical issues relating to financial preparedness from employees and the deep entrenchment of the shareholder value as well as the compliance burden from a business perspective. The study concludes that employee ownership can play a role in engendering meaningful economic participation and consequently reduce the incidence of industrial action. However, in order to achieve its desired objective the government will need to put in place effective incentives as well as powerful disincentives to encourage implementation of long term ownership schemes. This study may provide guidance to South African companies, government and other stakeholders seeking to find broad-based and inclusive models in order to increase employee representation and participation in corporate decision making. The research findings may assist these organisations to find new ways to create a more inclusive economic environment through leveraging the benefits of employee ownership to decrease the incidence of industrial action and ultimately improve output.
Customer and employee-based brand equity driving United Bank for Africa's market performance
(2017) Uford, Imoh Charles
With increased competition in the banking industry, particularly in developing economies, United Bank of Africa Plc (UBA) in Nigeria has been thriving. The bank is a multinational financial services provider, which operates in 22 African countries. It also has offices in the US, UK and France. UBA has about 626 global branches and serves more than seven million retail, commercial and corporate global customers. Positioned as a pan-African bank, the UBA Group is firmly in the forefront of driving the renaissance of the African economy. It is also well positioned as a one-stop financial services institution, with growing reputation as the face of banking on the African continent. UBA Plc has grown over the years from being just a brand name to a house hold name in Nigeria. In 2011, it was reported that UBA’s total assets was worth about $12.3 billion. The bank is also gearing to be one of the dominant and leading banking brands in Africa. While the measurement of UBA’s asset worth is important as it reveals information of its financial performance, it can be more important to measure the worth of its intangible assets, which is being captured from the assessment of its brand equity. Brand equity does not only comprise of an organization’s intangible assets, but does reflect the values consumers hold of a brand and can also secure long-term commercial and competitive advantages for companies. With the notion that the value or power of a brand lies in what customers perceive in their minds concerning the brand, most studies have measured brand equity mainly from the customer-based brand equity (CBBE) perspective using Aaker’s (1996a) and Keller’s (1998) models. Aaker’s (1996a) model is however considered to be the most comprehensive CBBE model and it measures brand equity from five dimensions – brand awareness, brand association, perceived quality, brand loyalty and proprietary assets. While CBBE can secure long-term market performance, it is being recommended that the contribution of employee-based brand equity (EBBE) should also be measured. This is particularly important in the service sector, such as banking, where “what is delivered is less important than how it is delivered”. More so, with the increasing importance of internal branding, there is a need to measure EBBE, which assesses how knowledgeable, happy and committed employees are willing to deliver on the brand promises to build brand equity. In addition to the importance of measuring both CBBE and EBBE, there is also the need to further compare the extent to which both CBBE and EBBE predict market performance, an outcome anticipated, but rarely empirically tested. This study therefore employs Aaker’s (1996) CBBE model and Kwon’s (2013) EBBE model to examine the sources of UBA’s CBBE and EBBE respectively and the extent to which each of the equities drive market performance indicators, such as consumer purchase intention, willingness to pay a price premium and brand preference. A positivist research paradigm with a quantitative survey of 182 UBA employees and 178 UBA customers were used to test the hypotheses. The relationships hypothesized in the conceptual model were empirically tested using structural equation modeling (SEM). The results indicated that the conceptual model satisfactorily fitted the data and provided reasonable explanations among variables. In terms of the relationships, it was found that UBA’s CBBE was accounted for by brand associations or image and brand loyalty. UBA’s overall CBBE positively and significantly affected all the market performance indicators of purchase intention, willingness to pay a price premium and brand preference. UBA’s EBBE which was found to be positively and significantly driven by role clarity and brand commitment could only positively and significantly predict the bank customers’ willingness to pay a price premium. Conclusively, it was found that while UBA’s EBBE make some contribution to the bank’s market performance, its CBBE is the major driver of its performance. This study theoretically contributes by not only empirically testing Aaker’s (1996b) CBBE and Kwon’s (2013) EBBE in the Nigeria’s banking sector, but by also showing how both models explain market performance. Practically, the study reveals sources of CBBE and EBBE, which not only UBA should prioritize in improving their market performance, but other service sectors in Nigeria and the continent should take special note of. Keywords: Brand equity, customer-based brand equity (CBBE), employee-based brand equity (EBBE), United Bank for Africa (UBA) Plc, United Bank for Africa (UBA) Plc, structural equation modelling (SEM), United Bank for Africa (UBA) Plc, willingness to pay a price premium and brand preference
Tax deductibility of interest and finance charges: the real cost of credit
(2017) Haines, Chantelle
Borrowers will commonly incur various finance charges when acquiring loan funding, which may include, inter alia, interest expenditure, guarantee fees, introduction fees, commitment fees and service fees. The tax deductibility of these finance charges is an important consideration for borrowers. Prior to the amendment of the definition of ‘interest’ in section 24J of the Income Tax Act 58 of 1962 (as amended), related finance charges were deductible for tax purposes. The term related finance charges was interpreted very widely by the Supreme Court of Appeal in C:SARS v South African Custodial Services (Pty) Ltd1 to include guarantee fees, introduction fees, commitment fees and even selected service fees. It is submitted that following the recent amendment of the interest definition by the Taxation Laws Amendment Act 15 of 2016, to now allow the deduction of ‘similar finance charges’ rather than ‘related finance charges’ the tax treatment of finance charges are uncertain. The objective of this study is to evaluate how this amendment will affect the deductibility of finance charges incurred by borrowers for tax purposes. The study proposes to first evaluate whether finance charges will be deductible in terms of section 24J, consider the definition of ‘interest’ and provide some general tests aimed at assessing the ‘trade requirement’ and the meaning of the phrase ‘in production of income’. The impact of the anti-avoidance legislation in sections 8F and 8FA will be considered, and finally, a brief discussion of the deductibility of finance charges in terms of the general deduction formula in section 11(a) read with section 23(g).
Implementation of the mental health care act in psychiatric hospitals
(2017) Mulutsi, Eva Nkeng
Introduction Mental illness is prevalent in all regions of the world and contributes significantly to premature mortality, high morbidity and loss of economic productivity (Baxter, Whiteford, Vos, & Norman, 2011; Charlson, Baxter, Cheng, Shidaye, & Whiteford, 2016). In South Africa, the Mental Health Care Act (No 17 of 2002) was promulgated in 2004 in response to the high burden of mental illness and to improve mental health service delivery, within a human rights framework. Aims and Objectives: The overall aim of this PhD study was to examine the implementation of the Mental Health Care Act in psychiatric hospitals in South Africa. The specific objectives were to: explore stakeholders’ involvement in the implementation of the Act; examine the policy processes followed in the implementation of the Act; determine whether Mental Health Review Boards execute their prescribed roles and functions; examine the implementation of legal procedures for involuntary admissions of psychiatric patients; and identify factors that influenced the implementation of the Act. Methods: The study was approved by the Human Research Ethics Committee of the University of Witwatersrand, Johannesburg. Sixteen psychiatric hospitals were selected in nine provinces, through stratified random sampling. Using an adapted conceptual framework with policy implementation theory as its foundation, the overall study approach was qualitative in nature, complemented with a record review of involuntary patient admissions in the selected hospitals. The qualitative component consisted of 35 in-depth interviews with: the drafter of the Act (n=1); provincial mental health coordinators (n=9); a psychiatrist at each of the selected hospitals (n=16); and the chair of a Mental Health Review Board in each of the provinces (n=9). At each selected psychiatric hospital, five patient records were selected randomly (n=80), focusing on compliance with the legal procedures for involuntary admissions. The qualitative data were analysed using thematic content analysis and MAXQDA® 11 while STATA® 12 was used to analyse the data from the record reviews. Results: South Africa’s political transition created a window of opportunity for the implementation of the Act. Wide-spread stakeholder support for the spirit and intention of the Act, advocacy for human rights, the broader transformation of the health system, and the need for enhanced governance and accountability in mental health, facilitated the implementation of the Act. However, implementation was hindered by: the relatively low prioritisation of mental health; stigma and discrimination; poor planning and preparation for implementation; resource constraints; and suboptimal stakeholder consultation. The study found that the majority of involuntary psychiatric patients admitted during (the year) 2010 were single (93.8%), male (62.5%), and unemployed (85%), predominantly black African (80%), with a median age of 32.5 years. The primary diagnoses were schizophrenia (33/80), substance-induced psychosis (16/80), bipolar mood disorders (15/80) and acute psychosis (9/80). There was poor compliance with the prescribed procedures for involuntary psychiatric admissions, exacerbated by suboptimal governance by, and functioning of, the Mental Health Review Boards, thus resulting in de facto illegal detention of patients. Conclusion and Recommendations: The Mental Health Care Act is an important policy lever to address the burden of mental illness and ensure quality mental health service delivery in South Africa. However, the enabling potential of the Act can only be realised if the following issues are addressed: improved, and dedicated resources for mental health; training and capacity building of health professionals and hospital managers on key aspects of the Act; improved governance, leadership and accountability through well-functioning Mental Health Review Boards; and improving mental health infrastructure and community-based services.
Assessing alternative monetary policy frameworks and instruments in selected African economies
(2017) Chiumia, Austin Belewa
This thesis contains three core chapters that assess the performance of alternative monetary policy frameworks and instruments in stabilizing 10 selected African economies. Literature and practice show that Advanced Economies (AEs) and Emerging Market Economies (EMEs) are mostly adopting the ination targeting (IT) framework. This framework relies on active use of the interest rate as a policy instrument for macroeconomic stabilisation. Di⁄erent from AEs and EMEs, the majority of African countries are characterized by low nancial market development, frequent supply shocks and volatile terms of trade. These features impede the e¢ ciency of the IT framework and the interest rate instrument. Supply shocks imply that ination is not only demand driven. Volatile terms of trade translate into excessive exchange rate uctuations. Due to these factors, policy practice in Africa remains largely divergent from the global trend. Authorities still rely on monetary aggregate targeting (MAT) with de facto managed exchange rates. However, the MAT framework is also failing to stabilize economies. This follows instability of the key factors, such as the money demand, upon which the framework is anchored. Furthermore, controlling exchange rate movements is a challenge due to weak balance of payments positions. It is not surprising, therefore, that the majority of African economies still remain in the grip of macroeconomic instability. Ination and GDP targets are rarely met and they also remain volatile. The perverse macroeconomic features and the perceived failure of the MAT regime have necessitated the search for alternative monetary frameworks and instruments. In this study, we join the search by specically focussing on three questions. First, given the macroeconomic landscape in Africa, what is the relative performance of the interest rate vis--vis the monetary aggregate as instru ments for macroeconomic stabilization? Secondly, how do these instruments perform when apart from ination and output stabilization, monetary policy also engages in smoothing exchange rate uctuations? Thirdly, what is the relative performance of ination targeting vis--vis nominal GDP targeting as alternative monetary policy regimes for macroeconomic stabilization in African economies? Although the success of monetary policy largely relies on appropriate conguration of monetary policy frameworks and instruments, answers to these questions remain controversial and scanty for African economies. In order to address these questions, we formulate a New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model. In this model, money is non-separable from consumption in the utility function. We estimate the model using the Maximum Likelihood method with quarterly data mostly from 1990 to 2014. The data is obtained from the International Financial Statistics (IFS). The thesis has ve chapters. Chapter 1 is the general background to the research problem. Chapters 2, 3 and 4 are distinct but related core chapters addressing three specic research questions. Chapter 5 is the conclusion. In Chapter 2, we compare the performance of the monetary aggregate and the interest rate as alternative instruments for stabilizing ination and output in 10 selected countries. Results show that the monetary aggregate is superior in stabilizing 5 economies. In the other 5 countries, it is the interest rate instrument which performs better. In the former group of countries, the monetary aggregate plays a relatively large role in macroeconomic dynamics while in the latter the interest rate is more signicant. These results partly reect di⁄erences in nancial market development between the two groups of countries. Overall, we nd a weak role of the interest rate compared to the monetary aggregate in driving aggregate demand dynamics. The exchange rate is also found to be a key driver of macroeconomic dynamics. Our re v sults suggest three things: First, authorities in Africa need to be cautious of a blanket adoption of the interest rate as a sole monetary policy instrument. Second, authorities will nd it di¢ cult to stabilize economies using the interest rate based frameworks. Third, exchange rate stability is key to macroeconomic stability in Africa. In Chapter 3, we extend the authoritiesobjective function. In addition to minimizing ination and output volatility, authorities also use the interest rate or money supply rules to smooth exchange rate uctuations. The results show that macroeconomic performance is enhanced when authorities smooth exchange rate uctuations in 4 of the 10 countries. The gains from exchange rate smoothing mostly arise from a reduction in ination and exchange rate volatility but not fromoutput. In the other 6 countries, exchange rate smoothing worsens macroeconomic performance. These results reect the fact that the exchange rate exerts a relatively large inuence in macroeconomic dynamics in the rst group of countries compared to the latter. Exchange rate smoothing therefore minimizes the pass-through of the exchange uctuations to ination and output leading to better performance. Overall, the ndings suggest that exchange rate smoothing is harmful in Africa. Where exchange rate smoothing delivers gains, appropriate thresholdsofsmoothingneedtobeobservedtoavoidpolicyinducedmacroeconomic instability. Authorities should also smooth temporal rather that structural shifts in the exchange rate level. In Chapter 4, we compare the performance of ination targeting (IT) vis-vis nominal GDP targeting (NGDPT) as alternative monetary policy frameworks for macroeconomic stabilization. We examine the strict and exible versions of these policy regimes. We also include a hybrid regime which combines elements of IT and NGDPT. Results show that the hybrid regime performs better in 5 countries. In the other 4 countries, it is the strict ination targeting that performs better. In 1 country, exible ination tar vi geting is optimal. The results also reveal that demand shocks dominate but are closely trailed by supply and exchange rate shocks in explaining macroeconomic uctuations. The multiplicity of signicant shocks is key in explaining the dominance of the hybrid regime. The hybrid regime successfully handles shocks that can neither be optimally handled by the IT regime nor the NGDPT regime alone. These results have several implications. First, demand management alone is insu¢ cient to stabilize African economies. Second, identifying dominant shocks is critical for choosing robust monetary policy regimes. Third, the multiplicity of signicant shocks implies that choosing monetary policy frameworks and hence macroeconomic management process is more complex for African policy makers. Overall, the results have several policy implications which are outlined in Chapter 5. First, they suggest a cautious approach towards generalized adoption of the interest rate over the monetary aggregate as a monetary policy instrument in African economies. This contradicts the current wave of monetary policy changes sweeping across African countries. Secondly, the signicanceoftheexchangeraterenderscredencetoexchangeratesmoothing in Africa. The ndings, however, suggest that exchange rate smoothing can either enhance or worsen macroeconomic performance. Where it enhances macroeconomic performance, authorities must carefully consider the thresholds of smoothing to avoid creating macroeconomic instability. Authorities need not ght structural shifts in exchange rates levels through smoothing. This would help to preserve the shock absorbing role of the exchange rate. Finally, the prevalence of demand, supply as well as exchange rate shocks makes the hybrid monetary policy regime which combines elements of IT regime as well as NGDPT regime to perform relatively better in stabilizing the majority of the economies. Given the multiplicity of shocks, authorities inAfricaneedtocomplementdemandmanagementwithpoliciesthataddress supply side and exchange rate bottlenecks to ensure sustainable macroeco vii nomic stability. Overall, the ndings suggest that there is scope to improve monetary policy performance in Africa by adopting suitable frameworks and instruments. The results also highlight the problem of tackling monetary policy issues with a "one size ts all" approach.
An Experimental test of the endowment effect
(2017) Cohen, Justin Simon
In this study, I use a computer game based lab experiment to investigate the existence of the Endowment Effect. Previous empirical evidence has been criticised for failing to adequately account for the effects of transactions costs and other frictions. The structure of the game used in this study allows me to control for these effects, and the results provide evidence in support of the existence of an Endowment Effect. The effect is found to be stronger when transactions costs are present.
Impact of oil price shocks on stock returns: evidence from selected Southeast Asian economies
(2017) Siddiqui, Ammar Ahmed
This paper investigates the impact of oil price shocks on stock market returns in selected Southeast Asian countries. We selected five countries, those are Indonesia, Singapore, Malaysia Thailand and Philippine. We employ autoregressive distributed lag model (ARDL) and VECM model in the analysis. We model both positive oil price shock and negative oil price shock. We find that the real Brent price is positively correlated with all the stock markets in the selected countries. The results of ARDL model indicate that positive oil price shock exhibits a negative impact on the stock market returns while lag one negative oil price shock exhibits a positive impact on the stock market returns in the short run. However, only Indonesia and Singapore exhibit a significant response to positive and negative oil shocks in the ARDL model. The cointegration analysis indicates a long run causal relationship from oil price to stock market returns for Malaysia and Singapore. This result is confirmed by the error correction model with significant and negative but low speed of adjustment.
The arm’s length pricing for intra-group services – transfer pricing
(2017) Lee, Yi Ying
The purpose of this research report is to identify any improvements that can be made to the South African transfer pricing legislation for intra-group services. South Africa’s transfer pricing legislation for intra-group services will be compared to Aligning Transfer Pricing Outcomes with Value Creation, Action 8-10, 2015 Final Reports, OECD/G20 Base Erosion and Profit Shifting Project (‘BEPS Action Plan’) released by the Organisation for Economic Co-operation and Development (‘OECD’). The Action 10 of the BEPS Action Plan introduces a simplified transfer pricing approach for low value-adding intra-group services. The simplified approach aims to reduce base erosion payments through excessive management fees and head office expenses (OECD, 2015:141). According to Verlinden and Katz (2015:1): ‘… the simplified approach lowers the burden on multinational enterprise groups to demonstrate the beneficial nature of the low value-adding activities for other MNE group members; and allows for an elective approach for reducing the administration involved in the pricing of low value-adding services. The OECD is achieving an appropriate balance between theoretical sophistication and practical application that is commensurate with the tax at stake in the countries paying and receiving the charges … .’ This approach will benefit tax authorities with limited resources in performing transfer pricing audits enabling them to verify the arm’s length nature within the intra-group services charge (Watson, 2015:8). Key words: Anti-avoidance, BEPS Action Plan, Transfer Pricing, Arm’s Length Method, Arm’s Length Price, Intra-Group Services, Low Value-Adding Intra-Group Services, Comparable Uncontrolled Price Method, Resale Price Method, Cost Plus Method, Transactional Net Margin Method, OECD Guidelines, OECD.
A critical analysis into the Organisation for Economic Co-operation and Development ‘Standard for Automatic Exchange of Financial Account Information in Tax Matters’
(2017) Mohanlal, Dhanesh
The impact of the Organisation for Economic Co-operation and Development’s Standard on Automatic Exchange of Financial Account Information in Tax Matters has a significant impact on Financial Institutions globally. This paper aims to critically evaluate the current South African legislation and the obligations it places on financial institutions. The research also highlights the challenges faced by a financial institutions in interpreting and implementing the often complex requirements of the regulations with a particular focus on the following areas namely customer on-boarding and enhanced due diligence procedures, monitoring of accounts, remediation of the existing customer base, system development, and reporting to the South African Revenue Service. The research also looks into the readiness of developing countries in implementing the Automatic Exchange of Information. The research concludes with a discussion into the appropriateness of South Africa’s decision to agree to be one of the early adopters of this legislation despite the challenges identified above. Key Words: OECD, Standard on Automatic Exchange of Financial Account Information for Tax purposes, Common Reporting Standard, Financial Institutions.
Reconstruction and recovery process of the 2007/2008 post-election violence victims in Kenya
(2017) Kinyeki, Julius M.
This research addresses three questions: how Internally Displaced Persons (IDPs) following the post-election violence of 2007/2008 in Kenya are recreating their community resilience capacities; how the Kenyan government and non-state interventions are influencing the victims’ livelihood strategies towards their reconstruction and recovery process and how social support and social capital has accelerated their reconstruction and recovery process. It proposes a post-conflict reconstruction and recovery approach based on the research findings. The research adopted Qualitative research methodology and primary data were collected from the month of January, 2015 continuously and concurrently with data analysis. The key findings were that ownership of land is perceived and identified as a milestone in the process of post-conflict reconstruction and recovery, an avenue for community resilience. The main means of livelihood for IDPs are casual labour and other menial jobs. The Kenyan government has made an effort towards resettlement of IDPs although this is ad hoc and ineffective due to lack of experience and a specific framework for any major resettlement. NGOs abandoned the reconstruction and recovery projects as soon as the humanitarian crisis ended. But the United Nations Development Programme (UNDP) had reconstruction and recovery projects which ended in 2011. In displacement, IDPs lost their original support system, but developed new emergent norms to support each other. Integration of IDPs is a better option in the reconstruction and recovery process compared to the government farm resettlement approach. The key recommendations are that government should evaluate the economic loss of every integrated IDP and those resettled in government procured farms should be provided with legal ownership documents. There should be an urgent re-profiling of IDPs in camps and use of UN Guiding Principles on IDPs to re-integrate them into society. The findings of this research bring to light new knowledge on the theory of social capital: victims of displacement develop new emergent norms, values and culture to support each other, which eventually creates a new society/community. Key Words: Post-conflict reconstruction and recovery; integrated IDPs; government resettled IDPs; camp-based IDPs; social capital: social support; livelihood strategies.
The implementation of Section 139(1) of the Constitution in the Ngaka Modiri Molema District Municipality
(2017) Kampi, Zoliswa
The Ngaka Modiri Molema District Municipality (NMMDM) is situated in the North West Province, South Africa. It has persistently been placed under provincial administration (s139 (1) of the Constitution) and continuously resisted the interventions including taking legal actions against the North West Provincial Executive. The objectives of the research study were to explore and provide insights into the factors that informed and impacted the planning and implementation of s139(1) interventions in the NMMDM, and to explain how these factors either promoted or undermined the success of these interventions. From the literature review undertaken, the researcher drew critical themes and concepts that underpin the research study. The leadership and governance theories provided the theoretical perspectives and the principal-agent theory underscored the conceptual framework. In line with the exploratory nature of the research study, the qualitative research method was preferred and the NMMDM was adopted as a single case study to get a deeper understanding of the intricacies involved in the planning and implementation of s139(1) interventions. The researcher obtained the primary data through semi-structured interviews with the municipal leadership and used document analysis to gather secondary data. The research findings revealed the richness and complexity of the local government discourses. Through analysing the results of these discourses, a number of critical aspects that informed and impacted these interventions in the NMMDM emerged. These aspects range from the nature of to the quality of support provided to the NMMDM prior to the interventions. These include the communication of the directives and notices to assume responsibility, details given on the rationale for the interventions, political dynamics and their influence on reactions to the interventions, capacity of the province to plan and implement the interventions, and perceptions of the impacts of the interventions. Nevertheless, it is not the intention of the research study to generalise the findings but to present them as they manifested in the NMMDM.

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