3. Electronic Theses and Dissertations (ETDs) - All submissions
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Browsing 3. Electronic Theses and Dissertations (ETDs) - All submissions by SDG "SDG-8: Decent work and economic growth"
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Item Analysing the influence that macroeconomic factors have on the returns of South African real estate investment trusts(2022) Taylor, JaneReal estate investment trusts (REITs) have become a popular investment vehicle for investors seeking to gain exposure to the real estate market. The South African REIT regime came into effect on 1 May 2013 and since then, the South African REIT market has been characterised by notable return volatility. This raises the question as to whether changes in key macroeconomic factors influence South African REIT returns, and if so, to what extent do changes in macroeconomic factors have on the returns of South African REITs. Notably, limited empirical research has been conducted to analyse the impact that macroeconomic factors have on South African REIT returns. As such, the aim of this study is to analyse the influence that economic growth, inflation, interest rates, and the stock market have on the returns of South African REITs. Particularly, the overall South African REIT market as well as the prominent REIT property subtypes in South Africa including the retail, office, and industrial sectors are investigated. To estimate and evaluate the relationships between the stated macroeconomic factors and South African REIT returns, vector autoregression models and vector error correction models are employed. The results reveal that South African REIT returns are significantly positively associated with economic growth, inflation, and stock market returns whereas they are significantly negatively related to interest rates. However, changes in these macroeconomic factors only explain a small percentage of the variability in REIT returns. Importantly, the findings of this study are consistent with what has been observed in other global REIT markets except for inflation in which a negative association has generally been reported. The results of this study strengthens the field of REIT research by adding to the existing body of knowledge of what is currently known about South African REITs. From a practical standpoint, this additional insight may assist REIT asset managers, real estate collective investment scheme fund managers, and investors with portfolio construction and risk management decisions.Item JSE-listed firms and M&A’s: where is the economic value?(University of the Witwatersrand, Johannesburg, 2020) Taylor, Amir; Page, DanielThis research empirically assesses the stock price reactions to mergers and acquisitions announcements by JSE-listed target and acquirer firms. The following is assessed over the defined windows: the target and acquirer firms, the method of funding (cash or stock) for both target and acquirer firms and lastly industry mergers with target and acquirer firms grouped together and separately. Data is collected for 87 merger deals, consisting of 87 target and acquirer firms. The period assessed is from 1990 to 2019. The event study methodology and hence the market model are employed as the primary methodology, with the net-market-returnmodel employed as a robustness check. T-tests, paired t-tests and a one-way ANOVA model are employed to test for relative significance. The results in this study are unique and contribute to how the South African market views M&A announcements. Hence this will influence the contemporary understanding of the South African economy towards M&A’s.