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Item A comparative analysis of the impact of Covid-19 and the global financial crisis on capital structure: Evidence from the Johannesburg Stock Exchange(University of the Witwatersrand, Johannesburg, 2023) Mjeso, Thandiwe; Chipeta, ChimwemweSince Modigliani and Miller (1958) introduced the modern theory of capital structure, various studies have been conducted on capital structure. This study contributes to the existing capital structure literature by investigating how the Covid-19 pandemic impacted the capital structure of Johannesburg Stock Exchange (JSE) listed non-financial firms and comparing this impact to that of the 2008 global financial crisis. Furthermore, this study seeks to determine the relationship between capital structure and fundamental firm factors (business risk, profitability, firm size, growth, and asset tangibility). To conduct this analysis, the financial data of these firms for the 2005 to 2022 period is extracted from Bloomberg and the Generalized Method of Moments (GMM) model is used to conduct the analysis of this study. The results of this study indicate that Covid-19 did not have a statistically significant impact on the capital structure of the JSE listed non-financial firms whereas, the 2008 global financial crisis had a statistically significant impact. Overall, the results of this study are consistent with the empirical evidence reported by previous studies, and they provide evidence in support of both the trade-off theory and the pecking order theoryItem A gendered analysis of labour market outcomes in South Africa during Covid-19: Evidence from the Quarterly Labour Force Survey(University of the Witwatersrand, Johannesburg, 2023-06-22) Selman, Cheryl-Lyn; Casale, DanielaThe global financial crisis of 2008-2009 disproportionately affected men’s employment. As has been the case in previous economic slumps, industries like manufacturing which predominantly employed men, experienced deeper declines (Mosomi et al 2020). However, soon after the Covid-19 pandemic started spreading globally, early predictions were that women would be hit harder by the Covid-19 crisis than men, because of the kinds of sectors (i.e. industries) and jobs (i.e. less secure, part-time, not UIF registered etc.) in which women dominated (Alon et al 2020; Dingel and Neiman 2020; Joyce and Xu 2020, Mongey and Weinberg 2020; Mosomi et al 2020), and also because of their role in childcare. Growing empirical research suggested this was indeed the case. In addition, women’s employment was slower to recover than men’s as economies reopened (Mosomi et al 2020, Casale and Shepherd 2021), and pre-Covid inequalities had worsened (Casale and Shepherd 2021). The gender gap persisted, even once occupation fixed effects and the proportion of work-from-home tasks as well as education had been used to account for individual differences in workforces in the UK and US (Adams- Prassl et al 2020).Item A Machine Learning Approach to Corporate Bankruptcy Prediction Using BERT-Based Sentiment Analysis(University of the Witwatersrand, Johannesburg, 2023-03) Mhlambi, Lwazi Lungile; Seetharam, YudhvirThe study of bankruptcy prediction has centred on whether firm level information is predictive. Seminal work by Altman (1968) articulates the failure of a business utilising its financial variables that are associated and classified in part to either the liquidity, profitability, solvency, leverage, or activity of a corporation. While this understanding is intuitive, recent studies have broadened the scope of financial ratios used in this prediction as well as incorporated exterior forces affecting the firm, either at an enterprise-wide or an economic-wide level to predict corporate bankruptcy. In the same breath, one cannot ignore the insider knowledge that the leaders and managers of firms would have leading to corporate bankruptcy. Therefore, this provides a curious opportunity in which we can incorporate the sentiment in the analysis provided by the leaders of such firms as an input in predicting the bankruptcy of a given firm. This study applies the Bidirectional Encoder Representations from Transformers (BERT) based sentiment analysis approach to import human sentiment as a variable from corporate disclosure data and apply it to existing corporate bankruptcy models over the period between 1995 to 2022 in South Africa, the United Kingdom and the United States of AmericaItem An Essay on the Welfare and Growth Implication of the Energy Mix in the South African Economy(University of the Witwatersrand, Johannesburg, 2023) Sesele, Masedi; Kutela, GeloThis study investigated the welfare and growth implications of introducing renewable energy in South Africa’s energy mix. The investigation is divided into three chapters, providing a holistic analysis of climate change mitigation on developmental goals in South Africa. The first chapter determines the impact of the usage of non-renewable energy sources on selected sectors’ economic output in South Africa. The second chapter determines the pass-through effect and the response of consumer prices to renewable energy share increases in South Africa while using the exchange rate as a threshold. The third chapter determines through a natural experiment the impact of renewable energy policies such as the White Paper on the Energy Policy of the Republic of South Africa (1998), the White Paper on Renewable Energy Policy (2003) and the Integrated Resource Plan (2010) on South Africa’s economic growth by comparing the gross domestic product (GDP) growth path before and after the introduction of these policies. Results from the second chapter showed that coal was the least contributing factor to production for most sectors, showing that excessive coal usage may hinder economic output within the country. Petroleum has a positive and significant effect on the transport and agriculture sectors but has less of an effect on the other sectors. Electricity is a major contributing factor to production in some sectors, except for the industry sector, which may be adversely affected by the increasing electricity costs and constant load shedding in the country. Results from the third chapter showed that at an exchange rate threshold value of 7.7 R/$, the share of renewable energy pass-through to consumer prices is statistically significant below and above the threshold exchange rate value. When the exchange rate is above the threshold value, the pass- through effect is negative, indicating that an increase in the share of clean energy will decrease consumer prices. These results are largely attributed to the cost of renewable energy, which has been declining significantly in periods where the exchange rate was above the threshold value and, as a result, it had a negative pass-through effect on consumer prices. Results from the fourth chapter showed that each of the three green energy policies has a positive impact on the GDP, which shows that implementing renewable energy policies in South Africa has not only resulted in generating clean, renewable energy but also fosters economic growth within the country. Using a natural experiment, the study constructed a synthetic GDP growth path that vi would have been in place had there been no renewable energy intervention and compared it with the current GDP growth path post the intervention of renewable energy policy to identify the causal positive impact of green energy on economic growth. This thesis’ results encourage policymakers to further implement and improve renewable energy policies as the share of clean energy within South Africa’s energy mix not only mitigates climate change by decreasing greenhouse gas emissions but also positively affects economic growth by creating a clean ecosystem, job creation, increasing innovation and capital formation and overall improving total factor productivity in South Africa and the standard of living of ordinary South AfricansItem An investigation of the relationship between ICT infrastructure and economic growth of emerging market(University of the Witwatersrand, Johannesburg, 2023-02) Jiang, Jun Wen; Fasanya, IsmailThe study examines the link between Information and Communication Technology, institutional quality, and economic growth in emerging markets over the period of 2000 to 2019, using the system Generalized Method of Moments. The connection between economic growth and technology lies on the framework of exogenous growth model. The following findings are discernible from the study. First, a substantial positive relationship exists between internet usage and economic growth, while a negative association between economic growth and fixed telephone users is evident. Second, a positive association between growth and innovation exist in emerging markets, whilst institutions reveal a negative association. These findings have a significant policy implication for policymakers to monitor innovation factors rather than institutional quality to bypass the digital divide. Consequently, policymakers should pay attention to the benefits of Information and Communication technology usage by means of reducing entries cost whilst improving network facilities transfersItem Analysis of cultural identity mix within Chinese banks operating in South Africa(University of the Witwatersrand, Johannesburg, 2023-04) Mongalo, Theodora Thandekile; Volker, CordeliaBanking in South Africa has evolved with the internationalisations of banks over the years. As at 31 December 2021, there were 31 banks operating in South Africa. Of these, 13 were local branches of foreign banks, employing both home and host country nationals. The blend of nationalities in these banks results in a cultural mix. The aim of the study is to understand structural consensus in a setting that has a cultural mix. The structural consensus theory states that socialisation within a setting is guided by rules and behaviour, and these form the culture in the setting. To understand this, the researcher analysed the cultural identity mix in a Chinese bank operating in South Africa, guided by the work- related cultural dimensions used in studies of cross cultures. The cultural dimensions were applied to communication, conflict management, decision making, leadership and employee satisfaction. The study followed a deductive approach, on a single case study which allowed the researcher deep engagement with participants. Qualitative data was collected by way of semi-structured interviews from participants, representative of the cultural identity mix in the case. Focus was on understanding how cultural values affect communication, conflict and conflict management, decision making and leadership support. The aim of the researcher was to verify whether the assumption in the literature on cultural dimensions hold, in the selectedcase and how / if there is cultural consensus and social consensus. The data collected was analysed through the application of Colaizzi’s strategy, a data analysis method that allows for exhaustive approach to understanding the everyday lived experience in a social setting. The study reveals some similarities and some differences in the cultural values and beliefs of Chinese and South Africans. The two national cultures were found to display different values when communicating. These differences create barriers to social order. The cultural identity mix further displayed conflicting values in their approach to conflict and conflict management. The adopted values to conflict and conflict management are those of the Chinese culture and this creates an illusion of social order. Hierarchy was found to play an important role in decision making and involvement in the decision making process. Both cultures displayed respect for hierarchy and therefore there was social order when it comes to decision and decision making. Leadership and the support they offer was situational and supported the theory that states that leaders create a culture within an organisation. The outcomes of the study will contribute to existing literature and close gaps in existing literature. The first contribution is that culture is innate, secondly cultural dimensions can be partially used to explain cultural values, but they necessarily reflect the values of individuals. The study also provides support that culture is learnt and this results in tools for cultural and social consensus where there is a cultural identity mix. Another contribution of the study is the understanding of the Chinese and South African national culture, and emphasis on the strong cultural values of Confucianism for Chinese and Ubuntu for South Africans. Future research is recommended to focus on limitations of the study which include a replication of the study on a different population in order to add to the dependability and credibility of the results. Another recommendation is for a study that distinguishes between the various sub- cultures within the blanket South African cultureItem Analysis of tax relief measures as a result of the covid-19 pandemic in south africa, compared with the tax measures of other members of the brics group(University of the Witswatersrand, Johannesburg, 2023) Selemela, Elsie; Ram, Asheer J.The purpose of this report is to analyse tax relief measures that were taken as a result of the COVID-19 outbreak in South Africa, evaluate the approach taken and compare it with other countries in the BRICS international organisation. The COVID-19 pandemic caused numerous company closures and employment losses (IMF, 2020). Governments worldwide had to intervene to support their citizens and keep businesses afloat (IMF, 2020). In order to maintain widespread access to essential goods and services, taxation is crucial (IMF, 2020). The dire effect on economic activities around the world influenced tax laws (IMF, 2020). It fell to tax administrators to ease the tax burden on taxpayers as they were facing hardships (OECD [Organisation for Economic Co operations and Development], 2020). The International Monetary Fund (IMF) states that the design of tax systems can help stabilise economies when faced with crisis (IMF, 2020). The South African government implemented tax relief measures because of COVID-19, although taxpayers are still experiencing the detrimental effects of COVID-19. It is the government’s wish to offer additional help to businesses and individuals who are still facing these hardships and also assist in rebuilding businesses (SARS, 2021). This report will look at tax measures that were taken by South Africa in comparison to those that were taken by Brazil, Russia, India and China to determine the usefulness of these measures in dealing with the effects of COVID-19 on taxes. Some measures were introduced for a short time and therefore are no longer applicable, but it is important to consider them in this report because they might have long-term effects on taxes. The findings of this analysis indicate which measures were used, when they were implemented, and how taxes in the BRICS countries changed while adjusting to COVID-19. It was found that tax policies put in place in South Africa were unjustified since they decreased tax collection without any measures in place to boost it (IMF, 2020). Examining what other BRICS nations were doing to increase tax collection during the COVID-19 outbreak can help identify areas for improvement.Item Anxious Vigilance – An investigation of the relationship between Optimal Managerial Ownership and Firm Value on the JSE(University of the Witwatersrand, Johannesburg, 2022) Muhlarhi , Tiniso Willie; Seetharam, YudhvirManagerial ownership has been advanced as a more effective corporate governance mechanism in minimising agency related costs by aligning the interests of managers with those of shareholders. This study examines the effects of equity ownership, using different ownership groups, on firm value of firms listed in the South African stock exchange to ascertain whether equity ownership results in well governed firms with higher firm value over the period of 2010 to 2020. The results are largely consistent with those in emerging markets, the results document that there is no statistically significant direct relationship between equity ownership and firm value. M ore so deviations from optimal equity ownership, both below and above optimal equity ownership, does not reduce firm value. The results also show that a portfolio of ownership firms (which refers to firms in which CEOs, the Executive Team, and Insiders (general employees) have equity ownership in the firm) outperforms a portfolio of non-ownership firms over the period 2015-2020, this aspect is more consistent to results reported in developed markets. Overall, managerial ownership does not appear to be an effective mechanism to aligning interest of shareholders and their managers in the South African landscape, other alternatives such as debt are proposedItem Bank regulation, cross-border banking and interest rate pass- through in Sub-Saharan Africa(University of the Witwatersrand, Johannesburg, 2023-03) Gondwe, Sopani; Mahonye, NyashaThe thesis comprises five interrelated chapters that seek to advance empirical literature on banking and financial sector stability (risk) by focusing on some salient regulatory and monetary issues of policy relevance and interest to developing countries of Sub-Saharan Africa (SSA). The market structure and regulatory environment in which banks operate in SSA have significantly changed over the last two decades, and the banking systems of a number of countries have also markedly grown during this period. For instance, and especially after the global financial crisis (GFC), supervisory authorities in most countries introduced new regulations, and/or in some cases, enhanced their existing bank regulatory frameworks to conform with international best practice and standards. However, questions have been raised as to whether developing countries like those in SSA need to adopt international regulatory standards indiscriminately – and whether the benefits arising from the adoption of such policies or standards outweigh the costs. At the same time, the SSA region has witnessed significant penetration of foreign banks – a development that has heightened the risk of financial contagion and cross-border spill over effects. In most countries, there have also been considerable changes in the design and implementation of monetary policy over the past two decades. These changes have triggered a considerable debate on whether and how regulatory and structural factors in the financial system impede or facilitate monetary policy transmission – a debate that, as yet, is not fully settled. This study interrogates the above issues by focussing on three related questions. First, how do regulations – that are based on international best practice and standards, impact or shape risk- taking behaviour (i.e. stability) of banks in SSA? Second, what are the banking sector stability implications of increased foreign bank penetration in the host countries? Finally, how does competition and capital regulation affect the transmission of monetary policy to commercial banks’ lending and deposit rates i.e. the interest rate pass-through (IRPT) in SSA? In addressing each question, the study applied panel econometric analyses using bank and country-level data. The data was obtained from various sources, namely; Bankfocus database, the World Bank Regulatory and Supervision Surveys (BRSSs), IMF International Financial Statistics (IFS), IMF Financial Soundness Indicators (FSIs), World Bank Governance Indicators (WBGIs), Global Financial Development Database (GFDD, 2019), and The Heritage Foundation.Item Between Stability and Sovereignty: The Implications of the CFA Franc Adoption for Peripheral Economies in the Currency Hierarchy(University of the Witwatersrand, Johannesburg, 2023-06) Diallo, Aissata; De Conti, Bruno; Tinel,, BrunoThe current composition of the International Monetary System (IMS), following the dissolution of the Bretton Woods system, has changed significantly. In the past, the system was characterized by fixed exchange rates, strict capital controls, and general economic stability. However, recent decades have been characterized by financial deregulation and liberalization, with the gradual removal of capital controls and the widespread adoption of flexible exchange rates. As part of this reconfiguration of the IMS, the dichotomy between center and periphery has intensified: Developed countries have secured a dominant position within the global capital system thanks to their highly liquid reserve currencies, giving them the leeway to tailor economic policies to their domestic needs. Conversely, developing countries have become more vulnerable to external shocks and are subject to the volatility of exchange and interest rates in this asymmetric system (see, e.g., de Paula et al., 2017; Fritz et al., 2018; Palludeto & Abouchedid, 2016). These inequalities have been highlighted in the theory of currency hierarchies, a post-Keynesian framework. This theory posits that the IMS is determined by the exchange rate regime, the degree of capital mobility, and the currency hierarchy. The latter is based on the premise that not all currencies can efficiently perform the traditional functions of money – a unit of account, means of payment, and store of value – at the international level. The consequence is a liquidity hierarchy, with developing countries at the bottom of this pyramid (de Paula et al., 2017; Palludeto & Abouchedid, 2016).Item Do Domestic Yield Curves in Emerging Market Economies Prove to be Useful in Forecasting Future Economic Growth?(University of the Witwatersrand, Johannesburg, 2022) Gosai, Rushai; Britten, JamesMuch has been said and researched about the term spreads ability to forecast the path of Gross Domestic Product (GDP) in developed economies. The relationship holds that should the yield spread turn negative that this indicates that future GDP will retract and that a recession is eminent. At the back end of 2019, the subject found prominence again as the yield spread measured by the ten year government bond and the three month Treasury Bill (Tbill) turned negative. The Federal Reserve Bank of America (The Fed) lowered interest rates in the hope that lower borrowing costs would stimulate the economy and lead to an increase in aggregate demand. It then follows, could the domestic yield curve spread perhaps be suitable in forecasting domestic Emerging Market (EM) GDP growth? This research highlights the EM experience whilst still testing the ability of the yield curve in the US to predict future economic growth. The framework based on the work of Bosner-Neal and Morley (1997), found over the horizon of 1980 to 2020, for the EM countries of Brazil, Russia, India, China and South Africa (BRICS) unsupportive evidence that the domestic yield curve spread is a suitable indicator to forecast future GDP growth.Item Economic and Institutional determinants of financial development for bank dominated and stock market-based economies in the SADC region(University of the Witwatersrand, Johannesburg, 2022) Mogale, Etumeleng; Mahonye, NyashaThe study examines the determinants of financial development from the bank-dominated economies (Angola, Lesotho and Madagascar) versus the bank and stock market-based economies’(Mauritius, Namibia and South Africa) point of view for the selected SADC countries. The study further examines which economies develop more over time between economies that are bank-dominated and those that have both the banking sector and the stock markets. Using a panel dataset that spans from 1996 to 2018 - which was sourced from the World Development Indicators (WDI) - the study utilized the Autoregressive Distributive lag (ARDL) techniques to separately model for the banking system and the stock market which allowed for the unpacking of any short-run and long-run contributors to the financial sector development and thus capture any possible links between the explanatory variables and the financial development proxies, domestic credit to the private sector and market capitalization. The study found that the banking sector development is influenced by GDP growth rate, foreign direct investment, governments debts, trade openness and the rule of law while the stock markets are largely driven by GDP growth rate, inflation, trade openness, rule of law and regulatory quality. Furthermore, the study found that the banking sector does benefit from the presence of stock markets and that over time economies with both financial sectors tend to develop more than bank-dominated economies and that they are less prone to external shocks. The contributions to the existing body of literature are by critically looking at the drivers or deterrents of financial development in the SADC region so that the appropriate policy prescriptions can be formulated and implemented with the broader view of closing the infrastructure gap that exists within the region. By separately modelling the two financial sectors the study was able to see indicators that are the driving force in each sector and which economies – bank-dominated vs stock market-based - tend to do well over time.Item Economic growth and public debt: patterns and lessons between advanced, emerging, and declining growth economies(University of the Witswatersrand, Johannesburg, 2023-09-08) Shamu, Mbali N.D.; Bhoola, FatimaThis research investigates the causal relationship between economic growth and public debt for economies in different growth categories: advanced, emerging and declining-growth economies, the latter being a new category introduced by this study. The study aims to answer the question: Does the level of economic growth affect public debt accumulation? The results reveal that in advanced economies growth is not a significant explanatory variable for public debt accumulation nor is there a significant long-run relationship between growth and public debt. For emerging and declining growth economies, the opposite holds- economic growth is a significant explanatory variable for public debt accumulationItem Estimating the non-price determinants of meat demand in South Africa(University of the Witwatersrand, Johannesburg, 2023) Beghin, Alice; Dikgage, JohaneThere is a pressing need to reduce our environmental footprint, mitigate food-related public health concerns, and ensure sustainable food systems. However, the overconsumption of meat directly undermines these needs. In order for policymakers to adapt policies to reduce the overconsumption of meat, an improved understanding of the drivers behind the demand for meat is required. Meat consumption per capita in developing economies has surpassed levels in developed countries, and is projected to continue increasing. We use South Africa as a case study, given that it is an emerging economy that is characterised by increased meat consumption since 1994. This trend correlates with (and is driven by) increasing per capita income and prices. South Africa’s diverse population (with widely varying incomes and cultures) complicates the regulatory framework required to reduce excessive meat consumption. To support consumers in making environmentally sustainable dietary protein choices, this study aims to gain a deeper understanding of meat-consumption behaviour by consumers, segmented on the basis of their meat consumption. Results were obtained through a 2015 survey of 600 community-dwelling household heads in Gauteng, South Africa. Three segments of consumers were identified by means of a two-step cluster analysis: heavy, average, and low meat consumers. The segments differed significantly in several socio-demographic and background characteristics. The segmented evaluation of consumer groups was confirmed by analysis of variance (ANOVA), which found statistically significant differences of mean weekly meat consumption amongst the three groups. To evaluate the non-price determinants of meat consumption, OLS, Poisson, and negative binomial models were run, and average marginal effects of a negative binomial model were analysed for both the separate consumer groups and the consumers as a whole. It was found that the importance of sustainable living shaped meat consumption for low and average meat consumers. Heavy meat consumers were driven by their enjoyment of the taste of meat and the centrality of meat in their meals. Behavioral economics-based nudges could prevent the overconsumption of meat in South Africa such as using environmental concerns to frame a meat reduction strategy, and challenging the link between meat consumption and gender identityItem Examining the relationship between household debt and economic performance in South Africa(University of the Witwatersrand, Johannesburg, 2023-02) Karombe, Stephen; Fasanya, IsmailHigh level of debt has been a major concern in the South Africa recent times. The prevalence of high debt levels hinders savings and investments, thus exerting a detrimental influence on economic growth. This surge in debt can be attributed to the consumer boom experienced in the past decade and the recent proliferation of credit cards, which have made it easier for consumers to access goods and services. This study evaluates the link between household debt and economic performance and characterises the implications of changes in household debt on economic growth in South Africa using the Toda Yamamoto VAR framework, using quarterly data covering the period 2008Q1 to 2022Q2. The connection between household debt and economic growth lies in the Life Cycle Hypothesis. The following findings are discernible from the analysis. First, the study finds that there is a bi-directional relationship between economic growth and mortgage loans and a unidirectional relationship between economic growth and household debt to disposable income ratio. Second, household debt to disposable income has a significant impact on economic growth, whilst the debt service ratio insignificantly affects economic growth with a smaller margin. Third, economic growth responds positively to mortgage loans, while a positive response to household debt exists which is transitory and positive. These results suggest that policymakers should encourage economic agents to take mortgage loans to boost economic growth in the short run. Household debt may be used to boost the economy in the short run but may deter economic growth in the long run. In the meantime, nothing maybe be done in items of debt service ratio as it has no significant impact, however, constant monitoring may be applied to avoid creeping in of debt overhang in the future. Access to household debt should be monitored and controlled since high debt significantly impacts economic growth in the long runItem Gender-union wage gap in South Africa: an unconditional quantile regression & coarsened exact matching approach(University of the Witwatersrand, Johannesburg, 2023-06) Hlapisi, Nthabiseng; Gwatidzo, TendaiSouth African women have been fairing badly in the labour market compared to their male counterparts since pre-colonial times due to both cultural and legal restrictions (and discrimination). Despite the corrective measures (e.g. legislation changes) that were introduced by the South African government post-apartheid to improve women’s social status, labour market conditions remain unfavorable for women. Labour unions are actively advocating for gender equality as well as higher and more equitable salaries. However, the extant literature on unions and wages pay more attention on the impact of unions and wages. There is paucity of literature on the moderating role of unions on the gender-wage inequality. This study contributes to the literature by investigating the impact of labour unions on the gender-wage inequality in South Africa, using the National Income Dynamics Study (NIDS) data obtained from the DataFirst website for the 2008 to 2017 waves. Furthermore, this study uses more recent econometric techniques, viz. unconditional quantile regression (UQR) and coarsened exact matching (CEM) methods with interaction effects, on a panel of 12,881 individuals. These methods are superior than the ones used in the extant literature as they control individual heterogeneities, sample attrition and selection bias that may arise from individuals’ decisions to join unions. Both the CEM and UQR results suggest a strong positive relationship between unions and wages in South Africa. In addition, both models suggest that labour unions narrow down the existing gender-wage gap in South Africa. However, this impact is weakened at higher-ends of the income distribution as the magnitude by which unions reduce the gender-wage gap reduces at higher percentiles (i.e. the 75th and 90th percentiles). This is possibly due to high-incomeearners being individuals with higher productive abilities (such as higher levels of education and additional skills) and therefore having more bargaining power to negotiate their own wages in the absence of unions. Another possible explanation could be that high productive abilities are a signal to employers that an individual will be able to do the job better than individuals with low productive abilities. This leads to employers being able to better estimate wages for such individuals outside the bargaining power of unions. These findings are important as they indicate that either unions have a weakened bargaining power for high-income earners, or that the high-income earners experience less gender-wage discriminations. It is therefore worthwhile for policymakers to analyse such trends before implementing “one-for-all” union policies and other related policies aimed at reducing gender inequalityItem Graduate employment : does field of study matter?(University of the Witwatersrand, Johannesburg, 2023) Seilane, MpumeleloSkills shortage with graduate unemployment at face value appear as a contradiction in terms. However, this is emblematic of the South African economy. Albeit that the South African government invests a tremendous amount of resources towards the massification of higher education a significant proportion of graduates cannot find success in the labour market. Chief amongst the reasons why the South African government has taken this human capital investment path is to address the economic outcomes engendered by the historical policies of racial exclusion. Preferential access towards higher education institutions for previously disadvantaged individuals has been used as the weapon to combat poverty and inequality. However, having unemployed graduates in an economy severely lacking skills to grow is counter to the objective of reducing social inequality. The literature is at odds with regards to the relevance the field of study a graduate comes from in determining the prospects of success of a graduate in the labour market. So, with the use of the Quarterly Labour Force Survey (QLFS) dataset spanning from the first quarter of 2015 to the last quarter of 2019, this article employs a multinomial logistic regression model to investigate the correlates of employment amongst graduates in South Africa. The results indicate that graduate unemployment is fundamentally structural and therefore the field of study that a graduate comes from matters.Item Herding Behaviour and Equity Market Liquidity in the Johannesburg Stock Exchange(University of the Witwatersrand, Johannesburg, 2023) Rip, Kyle Christopher; Britten, JamesThis study tests the relationship between equity market liquidity and herding behaviour in the aggregate market portfolio in a South African context and found evidence of herding behvaiour when conditioned on liquidity. The “aggregate market portfolio” refers to the average consensus of all market constituents- in this case the JSE. The analysis is performed through liquidity quartiles on the whole sample period as well as in specific sub-periods with alternative measures of liquidity. The sample period covers January 2000 to December 2021. The results show that a higher level of equity market liquidity is associated with an increase in the tendency for investors to herd towards the market consensus (reduced return dispersions as a result of clustering around the mean market return). However, this research shows that the relationship is dependent on the time period analysed and that the relationship may no longer hold when the relative level of market liquidity (the distribution of daily market liquidity levels) changesItem Idiosyncratic risk in the South African stock market(University of the Witwatersrand, Johannesburg, 2023-08) Scrooby, Caleb; Page, DanielTraditional finance theory posits that risk and return are linearly related. Higher returns are to be expected with greater risks. Modern portfolio theory champions for diversification of portfolios, which reduces risks unique to a firm to zero. This unique risk is known as idiosyncratic risk. Studies have come along and challenged the conventional wisdom in finance. Several studies have found that idiosyncratic risk is compensated for in many markets, partly due to poor diversification opportunities and partly because market risk alone is not sufficient to explain returns. This study tests if lagged idiosyncratic risk is associated with stock returns in the South African stock market for the period between 2001 and 2022. The study examines if investors are compensated, through higher returns, for holding firm-specific risk, in a market where full diversification may not be possible. This study also adds to the ongoing discussion on the degree and importance of price anomalies in an emerging stock market as well as the impact of idiosyncratic risk in determining predicted stock returns. This study utilizes a portfolio strategy that buys stocks with high idiosyncratic volatility and shorts stocks with low idiosyncratic volatility. The rationale for this is that if investors are compensated for assuming higher unsystematic risk, the alpha of this long-short portfolio should be positive and significant. This study instead found the opposite, which is that the alpha’s of these portfolios were negative and statistically significant. This suggests that investors who hold stocks with lower idiosyncratic volatility are compensated more than investors who hold stocks with higher idiosyncratic volatility. The robustness checks confirm this finding, as it was noted that portfolios continue to have statistically significant alphas following months of low volatility, with the long-short IVOL portfolios outperforming all other portfolios. The alphas remain negative and significant even when controlling for size and value in two-way sorts. Idiosyncratic volatility is therefore negatively related to stock returns, a puzzling resultItem Income related health inequalities associated with Covid 19 pandemic in South Africa: evidence from wave 4.(University of the Witwatersrand, Johannesburg, 2023-05-26) Zulu, Abongile; Oyenubi, AdeolaEven though there have been some observable significant developments within the average level of diseases and rates of mortalities in many nations (developed and developing), health inequalities that exist within and between various nations, within social groupings and different religious groups have expanded in the last years (CSDH/WHO, 2007). Respectively, this increase in health inequalities has been a growing concern for many governments across the world. Also, civil society organisations and other organisations operating internationally have been more concerned on how they would go about reducing these inequalities (CSDH/WHO, 2007). On this point, the World Health Organisation has noted previously that the most efficient way for health care sector to contribute to the lessening or reduction of disparities existing in health is by establishing a good systems and procedures of primary health care. The contribution of a well established primary health care system is through the realization of various mediations in order to deal with the social determining factors, and these are social and economic conditions that are inclusive of the health care system structure that is influenced by resources, power and the distribution of money that consequently influence separate and group differences existing within the status of health (Burger & Christian, 2018). The most recent available evidence suggests that primary health care principles and values, equity in health, people centred care and subsequently a most important part for communities in health action can answer to the prospects and challenges faced by the modern-day societies (NICD, 2020)