Electronic Theses and Dissertations (Masters)

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    The Impact of Mobile Banking Technology Adoption on The Demand for Cash in South Africa
    (University of the Witwatersrand, Johannesburg, 2021) Nghatsane, Nghatsane; Totowa, Jacques
    Mobile Technology's exponential advances in the last century have dramatically altered how the planet works. From the invention of the aircraft, which revolutionized aviation, through the more modern invention of the internet, which has influenced how individuals and companies interact and do business. ATMs (Automated Teller Machines) are a clear example of how banking technology has progressed. This study investigated how the technology adoption theories with focus on, usefulness, ease of use, credibility, attitudes towards use and intention towards use can be utilised to understand if and how mobile banking technologies can be used to substitute for cash demand within the Gauteng, South Africa. It was found that whilst all of the factors researched do play a role in determining if consumers are likely to use mobile banking technologies over cash, credibility played the most important role. Future studies can expand the geographical reach of the study to see if any variations will be realised
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    A comparative analysis and subsequent recommendations for improvement of the draft advance pricing agreement legislation in South Africa
    (University of the Witwatersrand, Johannesburg, 2023-06) Carvalho, Monique Fernandes; Blumenthal, Roy
    When dealing with multinational enterprises (MNEs) which are connected parties and located within in different jurisdictions, they must transact with each other and set prices at which they transfer goods or services1 between each other on an arm’s length basis (Ernst & Young (EY)(2021); United Nations (UN)(2021: 29)). According to the Organisation for Economic Co-operation and Development (OECD), the arm’s length principle (ALP) assists MNEs to identify the price at which a transaction would take place, had its members in fact been subject to market forces. In other words, the transfer price set for those transactions between unconnected persons should be used as a benchmark against which to appraise those transactions taking place between connected persons; any identified discrepancies may thereafter lead to a potential future adjustment which gives rise to transfer pricing disputes between taxpayers and the tax authorities. (South African Revenue Service (SARS) (1999: 8).) In order to minimise these transfer pricing disputes, the OECD emphasised the need for a more proactive, clear, effective discussion to take place between taxpayers and the tax authorities. The OECD has identified and communicated a proactive, upfront dispute resolution mechanism, known as advance pricing agreements (APAs). APAs are a tool that attempts to prevent disputes from arising through the proactive, upfront engagement betweenthe taxpayers and tax authorities. (Organisation for Economic Co-operation and Development (OECD)(2016: 7 – 8); OECD (2022 a: 213).) APAs are not yet governed under South African (SA) legislation; however, although the South African Revenue Service (SARS) has submitted draft legislation on APAs for public comment, nevertheless no further steps have yet been taken to date (SARS (2021)). One of the biggest challenges of APAs which far removes their practically is the period within which they take place until completion. Statistically, there is a limitation in the amount of data which is available when dealing with APAs as a topic in isolation. The author selected a number of OECD member countries from which she was able to retrieve a limited but relevant amount of data from reliable sources, which clarifies the average time period it takes to complete an APA from start to end. The author selected both the United States of America (USA) and United Kingdom (UK) for reasons which are set out below in this research report. This research report provides a comparative analysis of the draft APA legislation submitted by SARS in SA, in comparison with the APA legislation promulgated and followed in the USA and UK. Subsequently, suggested improvements to the draft APA legislation in SA by reference to the APA legislation followed both in the USA and UK are further provided.
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    Evaluation of the extent of disclosure of the UN Sustainable Development Goals (SDGs) in integrated reports by 40 South African companies listed on the Johannesburg Stock Exchange (JSE)
    (University of the Witwatersrand, Johannesburg, 2023) Manack, Ilhaam; Maroun, Warren; Lange, Yvette
    In a world where resources are finite, sustainable development is of utmost importance to ensure the survival of the world as we know it. Many of the crises faced by the world such as poverty, a lack of clean water, deforestation and pollution can be reduced and, potentially, resolved through contributions from public and private organisations. In actual fact, many of these organisations contribute to the problems at hand as a result of a lack of regulatory guidance on sustainable development. This report provides insight into the integrated reports of 40 JSE-listed companies using the process of content analysis to ascertain each company’s contribution to sustainable development, through aligning its corporate practices with achieving the UN Sustainable Development Goals (SDG). No guideline currently exists for preparing SDG-related disclosures to be presented in integrated reports. As a result, a disclosure checklist was created for this purpose. It was found that SDG-related disclosures are predominantly vague and minimal, ifthey were given at all. Additionally, companies tend to provide more SDG-relateddisclosures over time. This research contributes to a small body of existing research in the field of SDG disclosures in integrated reports. This study is the first study to analyse the extent of SDG-related disclosures in South Africa
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    An evaluation of corporate actions as a shareholder wealth creation mechanism for JSE-listed investment holding companies
    (University of the Witwatersrand, Johannesburg, 2023) Schwenke, Nicholas
    Background: Investment holding companies represent a category of company primarily focused on adding value by increasing the value of the stakes in the businesses they own. In South Africa there is a trend for Investment Holding companies to trade at a price lower than their reported intrinsic net asset value that is widely commented on by management teams and the financial press. It is also accepted that corporate actions are known to have an impact on share price and investor behaviour. Purpose: The purpose of this research is first to quantify the discount to intrinsic net asset value across a sample of holding companies. This research will also determine if corporate actions pursued by holding companies have reduced any discounts which exist and, in the process, created value for shareholders. Finally, an assessment of which corporate actions is most effective in reducing the discount (if any) will be prepared. Method: Discounts are quantified by comparing daily share prices to the reported intrinsic net asset value. The impact of corporate actions is evaluated using an event study methodology using multiple estimation models. Results: The results showed that corporate actions resulted in no significant abnormal returns apart from in a six-month event window after the event announcement date. Statistically significant negative abnormal returns were noted in this event window. This indicates that corporate actions are not an effective way of reducing the discount to intrinsic net asset value. Contribution: This research adds to the existing JSE event study literature by focusing on a specific subset of companies. The research makes a theoretical contribution by suggesting value creation strategies for businesses which may be fundamentally mispriced
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    ‘Born free’ to unemployment? A Tax Incentive Post Implementation
    (University of the Witwatersrand, Johannesburg, 2023-06) Greeff, Shiaam; Padia, Misha
    South Africa, the economic engine of Africa’s youth face numerous challenges in accessing employment. Young individuals have been confronted with unemployment percentages exceeding 40 per cent after democracy and the unemployment rate has persisted closer to 50 per cent of late. To combat the youth unemployment crisis the South African government implemented the Employment Tax Incentive (ETI) in 2014. The ETI is an incentive offered with the intention of mitigating extraordinarily high youth unemployment in South Africa by encouraging qualifying firms to hire younger and less experienced individuals. This research dissertation serves to provide a critical analysis of the youth unemployment in South Africa and how the ETI has affected the youth unemployment in the nine-years post implementation. During the implementation period, South Africa endured the COVID-19 pandemic affecting life as we knew it and employment globally. The youth unemployment in the BRICS member countries has been analysed with their measures to address youth unemployment. Lastly the study analyses the experiences small business owners in South Africa have had with the ETI post implementation. This study aims to evaluate the influence of the Employment Tax Incentive on the unemployment of young South Africans. This is achieved by conducting a qualitative study using critical analysis to review the ETI post implementation, determining the impacts of the COVID-19 pandemic on unemployment, assessing the other BRICS member countries who have implemented initiatives to improve youth unemployment and conducting interviews with small business owners in South Africa to understand the ETI in the business sector. The data suggests that a subsidy is not a stand-alone answer to youth unemployment in South Africa. The subsidy, however, does create some employment according to the data analysed. The country experiences extraordinary youth unemployment rates. The employment of young South Africans generates greater value than just the employment, it allows for the youth to use their time constructively by gaining experience and skills instead of participating in socio-economic issues such as alcohol and drug abuse. It is acknowledged that the implementation of an employment incentive on its own will not be enough to resolve the South African youth unemployment crisis; the inferior education needs to be addressed. The BRIC member countries face similar challenges and their interventions have not entirelyhad the desired outcome.
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    Trends in reporting on climate change, water and COVID-19 by JSE listed companies
    (University of the Witwatersrand, Johannesburg, 2022) Seedat, Zakiyyah; Lange, Yvette; Maroun, Warren
    Environmental, social and governance (ESG) information is increasingly demanded by stakeholders as companies face risks and opportunities due to ESG issues, such as climate change, water and COVID-19. ESG disclosure helps reduce information asymmetry for users of company reports and helps companies maintain their social licence to operate. Disclosure is voluntary and this introduces differences in the information disclosed by companies. This study analysed the annual, integrated and ESG reports of the top 40 Johannesburg Securities Exchange (JSE) listed companies. These reports were analysed following an interpretive approach to determine the extent of disclosure on climate change, water and COVID-19 in 2018, 2019 and 2020. This study also considered the change in disclosure on climate change and water over these three years. A disclosure checklist has been developed using professional literature. Content analysis has been used to codify the disclosed information with disclosures being scored using an ordinal scale. Descriptive statistics have been used to analyse and graphically present the data. Exploratory factor analysis has been used for the identification of major disclosure themes. This study contributes to existing research by considering the current state of ESG disclosure at a time when notable developments in the reporting environment have occurred. The findings indicate that companies have focused on quantitative and strategy-related disclosure, indicating the adoption of similar reporting practices by companies. The study also found that there was no significant change in climate change and water disclosure from 2018 to 2020
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    Credit growth and its impact on profitability and liquidity in the local Banking Industry of South Africa and the United Kingdom
    (University of the Witwatersrand, Johannesburg, 2022) Pillay, Melissa Dianne; Van Wyk, Liandi; Gomez , Samantha
    The study aims to review the impact of credit growth on local bank profitability and liquidity in both South Africa (SA) and the United Kingdom (UK) between 2015 and 2020. A quantitative approach is used in the study, using descriptive statistics and panel regression analysis. The sample data were extracted from The Banker database; this is a key source of data and analysis for the world’s banking sector, South African Reserve Bank (SARB), Statistics SA, and Trading Economics. Explanatory variables for profitability in the panel regression analysis include return on average assets (ROAA), return on average equity (ROAE), total assets, equity assets, loan assets, cost- to-income, Gross Domestic Product (GDP) growth rate, Herfindahl-Hirschman Index (HHI), consumer price index (CPI), the interest rate on loans, interest rate margin (IRM), unemployment rates, and credit growth. Explanatory variables for liquidity in the panel regression include ROAE, total assets, equity assets, GDP growth rate, CPI, interest rate on loans (IRL), IRM, unemployment, and credit growth. The findings indicate that credit growth is insignificant for bank profitability and liquidity in SA and the UK, so no relationship exists. The main issue is not credit growth per se but the combination of high credit growth, low provisioning, and looser lending. Based on the findings, a negative relationship exists between cost-to-income and bank profitability, reflecting that a higher cost-to-income ratio does decrease bank profitability in both SA and the UK. Other variables for SA were statistically significant: equity assets, total assets, the cost-to-income ratio, and GDP growth rate. In the UK, the following other variables were statistically significant: loan assets, total assets, cost-to-income, GDP growth rate, HHI, ROAE, CPI, and IRM. Further research can focus on expanding the period and the countries reviewed to assess credit growth in more depth.
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    Retirement planning for financial independence: exploring different investment vehicles from a tax benefit perspective
    (University of the Witwatersrand, Johannesburg, 2022) Mthembu, Zizile; Blumenthal, Roy
    Planning for retirement is an important step in the lives of South Africans, whether they are employed or self-employed. The Labour Relations Act 66 of 1995, of South Africa, does not specifically prescribe the age of retirement, however the normal age of retirement for employed individuals is generally between the ages of 55 and 65 years, depending on the industry and the rules of the retirement funds involved (Western Cape Government, 2018). This study evaluates the different investment options available to the ordinary South African in planning towards his or her retirement. It focuses specifically on three investment vehicles, namely, Real Estate Investment Trusts (REITs), retirement annuity funds and offshore endowment policies. The study examined the characteristics of these investment vehicles, the tax benefits available, the risks involved and how to use those returns to ensure a financially independent and sustainable life during retirement
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    Identifying obstacles to the growth of new SMEs: A Factor Analysis Approach
    (Identifying obstacles to the growth of new SMEs: A Factor Analysis Approach, 2019) Mphahlele, Dorothy B.; Merino, Andres
    It is widely acknowledged that Small and Medium-Sized Enterprises (SMEs) are key drivers of economic growth and job creation in developing countries. It has also been established that new SMEs face common problems that arise as they grow and develop. These challenges stem from internal as well as external factors that can have an adverse impact on their survival and growth. The objective of this study was to identify the internal and external obstacles to the growth of SMEs. A questionnaire was used to collect data on factors affecting the growth of SMEs. The results of the questionnaire were analysed using Factor Analysis. Eight different factors were identified. These factors were further analysed to determine their impact on SMEs. The ranking of the factors in order of importance was as follows: lack of access to finance, overregulation, the economic environment, high competition, lack of internal resources, high input costs, lack of experience of the entrepreneur and poor service delivery. The report examines possible ways of mitigating the adverse factors identified and makes a series of recommendations to increase the likelihood of the survival of SMEs in the South African context.
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    An exploratory study of biodiversity, ecological and extinction reporting among JSE-listed entities
    (University of the Witwatersrand, Johannesburg, 2021) Da Mata, Dino Marco; Maroun, Warren
    The purpose of this research is to explore the level of biodiversity, ecological and extinction reporting among 50 Top JSE-listed entities and the possible determinants of biodiversity, ecological and extinction reporting. This is important because unprecedented biodiversity loss is a major ecological and business risk affecting South African organisations. The thesis is grounded in an interpretive approach to collecting and analysing data and employs a mixed- methods approach. Qualitative content and thematic analysis were used to evaluate what content companies disclose in their integrated reports and to gauge the level of biodiversity, ecological and extinction reporting over the 2018 to 2020 reports. This was followed by the use of quantitative methods to test for associations between identified determinants and the level of reporting. The findings show that, overall, the level of disclosures have increased since 2018. Unfortunately, most of the disclosures are still vague, generic or focus on positive information. The findings also showed that there is a significant relationship between the typeof industry and the level of biodiversity, ecological and extinction reporting. Interestingly, the study found that secondary listed JSE companies have a much higher level of biodiversity, ecological and extinction reporting. The research found that there is a significant relationship between the level of reporting and if the company has a biodiversity partnership or has disclosed the importance of biodiversity. Suggesting that companies are beginning to understand the need to protect biodiversity and prevent further biodiversity loss. This change in mindset is, unfortunately, occurring at a slow pace and more needs to be done by companies, stakeholders and society in general. This thesis is the first study to explore biodiversity, ecology and extinction elements concurrently. It is also the first South African study to explore biodiversity, ecological and extinction reporting across a range of industries