*Electronic Theses and Dissertations (PhDs)

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An intersectionality of race and ethnicity: the glass ceiling in the banking sector in Kenya and South Africa
(University of the Witwatersrand, Johannesburg, 2021-12) Genga,Cheryl Akinyi Margaret
Even though progress has been made in the Kenyan and South African banking sector, Black African women remain a minority in Top Executive leadership positions. Previous research on the “glass ceiling” focuses on Black African women as one homogenous group not acknowledging the diversity dimensions of Black African women from Africa. Invisible factors such as race and ethnicity have been stated to contribute to the glass ceiling in the banking sector, yet this has not been investigated making Black African women more invisible. This research primarily aims to provide an understanding of the intersectionality of race, ethnicity, and career advancement of Black African women in the Kenyan and South African banking sector. This research further aims: to describe the obstacles that Black African women still face, to analyse the diversity of Black African women in management, to identify the reasons as to why some Black African women have been able to crack the glass ceiling in the Kenyan and South African banking sector and to give recommendations to stakeholders as to how they can help crack the glass ceiling for Black African women in the Kenyan and South African banking sector. To address the research objectives, this research applied a qualitative Intercatergorical Intersectionality Approach to provide an understanding of the relationship between race, ethnicity, and gender in the Kenyan and South African banking sector. This was facilitated by the use of semi-structured in-depth interviews and focus groups that were carried out with the participants being Black African women managers in the Kenyan and South African banking sector in Nairobi and Johannesburg, respectively. Data collected from the interviews were transcribed and analysed using thematic analysis in which themes and patterns were identified to address the research objectives. Firstly, findings from the research illustrated a relationship between race, ethnicity, and gender. The extent of the relationship between race, ethnicity, and gender was discussed by the role of race, the role of ethnicity, the intersectionality of race and gender, and the intersectionality of race, ethnicity, and gender in the career advancement of Black African women in the Kenyan and South African banking sector. Secondly, the findings identified the obstacles that Black African women still face in the banking sector, which were discussed and described into three groups: Black African women are their own worst enemies in the banking sector. Thirdly, the findings illustrated the diversity dimensions of Black African women managers from the Kenyan and South African banking sector in relation to their race, ethnicity, and the positions that they held in the banks they were working for. Fourthly, the findings highlighted reasons as to why some Black African women managers had cracked the glass ceiling (discussed with the use of the glass ceiling scale). Fifthly, the findings recommend that stakeholders have to be fully committed if they want to help Black African women crack the glass ceiling in the Kenyan and South African banking sector. In conclusion, through the findings, this research provides a conceptual framework to understand the glass ceiling in relation to the intersectionality of race, ethnicity, and gender of Black African women in the Kenyan and South African banking sector.
Small, medium and micro enterprises’ growth under the devolved system of government in Kenya
(2023) Tiren, Evelyn Chemutai
A key argument supporting devolution reforms is that it can facilitate local economic development and therefore enhance SMME growth and productivity. However, empirical evidence linking devolution and SMME development outcomes particularly in developing countries are scarce. This study therefore explores how the devolved system of government outputs affect the business environment and the growth of SMMEs in Kenya through the lens of the soufflé theory of decentralization. A qualitative methodology was employed using a multiple case study design with six SMMEs from the wholesale and retail sector in Kenya. Data was collected through semi-structured interviews, documentary evidence and observation. Twenty six interviews were conducted with SMME owners, representatives of Business Member Organizations and subnational and national government officials. Data analysis was carried out using Atlas.ti version 8 software. This study deduced that the devolved system of government in Kenya failed to provide a conducive business environment thus limiting the growth of SMMEs in subnational regions. Unfavourable business regulations were identified as the key challenge affecting SMMEs in subnational regions, hence increasing the cost of doing business and limiting access to markets and resources. Further, contextual barriers such as corruption, limited administrative and fiscal capacity, poor political leadership, poor intergovernmental relations and public participation inefficiencies limited the subnational governments’ capacity to support and promote SMME growth. Therefore, the study made an empirical contribution by exploring how the political, administrative and fiscal dimensions of devolution affected the growth of SMMEs in a developing country context. Extant literature focussed mostly on the effects of the fiscal dimension on SMME growth outcomes in developed countries. Few studies employed a multiple case study method which provided an in-depth understanding of contextual issues that affected subnational governments in their quest to grow SMMEs in Kenya. The study also contributed to decentralization literature by proposing a theoretical framework linking the dimensions of devolution to SMME growth, hence extending the soufflé theory of decentralization. Previous decentralization studies primarily applied the theory in relation to rural development and service delivery outcomes
Central bank communication: a survey and content analysis of the South African Reserve Bank’s monetary policy committee statements
(2022) Segawa, Arnold
The South African Reserve Bank (SARB), South Africa’s central bank, adopted inflation targeting in 2000. In 2000, the SARB adopted flexible inflation targeting as a monetary regime and in doing so, set its inflation target at 3%–6% for the CPIX (Coco and Viegi, 2020). However, for inflation targeting to prove effective, it remains vital that the monetary institution in question contains the expectations of the private sector primarily in line with the expectations channel of the transmission (Svensson, 1999). To this end, the role of effective communication has in the past two decades proved vital in monetary policy. This PhD dissertation seeks to evaluate the SARB’s communication strategy, with particular emphasis on its Monetary Policy Committee (MPC) statements, and thereafter appraise its interaction with the media and other market agents. This evaluation takes the shape of three studies, with particular focus firstly on SARB’s MPC statements over the past twenty-one years. This study assesses whether there has been more clarity in SARB’s communication over the past twenty-one years by relying on the Flesch and Flesch-Kincaid methods, which are widely accepted in central bank communication literature. In evaluating SARB’s communications and upon surveying the data, this section offers empirical evidence about SARB’s MPC meeting statements spanning more than two decades, clearly exhibiting its evolution. The second facet of the study examines whether the SARB’s MPC communications between 2010 and 2021 triggered causality in the subsequent news reports from the Mail & Guardian newspaper in South Africa. The study examines whether SARB’s post-MPC statements’ readability was reciprocated in the subsequent Mail & Guardian newspaper articles. Relying on the Flesch-Kincaid Grade Level score and Flesch Reading Ease Score methodology to survey both SARB’s MPC statements and the corresponding Mail & Guardian newspaper articles, a computation is created that is subsequently used to examine Granger causality.
Studies on financial inclusion in Africa
(2022) Poku, Kwasi
Financial inclusion has recently been an important concern for policy makers and researchers due to its relevance to the financial system, poverty reduction and the growth of economies. In spite of the enormous policy relevance of financial inclusion, empirical evidence on this nexus suffers many limitations in findings and measurement, particularly the measurement of financial inclusion and financial development. Significantly, the context of Africa where financial exclusion is more pronounced remains relatively less explored in the financial inclusion-financial stability nexus, a void this study intends to fill. Using Africa as a case, this thesis consists of four self–contained chapters with each investigating a critical gap relying on several advanced econometric techniques. In the first essay, we investigate the influence of financial inclusion on financial development in Africa using data from 22 African countries over a 12-year period, from 2007 to 2018. We investigate this relationship using the Generalized Method of Moments (GMM) approach to panel data. We find financial inclusion, measured with the financial inclusion index, to be significant and positively related to financial development, measured with the financial development index. However, employing single measures of financial development as dependent variables, we find financial inclusion to exert an insignificant effect on financial development. In conclusion, using indexes to measure financial inclusion and financial development provide a more comprehensive measure which provides robust findings that can effectively assist policy makers in designing initiatives and strategies. In the second essay, we examine the indirect effect of financial inclusion in the relationship between financial development and income inequality in Africa using the three-stage least squares (3SLS) approach with data that covers a 12-year period, from 2004 to 2015. We find financial development to indirectly exert a negative effect on income inequality in Africa. However, iv financial development eventually reduces income inequality as financial services are extended to the marginalized as the sector further develops. The main conclusion is that, financial inclusion is essential in the achievement of income equality in Africa. The third essay investigates the impact of financial inclusion on stability in the African banking system. We employ the quantile regression approach to examine this relationship with data from 22-African countries over a 12-year period, from 2004 to 2015. We provide comprehensive evidence that greater financial inclusion enhances the stability of the African banking system. Although financial inclusion enhances the stability of banks at all levels of stability, our finding shows that, the impact of financial inclusion on stability is more pronounced in highly stable banking systems. Nonetheless, financial inclusion also enhances the stability of banks in relatively less stable banking systems. We conclude therefore that, with a more inclusive financial sector, banks enjoy greater stability. In the final essay, we investigate the non-linear relationship between financial inclusion and economic growth in Africa, with investment as the mediating/threshold variable. We employ the Hansen’s sample splitting approach to examine this relationship. We provide evidence that, investment does not only significantly influence the relationship between financial inclusion and economic growth, but also, the level of investment in the country is important in determining the sign and magnitude of this effect. Specifically, we find that, below the threshold level of investment, financial inclusion exerts a negative and significant influence on economic growth whereas above the threshold level of investment, financial inclusion affects economic growth positively and significantly. We conclude that, for financial inclusion to affect economic growth positively, the level of investment in the country must be equal to or exceed a threshold level of investment identified in this study.
Financial literacy as a determinant of financial inclusion in Tanzania
(2022) Mmari, Peter Joseph
Financial inclusion is considered to be an effective tool to reduce access and usage barriers in the banking sector. Despite its effectiveness, its benefits have not been fully realized by Tanzanians due to both supply and demand side limiting factors. Tanzania records a high level of financial exclusion in the banking sub-sector because 83 per cent of her adult population is un-banked. The high level of exclusion in banking though poses challenges to Tanzanians it is also a global concern and for that it continues to attract more research for effective interventions, (Demirgüç-Kunt, Klapper, Singer, Ansar, & Hess, 2018). The empirical literature on financial inclusion suggests that financial exclusion in the banking sector is explained by various demand-side factors, including the high level of financial illiteracy in societies, (Chikalipah, 2017). In the context of Tanzania, information regarding the role of financial literacy in influencing financial inclusion in the banking sector is limited. In addition, the moderating effect of demographic variables on the ability of financial literacy to influence financial inclusion remains to be unknown and hence the need for this research. In efforts to address this gap, this study uses the theories of Planned Behaviour (TPB), (Ajzen, 1991) and the Technology Acceptance Model (TAM),(Davis, 1989; Venkatesh & Davis, 2000) to develop a measurement model for financial literacy and digital financial literacy as constructs hypothesized to influence individual’s financial inclusion. Following a positivist and quantitative research approach, this study employs the Structural Equation Modelling technique by using Smart Partial Least Square 3, software to examine the causal relationship between financial literacy and digital financial literacy with financial inclusion. Data for the study were collected through a cross-sectional survey conducted on a sample of 440 respondents from eight districts in Tanzania.
Enterprise risk management, corporate governance, performance and risk-taking behaviour of the insurance industry: empirical evidence from Ghana and South Africa
(2022) Horvey, Sylvester Senyo
The growing complexities in the business environment have led to the adoption of enterprise risk management (ERM). ERM is a new approach to managing organisational risks holistically to achieve its goals. Regardless of the diversities in the business environment, ERM has become an essential factor for businesses and is believed to enhance shareholder value. Despite the growing number of studies on ERM, literature suffers some limitations regarding its proxies and inconclusive results between ERM and performance. This study adopts a more comprehensive measurement of ERM, which captures various characteristics (such asrisk governance, operational mechanisms, and quality of risk oversight) within the risk ecosystem. The study uses a panel regression technique on a sample of 33 and 63 insurers from Ghana and South Africa, respectively, covering 2015-2019. This thesis is centred on four thematic papers. Each focuses on a specific subject (s) at the heart of the problems or research questions being investigated. The first paper provides a comprehensive and systematic literature review on the measurement and performance of ERM. Google Scholar was the primary search tool for ERM literature spanning 2001 to 2020, and papers listed in SCImago journal ranking were discussed. The study finds that most studies rely on secondary sources, particularly the Chief Risk Officer’s appointment, as a simple ERM proxy. This is widely adopted in the literature due to the difficulty in assessing ERM information. The study recommends that empirical measurement of ERM rely on both primary and secondary data as they complement each other and allow more insight and factors to be considered for a robust ERM measurement. In terms of performance, the ERM literature reveals mixed findings, but enough evidence supports the assertion that ERM enhances firm profitability and value. The study suggests that scholars consider examining the ERM-performance relationship in emerging economies as most of these studies centred on the US and European economies. The second paper analyses the determinants of ERM adoption in Ghana and South Africa using a panel logistic regression technique. Building on the contingency theory, the study posits that several factors contribute to ERM adoption. The study finds that firm size, ownership, leverage, industrial diversification and the type of audit firm are positively associated with ERM adoption in both countries. Findings from the quantile regression also highlight that the initial levels of size, profitability and leverage reduce ERM adoption, and an extreme increase in these factors promotes iii ERM adoption, which implies a nonlinear direct U-shape relationship. On the contrary, the study sees an inverted U-shape for return on assets and leverage for Ghana. Industrial diversification, Big4 audit companies and ownership show consistent patterns of a significant positive effect on ERM adoption at different quantiles for both samples. The findings support the fact that insurers could improve their risk management system by considering the factors that significantly affect them. The third paper first examines the impact of ERM on insurance performance (underwriting performance and Return on Assets) and second investigates how corporate governance (CG) characteristics such as the board size, board independence, and gender diversity interact with ERM in affecting insurance performance. The major findings are summarised as follows: (1) a positive relationship exists between ERM and insurance performance for both countries; and (2) board size, board independence and gender diversity interact with ERM in affecting underwriting performance and return on assets. This was mostly positive and significant in both samples. The study suggests that insurers interested in ensuring an effective ERM system should leverage these corporate governance factors to appreciate the overall impact of ERM on performance. In the final paper, the study examines the linear and non-linear effects of ERM and CG on risktaking behaviour. The result from the linear regression elicits a significant positive relationship between ERM and risk-taking for both countries, implying that insurers with a strong ERM system are more likely to pursue higher risks. The empirical evidence also suggests that board size and board independence have a significant positive impact on risk-taking for both samples. In contrast, gender diversity shows an inverse relationship with risk-taking. Using the dynamic panel regression by Seo et al. (2019), the study confirms non-linearities between ERM, CG and risktaking. Evidence from the South African sample indicates that ERM significantly increases insurers’ risk-taking beyond the threshold level. Again, the South African sample shows significant threshold levels for board size, gender diversity and board independence at 10.03, 0.274 and 0.547, respectively. The Ghanaian sample also documents significant threshold levels at 7, 0.286, and 0.692. The study recommends that insurers consider the significant threshold levels to determine the optimum level of risk that must be pursued.
Infrastructure financing and bond markets development in sub-Saharan Africa
(2022) Mukoki, Paul Shepherd
This thesis explores how domestic public debt (bond) markets can be developed into viable mechanisms for closing the infrastructure funding gap existing in the sub-Saharan Africa (SSA) region. The infrastructure deficit in the SSA region is colossal and an impediment to its economic growth. To narrow the large deficits, Africa needs to bridge its infrastructure financing gap, estimated at US$62 billion annually until 2025. On the other hand, domestic public debt markets are seen as a potential funding source for filling this huge financing gap, but they are not considered well-developed. We first examined the relationship between bond markets development and the infrastructure gap in Sub-Saharan Africa. We employed the panel threshold regression (PTR) model on 40 countries covering 2003-2018 and documented a non-linear (single-triple) relationship between public debt market development and the infrastructure gap. We established that many of the fledgling government and corporate bond markets play a complementary role in the financing of infrastructure; and interestingly, with corporate public debt markets eliciting a greater reduction in the infrastructure financing gap than government public debt markets. We then used a cross-country survey approach on 8 SSA countries and nonparametric inferential statistics to investigate, first, the state of the public bond markets in SSA and, second, the ways by which their liquidity can be improved so that infrastructure investment can be enabled. The major conclusions from these survey results are: First, government yield curves do not provide a reliable benchmark for corporate bonds. Second, the government bond markets, which are expected to offer foundational mechanisms for establishing robust and effective yield curves, have remained underdeveloped. Commercial banks remain the predominant investorsin government bond markets, followed by nonbank financial institutions, and a few foreign investors, in that order. Third, except for South Africa, only 38% of the corporate bond markets in SSA are moderately developed; the rest are either developing (25%) or nascent (25%). Fourth, pension funds in many SSA countries have somewhat reformed to engage in infrastructure financing, though within statutory limits. Fifth, liquidity in government bond and corporate bond markets is relatively low in many countries, which in turn, limits infrastructure financing. Finally, we found that sophisticated financial instruments could facilitate infrastructure financing by deepening and fostering liquidity in domestic public debt markets. These instruments include infrastructure project bonds, diaspora bonds, green bonds, and vi securitised debt assets. An important part of this initiative involves increasing the sale of stateowned enterprise bonds and municipal bonds backed by guarantees from the government. The overall results show that the public debt markets in many of the surveyed SSA countries are underdeveloped and cannot significantly plug the infrastructure financing gap in the region unless substantial capital (especially public debt) markets growth and/or development are embarked upon.
An integrative cognitive-behavioural framework for predicting collective intelligence in small teams
(2020) Yu-Jen Chen, Jefferson
Leaders’ capability to empower their employees to form small intelligent teams will profoundly impact the competitiveness of their organisations, considering that unrelenting disruption and fierce competition are the norms in today’s business landscape. In part, owing to this reason, the study of collective intelligence (CI) has emerged as a notable interdisciplinary body of knowledge in recent years. Scholars have regarded CI as the socio-psychological concept that accounts for how team members can derive superior ideas leading to higher performance when working together as collectives instead of as individuals. The study of CI in adults is relatively new ground for management science and various research gaps persist. Not only does a well-validated CI predicting framework not exist, many CI studies were not carried out in settings that closely resemble the real-life organisational context. Some researchers even contest the legitimacy and the existence of CI. To study CI in small teams can be challenging. One of the pertinent challenges is that factors attributing towards the development of individual adults’ intelligence are not well-understood. Newly emerged studies have further highlighted the poor correlation between scores generated from widely-adopted intelligent quotients (IQ) tests and adults’ intelligence. Other studies have asserted that one cannot simply assign adults’ IQ as the results of their biological attributes and further advocate that it is more accurate to study what the cognitive-behaviours are that influence the intelligence of adults in the day-to-day context. In a similar trend of logic, CI researchers have greatly accentuated that an integrative cognitive-behavioural framework that can predict the CI of the small teams is well-needed but has not yet been established. Taking these scholarly recommendations as the basis for the research design, this study regards CI as an emergent asset that arises from the cognitive-behaviours between team members during the problem-solving and decision-making processes. This study assessed the causal relations between twenty hypotheses of three cognitive-behavioural clusters, viz. resource acquisition and utilisation (RAU), strategic thinking (ST) and team members exchange (TMX), and the CI of the Action Learning Project (ALP) teams based on the outcomes of ALP competitions. The lack of academic consensus on how these twenty cognitive-behaviours impact the CI of small teams provides added novelty to this research. Considering that ALP teams are subjected to an environment that shares a fair amount of similarities with the real-life corporate scenarios but with less interference by other complex issues, the empirical findings allow researchers to further their scholarly knowledge, practitioners to design better ALP content and leaders to empower their teams. A questionnaire was developed and tested before inviting research participants to rate their own cognitive-behaviours as individuals and concurrently to assess the same cognitive-behaviours of their teams as collectives. Seeing that CI studies commonly rely on participants’ self-reporting data about the perceptions on their own cognitive-behaviours only but hardly having been probed and compared against the outcome of the participants’ perceptions of their teams as collective, contrasting two surveying approaches allow this study to conclude which approach is more appropriate for CI related studies. The responses of 406 delegates from 12 programmes were deemed fit for use, and the datasets were subjected to various statistical calculations. The findings revealed that the two datasets obtained from the two surveying approaches produced two slightly different structural path models after they were subjected to both descriptive and inferential statistic techniques. The hypotheses were reassigned into different factor dimensionalities, and subsequently, the partial least squares structural equation modelling calculations were applied to these two models. The statistical results indicated that the H-null for one of the 20 hypotheses must be rejected. An explanation was offered. Subsequently, the factors accepted were ranked according to the degree of potential impact on the overall CI of the ALP teams. The plausible rationales and the implications of this ranking are discussed. In addition, it was found that the datasets obtained from the “Rate Team” surveying approach produced a slightly better CI predictability than the ones obtained from the “Rate Self” surveying approach. The suitability of the surveying approach for CI related study is then discussed. Despite the differences between these two structural path models being marginal, this study observed a profound contrast of the key insights of each model. For the model generated from “Rate Self” surveying approach, it underscores the importance of the RAU cognitive-behaviours. Whereas the model generated from “Rate Self” surveying approach advocates that small teams must pay equal emphasis to all three types of cognitive-behaviours (RAU, ST and TMX) in order to boost overall CI of the ALP teams. The findings challenge the popular management philosophy of “culture eats strategy for breakfast”. Instead, the outcome of the study draws attention to the equal importance of gathering and utilising resources, thinking strategically and harnessing helpful styles of interaction among team members. The limitations and contributions were discussed. Recommendations for future studies are also proposed based on the findings uncovered.
Essays on private capital flows and real sector growth in Africa
(2021) Asamoah, Michael Effah
Globally, countries continue to implement policies aimed at the attraction and retention of capital flows due to its perceived significant effect on economic growth and development. The benefits of capital flows are touted as being able to drive down domestic interest rates, smooth consumption, transfer of technology and improve the functioning of the financial sector. In as much as there is a copious body of literature on capital flows and economic growth, there remain essential areas that the literature has been silent. Among these are capital flows and real sector growth in the light of the allocation puzzle; the real sector amid financial sector development and institutions; private capital flows-macroeconomic volatilityfinancial development connections, and thresholds in the capital flows-real sector growth dynamics. Filling these gaps will provide the needed knowledge and policy directions on how countries that are known to depend on capital flows can harness these flows for growth and development, especially at the level of the real sector. Using robust econometric procedures, this study examined four thematic areas of capital flows in Africa. The first essay investigated the evidence and/or otherwise of an allocation puzzle and bidirectional relationship between private capital flows and real sector growth. The study covered 42 Sub-Saharan African (SSA) countries between 1980 and 2017. We used growth in manufacturing, industry, agriculture, and services to capture the real sector and proxied private capital flows by foreign direct investment, portfolio equity flows, and private nonguaranteed debt. We employed the two-step dynamic systems GMM model to establish our empirical relationships. We found no evidence in support of the allocation puzzle, which suggests that SSA countries with relatively high growth in the real sector will attract more private capital. However, at a decomposed level, we established a bi-directional relationship of a positive association between debt flows and growth in agriculture and services, with no v evidence of an allocation puzzle. Though we found a bi-directional association between debt and industrial growth, the association was detrimental in both directions. Also, the study established a two-way inverse reverse effect between equity flows and manufacturing growth. Finally, while the impact of foreign direct investment on the real sector is positive at the disaggregated level, there is a positive bi-directional effect between foreign direct investment and growths in manufacturing, industry, and service value additions. The study provides a strong foundation for an alternative source of financing, especially for the growth of the service and agriculture sectors regarding debt and equity, from the reliance on the traditional FDI. The findings also indicate parallel reactions between real sector growth and private capital in SSA. The second essay had two separate objectives fused into one. The first part examined the brinks of financial development at which private capital to Africa enhances growth at the level of the real sector. We deployed a newly developed financial development dataset to moderate the association between private capital and the real sector, and the Lewbel instrumental variable two-step GMM estimator (IV – GMM), with Kleibergen-Paap robust standard errors and orthogonal statistics in establishing our empirical relationships over the period 1990 to 2017, for a sample of thirty (30) countries in Africa. Initial estimations at the overall level of the real sector, manufacturing, and industry show that FDI has no growth effects and even worsens the growth of the agriculture sector. Financial development stifles growth. On decomposing the real sector, we found the interaction between FDI and financial development to enhance the growth of the real sector and its components at face value. However, our marginal effect analysis shows that the growth impact of FDI on the overall real sector, industry, and service sector growth starts at the threshold level of the 25th percentile of financial development, while the growth impact on manufacturing is only evident at the 90th percentile of financial development. Finally, although financial sector growth aids foreign direct investment in enhancing the growth of the agriculture sector, it cannot wholly eradicate the initial adverse impact from FDI. We further found that portfolio equity has no growth impact on Africa’s real sector, while debt flows harm the overall real sector, manufacturing, and industrial growth, but no impact on agriculture and services’ growth. We found that financial development reinforces the conservative view that capital flows enhance economic growth, but the reinforcement depends on the type of sector, either debt or equity, and the percentile levels of financial development. A similar objective was to analyze the interconnections between private capital flows, the quality of institutions, and the growth of the real sector in Africa. The study covers thirty (30) African countries. Our empirical analysis, with a panel data between 1990 and 2017, indicates that private capital flows (FDI, private debt, and equity) have no direct impact on the growth of the real sector. A decomposition divulges that FDI has no impact on manufacturing and detrimental to industrial and agriculture sectors. Portfolio equity is injurious to growth in services and unresponsive to the growth of all other sectors. Private debt was also insensitive to the growth in agriculture and services, and even damaging to manufacturing and industrial growth. Initial assessments show that countries with robust institutional frameworks can benefit significantly from capital flows, as we found institutions do moderate the positive impact of capital flows on the growth of the real sector, starting from the 25th percentile of institutions. Our marginal analysis confirms that the impact of private capital on real sector components is dependent on the type of capital, the sector, and the percentile level on institutions, in some cases, as far as the 90th percentile. Our results show that for policy implementation, it is not a case of one cup fits all, but sector-specific capital flow institutional policies should be the way forward. The orthodox view is that uncertainty is a deterrent to investment, and by extension, private capital inflows. Paying specific attention to the volatility of the domestic exchange rate, private capital flows and a newly developed indicator of financial development, the third chapter of the thesis examined the impact of exchange rate uncertainty on private capital flows, and whether financial development matters in such association. Specifically, the study sought to answer four questions: Is the exchange rate uncertainty – capital flows nexus strictly monotonic? Does exchange rate volatility deter capital flows? Can financial development mitigate the adverse effect of economic uncertainty on capital flows? At what threshold point does financial development jettison the negative impact? The study covers 40 countries over the period 1990 – 2017. We establish our empirical relation with a system general method of moments (GMM) two-step robust estimator with orthogonal deviations. We found evidence in support of a non-linear U-shaped relationship between uncertainty and capital flows, and that the impact of uncertainty on capital flows depends on varying levels of uncertainty. We also document that uncertainty deters all forms of capital flows, and that countries with a well-functioning financial system can transform the adverse impact of volatility on capital flows. However, our marginal analysis shows that curbing the adverse effect of volatility on private capital depends on the type of capital flow, the indicator as well as the percentile level on financial sector development, in some cases as far as to the highest percentile. We further established that with the current state of the financial sector, financial institutions’ development offers the quickest route to curtailing the adverse impact of volatility on capital flows, as it has a lower threshold value or critical point compared with financial markets’ development. In the final essay, we investigated the possibilities of non-monotonic or nonlinearities in the capital flows - economic growth dynamics, as some studies posit that the effect of capital flows on economic growth changes course after attaining a certain threshold level, either based on the levels of capital flow itself or some mediating variables. We proxied capital flows by foreign direct investment (FDI) inflows and growth by real sector components. With data from 1990 to 2018, for a sample 36 African countries, the study employed Seo and Shin (2016) dynamic panels threshold effect with endogeneity as well as Seo et al. (2019) estimation of dynamic panel threshold model using Stata to achieve the study’s objectives. In the first part of the analysis, we employed three indicators of human capital development as threshold variables, and FDI flows as the regime dependent variables. These are the mean years of schooling, gross national secondary school enrolment, and primary school pupil to teacher ratio. In the subsequent analysis, we deployed FDI as both the threshold and regime dependent variable. The study found significant thresholds in the capital flows - real sector growth relationship as mediated by human capital and foreign direct investment. The significance impact of foreign direct impact on real sector happens at both the lower and upper levels of the mediating variable but the component of real sector matters. We established that in most cases, the impact of FDI on the growth of the real sector is harmful in the lower regime and beneficial in the upper regime of human capital for both manufacturing and services sectors, and vice versa for both agriculture and industrial sectors. The results indicate that increasing levels of human capital development and FDI inflows are necessary for the growth impact of FDI on Africa’s real sector, but not under all sectors as he results are dependent on the varying threshold variables of both human capital and foreign direct investment
Political regimes and economic development in Ghana’s Fourth Republic
(2021) Ayisi-Boateng, George
This study contributes to the state of knowledge on the role of political regimes in the development of Ghana from 1993-2020. It positions the discourse in terms of how political regimes facilitate, and/or inhibit the economic development process since the dawn of the Fourth Republic. Drawing on the critical realist research framework, the study examines the impact of the two dominant political parties that have held power since 1992: the New Patriotic Party (NPP) and the National Democratic Congress (NDC). It specifically examines the nature of economic policies, their implementation and out turns. The findings indicate that the two political parties tend to devote much of their attention to addressing the negative propaganda narratives from opposing camps. This type of “communication war” finds expression in the manifestos and development plans, and has been the bane of Ghana’s development trajectory over the past three decades. The study argues that, although significant amount of sound policies have been written on paper, implementation challenges have been the Achilles’ heels of both regimes. Within the global context, Ghana’s multi-party democracy has been applauded and, whilst some of the development agenda have been home-grown, the political regimes have borrowed policies from other developed economies. In the economic sphere, we identify a plethora of policy slippages in relation to job creation and entrepreneurial development, ranging from lack of political will, to putting square pegs in round holes, and widespread mismanagement. Among other things, the study highlights how the political parties could begin to find ways of working together in the area of development plan formulation and implementation. The idea is that the consultative / participatory approach to addressing the development problems of the country has the potential to put an end to the current fragmented, short term and unpredictable nature of the “national” development plans. It is hoped this study will provide utility for further academic and policy research and help answer important questions surrounding the current and future state of business development in Ghana and countries of similar circumstances
Essays on cryptocurrencies and traditional assets in emerging market economies: dynamic modelling, connectedness, and spillovers
(2020) Omane-Adjepong, Maurice
The last decade has experienced notable changes and unique innovations in the global financial system. In particular, the introduction of cryptocurrencies, pioneered by Bitcoin and later other alternative coins (best known as altcoins) by libertarian cryptographers after several efforts in the 1990s to usher in electronic currencies foundered, has been lauded and likewise received enormous attention worldwide, raising many concerns for governments, monetary authorities and other regulatory bodies. Originally designed as electronic cash for decentralised peer-to-peer online financial transactions, secured by cryptographic algorithms, cryptocurrency, a specialised kind of digital currency, in barely a decade of existence, is challenged with an identity crisis. The debate as to what cryptocurrency is, or has become looms in the minds of the general public, and it has been the subject of media commentary. At the same time, the limited amount of research on the topic has only raised more questions than answers. For instance, not only are the existing studies not attacking the root of the deepest questions posed by the rise of cryptocurrencies to date, but also they are not robustly studied methodologically. The depth of analysis is shallow, and the scope of the studies published on the subject matter so far is very limited, both in space and time. Additionally, the extent of the relatedness of the new digital currency market to traditional assets, especially in frontier and emerging economies remains a virgin field. This naturally raises additional concerns: does the emergence of cryptocurrencies offer any relevant economic benefits to these emerging market economies? What implications does this evolution hold for established financial systems? Answers to these questions, and many more are crucial for monetary policy effectiveness, legislation and regulation, financial system stability, the future of cryptocurrencies, and overarchingly, to illuminate the blind spots of the enthusiastic libertarian public, as well as the general investor community. iii In light of the above, this thesis makes a bold attempt at addressing some of the weaknesses of extant research, extend the frontiers of knowledge in this new financial instrument, and shed insights on cryptocurrencies in emerging market economies, proxied by those in the G20. The study produced interesting juxtapositions in three essays. The first essay examined the evolving characteristics of cryptocurrencies under five sub-themes, and presents a map for analysing the cryptocurrency market. We find that Bitcoin and the largest long-lived altcoins are collectively unique instruments that share features of paper money, security assets (mostly equities), and commodity money (such as gold and oil), making the digital currencies a “trinity-hybrid” financial instrument which could best operate under the private sector to complement emerging currencies and assets. For emerging market economies, cryptocurrencies, in our view, is a three-in-one financial instrument, if and only if its role is limited to exchange of goods and services, and helping facilitate transactions of various kinds. This, in turn, raises a number of possibilities for recalibrating the current financial architecture while addressing the regulatory changes that ought to be in place for a well-functioning diversified economy. The second empirical essay found evidence in favour of an extremely weakly correlated market, and later, multifaceted economic benefits of cryptocurrency in times where emerging market economies’ assets wander in distress. This positions the new currency market to the advantage of heterogeneous groups of emerging market investors. However, we caution that expectations of such derived economic benefits need to be examined further on a case by case basis, and in a measured manner, especially given that the cryptocurrency market is still at its embryonic stages of evolution. iv The third and final essay allays the fears of investors and market participants, and reveals for the first time that the cryptocurrency market is less influenced by existing highly integrated instruments, and has little effect on emerging markets, and consequently pose, for now, a negligible danger. At their current level of development, some economies are not yet exposed to the variety of developments in the world of electronic commerce and payment systems that make the algorithms that power the peer-to-peer decentralised ledger platforms seamless. This may change in the future. For now, we are sure that the coming into being of cryptocurrencies is an inevitable consequence of the financial sector paradigms of the last few decades, however, the distributional consequences across regions, countries and among different market participants are largely asymmetric. The insights gleaned from this study, therefore, open doors for policymakers to properly fine-tune their economies to maximise the upside potential presented by this asset class and minimise the downside risks, in the light of what has been learned about the role of cryptocurrencies so far.
An analysis of the effectiveness of corporate social responsibility in the mining sector: a comparative study of South Africa and Zimbabwe mining companies
(2020) Mandevere, Melody
Over the past years, Corporate Social Responsibility (CSR) has received increased attention from the corporate world and international organisations. There has been a call for an Africanised CSR agenda based on the African context since CSR activities being undertaken in developing countries do not address the root cause of poverty and fail to improve relations with local communities. There is concern over the sustainability of the CSR projects undertaken by mining companies in Zimbabwe and the motives behind CSR activities aimed at benefitting the mining companies’ shareholders and less on the community where they operate. CSR projects in Zimbabwe differ to that of South Africa although the companies are subsidiaries. This comparative study between Zimbabwe and South Africa’s mining sectors has been carried out to analyse the effectiveness of Corporate Social Responsibility activities. The study followed the interpretivism philosophy and the qualitative research design with multiple case studies in the two countries. The target population for the research were two companies with branches in Zimbabwe and South Africa. Hence four mines were chosen, two in Zimbabwe and two in South Africa. A total of 22 respondents were purposively selected consisting of community representatives, mining company representatives, non-governmental stakeholders and governmental stakeholders. Data was triangulated by integrating semi-structured interviews and secondary documents. The findings indicated that in South Africa there is more stakeholder inclusion and ownership of the CSR projects as compared to Zimbabwe. This is more attributed to the nature of the South African legislation on CSR that encourages stakeholder inclusion. The stakeholder inclusion and ownership contributes to project sustainability which then leads to effectiveness of CSR. The research also concluded that an Africanised CSR agenda should prioritize legal iii issues over others. This means African countries need to attend to their legislation so that CSR is mandatory with ‘social impact’ as the driving force. The study contributes to the CSR literature specifically as a comparative study between African countries. This is one of the few empirical studies that compare CSR in neighbouring developing countries. Moreover, the study also addresses whether there is a need for a more Africanised CSR to address the social challenges and understand the effectiveness of the Africanised CSR agenda leading to sustainable development
Performance evaluation of Shariah Investments in South Africa
(2022) Surtee, Taariq GH
Shariah Investment Screening differs from country to country. Assumptions made in Shariah ruled countries might not apply in secular countries. Therefore, performance evaluation in one country cannot be used to make assumptions about another. The bulk of literature on this subject appears to focus mainly on Islamic ruled countries or countries with large Muslim populations. The literature focuses predominantly on equities as an asset class, while the literature on other asset classes is sparse and, when available, focuses on the class in isolation instead of presenting it as part of an investment portfolio. When considering these asset classes, there are explicit religious considerations that apply. Additionally, the obligations of giving alms and removing unavoidable interest income when evaluating performance must be considered. South Africa has a small Muslim community and a robust financial system where Islamic products are traded, yet little is known about the effect of these obligations on the performance of Shariah Investments. Access to Shariah-compliant products is increasing where Islamic Banking is established, while Islamic bonds and taxdeductible investment opportunities have recently been introduced. In addition, the literature is only starting to discuss cryptocurrencies as an investment class. Drawing on these areas of investment research, our research examines the various asset classes’ applicability for Shariah Investing in South Africa. This study considers Islamic theology and redefines Riba as more than interest or usury. Using the newly defined Riba, we placed Islamic Utility in economic theory as Utility that complies with Islamic advice. These definitions gave us a platform to evaluate current investments. We found that the current screening practice is too limited, and therefore, we improved on screening practices using our new definitions and applied customised Modern Portfolio Theory (MPT) algorithms to accommodate Islamic Utility. We used four risk-reward ratios (Sharpe, Sortino, Sterling and Treynor) to predict investment portfolios in MPT. Our improved screening method shows that investors may include other asset classes in their portfolios while maintaining Shariah compliance. The literature typically uses the Sterling and Treynor ratios to evaluate past performance and not in MPT. We argued that they should be used to predict portfolios. We, therefore, reinterpreted the two ratios and applied them in MPT algorithms. We showed that investors ii could earn significant gains by using these ratios under some conditions. We confirmed our findings with statistical inference and further refined when to use the different ratios solutions. The results are not as crucial since past success is no guarantee for future growth. As a measure of performance, we compared our results with current South African products. The best current products underperformed inflation once the compulsory alms were removed. We showed that we could indeed outperform the market and inflation, including removing the said alms. In this way, we proved our hypotheses and research questions, where we found that Shariah investing can be improved in South Africa. We concluded our empirical confirmation by testing the robustness of our simulations against the standard Capital Asset Pricing Model (CAPM). Both MPT and the CAPM predict results. However, both allow that the actual results may defer from predictions. We, therefore, tested the magnitude of differences between the two models and found that our predictions were more precise. In conclusion, our research introduced a more comprehensive understanding of Shariah investing with improved investment models that outperform the market.
Policy uncertainty, economic distance, and macroeconomic variables in developing economies
(2021) Adjei, Abigail Naa Korkor
Although economic policy uncertainty (EPU) is a less explored source of uncertainty that is related to economic policy, economic policy uncertainty in describing the state of an economy has assumed dominance in decision-making in countries and has remained relevant to investors, governments, and policy makers across the globe. This has become the standard because studies have proved that policy uncertainty has a significant effect on the overall economy and heightened EPU (especially during recessions) has the potential to harm economic activities. The literature review revealed evidence that EPU comoves with business cycles, that uncertainty influences the distance between economies, and that EPU spillover shocks from one economy to another have a significant impact on the recipient economy's economic activities. As yet, there has been scant systematic investigation of these possible interactions. The study of EPU is of major importance to emerging market economies (EMEs) because, although literature has proved the harmful effects of EPU on EMEs, the studies done is meager since majority of study on EPU have focused on developed countries. These implications of uncertainty on EMEs have made it very relevant to focus on the role uncertainty plays in EMEs. In order to make significant contribution to the role EPU plays in EMEs, this thesis focuses on addressing three main problems. To begin, the study examines whether EPU correlates with business cycles and, if so, whether EPU is the cause or effect of recessions across business cycles. The study makes an important contribution by finding answers to why business cycles fluctuate. This study deviates from traditional sources of fluctuations and focus on uncertainty as a potential cause or effect of business cycle fluctuations. We also propose new variables as measures of ii business cycles (GDP, CPI, SPX, import, export and broad money). The wavelet multiple correlation and wavelet multiple cross-correlation proposed by Fernandez-Macho (2012) is used to investigate the comovement between EPU ad business cycles. The analysis shows that business cycles commove with strong records of interdependence. The scale by scale analysis, on the other hand, has shown that the level of integration is strongest in the long-term. We further investigated the role EPU plays in the comovement of variables (gross domestic product (GDP), consumer price index (CPI), SPX (SPX), import, export and broad money) within each EME and discovered that positive correlation was generally recorded between EPU and CPI within each EME. Likewise, evidence of negative correlation for EPU was recorded between EPU and SPX across all EMEs. We also note that, although there is strong evidence of comovement between EPU and the macroeconomic variables, EPU has no lead/lag potential across all the time scales within the selected EMEs. To also clear all the inconsistencies of whether uncertainty is the cause or effect of fluctuations in the business cycle, the study adopts Diks and Panchenko (2005, 2006) nonparametric test. It was discovered that causality with respect to the economic indicators of business cycles is specific to each EMEs. We conclude that EPU is both a cause and effect of business cycles fluctuations in the selected EMEs except for India where business cycles cause EPU fluctuations. The second objective is to ascertain the relationship between EPU and distance in EMEs. The study focuses on the investigation of economic distance and geographical distance. This section makes two contributions to the study. First, we conduct a novel investigation on the relationship between economic distance and EPU. Second, we adopt a non-parametric geospatial analysis to investigate the spatial dependence between EMEs (with respect to their EPU measures). We first iii find an answer to the question, “can EPU influence economic distance in EMEs?”. The extent of similarities (or dissimilarities) of economic characteristics between units (or countries) is termed as economic. Despite evidence that uncertainty increases when the economic characteristics between countries are different, no study has investigated the relationship between economic distance and EPU although EPU has a greater significant impact on an economy than uncertainty in general. The dynamic linear regression method is adopted to investigate the relationship between EPU and economic distance. We discover that macroeconomic variables were largely statistically significant and have explanatory power to explain the economic distance between the EMEs as compared to the role EPU plays in explaining the economic distance between EMEs. We therefore find limited evidence of EPU’s effects on the economic distance between EMEs. We also discover that changes in the values of import, CPI and broad money in most EMEs are statistically relevant and significantly drive the changes in the values of economic distance between the selected EMEs. The second aspect of distance investigates the spatial autocorrelation between EMEs with respect to EPU. Tobler’s first law of geography that highlights that the nearer things are to each other, the more related they are than to distant things forms the foundation of this theoretical framework (Tobler, 1970). The Moran’s I (Moran, 1984) is used to investigate the presence of spatial autocorrelation. The results showed evidence of spatial autocorrelation across all the EMEs which support Tobler’s first law of geography. This implies that, the similarities and dissimilarities between the selected EMEs are significantly influenced by the distance between them. It was also observed that, country and geographical specific features (or characteristics) of each EME affect the outcome of the results. Thirdly, heterogeneity was recorded when the six EMEs were divided iv into sub regions. Finally, the study discovered that international policies (for example trade policies), terms of trade, spillover effects, monetary and fiscal policies are some of the factors that influence EPU spatial autocorrelation in EMEs. The study further investigates the spillover effects of EPU and macroeconomic variables in EMEs and measures the amount and direction of spillover from a country to other countries. This information is essential beacause previous studies have focused on developed (advanced) economies leaving little evidence of the effects of EPU spillover in EMEs. The study investigates the amount and direction of EPU spillovers between EMEs as well as the effect of EPU shocks on macroeconomic indicators (and vice versa). To investigate the network spillover effect and directional connectedness between EPU and related macroeconomic variables in EMEs and explore their time-frequency dynamics, this investigation will use Baruník and Křehlík’s (2018) methodology. The findings from this study shows evidence of spillover and causal spillover between EPU and macroeconomic variables within each EME. We discover that EPU does not dominate in the transition or receiving of spillover shocks in all the selected EMEs but rather, GDP and SPX were identified as the main transmitters of spillover shocks across all the selected EMEs. The time-varying total spillover index confirms arguments of volatilities of uncertainty in EMEs during the Great Recession that occurred during 2007-2009. Inter-country spillover analysis shows that Korea- EPU is the main transmitter of spillover shocks to the selected EMEs across all frequency bands. The study therefore makes significant contributions to the study. First, we find answers to why business cycles fluctuate. Second, we also propose new variables as measures of business cycles v (GDP, CPI, SPX, import, export and broad money). Third, we conduct a novel investigation on the relationship between economic distance and EPU. Forth, we adopt a non-parametric geospatial analysis to investigate the spatial dependence between EMEs (with respect to their EPU measures). Fifth, we investigate the severity of the amount and direction of EPU spillover received and contributed by one economy to another economy. The study offers a number of significant investment and policy recommendations arising from the findings in this thesis. The study offers a number of significant investment and policy recommendations arising from the findings in this thesis. Policymakers should establish a robust and precise implementation framework that ensures transparency and credibility to help minimise the wait-and-see (delay) approach of investors and agents as a result of the uncertainty of future happenings. Decisions made by policymakers should be communicated openly and promptly. Due to extensive understanding of the key transmitters and recipients of shocks at various frequencies, investors can intelligently plan their portfolio diversification methods. In the event of weak interactions, investors should diversify their portfolio to maximise their return on investment. With the detailed information about the short-, medium-, and long-term net spillover received from and contributed by the EMEs, policy makers are well equipped to efficiently forecast global and country specific uncertainty fluctuations, make well informed predictions and implement policies that can significantly reduce uncertainty in the economy. Based on the results on the causal relationship between EPU and business cycles, policy makers can now implement and amend predictable fiscal and monetary policies that will prevent or reduce the occurrence of uncertainty and business cycle fluctuations. This will make investors feel more secure to invest in the economy. Policy makers vi and regulators are advised not to generalise policy formulations, amendments and regulations but should rather be focused on each EME.
Leadership development impact evaluation approaches
(2022) Mbatha, Vuyile Cynthia
This mixed methods multiple case study research investigated the approaches used in the impact evaluation of leadership development initiatives within the context of financial services corporate organisations operating in the African continent and headquartered in South Africa. Organisations around the world are continuously investing incremental amounts of money into learning and development, more specifically directed towards leadership development initiatives (Boyett & Boyett, 1998; Clark & Clark, 1994; McCauley, Moxley, & Van Velsor, 1998) and yet to date, research and literature on leadership has been predominately focused on theories and approaches to leadership (Bass & Stogdill, 1990; Boyett & Boyett, 1998; Brungardt, 1996; Gardner, 1990; Jackson, 1992; Northouse, 1997; Yukl & van Fleet, 1992) with limited research focused on demonstrating the holist impact of leadership development investments (Avolio, 2007). Although research has been done on evaluation practices in relation to training and development, few researchers have addressed the matter of impact evaluation specifically for leadership development, through case study research using the mixed methods lenses. This research study was aimed at investigating the approaches used to measure the impact of leadership development initiatives, through engaging with stakeholders that have a vested interest in leadership development. The qualitative results revealed that the current leadership development evaluation approaches are a case of a self-fulfilling prophecy, enabled by the unilateral design of the current evaluation approaches and matrices for evaluation are not agreed upfront with relevant key stakeholders. Furthermore, the current approaches do not measure leadership impact holistically. This is problematic as business stakeholders ii are not able to obtain a sense of the true and holistic impact of leadership development initiatives, in relation to their context and matrices that are important for them as business stakeholders are not included. The quantitative findings highlight the importance of having a leadership development evaluation approach that is 1) credible; 2) simple; 3) enables the evaluation to be done across all three levels of the triple bottom line; and an approach that is 4) theoretically sound. The results provided insights into the core elements that should be included in evaluating leadership development impact holistically and through this theory emerged which informs the theoretical contribution in this research study. In this, a proposed holistic leadership development impact evaluation approach is presented as an evaluation framework with underlying principles used to explain what informs the framework and how the framework may be applied in the evaluation of leadership development initiatives within the context of corporate leadership in South
Studies on philanthropy and impact investment in Ghana
(2021) Osei, Dennis Boahene
Anecdotal evidence of practices and institutions has accumulated over the years through oral traditions and all over the psyche of the African. While giving to good causes is not new in the Ghanaian traditional system and culture, there is a general paucity of literature regarding recent developments on the topic. Studies regarding investments that simultaneously generate financial, as well as social and /or environmental returns, are equally lacking. Using Ghana as a case study, this thesis contributes to the literature on three thematic areas in accordance with identified gaps in the philanthropy and impact investment literature. Specifically, the thesis relies on quantitative (instrumental variable probit model) and qualitative (content analysis, multiple-case study) research techniques to examine the relationships, and determinants of formal and informal charitable giving; uncover the motives, priorities, strategies, opportunities, and challenges of corporate foundation giving; and explore the approach to impact investing. These are critical issues whose understanding is theoretical and western-oriented, lacking empirical attention in the emerging literature of African philanthropy and impact investment. Given this, the thesis produced three independent essays to address these salient gaps in the philanthropy and impact investment literature. Empirical findings evolving from these essays are instructive and generally present crucial insights on African philanthropy and impact investment which is relevant for policy and practice. The first essay examines the extrinsic (socio-demographic) and intrinsic (personality) determinants of both formal and informal charitable giving. In addition, it explores whether the relationship between different types of charitable giving –cash and in-kind donations as well as time donations (volunteering) – is substitutable or complementary. Our findings, based on survey data from 1,533 households and instrumental variable probit model revealed that while marital status, education, v household size, religiosity, ethnicity, and empathic concern are important predictors of formal cash and in-kind giving, informal giving of cash and in-kind is driven by income, religiosity and empathic concern. On the other hand, it was evident that formal volunteering is mainly determined by income, household size, religiosity, and empathic concern, whereas gender and religiosity influence informal volunteering. We established that, in both spheres of formal and informal giving, the relationship between cash and in-kind giving and volunteering is complementary. Premised on these findings, we recommend non-profits and policymakers to recognise the complementary role and distinctive determinants of the spheres of giving in designing tools and policies to raise the levels and effectiveness of fundraising and volunteering campaigns. In the second essay, the practice of corporate philanthropy was explored through the lens of corporate foundations. Specifically, we investigate the motives, priority areas, strategies, opportunities, and challenges of corporate foundation giving. Based on qualitative content analysis, our findings revealed that corporate foundations are influenced by both altruistic and instrumental motives of giving, and that, their approach to giving prioritises multiple areas of national interest such as education, health, economic empowerment, environment/social amenities, and sports. We also found that corporate foundations rely on a combination of strategies (request, media-lead, adoption, and contest) to identify potential beneficiaries and implement their giving programmes. Further evidence indicates that giving of corporate foundations presents opportunities to both foundations (serve society, get partnership offers from other companies, and obtain goodwill from the public) and their parent companies (indirect business and advertising opportunities). However, corporate foundation giving is constrained by insufficient funding, lack of support from stakeholders, managing expectations of individuals, poor maintenance culture, and cultural rites. The findings have implications for practitioners as it presents insights which could vi serve as a model to guide new entrants into the corporate foundation landscape of developing economies. In addition, the findings could assist the development of government interventions necessary to foster greater corporate giving. The third essay applies a change in perspective to explore the approach to impact investing from a supply-side standpoint. This contrasts existing studies which are mostly theoretical and provide an understanding that is western-oriented and from a demand-side viewpoint. Using multiple-case study design and qualitative data from two Ghanaian organisations, we provide evidence of an impact investment approach characterised by concurrent motive of financial and social/environmental returns, longer time horizon, and engagement or provision of non-financial support. We conclude that this approach leverages the tools of venture capital to realise social or ecological purposes. The findings can potentially assist investors and entrepreneurs to make informed decisions and navigate the complexity surrounding the emerging impact investment environment in Ghana and economies of similar nature. Additionally, it can help in developing explicit policies to regulate the sector, increase its awareness, widens its appeal, and use to serve the intended purpose of a
The glass cliff: exploring the dynamics around the appointment of women to precarious leadership positions in corporate South Africa
(2021) Mashele, Winsome
The current research explores the "glass cliff" form of discrimination. The research argues that while women are now appointed in high-profile positions, there is a greater likelihood that they end up on a 'glass cliff' as compared to their male counterparts. Glass cliff positions put women executives' in potentially risky roles that could harm their reputations and career prospects because, when a company performs poorly, people tend to blame its leadership without considering situational variables. The research problem statement centres around the overrepresentation of women who are in senior leadership positions in organizations that are experiencing difficulties, which is an increasing concern in corporate South Africa. The main objectives of the study, among others includes to: (i) gain a better understanding of why women choose risky leadership positions. (ii) identify the leadership experiences of women in leading organisations in relation to gender. (iii) understand the suitable leadership styles that women facing the glass cliff have at their disposal to build relationships with internal shareholders as well as influence the structure of the organisation. (iv) understand the tools and resources that are needed to support women in senior leadership roles during times of crises in corporate South Africa. Design/methodology/approach: A qualitative research methodology was employed, and data collected through semi-structured interviews from a total of 15 participants. Findings: The findings suggest that women are now allowed to occupy senior leadership positions where these positions record a decline in status, competence and prestige, and as a result are time consuming and difficult to combine with a successful academic career. An important set of findings is: (i) the participants perceived the risky activity as a form of promotional opportunity and were willing to accept an offer. (ii) if women are placed in the right positions with the right skills, success is potentially guaranteed. (iii) leaders should practice the situational leadership style which evolves according to the situation, the time at hand and its nature. Contribution / value: Despite some limitations that were experienced over the course of the study, some answers emerged in response to the key question on which the study was premised. Furthermore, iv the aim of this study was achieved in terms of its contribution not only in providing guidance to organizational decision makers, policy makers and business leaders to address inequalities in corporate South Africa, but also in highlighting the role played by women in making career decisions within the rubric of the glass cliff phenomenon.
An integrative cognitive-behavioural framework for predicting collective intelligence in small teams
(2021) Chen, Jefferson Yu-Jen
Leaders’ capability to empower their employees to form small intelligent teams will profoundly impact the competitiveness of their organisations, considering that unrelenting disruption and fierce competition are the norms in today’s business landscape. In part, owing to this reason, the study of collective intelligence (CI) has emerged as a notable interdisciplinary body of knowledge in recent years. Scholars have regarded CI as the socio-psychological concept that accounts for how team members can derive superior ideas leading to higher performance when working together as collectives instead of as individuals. The study of CI in adults is relatively new ground for management science and various research gaps persist. Not only does a well-validated CI predicting framework not exist, many CI studies were not carried out in settings that closely resemble the real-life organisational context. Some researchers even contest the legitimacy and the existence of CI. To study CI in small teams can be challenging. One of the pertinent challenges is that factors attributing towards the development of individual adults’ intelligence are not well-understood. Newly emerged studies have further highlighted the poor correlation between scores generated from widely-adopted intelligent quotients (IQ) tests and adults’ intelligence. Other studies have asserted that one cannot simply assign adults’ IQ as the results of their biological attributes and further advocate that it is more accurate to study what the cognitive-behaviours are that influence the intelligence of adults in the day-to-day context. In a similar trend of logic, CI researchers have greatly accentuated that an integrative cognitive-behavioural framework that can predict the CI of the small teams is well-needed but has not yet been established. Taking these scholarly recommendations as the basis for the research design, this study regards CI as an emergent asset that arises from the cognitive-behaviours between team members during the problem-solving and decision-making processes. This study assessed the causal relations between twenty hypotheses of three cognitive-behavioural clusters, viz. resource acquisition and utilisation (RAU), strategic thinking (ST) and team members exchange (TMX), and the CI of the Action Learning Project (ALP) teams based on the outcomes of ALP competitions. The lack of academic consensus on how these twenty cognitive-behaviours impact the CI of small teams provides added novelty to this research. Considering that ALP teams are subjected to an environment that shares a fair amount of similarities with the real-life corporate scenarios but with less interference by other complex issues, the empirical findings allow researchers to further their scholarly knowledge, practitioners to design better ALP content and leaders to empower their teams. A questionnaire was developed and tested before inviting research participants to rate their own cognitive-behaviours as individuals and concurrently to assess the same cognitive-behaviours of their teams as collectives. Seeing that CI studies commonly rely on participants’ self-reporting data about the perceptions on their own cognitive-behaviours only but hardly having been probed and compared against the outcome of the participants’ perceptions of their teams as collective, contrasting two surveying approaches allow this study to conclude which approach is more appropriate for CI related studies. The responses of 406 delegates from 12 programmes were deemed fit for use, and the datasets were subjected to various statistical calculations. The findings revealed that the two datasets obtained from the two surveying approaches produced two slightly different structural path models after they were subjected to both descriptive and inferential statistic techniques. The hypotheses were reassigned into different factor dimensionalities, and subsequently, the partial least squares structural equation modelling calculations were applied to these two models. The statistical results indicated that the H-null for one of the 20 hypotheses must be rejected. An explanation was offered. Subsequently, the factors accepted were ranked according to the degree of potential impact on the overall CI of the ALP teams. The plausible rationales and the implications of this ranking are discussed. In addition, it was found that the datasets obtained from the “Rate Team” surveying approach produced a slightly better CI predictability than the ones obtained from the “Rate Self” surveying approach. The suitability of the surveying approach for CI related study is then discussed. Despite the differences between these two structural path models being marginal, this study observed a profound contrast of the key insights of each model. For the model generated from “Rate Self” surveying approach, it underscores the importance of the RAU cognitive-behaviours. Whereas the model generated from “Rate Self” surveying approach advocates that small teams must pay equal emphasis to all three types of cognitive-behaviours (RAU, ST and TMX) in order to boost overall CI of the ALP teams. The findings challenge the popular management philosophy of “culture eats strategy for breakfast”. Instead, the outcome of the study draws attention to the equal importance of gathering and utilising resources, thinking strategically and harnessing helpful styles of interaction among team members. The limitations and contributions were discussed. Recommendations for future studies are also proposed based on the findings uncovered
Essays on private capital flows and real sector growth in Africa
(2021) Asamoah, Michael Effah
Globally, countries continue to implement policies aimed at the attraction and retention of capital flows due to its perceived significant effect on economic growth and development. The benefits of capital flows are touted as being able to drive down domestic interest rates, smooth consumption, transfer of technology and improve the functioning of the financial sector. In as much as there is a copious body of literature on capital flows and economic growth, there remain essential areas that the literature has been silent. Among these are capital flows and real sector growth in the light of the allocation puzzle; the real sector amid financial sector development and institutions; private capital flows-macroeconomic volatility-financial development connections, and thresholds in the capital flows-real sector growth dynamics. Filling these gaps will provide the needed knowledge and policy directions on how countries that are known to depend on capital flows can harness these flows for growth and development, especially at the level of the real sector. Using robust econometric procedures, this study examined four thematic areas of capital flows in Africa. The first essay investigated the evidence and/or otherwise of an allocation puzzle and bi-directional relationship between private capital flows and real sector growth. The study covered 42 Sub-Saharan African (SSA) countries between 1980 and 2017. We used growth in manufacturing, industry, agriculture, and services to capture the real sector and proxied private capital flows by foreign direct investment, portfolio equity flows, and private non-guaranteed debt. We employed the two-step dynamic systems GMM model to establish our empirical relationships. We found no evidence in support of the allocation puzzle, which suggests that SSA countries with relatively high growth in the real sector will attract more private capital. However, at a decomposed level, we established a bi-directional relationship of a positive association between debt flows and growth in agriculture and services, with no evidence of an allocation puzzle. Though we found a bi-directional association between debt and industrial growth, the association was detrimental in both directions. Also, the study established a two-way inverse reverse effect between equity flows and manufacturing growth. Finally, while the impact of foreign direct investment on the real sector is positive at the disaggregated level, there is a positive bi-directional effect between foreign direct investment and growths in manufacturing, industry, and service value additions. The study provides a strong foundation for an alternative source of financing, especially for the growth of the service and agriculture sectors regarding debt and equity, from the reliance on the traditional FDI. The findings also indicate parallel reactions between real sector growth and private capital in SSA. The second essay had two separate objectives fused into one. The first part examined the brinks of financial development at which private capital to Africa enhances growth at the level of the real sector. We deployed a newly developed financial development dataset to moderate the association between private capital and the real sector, and the Lewbel instrumental variable two-step GMM estimator (IV –GMM), with Kleibergen-Paap robust standard errors and orthogonal statistics in establishing our empirical relationships over the period 1990 to 2017, for a sample of thirty (30) countries in Africa. Initial estimations at the overall level of the real sector, manufacturing, and industry show that FDI has no growth effects and even worsens the growth of the agriculture sector. Financial development stifles growth. On decomposing the real sector, we found the interaction between FDI and financial development to enhance the growth of the real sector and its components at face value. However, our marginal effect analysis shows that the growth impact of FDI on the overall real sector, industry, and service sector growth starts at the threshold level of the 25th percentile of financial development, while the growth impact on manufacturing is only evident at the 90thpercentile of financial development. Finally, although financial sector growth aids foreign direct investment in enhancing the growth of the agriculture sector, it cannot wholly eradicate the initial adverse impact from FDI. We further found that portfolio equity has no growth impact on Africa’s real sector, while debt flows harm the overall real sector, manufacturing, and industrial growth, but no impact on agriculture and services’ growth. We found that financial development reinforces the conservative view that capital flows enhance economic growth, but the reinforcement depends on the type of sector, either debt or equity, and the percentile levels of financial development. A similar objective was to analyze the interconnections between private capital flows, the quality of institutions, and the growth of the real sector in Africa. The study covers thirty (30) African countries. Our empirical analysis, with a panel data between 1990 and 2017, indicates that private capital flows (FDI, private debt, and equity) have no direct impact on the growth of the real sector. A decomposition divulges that FDI has no impact on manufacturing and detrimental to industrial and agriculture sectors. Portfolio equity is injurious to growth in services and unresponsive to the growth of all other sectors. Private debt was also insensitive to the growth in agriculture and services, and even damaging to manufacturing and industrial growth. Initial assessments show that countries with robust institutional frameworks can benefit significantly from capital flows, as we found institutions do moderate the positive impact of capital flows on the growth of the real sector, starting from the 25th percentile of institutions. Our marginal analysis confirms that the impact of private capital on real sector components is dependent on the type of capital, the sector, and the percentile level on institutions, in some cases, as far as the 90th percentile. Our results show that for policy implementation, it is not a case of one cup fits all, but sector-specific capital flow institutional policies should be the way forward. The orthodox view is that uncertainty is a deterrent to investment, and by extension, private capital inflows. Paying specific attention to the volatility of the domestic exchange rate, private capital flows and a newly developed indicator of financial development, the third chapter of the thesis examined the impact of exchange rate uncertainty on private capital flows, and whether financial development matters in such association. Specifically, the study sought to answer four questions: Is the exchange rate uncertainty –capital flows nexus strictly monotonic? Does exchange rate volatility deter capital flows? Can financial development mitigate the adverse effect of economic uncertainty on capital flows? At what threshold point does financial development jettison the negative impact? The study covers 40 countries over the period 1990 –2017. We establish our empirical relation with a system general method of moments (GMM) two-step robust estimator with orthogonal deviations. We found evidence in support of anon-linear U-shaped relationship between uncertainty and capital flows, and that the impact of uncertainty on capital flows depends on varying levels of uncertainty. We also document that uncertainty deters all forms of capital flows, and that countries with a well-functioning financial system can transform the adverse impact of volatility on capital flows. However, our marginal analysis shows that curbing the adverse effect of volatility on private capital depends on the type of capital flow, the indicator as well as the percentile level on financial sector development, in some cases as far as to the highest percentile. We further established that with the current state of the financial sector, financial institutions’ development offers the quickest route to curtailing the adverse impact of volatility on capital flows, as it has a lower threshold value or critical point compared with financial markets’ development. In the final essay, we investigated the possibilities of non-monotonic or nonlinearities in the capital flows - economic growth dynamics, as some studies posit that the effect of capital flows on economic growth changes course after attaining a certain threshold level, either based on the levels of capital flow itself or some mediating variables. We proxied capital flows by foreign direct investment (FDI) inflows and growth by real sector components. With data from 1990 to 2018, for a sample 36 African countries, the study employed Seo and Shin (2016) dynamic panels threshold effect with endogeneity as well as Seo et al. (2019) estimation of dynamic panel threshold model using Stata to achieve the study’s objectives. In the first part of the analysis, we employed three indicators of human capital development as threshold variables, and FDI flows as the regime dependent variables. These are the mean years of schooling, gross national secondary school enrolment, and primary school pupil to teacher ratio. In the subsequent analysis, we deployed FDI as both the threshold and regime dependent variable. The study found significant thresholds in the capital flows -real sector growth relationship as mediated by human capital and foreign direct investment. The significance impact of foreign direct impact on real sector happens at both the lower and upper levels of the mediating variable but the component of real sector matters. We established that in most cases, the impact of FDI on the growth of the real sector is harmful in the lower regime and beneficial in the upper regime of human capital for both manufacturing and services sectors, and vice versa for both agriculture and industrial sectors. The results indicate that increasing levels of human capital development and FDI inflows are necessary for the growth impact of FDI on Africa’s real sector, but not under all sectors as he results are dependent on the varying threshold variables of both human capital and foreign direct investment
Determinants of successful coopetition between SMEs in SADC countries – implications for strategy and firm performance
(2021) Feela, Tshepo
The purpose of the study was to investigate the existence of coopetition (the simultaneous competition and collaboration between two or more firms) amongst the SMEs in the SADC as well as to ascertain whether these relationships have a positive effect on firm performance. Firm performance is divided into financial performance, strategic performance, and innovation performance. Furthermore, an additional aim is to investigate which variable(s) (foresight, risk aversion and exploiting opportunities) moderate the relationship between coopetition and firm performance. The results show that there is strong coopetition amongst SMEs in SADC and that coopetition has a positive and significant effect on firm performance. However, although no variable moderates this relationship, risk aversion has a positive and significant direct effect on firm performance

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