Electronic Theses and Dissertations (Masters)

Permanent URI for this collectionhttps://hdl.handle.net/10539/37936

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End date: 2024Subject: search.filters.subject.SDG-8: Decent work and economic growth

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Now showing 1 - 10 of 45
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    Institutional quality, capital structure and financial performance: the case of listed firms in Africa
    (University of the Witwatersrand, Johannesburg, 2024) Celliers, Jacqueline; Chipeta, C.; Moletsane, M.
    This research report examines the relationship between institutional quality, capital structure and the financial performance of firms listed on selected African stock markets. Panel data estimation techniques are carried out on a set of 347 firms from five African countries over the period 2003 to 2022 using the two-step system Generalised Method of Moments. The results show that only the Economic Freedom Index and the significance of the stock market have a significant negative effect on total leverage. The Economic Freedom Index also has a negative significant impact on short-term debt, while the legal rights index has a significant positive effect. The other measures of institutional quality included in this study, such as rule of law, control of corruption and significance of the banking sector, have insignificant effects on total- and short-term debt, while all institutional quality indicators have insignificant effects on long-term leverage. The results also indicate that all three measures of leverage have a significant negative impact on firm performance, and that institutional quality may moderate the negative effects of total- and long-term debt on the financial performance of firms but doesn’t appear to play a part in mitigating the effects of short-term leverage. This study adds value to the literature by investigating the link between institutional quality, capital structure and firm performance in Africa, as most previous studies focus on developed countries. Furthermore, it also explores the role of institutional quality in influencing the relationship between leverage and financial performance, specifically relating to firms in Africa.
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    Capital Structure and Financial Performance of State-Owned Enterprises in South Africa: Does Corporate Governance matter?
    (University of the Witwatersrand, Johannesburg, 2024) Khumalo, Nomathemba; Chipeta, Chimwemwe
    The study examines the relationship between capital structure and financial performance of South African State-Owned Enterprises (SOEs) considering corporate governance factors. Using empirical data derived from financial reports and audited statements of 21 major SOEs listed in the Public Finance Management Act (PFMA) of South Africa, this study employs a quantitative methodology, specifically employing Fixed Effect (FE) and Generalized Methods of Moments (GMM) regression models on annual data from 2010 to 2022 to examine variables that affect financial performance of the South African SOEs.The research reveals mixed relationships between capital structure factors and financial performance, yet these relationships lack significance. Similarly, corporate governance demonstrates diverse relationships with financial performance, however, a significant negative correlation exists between board composition and return on assets. When examining the effect of corporate governance on capital structure in influencing financial performance, the study indicates an insignificant impact on financial performance. The policy implications of the study suggest that enhancing corporate governance practices, combating corruption, promoting strategic investments, efficient resource allocation, and government support for SOEs as drivers of economic growth should be guided by a clearly defined funding policy to enhance the financial performance of SOEs.
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    Impact of Energy consumption and Economic policy uncertainty on Ecological footprint: Evidence from BRICS countries
    (University of the Witwatersrand, Johannesburg, 2024) Arek-Bawa, Oghenefejiro; Adom, Philip
    In the past years, a growing concern has been directed towards global environmental quality and the energy required to sustain economic growth. A crucial element in current literature is the influence of economic policy uncertainty (EPU) and on Ecological Footprint (EFP). Given the significant global influence of the BRICS (Brazil, Russia, India, China, and South Africa) group, examining it through their lens will benefit the international context. Therefore, this study utilized AMG and CCEMG methodologies to investigate the impact of energy consumption (EC) and EPU on the EFP in BRICS countries. This study enriches the current literature further by disaggregating EC into REC (Renewable Energy Consumption) and NREC (Non-renewable Energy Consumption) and subsequently looking at the consequences of individual renewable energy sources on the EFP. The study presents empirical findings that show panel and country-specific results and demonstrate that EC and NREC increase EFPs. In contrast, only China's REC positively impacted the environment. EPU has significantly negatively affected the EFP when considering individual REC. This study recommends policymakers accelerate the transition to a sustainable future by considerably increasing support for additional investments and subsidies to the widespread adoption of renewable energy as a primary source to diminish environmental decay
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    An analysis of fraud detection using Benford’s law and the bias ratio
    (University of the Witwatersrand, Johannesburg, 2024) Govan, Bhavik; Britten, James
    This study explores the detection of fraud within the South African hedge fund industry through the utilisation of the bias ratio and Benford’s law. An examination is conducted on a sample consisting of 83 hedge funds, encompassing both Qualifying Investor Hedge Funds (QIFs) and Retail Investor Hedge Funds (RIFs), to identify potential anomalies. Six funds with elevated bias ratios are flagged for further scrutiny, indicating possible fraudulent activities. Benford’s law is applied to corroborate these findings, revealing non-conformity in all but one of the flagged funds. The study emphasises the importance of a multifaceted approach to fraud detection, combining various metrics and methodologies to enhance the overall understanding of a hedge fund’s returns. While the bias ratio and Benford’s law offer valuable insights, their application requires careful consideration of fund type and strategy. Regulatory intervention and investor vigilance are essential for safeguarding against fraudulent activities in the hedge fund industry.
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    Pairs Trading via Unsupervised Learning on the JSE
    (University of the Witwatersrand, Johannesburg, 2024) Laher, Muhammad; Seetharam, Yudhvir
    Pairs trading, a strategy that capitalises on temporary price discrepancies between two correlated assets, has garnered attention for its potential to generate profits in financial markets. This research explores the viability of employing unsupervised learning techniques for pairs trading on the Johannesburg Stock Exchange (JSE). Using clustering algorithms to identify pairs and considering both price data and firm characteristics, the study examines the performance of pairs trading portfolios constructed via different clustering methods. Empirical results reveal that while agglomerative clustering shows promise with the highest monthly mean return for long-short portfolios, none of the strategies consistently outperform benchmark indices. Furthermore, considering only momentum features in the clustering process leads to deteriorated portfolio performance, emphasizing the importance of incorporating firm characteristics. Despite the potential benefits offered by unsupervised learning, challenges such as the limited number of listed stocks and algorithm selection hinder the strategy's effectiveness on the JSE. The findings suggest that further research is needed to refine methodologies and address practical implementation challenges for pairs trading strategies in emerging markets like the JSE
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    We want a living wage”: the impact of the national minimum wage on struggles of domestic workers in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Cabe, Musawenkosi; Castel-Branco, Ruth
    In 2018, the South African government introduced the National Minimum Wage (NMW) Act as a structured policy intervention to address the high levels of working poverty and income inequality. Economic models projected that a NMW set at R3 500 a month would raise the incomes of almost half of South Africa’s workforce (Finn, 2015; Isaacs, 2016). However, a study commissioned by the National Minimum Wage Commission post-implementation, observed only a moderate increase in wages and a limited effect on the wage distribution. The “muted” impact of the NMW was attributed primarily to high levels of non-compliance, a lack of knowledge by employers and weak enforcement. Drawing on semi-structured interviews with domestic workers, employers and domestic workers organisations in Gauteng Province, this research report explores: How familiar are workers and employers with the NMW? How does the intimate nature of domestic work influence the possibilities of its enforcement? How have domestic workers leveraged the NMW, individually and collectively, to secure better working conditions? How can the South African case inform global campaigns to improve the conditions of work among domestic workers? The findings suggest that although the uptake was gradual because of the initial phase-in period, the NMW had a positive impact on the wages of domestic workers who participated in the research. There is a general awareness from employers and domestic workers of the NMW and, with the exception of one respondent, all domestic workers earned at least the NMW. However, domestic workers also noted that the NMW was too low and that given the high cost of living, they were not able to meet their basic needs. Therefore, domestic workers cultivate affective relationships with employers to secure benefits beyond the wage. However, affect is a double-edged sword which can be used by employers to extract additional work from domestic workers. Despite its limitations, the NMW has served as an anchor of recruitment and mobilisation for domestic workers unions and organisations, with some positive results as we saw with One-Wage-Campaign. However, as the South African case shows, the NMW alone cannot address the problem of poverty and inequality. The introduction of a NMW must be complemented by other social policy measures such as a Universal Basic Income Guarantee (UBIG), free public services, subsidised transport, and housing.
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    A Queer Economic Study: Exploring the Economic and Social Burden of Discrimination Against Black Lesbians in Johannesburg
    (University of the Witwatersrand, Johannesburg, 2024) Futshane, Vuyokazi; Dawson, Hannah; Francis, David
    This qualitative study explores the experiences of Black lesbians in Johannesburg, focusing on the intersections of their identity to understand the links between sexual orientation, discrimination, and the South African social and economic context. It examines the dynamics in the workplace and connects it to social relations outside of the workplace. Drawing upon intersectionality, this study reveals how race, class, gender, and sexual orientation do not operate independently but overlap simultaneously to shape Black lesbian’s experiences of discrimination. The findings highlight the varied nature of discrimination, ranging from subtle biases and microaggressions to overt forms of prejudice, and the strategic concealment of sexual orientation by some, a coping mechanism against potential biases. The study stresses the impacts of non-conformity of heteronormative expectations and underscores the importance of exploring queer economics to understand how identities intersect with socio-economic realities more comprehensively.
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    Is the Fed Hindering Development? Impacts of US interest rates on growth, income distribution and macroeconomic policy space in developing countries: a demand-led growth model
    (University of the Witwatersrand, Johannesburg, 2023) Vaz, João Emboava; Hein, Eckhard; Lavoie, Marc; Tinel, Bruno
    The US Fed has responded to recent inflation pressures with the most rapid interest rate hike since the 1979-82 Volcker’s disinflation. The hike in the beginning of the 1980s was followed by harsh external crises in the developing world, especially in Latin America. The current situation adds tot that the role the US monetary policy plays on quickly shifting massive capital flows in a world of open and volatile capital accounts (Rey, 2015). On the other hand, interest rate levels remain low on historical levels and developing countries come from decades of relative growth and record international reserve accumulation. Following the recent development in external policy space debates, this thesis aims to understand how a deterioration of external conditions, especially through higher foreign interest rates, may impact growth, income distribution, and macroeconomic policy space in developing countries.
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    An analysis of transient and chronic multidimensional poverty in South Africa between 2008 and 2017
    (University of the Witwatersrand, Johannesburg, 2024) Munzhelele, Tumelo
    This study derives a Multidimensional Poverty Index (MPI) for each wave using data from the South African National Income Dynamics Study (NIDS) between 2008 to 2017. The MPI is measured using the counting method of Alkire and Foster (2011). In addition, the duration approach of Foster (2009) is used to measure, depending on the MPI, whether households suffer multidimensional chronic or transient poverty. Furthermore, variables that increase a household's likelihood of experiencing chronic or transient multidimensional poverty as opposed to never experiencing multidimensional poverty are found using multinomial logit regression analysis. The results show that the MPI decreased from approximately 7% to 4% between 2008 and 2017. Additionally, the share of South African households which experienced multidimensional poverty decreased from approximately 15% to 10% between 2008 and 2017. However, the intensity of poverty has only decreased by two percentage points from 44% during the same period. This indicates that there has not been much progress in the number of dimensions in which poor households are deprived even as multidimensional poverty decreased. Years spent in school for adults living in the household and unemployment were the dimensions which contributed the most towards the MPI for households that were either chronically or transiently poor. Approximately 73% of households in South Africa never experienced Multidimensional Poverty between 2008 and 2017. Based on the specified deprivation score cut-off, between 1% and 13% of South African households were living in chronic multidimensional poverty. Transient multidimensional poverty affected more than 25% of South Africans. Notably, a higher portion of South Africa's multidimensional poverty is transitory in nature. Black households and female-headed households had the highest incidence of both chronic and transient multidimensional poverty. The multinomial logit model indicates that the likelihood of experiencing chronic or transient multidimensional poverty is higher among households led by individuals without formal education, those with an economically inactive head, and those based in rural areas.
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    The role of loyalty programmes on retail fuel site profitability in Gauteng
    (University of the Witwatersrand, Johannesburg, 2021) Mtungwa, Muzi; Lamola, Medupi
    Loyalty programmes are one of a number of instruments used by businesses to retain existing customers, attract new customers and in the process retain them over a long term to sustain business profitability. They have been extensively investigated in the developed world with models developed to explain their role in customer retention. In the developing world, they are still being studied to understand if the models that have been developed in the developed world can be extended to the developing countries. Loyalty programmes were extended to the fuel retail industry in 2010 by First National Bank (FNB) and its oil partner, Engen Petroleum. The role of these programmes in the fuel retail industry and their correlation to profitability, whether positive or negative has received little attention from researchers. Here, the author reports on the correlation of these programmes to business profitability. The report shows that there is a positive correlation between these programmes and the profitability of an oil company, while at the same time the report supports the assertion by the non-loyalty programme oil companies that these programmes have a negative effect on their business. These non- loyalty programme oil companies which have a market share of less than 7 percent have been forced to exit the retail industry due to the introduction of these programmes by the major oil companies and their partners. The findings recommend that the role of these programmes in the fuel retail industry is further researched as the authourities do not allow for discounting of the retail price of petrol