Electronic Theses and Dissertations (Masters/MBA)
Permanent URI for this collectionhttps://hdl.handle.net/10539/37942
Browse
1450 results
Search Results
Item A Hedge Extension of the CAPM Model: An Empirical Investigation(University of the Witwatersrand, Johannesburg, 2025) Waring, Donovan ShaunExtending the CAPM with practical hedging strategies presents an innovative approach to managing portfolios. This study extends CAPM through incorporation of a Hedge Extension that utilizes cointegration-based pairs trading within a core satellite portfolio framework. While CAPM remains foundational in asset pricing and portfolio optimization, its reliance on market efficiency assumptions and the exclusion of idiosyncratic risk undermines its efficacy in volatile markets. This paper bridges these gaps by constructing a core satellite portfolio where the JALSH functions as the passive core, while a dynamically managed satellite component employs cointegration-based pairs trading that provides an uncorrelated source of returns due to relative mispricing. Using daily closing prices of Financial and Basic Material sector stocks listed on the JSE between 2nd January 2015 and 31st December 2024, this study tests the Hedge Extension’s efficacy. The pairs were selected using the Engle-Granger two-step approach, where positions were traded when normalized cointegration spreads exceeded ±2 standard deviations, and unwound upon mean reversion. The hedge portfolio was constrained to a gross exposure limit of 200% and 2.5% net exposure cap per pair on entry. In terms of risk-adjusted returns, the hedge portfolio notably outperformed the market portfolio. The performance yielded a Jensen’s alpha of 4.28%, a Sharpe ratio of 0.1582 (in contrast to -0.1754), along with a Modigliani Squared ratio of 11.39% (compared to the markets return of 5.49%). Cumulative returns for the hedge portfolio reached 111.15%, substantially exceeding the 68.50% achieved by the market. The hedge portfolio’s systematic risk decreased significantly due to the hedging effect of cointegrated pairs, while idiosyncratic risk increased marginally due to higher gross exposure and residual pair volatility. These findings validate the hedge extension of CAPM’s efficacy and reveal how cointegration-based pairs trading is used as a mechanism to enhance CAPM’s practical utility. Thus, the strategy offers a comprehensive framework for portfolio construction, equipping portfolio managers with practical insights into how this hedging strategy can serve as an effective alpha generator within a diversified portfolio. This study advances portfolio management theory by demonstrating that integrating a dynamic hedging strategy with equilibrium models can reconcile theoretical frameworks with real world market complexitiesItem Integrated Resource Planning and Independent Power Producer Investment in South Africa's Evolving Electricity Market(University of the Witwatersrand, Johannesburg, 2025) Vimbani, Mvumikazi; Crompton, RoderickThis research examined the relevance of integrated resource plans (IRP) in South Africa's electricity market, particularly its role in attracting investment from Independent Power Producers (IPPs) after the removal of the 100 MW licensing exemption threshold announced on 17 January 2023. The White Paper on Energy Policy,1998 mandated IRP-based decisions for large investments, with new generation capacity licenses granted only if compliant with the IRP. Similarly, procurement by the IPP Office relied on IRP-derived technology and capacity needs. However, recent developments challenge the IRP's role. Technological advancements, electricity crises, grid limitations, and legislative changes are transforming the South African electricity market. Notably, the removal of the 100 MW licensing threshold through the Licensing Exemption & Registration Notice, 2023 weakens the link between IRPs and investment decisions. This research investigated stakeholder perspectives on the continued relevance of IRP in this evolving landscape, where IPP investment may no longer dependent on IRP-backed procurement with government guarantees. The goal was to determine whether the role of an IRP may require adaptation or replacement, and whether successful IPP investment in the new market structure can be facilitated in the absence of a guaranteed off-taker and government guarantees. A qualitative research approach was adopted using interviews for primary data collection and document analysis for secondary data collection. Interviews targeted stakeholders involved in or impacted by IRP and generation investment (government, regulators, utilities, etc.) – 14 respondents. Document analysis focused on public records and data related to IPP projects exceeding 100 MW, with public pronouncements, and completed registration with the National Energy Regulator of South Africa (NERSA). The study suggests that while the IRP program has merits, it needs modifications. It also highlights those factors often assumed to be crucial in influencing IPP investment decisions (like iii guaranteed off-takers and avoiding social obligations) may not be as decisive in the evolving South African market than conventionally understood in the broader literature.Item The perceived impact of Artificial Intelligence on cyber security operations in the South African banking sector(University of the Witwatersrand, Johannesburg, 2025) Van Bosch, EdwardCybersecurity threats are increasing exponentially, and South Africa is one of the top countries targeted by cyber criminals. Banks are adopting AI-powered cybersecurity solutions to fortify themselves against the ever-increasing cyber threat landscape, but this presents opportunities and challenges. To ascertain the efficacy and impact of AI in cybercrime eradication, the TOE framework and Perception Theory were adopted to cover the operating landscape of CS officers and guided the cognition and the rationalisation of AI adoption. The data from the literature review was posited against qualitative findings from semi-structured interviews of key CS personnel and was analysed using thematic analysis. The findings indicate a positive perception of AI as a cybersecurity force multiplier, particularly in enhancing real-time threat detection and automating response mechanisms. However, concerns were also raised about overreliance on AI, data privacy and the potential exploitation of vulnerabilities and algorithms within AI-powered cybersecurity solutions. The findings clearly demonstrated that AI is not a turnkey solution and does not possess the power and ability to eradicate cybercrime in totality but is the only solid viable defensive solution for cyber-attacks. AI cannot eradicate crime completely but is the most efficient tool and system in cybercrime detection and prevention. There was a marked disparity in perception of AI between direct AI users and literary conjecture on the impact of AI. Given the vastness of AI, a novel bespoke framework was created to guide new users on the necessity, risk, benefits and scale of AI implementation intra-organisationally.Item The Role of Industry Associations in South Africa’s Just Energy Transition Discourse(University of the Witwatersrand, Johannesburg, 2024) Tsoai, Letlhogonolo; Mahonye, NyashaThe Just Energy Transition (JET) has emerged as a pivotal topic in global discussions on decarbonising energy systems. In South Africa, the JET is particularly important as it unfolds against the backdrop of a significant energy security crisis and an oligopolistic coal economy, which necessitates a sound policy response. This research examines the discourse surrounding the JET in South Africa and evaluates the role of industry associations that focus on advocacy. Through qualitative methods, study utilised semi-structured interviews and thematic analysis to identify key themes and findings from the participants. The literature suggested that industry associations have gained prominence and are essential actors in shaping policies that support their members while striving to navigate ethical responsibilities. The study found that industry associations core focus is to represent their constituencies (membership base) and advocate their specific sub-sectors in the JET. The associations present policy positions that enable their members to operate in an environment that is free of bottlenecks. The study also found that the associations will be ethically challenged due to their funding regimen, which is based on members' contributions. The study suggests overarching governance systems and multi-stakeholder engagements across government, private sector, industry associations and civil society.Item Energy Intensity Trends and Prospects in South African Open-Cast Mine: A case study of a coal mine(University of the Witwatersrand, Johannesburg, 2025) Tlhoaele, Mosebetsi Olga; Young, BruceThe mining sector in South Africa is a major energy consumer, relying extensively on diesel and electricity, which results in increased carbon dioxide emissions. This sector represents a significant portion of the nation's electricity consumption and petroleum usage. Given increasing global pressures to lower carbon emissions, companies face an increased desire to focus on energy efficiency as an important strategy. Moreover, the growing expectations from regulators and stakeholders necessitate that companies disclose information regarding energy intensity, carbon emissions, and sustainability practices, highlighting the importance of clear and quantifiable advancements. The environmental impact, rising costs, and operational expenses associated with high energy consumption make it clear that sustainable practices are essential for the future of the industry. This study uses a quantitative methodology to examine energy consumption and intensity at an opencast coal mine in South Africa. The objective is to evaluate trends in energy intensity and identify potential avenues for enhancing energy efficiency within an open-cast coal mining environment. The results indicate that factors such as hauling distance, coal quality, operational sequencing, and seasonal production played a significant role in shaping energy demand at the case study mine. Enhancing energy efficiency leads to a notable reduction in energy use and carbon dioxide emissions, which is essential for tackling climate change and advancing global sustainability effort.Item The role of Telcos in fostering Inclusive connectivity in South Africa(University of the Witwatersrand, Johannesburg, 2025) Taylor, Tsatsawani Jessica; Magida, AyandaThis study explores the role of telecommunications companies (telcos) in South Africa in fostering inclusive connectivity, and the effectiveness of regulatory frameworks and policies that drive inclusive connectivity in the telecommunication industry. While South African policies emphasise the significance of inclusive connectivity for socio-economic development, the digital divide remains a pressing issue. Semi-structured interviews were conducted with nine purposively sampled industry professionals within the telecommunications sector. The interviews aimed to shed light on the ways in which those working in the sector perceive the role that telcos do, and should, play in fostering inclusive connectivity. Stakeholder Theory, together with the related Social Contract Theory and Technology Social Responsibility, were used as a theoretical framework for interpreting the responses of interviewees. A thematic analysis was used to analyse the data, identifying common or significant themes related to the role of telcos and of the regulatory frameworks that govern the sector. The results reveal a strong consensus on the significant role telcos play in fostering inclusive connectivity in South Africa. However, industry professionals identify several barriers to telcos' contributions in this area. Some participants expressed that expanding services into rural and underserved regions is often not commercially viable due to high infrastructure costs and lower demand. Additionally, concerns were raised about the perceived lack of legitimacy of the Independent Communications Authority of South Africa (ICASA), stemming from the alleged misuse of the Universal Service Fund, which may be undermining its ability to effectively hold telcos accountable to their license obligations. Despite these challenges, interviewees highlighted instances of positive practices, especially around digital skills programmes, and proposed innovative solutions for improvement. These insights led to several recommendations from iii the study. For the government, key recommendations include stricter enforcement of license obligations, greater transparency around the Universal Service Fund, and better protection of infrastructure against theft and vandalism In addition, policies addressing spectrum allocation, business partnerships, and accountability in the management of the UFS must be prioritised. Telcos could also explore better collaboration and infrastructure sharing partnerships with each other and leverage new technologies to accelerate connectivity rollout in underserved areas. Innovative funding models, such as results-based financing, could also be considered as a way for government to incentivise greater market reach by telcos. Suggestions for further research include comparative studies with other countries that are also pursuing inclusive connectivity, and impact evaluations of innovative solutions that are considered within the telecommunications sector. This study contributes to the theoretical understanding of inclusive connectivity in South Africa by applying and extending Stakeholder Theory, Social Contract Theory and Technological Social Responsibility theoretical frameworks to the telecommunications context of South Africa. The research findings demonstrates that telcos view their role as extending beyond profit-making to ensuring societal benefits. The study further contributes to the body of qualitative research in inclusive connectivity in South Africa using a constructivist paradigm and semi- structured interviews.Item The Impact of Standardisation on Business Performance of Fast food Franchises in South Africa: Customer Perspectives(University of the Witwatersrand, Johannesburg, 2025) Skosana, Nokwazi Cuthu; Urban, BorisThe South African fast food industry is a dynamic and competitive space where standardisation plays a crucial role in ensuring operational efficiency, brand consistency, and customer experience. However, achieving a balance between uniformity and adaptability remains a challenge, particularly in diverse and evolving markets. This study explores the relationships between standardisation, customer satisfaction, and business performance, examining whether customer satisfaction mediates this relationship. The Dynamic Capabilities Theory (DCT) serves as the theoretical framework, emphasising the importance of sensing, seizing, and reconfiguring resources to maintain competitiveness. A quantitative research design was adopted, with data collected from 450 respondents through an online consumer panel associated with major South African fast food franchises. Statistical analyses, including correlation, regression, and mediation tests, were conducted using SPSS. Findings reveal that standardisation does not significantly impact customer satisfaction, loyalty, or perceived quality. Moreover, customer satisfaction does not mediate the relationship between standardisation and business performance, suggesting that other factors such as innovation, localisation, and digital transformation may be more influential. This study advances DCT’s application in the franchise industry, challenging assumptions about rigid standardisation as a driver of customer satisfaction and business success. The findings provide critical insights for franchisors, emphasising the need for a more flexible, customer-centric approach that incorporates adaptability, innovation, and market responsiveness. Future research should explore alternative mediators and moderators, particularly the role of technology, sustainability, and personalised service strategies.Item Dynamic customisation of products and services through intelligent communication(University of the Witwatersrand, Johannesburg, 2024) Singh, Sacheen; Chalomba, NakuzeThis research explored how intelligent communication strategies could enable dynamic customisation of products and services within South African businesses. The study aimed to address the gap in AI-driven customisation adoption by investigating how businesses leverage AI, machine learning, and data analytics to enhance customer-centric product offerings. Using a qualitative research design, in-depth interviews with business leaders and industry experts were conducted. Thematic analysis through ATLAS.ti identified key themes related to AI integration, customer engagement, and business performance. The findings will contribute to both academic discourse and practical applications by offering insights into the challenges and opportunities of AI-driven product dynamism in emerging markets. To achieve this, the study employed a structured interview guide designed to explore key research themes, including AI adoption challenges, customisation strategies, and consumer engagement. Participants were asked about their experiences with traditional and AI-driven communications, the role of intelligent automation in business operations, and the barriers to full-scale implementation. The interview guide ensured consistency in data collection while allowing flexibility for participants to share unique insights that align with their industry- specific experiences. Findings from the study indicated that AI-driven intelligent communication significantly enhances customer engagement and operational efficiency, yet adoption remains limited due to cost constraints and skills shortages. Businesses that integrate AI with hybrid human-AI interaction models report higher customer satisfaction and trust. Additionally, regulatory uncertainty and infrastructure challenges were identified as key barriers to widespread AI implementation. The study provides strategic recommendations to overcome these barriers and optimise AI-driven customisation strategies, ensuring sustainable growth in South Africa’s evolving digital economy.Item The Role of Fintech in Facilitating Access to Green Finance in South Africa(University of the Witwatersrand, Johannesburg, 2024) Singh, Jayesh; Mawela, TendaniThis qualitative study investigated the part of Fintech in enhancing access to green finance products for individual Green Energy Transition (GET) projects in urban South Africa, which focussed on Gauteng Province. The research aimed to address gaps between ambition and action by exploring how technology enabled financial platforms supported participation in sustainable energy initiatives. Through semi-structured interviews with 20 participants, comprising of users and non-users of green finance product, the study examined four key areas in the accessibility of green finance via Fintech platforms, financial literacy related to green finance, the influence of government policies and regulations, and opportunities for increasing Fintech adoption. The findings indicated that affordability remained a significant barrier despite the potential of Fintech platforms to simplify loan applications and investment procedures. Participants highlighted the need for rental options, subsidies, and clear regulatory frameworks to make green finance more inclusive. Financial literacy was identified as another critical factor, with hard-to-understand documentation and insufficient awareness that hindered adoption. Government- led education campaigns and collaborations with Fintech companies were suggested as effective strategies to bridge these knowledge gaps. Furthermore, inconsistent policies and municipal fees were found to undermine incentives, which emphasised the importance of supportive regulations and inter-sectoral cooperation. The Multi-Level Perspective (MLP) framework was used in the study analyses on how technological advancements (niche), institutional practices and policies (regime), and broader societal pressures (landscape) interacted to shape green finance adoption. Key recommendations included expanding tax rebates to cover additional components like inverters and batteries, the promotion of community- based educational programs, the creation of partnerships between governments iii and Fintech companies, and the development of user-friendly digital tools to simplify green finance processes. This research contributed to the growing body of literature on green finance and Fintech, which offered actionable insights for policymakers, financial institutions, and stakeholders aimed to promote sustainability in urban South Africa. The combination of innovative technologies, targeted education, and supportive regulations, highlighted in the study created a pathway for an enabling environment for wider individual participation in GET projects, ultimately contributing to a more sustainable and equitable future.Item The impact of digital transformation on economic growth in South Africa(University of the Witwatersrand, Johannesburg, 2025) Sikhakhane, Mthunzi; Horvey, SylvesterThe African continent experiences varying economic growth rates by region and multiple factors contribute to this effect. The nuance of how digital transformation impacts economic growth on a country level is of interest due to limited literature and potential insight that can be employed to eliminate socioeconomic disparities. This paper empirically reviews the impact of digital transformation on economic growth in South Africa using secondary data from the World Bank’s World Development Indicators database between 1990 and 2022. The study measures digital transformation using proxies of fixed telephone, fixed broadband, mobile cellular and internet users into an index using principal component analysis (CPA) while using real GDP per capita as a proxy for economic growth. The common literature indicates that technology impacts economic growth positively with some mixed results in other economies. The study reveals that technology as a standalone, cannot solve socioeconomic challenges if other important factors are not considered. This study employed multiple statistical techniques including regression, Augmented Dickey-Fuller (ADF) to test time series stationarity, Bound Cointegration test and Autoregressive Distributed Lag (ARDL) for further analysis. This study presents that digital transformation has a positive correlation with economic growth by reducing transaction costs, providing access and increasing productivity. However, the results indicate a short-run relationship between digital transformation and economic growth in South Africa. Due to rapid technological advancements in all sectors, the study recommends public-private partnerships and regulatory sandboxes to fast-track policy frameworks implementation.