Electronic Theses and Dissertations (Masters/MBA)
Permanent URI for this collectionhttps://hdl.handle.net/10539/37942
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Item Digital readiness and financial performance in the financial industry: evidence from emerging market economies(2022) Ndlovu, ChiedzaThis study examines the impact of digital readiness on financial performance of listed firms in Brazil, Russia, India, China and South Africa. It is based on 1 224 firms across BRICS where 135, 41, 711 and 337 firms represent banks, insurance, investments and real estate industries, respectively. The Arbitrage Pricing Theory was extended by including the digital readiness component from the Network Readiness Index Framework. Generalized Method of Moments regression was used as the main data analysis model. Key findings are as follows: [1] The extended Arbitrage Pricing Theory and the longitudinal research design approach was found to be ideal for the study as supported by model statistics. [2] The current state of enabling infrastructure is not a key determinant of financial performance. [3] Internet affordability effects generally have a positive and significant impact on financial performance of banking and insurance firms. [4] Skills and education have positive and significant impact on financial performance of banking and insurance firms. [5] Financial performance in investments and real estate firms generally respond negatively to variations in digital readiness. [6] Market-based financial performance measures respond better to variations in digital readiness when compared to accounting-based measures of financial performance.Item The relationship between the performance of Johannesburg Stock Exchange and economic growth in South Africa(2021) Magomana, MallsonThis research focused on measuring the relationship between the Johannesburg stock market performance and economic growth as an option for boosting economic growth. Even though there have been a lot of studies with regards to the impact of Stock market growth to economic growth, very few of these have been directed to the Southern African nations. Second, these studies had different results, some suggesting a positive long-run relationship between the stock market and economic growth, and some established that there is no long-run relationship. The purpose of the research is to investigate the longrun and shortrun relationship between the JSE performance and economic growth in South Africa. It also investigates the direction of the causality between JSE’s overall performance and economic growth in South Africa. The research uses the ARDL bound cointegration model (Suggested by Pesaran, Shin & Smith 2001) to test the availability of a longrun relationship between the variables of stock market growth and economic growth on quarterly data from 2006 to 2018. The Granger causality test was used to test the pairwise relationships between the individual variables. The ARDL bounds testing results showed evidence of a longrun relationship between economic growth and the variables of stock market performance. The availability of a long-run relationship between the stock market and economic growth opens an avenue for policymakers that can be utilized for economic recovery. The Granger causality test showed evidence of a bidirectional causality between Economic growth and Gross Fixed Capital Formation and between Market capitalisation and JSE all share index. It also showed that Johannesburg Stock Exchange’s All share index (Jalsh) granger causes Economic growth. This relationship needs to be exploited so that it can benefit the economy in the longrun. The shortrun model showed that there is a relationship between economic growth and Gross Fixed Capital Formation and Labor Force. However, the relationship with the other measures of stock market performance is not clear in the shortrun with regression coefficients that are not statistically significant at 5% significant level. Fundamentally, the research revealed that the relationship between the stock market and economic growth depends on the proxies used to represent the stock market. This is important as it may be one of the reasons for mixed results in the previous literature, thus, caution is needed, and one may need to consider the proxy that best suits the stock market measure. The research adds to the already available literature and can be used as a reference point for other studies in the SADC region. The study offers a relevant solution to the allocation of financial resources with a goal to boost economic growth. It also illuminates the need for a well-developed financial system that allows for a smooth intermediation process complimenting stock market growth and thereby increasing economic growth.Item Relationship between financial deepening and economic growth for selected countries in Africa(2020) Musiyazviriyo, TafadzwaThe financial sectors of African countries are still underdeveloped relative to other regions, and there is little academic research on how this can be improved. Given the potential for economic growth, fuelled by further financial sector development, the call is for African policymakers to prioritise financial deepening policies to stimulate economic growth. The purpose of the study was to investigate the relationship between financial deepening and economic growth in 51 African countries. This research sought to achieve three objectives: (i) whether financial depth for the African countries between 1993 and 2017 had a significant impact on economic growth; (ii) whether the effect is positive or negative; and (iii) determining the size of the effect. The assumption was that financial depth in the African countries positively influences economic growth. The study also sought to ascertain whether the direction of causality is unidirectional or bi-directional. This study assumed that the direction of causality is bi-directional. Using the two-step generalised methods of moments (GMM), the study assessed the relationship between financial deepening and economic growth in 51 African countries from 1993 to 2017. The findings reveal that there is a significant negative relationship between financial deepening and economic growth. The Granger causality tests applied further show that there is a bi-directional relationship between financial deepening and economic growth. The main conclusion from the study is that there is a multidimensional approach opportunity for African countries to develop their financial sectors further to stimulate economic growth. Possible interventions in policy can be to create an environment that aims to encourage either a demand-following and/or a supply-leading approach to financial sector development. Both strategies will result in financial deepening and may stimulate economic growth since there is a bi-directional relationship between financial deepening and economic growth.