Electronic Theses and Dissertations (Masters/MBA)

Permanent URI for this collectionhttps://hdl.handle.net/10539/37942

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    The effect of regulations on financial markets performance in Lesotho
    (2021) Mohloki, Thabang
    This paper unpacks the impact regulatory interventions on performance of the financial markets in Lesotho from 2009 to 2018 with the use of segmented regression analysis. The paper focuses on the impact of the 30% regulatory intervention imposed on insurance companies on performance of Lesotho financial systems. To ascertain financial markets performance, the study uses four measures of financial development being Broad Money; Liquid Liabilities of the Financial Sector; Outstanding Public Debt and Private Sector Credit as dependent variables. The study uses interrupted time series to evaluate dependant variables’ performance over time both prior and post the intervention. The study also assesses whether there are other determinants that may influence performance of financial markets. The findings demonstrate that the enforcement of the 30% local investment restriction had a positive impact on Broad Money; Liquid Liabilities of the Financial Sector and Outstanding Domestic Public Debt in Lesotho. The intervention did not however have an impact on Private Sector Credit. The findings further identifies Net International Reserves; Net Foreign Assets; Gross Domestic Product Growth; and Inflation as other determinants that significantly influence financial markets performance Lesotho.
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    The effect of regulations on financial markets performance in Lesotho
    (2021) Mohloki, Thabang
    This paper unpacks the impact regulatory interventions on performance of the financial markets in Lesotho from 2009 to 2018 with the use of segmented regression analysis. The paper focuses on the impact of the 30% regulatory intervention imposed on insurance companies on performance of Lesotho financial systems. To ascertain financial markets performance, the study uses four measures of financial development being Broad Money; Liquid Liabilities of the Financial Sector; Outstanding Public Debt and Private Sector Credit as dependent variables. The study uses interrupted time series to evaluate dependant variables’ performance over time both prior and post the intervention. The study also assesses whether there are other determinants that may influence performance of financial markets. The findings demonstrate that the enforcement of the 30% local investment restriction had a positive impact on Broad Money; Liquid Liabilities of the Financial Sector and Outstanding Domestic Public Debt in Lesotho. The intervention did not however have an impact on Private Sector Credit. The findings further identifies Net International Reserves; Net Foreign Assets; Gross Domestic Product Growth; and Inflation as other determinants that significantly influence financial markets performance Lesotho
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    Chinese stock market conditions and herd behaviour on the JSE: evidence from idiosyncratic volatile stock portfolios and industry sectors
    (2021) Bernstein, Shaun
    The intention of the study was to broaden the knowledge and understanding of herd mentality on the JSE 40. Herd behaviour has the potential to destabilise and deteriorate financial markets, and a better understanding of this behaviour could minimize investment loss. Therefore, the study examined herd behaviour in terms of various idiosyncratic volatile stocks and different industry sectors using a dispersion-based model. The study also investigated whether or not Chinese market conditions influenced herd behaviour regarding those stock portfolios. The results suggest that fully and partly diversified portfolios tend to show evidence of herd behaviour. However, Chinese market conditions affect each stock portfolio differently. For example, the Industrial Portfolio Index was influenced by Chinese market conditions across all tranquil and turbulent periods. Meanwhile, other portfolios were only influenced by long tranquil or extreme volatile periods in the Chinese market. Interestingly, the Banking sector was the only stock portfolio that was not influenced by the Chinese market. Perhaps investors can use this knowledge to enhance their future portfolio returns
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    Effects of the COVID-19 pandemic on the financial markets: a comparative analysis
    (2021) Kapalu, Njamba
    This paper investigates the effects of the COVID-19 pandemic on bond yields and stock returns. The paper examines how the coronavirus outbreak affected the performance of capital assets as well as what role financial contagion played in the evolution of asset prices over time. This paper employs an event study, a regression analysis, using both Ordinary Least Squares (OLS) and Generalised Method of Moments (GMM) estimations as well as a BEKK GARCH model to test for contagion. The research found that the flight-to-safety phenomenon was more prominent in emerging markets, whereas, in developed markets, bonds were not seen as the safe-haven assets and investors opted to invest in assets such as gold. The second event study showed that investors began reacting in anticipation of the of the Fed announcement in March to slash interest rates, showing herding behaviour rather that market efficiency was driving market behaviour during the pandemic. With regards to the effect of financial contagion being exhibited during the COVID-19 pandemic, the research had different findings for stock returns and bond yields. Using an MVGARCH BEKK model for the estimations, the research found that cross-market effects in the stock returns showed that the USA exhibited high unidirectional linkages with the other markets, thereby confirming significant effect of financial contagion in stock returns during the pandemic. With bond yields, however, no single country was found to be the source of the volatility