Electronic Theses and Dissertations (ETDs) - Items to be moved to 3. Electronic Theses and Dissertations (ETDs).
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Item Capital budgeting techniques and firm performance in the South African mining industry(2017) Kedige, Itumeleng MampsheThis research investigated the application of capital budgeting and risk analysis techniques and their effect on company performance in the South African mining industry. Studies internationally and locally have reported an improved application of capital budgeting techniques— away from the naïve, non-discounted cash flow techniques of the Payback Period (PBP) to the more appropriate discounted cash flow methods of Net Present Value (NPV) and Internal Rate of Return (IRR). In a survey distributed to the Finance Managers, Officers and Directors of mining companies in South Africa, we confirmed the increased sophistication in capital budgeting— the results suggest that 83.3% prefer NPV, 61.5% always use IRR and only 58.3% use PBP. On the other hand, and in contrast to capital budgeting, risk analysis is still comparatively naïve; with sensitivity analysis being the dominant technique used in the mining industry. The sophisticated methods of scenario testing and real option analysis (ROV) are rarely employed. An empirical analysis on the effects of capital budgeting and risk analysis on company performance has yielded results in contradiction with the theory of capital budgeting. The finding of the study is a negative and/or insignificant relation of capital budgeting and risk analysis sophistication to company performance as measured by return of assets (ROA). Although this finding is counterintuitive and contradicts theory, it is, however, consistent with international studies of this nature.Item Modelling return on marketing in the South African banking sector(2012) Mabuzane, Belinda K.In today‟s increasingly dynamic and competitive markets, organizations are continuously pressurized to meet financial targets in order to realise company goals in an efficient and effective manner. The banking sector in South Africa has, for a very long time, operated in a predominantly oligopoly market, however, due to increasing pressure from new entrants like Capitec Bank, there has been a shift of focus to ensuring long term profitability and competitiveness as the new entrants are constantly implementing strategies that cause customer switching. The literature reveals that long-term profitability requires that a firm implements sustainable development projects to ensure long-term profitability. However, many of the profitability models in use today do not have a variable for sustainable development and yet it is a key factor in drawing returns on investment. This study adopts the South African banking sector and investigates the applicability of Rust, Lemon and Zeithaml‟s (2004) return on investment model for the various initiatives that the banks have implemented. From qualitative research with the banks, it was found that sustainable development forms a large part of the annual budget with the aim of improving the brand perceptions and increasing the likelihood of customer retention and attraction. However, the results from the bank‟s customers reveal that the initiatives being sponsored by the banks have very little effect on their decision to switch or remain banking with a specified bank. Basic customer satisfaction techniques like clear communication and customer care still outweigh any corporate initiative like sponsoring the local soccer league thus although these initiatives do benefit to keep the brand name in customer‟s minds, they do less in realising returns. The model reveals a technique to quantify return on investment taking into account factors like sustainable development and it was found that the model is applicable and useful in a South African setting. Recommendations include applying the model to gauge not only the possibility of returns but also how much a company can expect to receive after investing a specified amount of money on any initiative. This model will be very useful for planning especially for capital intensive projects as the current economic environment cannot accommodate for misappropriation of funds.