Faculty of Commerce, Law and Management

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Book-to-market ratio and returns on the JSE
(Taylor and Francis, 2006) Auret, CJ; Sinclaire, RA
Many firm-specific attributes or characteristics are understood to be proxies for what Fama and French (1992: p428) refer to as “the unnamed sources of risk”. Perhaps the most notorious of these is the size of the firm or its market value, first documented by Banz (1981). The relationship between size and average returns has become known as the “size effect”.
An assessment of the effectiveness of the governance arrangements of the Thusong Service Centres.
(2010) Wenhold, Marece.
The problem which this thesis addresses concerns the effectiveness of the governance arrangements of the Thusong service centres, which are intended to provide integrated services to communities. This research on Thusong conducted an empirical analysis using a field survey approach to determine what factors impact on Thusong’s effectiveness. This research is conducted by means of qualitative and quantitative research methods. The constituent parts of the thesis jointly contribute to an assessment of the effectiveness of the governance arrangements of Thusong as an integrated services centre. In other words, how effective are Thusong’s governance arrangements to promote these centres as integrated services centres? The first chapter contextualizes the problem statement of this research. The second chapter frames integrated services centres in terms of theory. The third chapter provides a literature review of the governance arrangements of Thusong, based on the theoretical framework on integrated services centres. The fourth chapter explains the research methodology of this research. The fifth chapter presents the findings of the research on Thusong, whilst the last two chapters constitute an analysis of the findings and a summary of the answers to the research questions. Primarily, the research findings recognize that the measures of effectiveness used for this research reflect that Thusong’s governance arrangements are not effective to promote it as an integrated services centre. Secondly, the research indicates that Thusong can do more to enhance the capacity of its service providers to solve problems and serve clients. Lastly, there is not enough evidence in order to conclude that the institutional arrangements of Thusong contribute to the efficient and effective delivery of services as a collective.
Electricity interdependence of memebers of the Southern African Development Community.
(2010) Mokhethi, Keketso E
The SADC region has been experiencing power shortages since 2007 and this has been more pronounced in South Africa, the biggest generator and consumer of electrical energy in the region. The power shortages have been primarily blamed on SADC governments‟ failure to invest in new power stations. In 2008 Eskom was forced to request its key customers (including those beyond the borders) to reduce their consumption by 10% in an effort to reduce electricity demand. Load shedding was also introduced as a way of Demand Side Management (DSM). Eskom is a major contributor in terms of supplying other countries with electricity in the Southern African Power Pool (SAPP). Therefore, any supply challenges it is facing will inadvertently affect the SAPP community. The SAPP is considering establishing a competitive cross-border electricity market where a buyer will have the freedom to purchase electricity from a supplier of their choice at a spot market rate. The study examines the extent to which SADC countries depend on each other for their electricity needs and the potential for a competitive cross-border electricity market given the current supply situation. A qualitative research methodology was used. Data collection was based on a questionnaire with the same questions asked to each respondent. The study found that SADC countries that participate in the SAPP depend on each other quite extensively for their electricity needs. The research also revealed that Eskom is the main player in the region as it trades electricity with many countries some of which depend on the South African utility for more than 50% of their domestic electricity needs. Another revelation of the study is that the SAPP utilities need to invest in generation and transmission capacity before a successful competitive cross-border electricity market can be operational. Security of supply and a reliable transmission network are crucial to the success of any power pool.
Bridging the digital divide in South Africa and the possible role of municipalities
(2011-03-10) Andrews, Don
The digital divide presents all under-developed communities with a challenge. Not to participate in the Internet revolution will leave whole communities behind. To be able to deal with this divide, it is necessary to understand it fully, and to understand the roles of the current players in the telecommunications market who are expected to deliver the tools to the whole population to enable them to keep pace with this new global revolution. This study examines a South African perspective of the problem, and particularly why incumbent operators do not successfully bridge the digital divide, and whether the municipalities which are entering the telecommunications arena might contribute positively to a solution. The study explores the connectivity, skills, confidence and beneficial usage aspects of the digital divide in depth, and then compares these parameters of the digital divide against the strategies and goals of the major telecommunications operators in South Africa for a match. It appears from such comparison, that the major operators are strongly focused on conventional business, and beyond the connectivity component, do not appear to address the digital divide in its totality. Many municipalities are investing in telecommunications networks, based on their existing electricity and water management backbones, and are entering the public telecommunications operator space. Municipalities have a mandate to deliver to provide services to residents and businesses, on perhaps different bases from conventional telecommunications operators. In this respect, their goals and strategies in this field appear to suggest that municipalities might go further in bridging the digital divide than the conventional operators.
Provision of universal service in the South African telecommunications market.
(2011-03-10) von Aulock, Carl Andre
While telecommunications costs are a common topic of public comment in South Africa, the provision of services to those areas and communities which have been historically neglected also is a focus for commentators in the industry. This research aimed to investigate the effectiveness of the universal service policy and programmes which are in place in South Africa by evaluating the different perspectives of both the regulatory and private sectors. The research furthermore was undertaken with a desire to determine what could be done to advance Universal Service in the country. The approach taken was firstly to analyse the relevant documentation, such as licences, annual reports and legislation, to determine the formalised status and then to interview different respondents from the industry as a whole and obtain their perspectives on the different focal aspects. The responses and the secondary research were analysed as a whole to enable the researcher to establish the underlying themes which are evident in the industry at the moment as related to the topic. Overall, the findings and interpretation identified the primary themes of Direction and Delivery. These themes essentially outlined the general intentions that exist for providing service and that service provisioning is successful in some aspects. There is an overall shortage, however, of strategic direction with regard to what the policy should achieve, a need for greater co-operation and alignment within the industry and lack of sufficient and relevant skills and resources to actually drive the implementation of policy effectively.
SUSTAINABLE URBAN LIVELIHOOD CHALLENGES : A CASE FOR URBAN AGRO-ECOLOGY IN JOHANNESBURG
(2011-03-18) Bengnwi, Wilfred
The challenges facing major cities like Johannesburg remain huge, amongst these; rapid urbanization, food insecurity, unemployment, skills and capacity needs, environmental degradation and waste management. A variety of reasons are believed to account to the current status quo of urban cities, amongst these: rapid urbanization, and competing interests for scarce resources. Similar trends of rapid urbanization and competing resource interest is noticeable across most cities in the world. For Johannesburg, in the Gauteng city-region for instance, the population is expected to grow to 14 million inhabitants by 2015, thus putting the region in the top 15 biggest urban cities in the world (South African Cities Network 2006) Various evidence suggest cities remain the engines and drivers of national economies (South African Cities Network 2006), thus making the rationale to focus a large proportion of relief and development efforts to the most part to major cities is justifiable. In this research, urban agro-ecology practice was explored, for its benefits, constrains and possible solution to the challenges facing urban livelihood in the city of Johannesburg. By using the Siyakhana food garden, an initiative of the Health Promotion Unit (HPU), of the University of Witwatersrand located in Bezuidenhout Park, Central Johannesburg, some light was shed on how urban agro-ecology in Johannesburg could be used as a tool to mitigate the livelihood challenges of poverty, unemployment, disease, etc. faced by the Johannesburg metropolis. Most respondents (87.5% of the sampled population, most of whom stakeholders and beneficiaries of the Siyakhana food garden), indicated that the benefits of food gardens, if properly coordinated and if practiced at a sufficient scale has the potential of invigorating and transforming lives. Amongst some of the benefits enumerated were fresh food products such as fruits and vegetables, employment opportunities, skills and capacity development, recreation and research. This category of respondents cautioned however that for urban agro-ecology to be useful, several milestones such as proper food production channels and commercialization strategies for end product needed to be carefully thought off and put in place so as to create suitable linkages between small subsistence farmers and the bigger firms and food shops. Overall the research project suggest a model of urban agro-ecology, one that can contribute to alleviate the socioeconomic situation of the urban poor and improve environmental degradation is possible.
RESILIENCE TRAINING PROGRAMMES WITHIN ORGANISATIONS
(2011-03-18) Beningfield, Amanda
Many forms of stress and adversity exist in our workplaces and in our world and peoples’ and organisations’ ability to cope with change and handle difficult situations and stress is being challenged. Therefore it is becoming increasingly important for individuals and companies to adapt to change, stress and adversity constructively. Resilience training is a method which can develop individuals’ positive strengths and improve individuals’ ability to handle stress and cope, as well as improve individuals’ and organisations’ ability to deal with change. Only a few resilience training programmes have been implemented in South Africa, therefore it is interesting to understand why a resilience training programme may be needed within organisations and how it should be structured and supported in order to realise its intended benefits. Interviews were conducted at the case site, South African Breweries Limited (SAB). It was discovered that the resilience training programme was primarily implemented to build individual and organisational capability to deal with change and to help employees handle stress. An organisational design methodology called appreciative inquiry (AI) was used as part of the resilience training initiative to develop employees’ strengths. Support, especially leadership and culture, is essential for a resilience training programme to be effective and sustainable. The study should be useful to other companies wishing to implement resilience training programmes, as well as to the case site as the company continues to roll out resilience training throughout the company.
SUSTAINABLE URBAN LIVELIHOOD CHALLENGESA CASE FOR URBAN AGRO-ECOLOGY IN JOHANNESBURG
(2011-03-18) Bengnwi, Wilfred
The challenges facing major cities like Johannesburg remain huge, amongst these; rapid urbanization, food insecurity, unemployment, skills and capacity needs, environmental degradation and waste management. A variety of reasons are believed to account to the current status quo of urban cities, amongst these: rapid urbanization, and competing interests for scarce resources. Similar trends of rapid urbanization and competing resource interest is noticeable across most cities in the world. For Johannesburg, in the Gauteng city-region for instance, the population is expected to grow to 14 million inhabitants by 2015, thus putting the region in the top 15 biggest urban cities in the world (South African Cities Network 2006) Various evidence suggest cities remain the engines and drivers of national economies (South African Cities Network 2006), thus making the rationale to focus a large proportion of relief and development efforts to the most part to major cities is justifiable. In this research, urban agro-ecology practice was explored, for its benefits, constrains and possible solution to the challenges facing urban livelihood in the city of Johannesburg. By using the Siyakhana food garden, an initiative of the Health Promotion Unit (HPU), of the University of Witwatersrand located in Bezuidenhout Park, Central Johannesburg, some light was shed on how urban agro-ecology in Johannesburg could be used as a tool to mitigate the livelihood challenges of poverty, unemployment, disease, etc. faced by the Johannesburg metropolis. Most respondents (87.5% of the sampled population, most of whom stakeholders and beneficiaries of the Siyakhana food garden), indicated that the benefits of food gardens, if properly coordinated and if practiced at a sufficient scale has the potential of invigorating and transforming lives. Amongst some of the benefits enumerated were fresh food products such as fruits and vegetables, employment opportunities, skills and capacity development, recreation and research. This category of respondents cautioned however that for urban agro-ecology to be useful, several milestones such as proper food production channels and commercialization strategies for end product needed to be carefully thought off and put in place so as to create suitable linkages between small subsistence farmers and the bigger firms and food shops. Overall the research project suggest a model of urban agro-ecology, one that can contribute to alleviate the socioeconomic situation of the urban poor and improve environmental degradation is possible.
Attaining Alignment Across Autonomous Profit Centres
(2011-03-18)
Many large companies are creating decentralised business models where strategic business units are autonomous and empowered. For related-diversified firms to succeed, a certain amount of alignment is necessary to obtain synergy and create shareholder value. Interventions and processes are required to facilitate alignment and collaboration between Strategic Business Units (SBUs), without undermining the benefits sought by decentralisation. This study aims to identify and evaluate the methods used. The research method used was a qualitative case study conducted in the interpretive paradigm. The case site, FirstRand Bank, provides an opportunity to examine a contemporary phenomenon in a real-life business context. The study found that cultural interventions were more effective in enabling and inducing alignment across business units than structural or other methods. The research also revealed that the methods used are most successful where the SBUs are independent. Where interdependence between units exists, methods to achieve alignment need to change. The study may be useful to other organisations with similar challenges. In addition, as the study provides insight into the FirstRand Bank Group, it will be useful to FirstRand stakeholders seeking to understand the company.
ELEMENTAL ESTIMATION RISK IN NEW AND ALTERATION CONSTRUCTION PROJECTS
(2011-03-18) Bayley, Gillian Elizabeth
In the competitive construction industry where standard professional fees are deregulated, precontract planning work is executed at the professional’s risk. Cost estimators prepare project estimates with very little information thereby encumbering themselves with increasing financial risks. The principal concern is the possibility of a substantial variance between final construction cost and estimated cost, resulting in a claim against the estimator. The objective is to maximise the accuracy of the estimate by using a modest amount of information within a short period. In South Africa there are increasing numbers of alteration projects, which are believed to contain a higher financial risk profile than new developments. The purpose of this research was to explore at conceptual design phase, the risks of elemental costs in new and alteration residential projects. The data revealed that new residential developments contained greater financial variances at conceptual design stage than alteration work. The elemental cost distributions used in the model and the unexpected risk profiles were presented to experienced construction industry professionals for discussion and evaluation. The findings indicated that at the preliminary planning phase, alteration work did not attribute greater risks to the estimator if the estimate is underpinned by suitable qualifications. The research furthermore highlighted the need for greater investigation into risk profiles of all sectors of the construction industry.
Non-governmental organizations and local governance
(2011-03-18) Belete, Gebremedhin
The basic principles of democratic governance may have been captured in policy documents but do not guarantee the transformation to an equitable and socio-economically viable society in South Africa and other developing countries. Hence NGOs as an entity of civil society have a role to foster democratic governance with its guiding principles in order to build an equitable and just society at local, national and international levels. The purpose of this case study was to explore and provide a common insight about the meaning and nature of democratic governance and the role of NGOs, in this case IDASA and AWARD, in local governance. The main findings of the research were that IDASA and AWARD have played substantial roles in democratizing local governance, providing social services, institutional development and capacity building, policy research and advocacy. Nevertheless, the above thematic issues require further multi-disciplinary research and collective action to promote the role of NGOs in local governance.
Using the Multiplicative Competitive Interaction Model of Market Share for Petroleum Brands in South Africa.
(2011-03-18) Beard, David
This purpose of this research is to investigate the appropriateness and effectiveness of using the Multiplicative Competitive Interaction (MCI) model to simulate the market share of the competitors in the South African Petroleum industry, using Brand Equity measures as the inputs. By calculating the sensitivity of each Brand Equity measure, it is possible to provide data for marketing managers of the petroleum companies to enable them to make better decisions when allocating resources to future marketing campaigns. The South African Petroleum industry represents a unique market in which to carry out this study. There are a limited number of large companies competing (with vast financial resources on which to draw), huge barriers to entry, price control of fuels through government legislation, fuel considered as a grudge purchase, and there is a common perception that all fuels are the same, no matter where purchased. The MCI model used in this study has been formulated to simulate the market shares of multiple competitors, and overcomes the problems of modeling the market share of one company in isolation. Any action taken by a single company will affect not only their own market share but also that of their competitors in the industry. Therefore, market data was collected for all of the competitors and used as the basis for the model. ii Brand equity measures such as Product Performance, Brand Loyalty and Brand Awareness are used as the inputs for this model. These measures were extracted from the literature and selected based upon their relevance to the petroleum industry. The sensitivity of these measures was calculated by modeling the actual market shares of the companies in three geographical regions of South Africa: Cape Town, Durban and Johannesburg & Pretoria. The results achieved from the MCI model include an 83% fit between actual market share and modeled market share. The sensitivities of the Brand Equity measures are valid and clearly indicate the effect that each one has on market share. Various scenarios have been investigated to model the effects of Brand Equity measures changes on market share, with interesting results. It appears that the MCI model can be used to model the petroleum industry, and provides valid results. It should be possible to use this model in many other industries as well.
Quality Management and Funding Sources of the Water Cleaning Programs of South African Dams.
(2011-03-18) Bekker, Wiltie
Eutrophication in South African dams is the process during which water becomes over-enriched with nutrients such as phosphates and nitrates, and this results in uncontrollable, high algal and hyacinth growth. There are a number of reasons for this, including, amongst others, poorly treated water being dumped into the catchment areas of dams. Hartbeespoortdam is one prime example of eutrophication and currently receives attention from different organisations, including the Department of Water Affairs (DWAF), in order to rectify the situation and establish sustainability in water quality. Funding sources for the effective management of water resources is an integral part of this research report. Hartbeespoortdam was chosen as a case study to identify the priorities regarding quality management and to identify funding sources to ensure both prompt results and sustainability in the longer term. Interviews were conducted with various involved parties around the dam to establish the critical success factors around quality management and funding sources. Quality management needs to be supported by the three pillars of Measure and Control, Enforcing Quality Management and Legal and Policy Framework. Funding sources include Beneficiation, Environmental Accounting and Privatization. The key to the success of managing water resources lies in the implementation of legislation and the establishment of innovative funding sources.
Opportunities under the Clean Development Mechanism and Barriers to Investment.
(2011-03-18) Beck, Nigel Darnley
The need to reduce the global carbon footprint and mitigate the adverse effects of global warming led to the Kyoto Protocol, an international action plan set up under the United Nations Framework Convention on Climate Change. Under the Protocol, South African industry stands to benefit financially, if businesses were to register and successfully implement Clean Development Mechanism (CDM) projects through which they would reduce their Green House Gas emissions. Theoretical projections show that South Africa’s CDM potential ranks alongside that of China, India, Brazil, Argentina and Mexico. However, in practice, South African projects still represent a low fraction of the entire CDM pipeline. This study builds upon the limited existing body of knowledge on the CDM within South Africa. Specifically, it aims to determine the relative importance of barriers that currently exist, or are perceived to exist, and which have resulted in limited investment in the CDM in South Africa. The research performed was largely qualitative and used a questionnaire-based descriptive survey method to solicit opinion from key South African CDM experts across all spectra of the industry. Based on responses, the main GHGs that are likely to be reduced by investment in the CDM within South Africa are CO2 and then methane. Reduction of these gases is most likely to occur through investment in energy efficiency, renewable energy (such as wind, biomass and solar power) along with methane recovery and utilisation, predominantly from landfill gases and animal waste. The research examined the critically important barriers to investment in such projects, which were found to include: lack of clarity of the Kyoto Protocol post 2012, complicated project identification and validation, lack of awareness within industry, low and volatile Certified Emission Reduction (CER) prices and high transaction costs. Other factors deemed important, but not necessarily critical, included poor national policy and legislation and delays in decisions by the Executive Board. Factors such as tax on cash streams from registered CER sales, approval - ii - process of Designated National Authority (DNA) and CDM project opportunities within South Africa did not appear to have a major influence on investment in the CDM within South Africa. Given the uncertainty and confusion around the CDM market within South Africa it is suggested that government provide provisional CDM guidelines to facilitate the smooth implementation of key CDM project types. This would raise awareness of CDM projects to local/national development banks and other commercial entities, and thus facilitate increased engagement and investment by the business community. Within South Africa, it appears the critical mechanism to ensure that CDM becomes embedded in business models is the replacement for the Kyoto Protocol post 2012 (when it is due to expire). This is likely to facilitate increased investment in the CDM, as well as to demonstrate a continued commitment by South Africa, and global governments, to address climate change through a replacement mechanism. Such a mechanism provides a platform through which business can play a crucial role to ensure success of the Kyoto replacement and actively address climate change. South African Government will have an integral role in negotiating the replacement within the global arena, and will subsequently need to establish national priorities to facilitate the long term policy implementation and national success of carbon markets.
The adoption of sales force automation technology in South Africa
(2011-03-22) Johnson, Bruce
The concept of automating an organization’s sales force by means of technology is known as Sales Force Automation (SFA). While SFA technology has been in existence for a number of years and has proven a valuable asset for many, there are still numerous instances of organizations facing the challenge of failed SFA implementation due to unsuccessful user acceptance. Far too often management only considers the impact of SFA technology from an organizational perspective and is usually not cognizant of the psychological factors influencing individual user perceptions of the new SFA system. Therefore this study, from an individual’s perspective, explores which of these factors affect adoption of SFA technology by South African sales people. As the body of technology acceptance/adoption research is well developed, this study has been undertaken using solely a quantitative approach. While positivist epistemology lacks the richness of qualitative research, it eliminates subjective bias and allows the researcher to gain an objective view and understanding of complex psychological influences. The findings of this research demonstrate that the factors of performance expectancy, social influence and perceived behavioral control are highly significant determinants of SFA adoption. Furthermore that an individual’s chronological age plays a significant role and that older salespeople are less likely to successfully adopt SFA technology.
PERCEIVED RELATIONSHIP BETWEEN IMMIGRATION AND CRIME LEVELS IN TSHWANE
(2011-03-22) Banza, Notalente Samela Nontsikelelo
Migration, especially undocumented migration, has been a concern for quite a while in South Africa as a result of popular misunderstanding that the presence of immigrants heightens crime levels. The spread of this belief has led to the widespread mistreatment of immigrants within our communities, which include human rights abuses and xenophobic attacks. In a bid to minimise risks to South Africa’s development and democracy, the purpose of this research is to investigate and understand the basis of these perceptions in the Tshwane Metropolitan area, that associate immigration with crime. A qualitative approach in the form of in-depth interviews was used in conducting this research. This method gives a comprehensive and complete understanding of different individual’s experiences on the perceived link between immigration and crime. The main findings of the research are that immigrants do contribute to some acts of crime, like any other citizen, but their exact contribution cannot be determined with precision, as there are no available statistics to validate the link. The research has therefore demonstrated that the perceptions claiming that immigration increases crime levels in the area cannot be independently verified.
RELATIONSHIP BETWEEN MANUFACTURING AND MARKETING DEPARTMENTS IN SOUTH AFRICA
(2011-03-22) Boninelli, Renato Francesco
The project research investigated the inhibitors and facilitators of the relationship that exists among the marketing and the manufacturing departments in a South African manufacturing company. The increase in volume of sales due to the construction boom in local markets combined with the expansion of overseas markets, as well as a significant increase in customer demand for ‘made-toorder’ products, has placed unprecedented demand on the manufacturing and logistics functions. More importantly, the already strained relationship between manufacturing and marketing had deteriorated further, requiring some form of intervention. Functional objectives and priorities differed among the divisions and were the cause of conflicts. The aim of the research was to identify opportunities to enhance the relationship between the marketing and manufacturing departments. The research was qualitative in nature and was conducted among a sample population from marketing, manufacturing and senior management using a structured questionnaire. The results were consolidated and analysed to determine the factors. The main findings of the research were that while good communication and personal relationships contributed to the success of the relationship between marketing and manufacturing departments, the lack of common objectives and understanding of each other’s objectives, forecast accuracy and stock policies were the key factors affecting the relationship negatively. One of the key proposals presented by the participants was the need for improvements of the communication factors, although it transpired that the main factors inhibiting the relationship between marketing and manufacturing were of a structural and process nature. Improvements on the definition of aligned objectives and improvements on the level of personal relationship were also high on the list of suggestions. Recommendations based on the information gathered were offered with a view to ameliorate the relationship between marketing and manufacturing departments and hence reduce the potential for conflict and simultaneously improve the effectiveness of the organisation.
Drivers of Customer Equity in Acquiring and Retaining Customers in the South African Automobile Industry
(2011-03-22) Barron, Brandon
The recent global financial crisis has made customers think twice before purchasing anything that involves a substantial financial expense. Availability of credit from financial institutions makes purchasing of expensive goods like houses and motor vehicles much more difficult. Companies have realized this fact and now need to target their marketing activities to persuade customers to make those purchases that they might not be that willing to undertake considering these restrictions and added hassle. This research looks at the following question. What are the drivers of customer equity in acquiring and retaining customers in the South African luxury automotive industry? The Customer Equity driver model was targeted to see which of the drivers (Value, Brand and Relationship equity) is seen as more important to the customer when deciding to purchase a vehicle. A sample of 95 customers of 3 Series BMW„s and 32 BMW dealer staff were used in gathering the required data. All respondents completed an online questionnaire on importance ratings and performance against these ratings for certain competitors of BMW. The responses were analyzed using descriptive analysis as well as statistical methods of factor and principal component analysis. The results were interpreted to answer the questions posed and to see which Customer Equity (CE) drivers and their respective levers customers see as more important in this economic down turn. The results showed that the Value equity driver is seen as the most important by customers and dealers followed by Relationship equity and Brand equity drivers respectively. The Value equity lever of vehicle build quality was seen as the most important lever by both the customers and dealers. In comparing BMW‟s performance against the CE drivers it can be seen that BMW is performing well in Relationship and Brand equity driver areas but they still need to improve their Value equity driver.
PROMOTION OF SUSTAINABLE DEVELOPMENT PRACTICES IN SOUTHERN AFRICA BY SOUTH AFRICAN COMPANIES
(2011-03-22) Benza, Yewande Omolola
Southern Africa today is characterised by poverty, a high prevalence of HIV/AIDS, war, conflict, unemployment and food shortages. What is lacking, but clearly necessary for the advancement of the region, is the promotion of sustainable development practices. The challenge is for Southern Africa to reverse its present decline with the active help of business. This study assesses how South African companies are currently operating in Southern Africa, in terms of their promotion of sustainable development practices, and highlights factors that curtail company adoption/promotion of sustainable development. In-depth, semi-structured interviews were held with managers in twenty South African companies with operations in the rest of Southern Africa to assess their promotion of sustainable development practices. The main findings are that companies promote a number of sustainable development practices at varying degrees. However it is clear that to achieve the advancement of the region, there needs to be an increase the current level of promotion of sustainable development practices. Secondly, the findings indicate that the primary inhibiting factors to the promotion of sustainable development practices are lack of financial resources, wrong mindset, nature of company business, limited adoption of sustainable development practices in South Africa, the underdevelopment of economies in the Southern African countries, and the lack of political buy in of senior management.
SHARE PRICE REACTION TO OPEN MARKET SHARE BUY-BACK ANNOUNCEMENTS IN SOUTH AFRICA
(2011-03-22) Blackstock, Gregg
International studies have revealed a favourable market reaction, in terms of positive cumulative abnormal returns, to open market share buy-back announcements. The information signalling hypothesis is largely the attributor of share price response to share repurchases information. Returns of between 2% and 4% have been found in the short-term with repurchase activity in the US accounting for $180 bn annually in terms of transaction value. This Research Report analysed the returns of ordinary shares of companies listed on the JSE Securities Exchange who made open market share buybacks under a general authority. There were 107 share repurchase transactions analysed in this study with no sign of significant abnormal returns discovered in a comparatively small market where only R10 bn worth of open market repurchase activity was studied.