School of Economics and Finance (ETDs)
Permanent URI for this communityhttps://hdl.handle.net/10539/37935
Browse
99 results
Search Results
Item Factors Affecting Blockchain Technology Adoption by Organizations in the Livestock Supply Chain Industry in Zimbabwe(University of the Witwatersrand, Johannesburg, 2024) Tambudze, Pelagia; Isabirye, NaomiBlockchain is a distributed ledger technology that provides the building block for many innovations. The distributed nature of blockchain, its immutability, and anonymity enable trust, transparency, and security among transacting or trading partners. The accelerated unfolding of 4IR due to the COVID- 19 pandemic recently unveiled several critical gaps within global supply chains, including livestock supply chains. The main challenges faced by organizations in the livestock supply industry in the developing world include difficulties for farmers in accessing new markets, no flexibility in production times, and no traceability for the consumer market to trace food component authenticity. In Zimbabwe, livestock is an important sector contributing about 22% of the total GDP. From several studies done by other researchers in different industries, such as health care, banking, mining, education, and agriculture, it is evident that blockchain technology solves most of these issues by decreasing data asymmetries and the cost of transactions to benefit all stakeholders. Blockchain-based solutions have recently been introduced to the livestock sector, and Zimbabwe is one of the early adopters among its African counterparts. However, the adoption rate by organizations within the livestock supply chain has been minimal. Using the lens of the TOE framework, this study investigated the factors that affect the decision by organizations in Zimbabwe's livestock supply chains to adopt blockchain technology. A qualitative approach was applied, interviewing fifteen informants from various levels of the livestock supply chain. Responses were analysed using thematic analysis. The study found that adopting blockchain benefits organizations and the overall livestock supply chain. The study found that technological, organizational, and environmental factors influenced organizations' decision to adopt blockchain technologies within livestock supply chains. These factors included availability of the technology, cost of the technology, skills availability, regulation and policies, competitive pressures, presence of blockchain providers, political and socio- economic factors and market trends.Item Re-examining the effectiveness of monetary policy in achieving price stability and output growth in Botswana(University of the Witwatersrand, Johannesburg, 2024) Tlhako, Kefilwe; Mahonye, NyashaThis study reassessed the effectiveness of Botswana's monetary policy, emphasizing its two main goals of maintaining price stability and promoting output growth. Output and inflation are our dependent variables, and they are proxied, respectively by mining and non-mining GDP and the consumer price index. We examined quarterly data from 2005 to 2022 using a Vector Error Correction model. Stationarity tests were conducted using both the ADF test and the Phillips-perron (PP-test), where both tests confirmed all variables to be stationary at levels except money supply which was stationary at first differences. Through the integration of macroeconomic factors like inflation, GDP, interest rates, exchange rates, money supply, and the bank rate, our goal is to offer a thorough comprehension of the relationship between monetary policy decisions and their consequences in the economy of Botswana, a small open economy that is prone to both internal and external shocks. By considering both internal and external elements that could have an impact on the framework's performance, our analysis provides light on how less effective Botswana's monetary policy framework has been over the studied period. The results from the study show that policy shocks have little effect on output growth and inflation. This is proven by the results of the VECM showing a significant impact of the bank rate on non-mining GDP only, while the other two variables; mining GDP and inflation proved that the bank rate does not impact them both in the short run and long run. The VAR decomposition also showed that at most 5% of the changes in our dependent variables are explained by the shocks on the bank rate. The results bring us to the conclusion that other external shocks, such as controlled prices and exchange rates, are the primary causes of inflation than it is driven by the bank rate. With respect to output, the results bring us to the conclusion that the mining sector is heavily influenced by global commodity prices, which are determined by international supply and demand dynamics, rather than domestic interest rates. So significant changes in the bank rate may not alter these global factors. Lastly the non- mining GDP is seen to respond to changes in the bank rate due to the interest rate sensitivity of the sector. The non-mining sector is made up of sectors such as manufacturing, services, retail etc, and these are very sensitive to changes in the interest rates as they rely mainly on short term borrowings for capital and investment. Therefore, changes in the bank rate quickly affect lending rates, consumer loans and business financing, leasing to more immediate economic impacts. Based on the above results, we therefore recommend that policy makers should diversify monetary policy tools and implement sector specific support for the mining industry and focus more on controlling external factors such as exchange rates. 4 Enhanced financial sector regulation and coordination with fiscal policy are also crucial. The employment of these measures can help stabilize the economy and improve the effectiveness of monetary policy, and ensure that non-mining sectors which are more sensitive to interest rates changes, benefit from targeted interventions. This holistic approach acknowledges the varying responsiveness of different sectors and the influence of global economic conditions.Item Caregiver capabilities and socio-economic disparities in children’s health-related quality of life(University of the Witwatersrand, Johannesburg, 2024) Turner, GeorgiaThis study investigates the relationship between children’s health-related quality of life and the associated contextual factors. Furthermore, this study analyses the socio-economic disparities that exist amongst children and what particular social determinants of health are influencing their health and wellbeing. Using an OLS regression as well as the Blinder-Oaxaca decomposition, the results show how children with a lower socio-economic status experience a lower HRQOL as opposed to those with a higher socio-economic status. Furthermore, this paper reports new research on the association of caregiver’s capabilities and children’s HRQOL which represents an important explanation for children’s health-related quality of life. Caregivers’ capabilities are a set of tools that enables parents to manage work, life and parenting effectively. The results provide evidence how important these capabilities are as it contributes to a better health related quality of life in their children. The findings show how a higher socio-economic status is associated with better caregiver capabilities. This is an important finding in the South African context, as exorbitant social inequalities exist, and hence, improving adult capabilities could potentially result in not only aiding to narrow the socio-economic disparity gap, but also improving the overall quality and health of children. This also leads to the premise of a bi-directional association whereby improving caregivers’ socio-economic status may likely also improve their capabilities.Item Institutional quality, capital structure and financial performance: the case of listed firms in Africa(University of the Witwatersrand, Johannesburg, 2024) Celliers, Jacqueline; Chipeta, C.; Moletsane, M.This research report examines the relationship between institutional quality, capital structure and the financial performance of firms listed on selected African stock markets. Panel data estimation techniques are carried out on a set of 347 firms from five African countries over the period 2003 to 2022 using the two-step system Generalised Method of Moments. The results show that only the Economic Freedom Index and the significance of the stock market have a significant negative effect on total leverage. The Economic Freedom Index also has a negative significant impact on short-term debt, while the legal rights index has a significant positive effect. The other measures of institutional quality included in this study, such as rule of law, control of corruption and significance of the banking sector, have insignificant effects on total- and short-term debt, while all institutional quality indicators have insignificant effects on long-term leverage. The results also indicate that all three measures of leverage have a significant negative impact on firm performance, and that institutional quality may moderate the negative effects of total- and long-term debt on the financial performance of firms but doesn’t appear to play a part in mitigating the effects of short-term leverage. This study adds value to the literature by investigating the link between institutional quality, capital structure and firm performance in Africa, as most previous studies focus on developed countries. Furthermore, it also explores the role of institutional quality in influencing the relationship between leverage and financial performance, specifically relating to firms in Africa.Item Capital Structure and Financial Performance of State-Owned Enterprises in South Africa: Does Corporate Governance matter?(University of the Witwatersrand, Johannesburg, 2024) Khumalo, Nomathemba; Chipeta, ChimwemweThe study examines the relationship between capital structure and financial performance of South African State-Owned Enterprises (SOEs) considering corporate governance factors. Using empirical data derived from financial reports and audited statements of 21 major SOEs listed in the Public Finance Management Act (PFMA) of South Africa, this study employs a quantitative methodology, specifically employing Fixed Effect (FE) and Generalized Methods of Moments (GMM) regression models on annual data from 2010 to 2022 to examine variables that affect financial performance of the South African SOEs.The research reveals mixed relationships between capital structure factors and financial performance, yet these relationships lack significance. Similarly, corporate governance demonstrates diverse relationships with financial performance, however, a significant negative correlation exists between board composition and return on assets. When examining the effect of corporate governance on capital structure in influencing financial performance, the study indicates an insignificant impact on financial performance. The policy implications of the study suggest that enhancing corporate governance practices, combating corruption, promoting strategic investments, efficient resource allocation, and government support for SOEs as drivers of economic growth should be guided by a clearly defined funding policy to enhance the financial performance of SOEs.Item An integrated power generation plan considering carbon emission constraint(University of the Witwatersrand, Johannesburg, 2024) Koopman, Sabrina; Ye, YuxiangIn the context of South Africa's energy crisis, this research report examines the optimization of South Africa's power generation system, considering coal, onshore wind, and solar PV technologies within a carbon emissions constraint. The primary objective is to minimise costs while addressing the urgent need for sustainable energy solutions in a country heavily reliant on coal-fired power. The methodology comprises two main components: system modelling of solar and wind generation, and a mathematical framework featuring cost minimization as the objective function with a power balance constraint and a carbon emissions constraint as the two key constraints. This approach allows for a comprehensive analysis of potential energy mixes that balance economic and environmental concerns. The study's findings indicate that a more sustainable and balanced energy mix is achievable in South Africa through significant expansion of renewable energy capacities. While this transition requires substantial short-term investment and infrastructure development, it offers long-term benefits including reduced carbon emissions and enhanced energy system resilience. The optimization results suggest that further integration of renewable energy technologies is possible, albeit at a higher cost. The research highlights the increasing cost-effectiveness of renewable energy and emphasises the importance of capitalising on this trend in emerging markets like South Africa. In conclusion, this thesis demonstrates that South Africa can significantly reduce its carbon emissions within the next five years by improving its energy mix through increased integration of renewable energy generation technologies. These insights are crucial for policymakers, industry stakeholders, and researchers in shaping South Africa's future energy landscape and contributing to global climate change mitigation efforts.Item Impact of Energy consumption and Economic policy uncertainty on Ecological footprint: Evidence from BRICS countries(University of the Witwatersrand, Johannesburg, 2024) Arek-Bawa, Oghenefejiro; Adom, PhilipIn the past years, a growing concern has been directed towards global environmental quality and the energy required to sustain economic growth. A crucial element in current literature is the influence of economic policy uncertainty (EPU) and on Ecological Footprint (EFP). Given the significant global influence of the BRICS (Brazil, Russia, India, China, and South Africa) group, examining it through their lens will benefit the international context. Therefore, this study utilized AMG and CCEMG methodologies to investigate the impact of energy consumption (EC) and EPU on the EFP in BRICS countries. This study enriches the current literature further by disaggregating EC into REC (Renewable Energy Consumption) and NREC (Non-renewable Energy Consumption) and subsequently looking at the consequences of individual renewable energy sources on the EFP. The study presents empirical findings that show panel and country-specific results and demonstrate that EC and NREC increase EFPs. In contrast, only China's REC positively impacted the environment. EPU has significantly negatively affected the EFP when considering individual REC. This study recommends policymakers accelerate the transition to a sustainable future by considerably increasing support for additional investments and subsidies to the widespread adoption of renewable energy as a primary source to diminish environmental decayItem An analysis of fraud detection using Benford’s law and the bias ratio(University of the Witwatersrand, Johannesburg, 2024) Govan, Bhavik; Britten, JamesThis study explores the detection of fraud within the South African hedge fund industry through the utilisation of the bias ratio and Benford’s law. An examination is conducted on a sample consisting of 83 hedge funds, encompassing both Qualifying Investor Hedge Funds (QIFs) and Retail Investor Hedge Funds (RIFs), to identify potential anomalies. Six funds with elevated bias ratios are flagged for further scrutiny, indicating possible fraudulent activities. Benford’s law is applied to corroborate these findings, revealing non-conformity in all but one of the flagged funds. The study emphasises the importance of a multifaceted approach to fraud detection, combining various metrics and methodologies to enhance the overall understanding of a hedge fund’s returns. While the bias ratio and Benford’s law offer valuable insights, their application requires careful consideration of fund type and strategy. Regulatory intervention and investor vigilance are essential for safeguarding against fraudulent activities in the hedge fund industry.Item Pairs Trading via Unsupervised Learning on the JSE(University of the Witwatersrand, Johannesburg, 2024) Laher, Muhammad; Seetharam, YudhvirPairs trading, a strategy that capitalises on temporary price discrepancies between two correlated assets, has garnered attention for its potential to generate profits in financial markets. This research explores the viability of employing unsupervised learning techniques for pairs trading on the Johannesburg Stock Exchange (JSE). Using clustering algorithms to identify pairs and considering both price data and firm characteristics, the study examines the performance of pairs trading portfolios constructed via different clustering methods. Empirical results reveal that while agglomerative clustering shows promise with the highest monthly mean return for long-short portfolios, none of the strategies consistently outperform benchmark indices. Furthermore, considering only momentum features in the clustering process leads to deteriorated portfolio performance, emphasizing the importance of incorporating firm characteristics. Despite the potential benefits offered by unsupervised learning, challenges such as the limited number of listed stocks and algorithm selection hinder the strategy's effectiveness on the JSE. The findings suggest that further research is needed to refine methodologies and address practical implementation challenges for pairs trading strategies in emerging markets like the JSEItem We want a living wage”: the impact of the national minimum wage on struggles of domestic workers in South Africa(University of the Witwatersrand, Johannesburg, 2024) Cabe, Musawenkosi; Castel-Branco, RuthIn 2018, the South African government introduced the National Minimum Wage (NMW) Act as a structured policy intervention to address the high levels of working poverty and income inequality. Economic models projected that a NMW set at R3 500 a month would raise the incomes of almost half of South Africa’s workforce (Finn, 2015; Isaacs, 2016). However, a study commissioned by the National Minimum Wage Commission post-implementation, observed only a moderate increase in wages and a limited effect on the wage distribution. The “muted” impact of the NMW was attributed primarily to high levels of non-compliance, a lack of knowledge by employers and weak enforcement. Drawing on semi-structured interviews with domestic workers, employers and domestic workers organisations in Gauteng Province, this research report explores: How familiar are workers and employers with the NMW? How does the intimate nature of domestic work influence the possibilities of its enforcement? How have domestic workers leveraged the NMW, individually and collectively, to secure better working conditions? How can the South African case inform global campaigns to improve the conditions of work among domestic workers? The findings suggest that although the uptake was gradual because of the initial phase-in period, the NMW had a positive impact on the wages of domestic workers who participated in the research. There is a general awareness from employers and domestic workers of the NMW and, with the exception of one respondent, all domestic workers earned at least the NMW. However, domestic workers also noted that the NMW was too low and that given the high cost of living, they were not able to meet their basic needs. Therefore, domestic workers cultivate affective relationships with employers to secure benefits beyond the wage. However, affect is a double-edged sword which can be used by employers to extract additional work from domestic workers. Despite its limitations, the NMW has served as an anchor of recruitment and mobilisation for domestic workers unions and organisations, with some positive results as we saw with One-Wage-Campaign. However, as the South African case shows, the NMW alone cannot address the problem of poverty and inequality. The introduction of a NMW must be complemented by other social policy measures such as a Universal Basic Income Guarantee (UBIG), free public services, subsidised transport, and housing.