School of Construction Economics and Management (ETDs)
Permanent URI for this communityhttps://hdl.handle.net/10539/37965
Browse
13 results
Search Results
Item A Comparative Approach to Market Wide Herding(University of the Witwatersrand, Johannesburg, 2024) Zwane, Sibongile; Sebehela, TumellanoThis thesis prices, investigates and models market wide herding for selected emerged economies (i.e., U.S. and UK) and named emerging markets (i.e., Taiwan and South Africa) for bonds, equities and real estate sectors. To investigate the mentioned theme/topic, this study develops three hypotheses: (i) the selected indices are prone to market wide herding, (ii) there are systematic volatility patterns during herding process, and finally, (iii) there is positive herding in the real estate sector. The findings are as follows. First, there are persistent herding behaviour of the used indices and moreover, herding behaviour is both within and in between indices. The latter statement is consistent with the findings of Kola (2021). Second, herding exists in volatility towards to the developed economies from emerging markets, irrespective of the product type. Finally, there is definitive herding in the real estate industry, in particular, in indices and not so much in stand-alone REITs. Interestingly, evidence of herding is model sensitive. Finally, the implications are as follows. First, when you invest in bonds, equities and real estate indices, investors should mitigate against herding effects. Second, integration of products, in the context of bonds, equities and real estate, should be encouraged as that increases the levels of information symmetry. The latter statement implies that investing in financial markets would be risky (See; Kola 2021 and Sibongile 2021). Third and finally, intraday investors should have deep insights about emerging markets as emerging financial markets herd towards to emerged markets.Item The use of integrated project delivery (ipd) to reduce construction claims in South African mining capital projects(University of the Witwatersrand, Johannesburg, 2024) Shoniwa, Kuda John; Saghatforous, Ehsan; Laryea, SamuelThe current traditional Design-Bid-Build (DBB) method on capital projects, results in adversarial relationships, insufficient collaboration, poorly defined scopes of work, inadequate designs, unsatisfactory upfront planning, and diminished integration. This often leads to various changes to planned or agreed contractor scope, schedule, cost or quality during construction resulting in numerous and expensive construction claims for additional costs and time which can be reduced by incorporating Integrated Project Delivery (IPD) benefits. In this research, reference to construction claim means a request by contractor for additional cost or extension of time during construction due to changes in planned or agreed scope, schedule, cost or quality. This research study explores the use of IPD benefits to reduce construction claims in South African mining capital projects, contracted under the traditional DBB method. The research question for this study is therefore, “How can IPD benefits be incorporated into the traditional Design-Bid-Build method so as to reduce construction claims in South African mining capital projects?”. The researcher utilised literature review, survey and focus groups, as mixed research methods. Meta-synthesis, questionnaires and interviews were employed, as data collection techniques. Qualitative analysis incorporating descriptive and pattern coding and quantitative analysis were used for data analysis. In answering the research question, a literature review meta-synthesis identified 28 major causes of construction claims including: changes in design and scope, unclear risk allocation, unclear design documents and specifications, inadequate planning and poor communication. Furthermore, 17 benefits of IPD essential to reducing construction claims were identified and included: early involvement of key participants, collaboration, joint decision making, and open communication. The findings show that there is an opportunity to use aspects of IPD and infusing them into the traditional Design-Bid-Build project delivery method to reduce construction claims. IPD benefits present an opportunity to minimize changes later in the projects which in turn assists in reducing construction claims. By understanding the root causes of construction claims and reviewing the effectiveness and deficiencies of current practices used to reduce the claims, a framework that uses identified IPD benefits as remedies to causes of construction claims in capital projects can be developed. The researcher then developed a framework incorporating IPD benefits into the traditional DBB method for South African mining capital projects, to reduce construction claims. This framework will enable project stakeholders to collaborate and integrate early to deliver quality, within budget and on-time projects so that beneficial use of the assets can commence and generate value for stakeholders. Learnings from this research will promote the required changes in behaviour and attitudes in the construction industry which can lead in the direction of full IPD implementation in the future.Item Essays on the Corporate Governance Evolution and South African Real Estate Investment Trusts (REITs)(University of the Witwatersrand, Johannesburg, 2024) Moloi, Nosipho; Chyuan, Wong Woei; Akinsomi, OmokoladeThere has been substantial attention on corporate governance globally, representing a key area of research interest. Focusing on REITs as a natural experiment to study corporate governance and disclosure polices in SA is distinctive, particularly in that results are mixed globally. Studies by Campbell et al. (2011), Chong et al. (2016), and Chong et al. (2017) found an optimistic association with corporations that adopt CG and profitability; however, Bianco et al. (2007) and Bauer et al. (2010) reported adverse results. The study conducts three separate empirical studies that cover the following aspects of REITs: (a) the impact of corporate governance and corporate social responsibility on SA REITs performance; (b) the impact of corporate governance and foreign investor trading: An SA REIT perspective; (c) Black Economic Empowerment (BEE) and its influence on SA REIT liquidity. This thesis consists of three independent essays. The first essay employs a Corporate Governance Index (CGI) formulated from the King III and King IV reports to investigate the link concerning corporate performance and superiority of CG and the corporate social responsibility (CSR) of SA REITs listed on the Johannesburg Stock Exchange (JSE). The CGI index is created from the King III and IV reports to measure the compliance of 33 SA REITs listed on the JSE as of January 2023. These REITs are assessed from 2013. The empirical investigation using multiple correspondence analysis (MCA) reveals that CG practices have a positive influence on firms’ performance (such as total share return and return on assets). The results imply that CG’s standard principles influence the performance of firms’ SA REITs with a higher magnitude. Managers and investors that observe CG principles will notice improved firm performance. The CSR index is created from the King reports, and MCA was used to analyse CSR compliance to determine that SA REITs, which comply with CSR regulations, will improve returns. The second essay investigates CG and foreign investment activity of SA REITs. REITs offer a natural experiment in CG. These leave little cash flow for management, thereby reducing agency problems. A CGI Index was formulated from the King III and IV reports to examine the association concerning foreign investment and the quality of CG. A sample of 33 SA REITs from 2013 until 2022 is documented. The study adopted the unique multiple correspondence analysis (MCA) to form a matrix for the CG, and the foreign investment was formulated by adopting the Buy and Sell Index (BSI) to capture foreign investment. With a well-balanced panel, it was found that corporate governance (CG) significantly influences foreign investment with a greater magnitude. Additionally, SA REITs that are cross-listed with better CG in place 10 were documented as this has been linked with attracting more foreign investors. Due to the nature and effectiveness of the CG and the lack of this type of investigation in South Africa (SA), this study will inform SA REITs and policy makers in understanding the importance of complying with CG and the practical implications for its influences on foreign investment activity. The third essay examines the liquidity of SA REITs and their relationship to the BEE score. The contribution of this section to the literature is on SA REIT liquidity and its relationship with BEE policy. Firm liquidity has long been an area of interest of research (Yun, 2009). The paper adopts the BEE score for all SA REITs to measure their compliance levels and the link to a REIT liquidity. Thirty-three REITs are adopted from 2013 until 2022. To capture the different dimensions of a securitised REIT, more than one liquidity measure is used. This analysis uses four proxies to calculate REIT liquidity using ordinary least squares models (OLS). The study finds that the BEE has a positive association with an SA REIT liquidity, implying that REITs that comply with BEE policy are likely to have improved liquidity. Complying with government policy has been linked with firms’ good financial standing. Highly compliant REITs wanting to maintain their liquidity levels should consider the influence of the macro-economic factors, particularly the adverse relationships that negatively affect REIT liquidity such as employment levels. This is the first study to probe the BEE and REIT liquidity in the South African context.Item An analysis of the effectiveness of the infrastructure delivery management system in the South African government(University of the Witwatersrand, Johannesburg, 2024) Melete, Refiloe Minah; Khatleli, NthatisiGovernments face inherent obstacles in the provision of infrastructure at a global level. The decline or degradation of societal infrastructure and the limited accessibility to public services for the entire South African population can be ascribed to factors such as inadequate provisioning and upkeep of infrastructure. The adverse implications of construction project failures attributed to a variety of factors, such as delayed provision and increased costs directly impact economic well-being of individuals. South Africa's government is guided by a complicated system of broad and sector-specific policies with distinct objectives. The South African government has implemented various strategies and initiatives to enhance infrastructure delivery, and the effectiveness of developing infrastructure delivery methods for public infrastructure initiatives remains questionable. Despite substantial study on infrastructure delivery difficulties, there remains a paucity of complete evidence about the efficacy of certain infrastructure delivery changes. Previous research identified by academic research has mostly focused on challenges such as public protests, corruption, delays in service delivery, inefficient operations, and inadequate quality management, leaving a knowledge gap about the overall efficacy of various delivery reforms and restricting insights into broader system performance. The South African government has adopted the infrastructure delivery management system (IDMS), a comprehensive approach that integrates planning, implementation ,monitoring and maintenance of infrastructure projects, as its preferred framework for implementation. The system’s effectiveness has not been tested. To close this gap the research analyses the effectiveness of IDMS in infrastructure provision. The study’s objectives were achieved through a qualitative methods, involving in-depth interviews and thematic and content analysis was employed. A purposive selection process was employed to choose a cohort consisting of senior managers, project managers, and external service providers. This resulted in a total of 100 individuals who were chosen to participate in the study. Interviews were conducted with these individuals. A response rate of 72% was attained, indicating a high level of participant engagement and data reliability. The study posits that various infrastructure delivery methods have been tried by both emerging and developed nations, but with limited success rate. Without a universally diverse and integrated infrastructure delivery, the current state of deterioration will continue. South Africa, as a developing nation, has the potential to reap substantial benefits by placing emphasis on the preservation, expansion, and enhancement of its infrastructure delivery. The findings of the study suggest that there are constraints with the current delivery system on adherence to regulations and implementation of system components. The study reveal a significant prevalence of inconsistencies in the application of the system. Lack of transparency in government policies impedes their implementation, causing a multitude of obstacles that contribute to additional project delays. The project's effectiveness is impeded by its inability to run efficiently due to the impact of the changing political environment on laws and industry reform. The study identified significant relationship between competency and governance, and how each impacts the effectiveness of the delivery management system. Consistently assessing policy iii and enhancing the implementation of legislation is vital for properly harnessing industry principles and endeavours. In order to achieve a balanced approach and encourage stakeholder ownership and commitment, collaborative interaction with industry professionals is essential. Improving infrastructure delivery requires implementing an integrated framework with clear goals, enhancing governance structures, a well-defined capacitation strategy to implement the framework, clearly defined roles and responsibilities. and promoting collaboration among government stakeholders for decision making and defined timelines for processing decisions in infrastructure delivery. Additionally, it is essential to streamline processes and cultivate technical expertise within infrastructure departments. The presence of strong governance structures, streamlined processes, and efficient human resource management are strong factors recommended for an integrated delivery framework. This study offers a significant contribution to the current body of literature on public sector infrastructure delivery methods. The research offers study offers valuable insights and contributes to creating efficient and sustainable infrastructure delivery methods and serves as a guiding resource for developing government policies and decision making.Item Exploring the challenges to drone-aided inspections in construction site management(University of the Witwatersrand, Johannesburg, 2024) Khorombi, Shadrack; Terblanche, RolienThe construction industry, marked by its complexity and evolving standards, demands attention and commitment to quality. To guarantee that works are going according to plan, standards and regulations, in terms of quality and compliance, routine inspection strategies are implemented as an intrinsic part of the project management plan. Construction inspections are generally performed as a contractual obligation to enable an independent view of construction works and their progress for key stakeholders and the client. However, traditional inspection techniques are generally laborious and risky. Inspectors are often exposed to exterior elements; unfavourable conditions; intrinsic risks. Despite all of this, inspectors are still unable to obtain in-depth information on some of the surfaces due the inability to access surfaces or structures to optimal proximity. Drone technology has been proposed as an alternative method to traditional inspection for safer and more efficient inspections. This study endeavoured to explore key challenges to the implementation of drone technology for construction inspections. The methodological approach that the researcher adopted to achieve the research aim encompassed a qualitative method with document analysis, case study and interviews selected as data collection strategies. Techniques to gather empirical information required included observations and semi-structured interview questions. To present findings that are valid, reliable and generalisable, NVivo software was used as a data analysis tool where content analysis and thematic analysis were employed as data analysis strategies. The utilisation of qualitative, inductive case studies within an interpretivist paradigm was considered necessary to contextualise and deepen the understanding of the nature and occurrence of the challenges impeding key role players from full adoption of drone technology for construction site inspection processes. Key findings entail the lack of capital and resource allocation, concerns about transparency and contractual accountability, and the need for clear evidence of return on investment. Technical complexity, disruption to site activities, lack of interest from key stakeholders, capacity issues, and connectivity issues were also uncovered as challenges in the adoption of drone-aided inspections. Additionally, the findings iii encompassed strategies to overcome challenges impeding the optimal use of drones in construction projects. This study evaluates the current state and potential for drone technology adoption within the South African construction industry, highlighting practical challenges encountered during actual deployments. By proposing solutions such as streamlining regulatory processes and enhancing stakeholder collaboration, the research offers valuable pathways to optimise drone technology implementation during construction documentation and management.Item An assessment of the necessity of implementing a blockchain based land registry in South Africa(University of the Witwatersrand, Johannesburg, 2024) Jeram, Deelan; Saghatforoush, Ehsan; Azasu, SamuelBackground statement: Several nations have recently implemented blockchain-based land management systems, focusing on land registration, titling, recordation, and information management, to enhance transparency, trust, data security, data quality, and immutability through consensus mechanisms. This technology streamlines access and tracking of land records, reducing fraud, corruption, record manipulation, and property resale while lowering transaction costs. These advantages aim to address issues of inefficient and untrustworthy land records in less developed countries. Problem: South Africa faces challenges, ranking 108 out of 190 in property registration according to the World Bank, with lengthy procedures (7), extended transaction times (23 days), and high costs (8% of property value). In contrast, blockchain-adopting countries like Sweden and Georgia are ranked at 9 and 5, respectively. Despite these inefficiencies blockchain technology has not yet made an inroad into the land registration or transaction process. Aim – The aim of this study is to investigate the potential use of blockchain technology to digitize land registration in South Africa. Methods: This paper investigates a blockchain property registry pilot project in Khayelitsha, South Africa, using Peled's theoretical framework and employs qualitative research methodologies, including case study analysis and expert interviews, supplemented by a systematic literature review. Outcomes: The study reveals significant challenges in South Africa's land registration, including unreliable land records, informal land tenure systems, limited access for marginalized communities, corruption, weak legal frameworks, post-colonial property rights legacy, and inefficient real estate transactions. Despite the promise of blockchain, these issues persist, hindering progress. Eight key factors obstruct blockchain adoption in South Africa's land registry, including legal barriers, organizational resistance, technological hurdles, resource constraints, political and social factors, and trust-related issues. The case study identifies additional obstacles, such as misalignment of interests, lack of formal agreements, data quality issues, and further legal barriers. Nonetheless, the pilot project managed to create a "pseudo title deed" with potential benefits for the city. This study suggests the application of blockchain in state-subsidized housing developments to enhance data security and enable electronic land transactions. It emphasizes the need for a combination of expertise, infrastructure readiness, and procedural changes to facilitate innovation in the public sector. Despite the potential, the study concludes that South Africa's land registry is not yet prepared for widespread blockchain implementation, citing legal, technological, and organizational challenges. Significance: This research is the first to explore the limited adoption of blockchain technology for land registration in South Africa, contributing valuable insights to the field. This paper identifies critical factors for successful blockchain-based property registry implementation, offering insights for legislation, policy development, and land registration system design to address inequalities and improve land tenure in developing countries. It outlines a potential path for South Africa's Deeds Registry to implement blockchain technology in state-subsidized housing developmentsItem Rituximab therapy in connective tissue disease associated interstitial lung disease - a retrospective single centre observational study(University of the Witwatersrand, Johannesburg, 2023-11) Seedat, Ubaid Feroze; Schleicher, G.K.; Christian, BereniceIntroduction: Connective tissue disease associated interstitial lung disease (CTD-ILD) is a challenging clinical entity. Rituximab (RTX) is a chimeric monoclonal antibody targeted to CD20+ B-cells, resulting in B-cell depletion and has been suggested as a potential therapeutic modality in progressive disease. Objectives: To investigate the therapeutic effects and safety of rituximab in patients with progressive CTD-ILD. Methods: A retrospective observational analysis was performed at WDGMC between January 2010 and December 2020. A total of 19 patients with CTD-ILD were treated with RTX and various combinations of immunomodulatory therapy. The effects of RTX were investigated with serial pulmonary function testing (PFT), high resolution computed tomography (HRCT) of the chest, and the WHO functional class assessment (FC). Results: At an average of 24-month follow up from baseline, the mean change in forced vital capacity (FVC) was not significantly different from baseline (0.01L, 95% CI -0.13 to 0.14L) (p=0.91). At an average of 24-month follow up, 17 follow up HRCTs were available of which 13 showed disease stability, 3 indicated progression and 1 indicated improvement. At an average of 24-months follow up, FC remained stable compared to baseline (p=0.083). No serious adverse drug reactions or mortalities occurred. Conclusion: Rituximab is a potential therapeutic option in patients with progressive CTD-ILD and appears to result in stability in FVC, HRCT findings and FC over a 24 month period.Item Exploring the challenges to drone-aided inspections in construction site management(University of the Witwatersrand, Johannesburg, 2024-09) Khorombi, Shadrack; Terblanche, RolienThe construction industry, marked by its complexity and evolving standards, demands attention and commitment to quality. To guarantee that works are going according to plan, standards and regulations, in terms of quality and compliance, routine inspection strategies are implemented as an intrinsic part of the project management plan. Construction inspections are generally performed as a contractual obligation to enable an independent view of construction works and their progress for key stakeholders and the client. However, traditional inspection techniques are generally laborious and risky. Inspectors are often exposed to exterior elements; unfavourable conditions; intrinsic risks. Despite all of this, inspectors are still unable to obtain in-depth information on some of the surfaces due the inability to access surfaces or structures to optimal proximity. Drone technology has been proposed as an alternative method to traditional inspection for safer and more efficient inspections. This study endeavoured to explore key challenges to the implementation of drone technology for construction inspections. The methodological approach that the researcher adopted to achieve the research aim encompassed a qualitative method with document analysis, case study and interviews selected as data collection strategies. Techniques to gather empirical information required included observations and semi-structured interview questions. To present findings that are valid, reliable and generalisable, NVivo software was used as a data analysis tool where content analysis and thematic analysis were employed as data analysis strategies. The utilisation of qualitative, inductive case studies within an interpretivist paradigm was considered necessary to contextualise and deepen the understanding of the nature and occurrence of the challenges impeding key role players from full adoption of drone technology for construction site inspection processes. Key findings entail the lack of capital and resource allocation, concerns about transparency and contractual accountability, and the need for clear evidence of return on investment. Technical complexity, disruption to site activities, lack of interest from key stakeholders, capacity issues, and connectivity issues were also uncovered as challenges in the adoption of drone-aided inspections. Additionally, the findings encompassed strategies to overcome challenges impeding the optimal use of drones in construction projects. This study evaluates the current state and potential for drone technology adoption within the South African construction industry, highlighting practical challenges encountered during actual deployments. By proposing solutions such as streamlining regulatory processes and enhancing stakeholder collaboration, the research offers valuable pathways to optimise drone technology implementation during construction documentation and management.Item An assessment of the necessity of implementing a blockchain based land registry in South Africa(University of the Witwatersrand, Johannesburg, 2024-08) Jeram, Deelan; Saghatforoush, Ehsan; Azasu, SamuelBackground statement: Several nations have recently implemented blockchain-based land management systems, focusing on land registration, titling, recordation, and information management, to enhance transparency, trust, data security, data quality, and immutability through consensus mechanisms. This technology streamlines access and tracking of land records, reducing fraud, corruption, record manipulation, and property resale while lowering transaction costs. These advantages aim to address issues of inefficient and untrustworthy land records in less developed countries. Problem: South Africa faces challenges, ranking 108 out of 190 in property registration according to the World Bank, with lengthy procedures (7), extended transaction times (23 days), and high costs (8% of property value). In contrast, blockchain-adopting countries like Sweden and Georgia are ranked at 9 and 5, respectively. Despite these inefficiencies blockchain technology has not yet made an inroad into the land registration or transaction process. Aim – The aim of this study is to investigate the potential use of blockchain technology to digitize land registration in South Africa. Methods: This paper investigates a blockchain property registry pilot project in Khayelitsha, South Africa, using Peled's theoretical framework and employs qualitative research methodologies, including case study analysis and expert interviews, supplemented by a systematic literature review. Outcomes: The study reveals significant challenges in South Africa's land registration, including unreliable land records, informal land tenure systems, limited access for marginalized communities, corruption, weak legal frameworks, post-colonial property rights legacy, and inefficient real estate transactions. Despite the promise of blockchain, these issues persist, hindering progress. Eight key factors obstruct blockchain adoption in South Africa's land registry, including legal barriers, organizational resistance, technological hurdles, resource constraints, political and social factors, and trust-related issues. The case study identifies additional obstacles, such as misalignment of interests, lack of formal agreements, data quality issues, and further legal barriers. Nonetheless, the pilot project managed to create a "pseudo title deed" with potential benefits for the city. This study suggests the application of blockchain in state-subsidized housing developments to enhance data security and enable electronic land transactions. It emphasizes the need for a combination of expertise, infrastructure readiness, and procedural changes to facilitate innovation in the public sector. Despite the potential, the study concludes that South Africa's land registry is not yet prepared for widespread blockchain implementation, citing legal, technological, and organizational challenges. Significance: This research is the first to explore the limited adoption of blockchain technology for land registration in South Africa, contributing valuable insights to the field. This paper identifies critical factors for successful blockchain-based property registry implementation, offering insights for legislation, policy development, and land registration system design to address inequalities and improve land tenure in developing countries. It outlines a potential path for South Africa's Deeds Registry to implement blockchain technology in state-subsidized housing developments.Item The challenges and benefits associated with residential investment in South Africa: residential REIT and portfolio manager perspectives(University of the Witwatersrand, Johannesburg, 2023) Van Straaten, Kevin; Simbanegavi, Prisca; Mpofu, BekithembaA common theme in addressing critical housing shortages is the call to leverage private sector resources using REITs. Despite South African having critical affordable housing shortages, REIT exposure to residential is far below the global REIT market average. Existing research brings to light the mixed views and perceptions between different stakeholders about the challenges and risks associated with residential REITs. This is exacerbated by the lack of input from managers of residential REITs and residential funds which is critical to establish a more in depth understanding of the characteristics of the sector. The purpose of this research was to understand the challenges faced, methods to overcome these challenges, and the unique benefits that residential investment offers from the perspectives of managers of residential REITs and large scale residential rental portfolios in South Africa. This was achieved using a qualitative survey consisting of semi-structured interviews with managers and executives of residential REITS and large scale residential rental portfolios. The findings provide a more granular look at some of the challenges faced by these key stakeholders, which provide a deep insight into the characteristics of the sector. The key finding is that the limited track record of residential REITs is cause for many of the challenges associated with residential investment in South Africa. Residential portfolio and REIT managers are implementing unique strategies to respond to some of challenges that arise in the context of South Africa such as a shift toward month-to-month leases and exploring methods of reducing utility costs which are increasing at above inflationary rates. These findings make a valuable contribution to the limited literature on residential REITs in South Africa and include insights from the stakeholders that are most acquainted with the sector which is key to helping broaden our understanding of the challenges and benefits of residential investment in South Africa. Understanding these characteristics is crucial in further developing and growing the residential REIT sector which has the potential to help leverage private sector resources to address the critical housing shortages in South Africa and Africa.