Faculty of Commerce, Law and Management (ETDs)
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Item Potential improvements to South African research and development tax incentives: lessons from BRICS countries(University of the Witwatersrand, Johannesburg, 2024) Mphephu, Keamogetswe; Ram, Asheer J.The South African government is cognisant of the fact that research and development (R&D) is imperative in stimulating innovation, economic development, and global competitiveness. This has resulted in the government adopting various tax incentives to boost R&D activities. Section 11D of the Income Tax Act 58 of 1962 (Income Tax Act) (Republic of South Africa, 1962) governs the R&D tax incentive, which has evolved since its inception in 2006. The initial plan was for section 11D to come to an end in October 2022. However, in the 2023 Budget Speech, the Minister of Finance declared an extension of ten years for the deadline and simplification of the tax provision to enhance effectiveness. This study will analyse South Africa's R&D tax policies in comparison to selected other BRICS member countries (Brazil, Russia, India, China) and examine possible improvements. Through the research study, several important findings were made. One is that R&D tax incentives play a crucial role in stimulating innovation investment by relieving the financial burden on companies and therefore allowing them to focus their resources on R&D. Another important lesson is that streamlining application procedures and providing convenient access to R&D tax incentives play a critical role in promoting high levels of participation and effectiveness. Although the Department of Science and Innovation has taken steps to enhance R&D tax incentives, there remains room for improvement to align them with international best practices. Aligning with international best practices will enable South Africa to improve its R&D tax provision by encouraging innovation and attracting domestic and foreign investment.Item Corporate entrepreneurship and governance structures in South African listed companies(University of the Witwatersrand, Johannesburg, 2024) Zhanje, Tadiwanashe Gaylord; Msimango-Galawe, JH.Entrepreneurship scholars tend to agree that the governance structures of a company influence its corporate entrepreneurial efforts and activities. Empirical studies have certainly supported this but have limited application to Africa as few studies have been conducted under said context. This study empirically investigated the relationship between corporate governance structures and the corporate entrepreneurial efforts of publicly listed companies in South Africa. The study made use of secondary data sources including CIPC, IRESS and company annual reports. This was done to save time, costs and for ease of access to data. Multiple regression analysis was then used to test the hypotheses. Following an investigation of 119 JSE listed firms, regression results revealed that a larger Board Size is positively associated with corporate entrepreneurship (CE) in South African (SA) registered firms as measured by research and development (R&D) expenditure. These results highlight the importance of a particular governance structure in relation to efforts to create sustainable long-term value and competitive advantages. Additionally, the findings provide key insights to scholars and policymakers where governance issues in an emerging market context serve as a catalyst for corporate entrepreneurial activities.