4. Electronic Theses and Dissertations (ETDs) - Faculties submissions
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Item Oil Price Shocks and Financial Stress in Sub-Saharan African Countries(University of the Witwatersrand, Johannesburg, 2024) Frost, CallumThis study examines the nexus between financial stability and oil shocks within South Africa, a net-oil importer, and Nigeria, a net-oil exporter. A signal theory approach utilising pAUROC analysis is used to capture relevant indicators. Furthermore, sub-market indices are weighted using a diagonal BEKK-GARCH model, allowing for time-varying cross-correlations to determine sub-market weights, allowing the constructed financial stress index (FSI) for each economy to focus on systemic events of financial stress. The FSI for each economy is then incorporated into a SVAR model which disaggregates oil demand shocks into three components (economic activity, oil consumption demand, and oil inventory demand) following the framework of Baumeister and Hamilton (2019) to capture the effects of oil market shocks on financial stability. This paper finds that positive shocks to oil supply, economic activity, and oil inventory demand tend to reduce financial stress in South Africa. Interestingly, demand driven increases in the real price of oil reduces systemic stress, even though the economy is a net-oil importer. Oil supply shocks and economic activity shocks tend to have no significant effect on Nigerian financial stress while demand driven increases to real oil prices tend to decrease financial stress. Interestingly, shock increases in demand for oil inventories tends to raise financial stress.Item Deconstructing the debate around bank account closures on the pretext of institutional reputational risk(University of the Witwatersrand, Johannesburg, 2024) Hayath, Iram; Kawadza, HerbertThe Supreme Court of Appeal in Bredenkamp v Standard Bank found that a bank has a contractual right to close a client’s accounts on reasonable notice, and that a bank is entitled to exercise this right if it perceives that a continued relationship with the client may result in reputational and business risks to the bank (albeit may be premised on allegations which the client denies). Banks have regulatory obligations to (amongst others): (i) manage their reputational risk; and (ii) take steps to avoid their accounts being used by clients to facilitate the proceeds of unlawful activities. Banks are at the receiving end of scrutiny for the latter, including from the media. Banks’ actions of closing accounts for institutional reputational risk are however, often challenged by clients on the basis that these decisions are informed by untrue allegations and are contrary to public policy. A particular consideration is the potential consequences of the clients becoming ‘unbanked’. There are also other issues of contention including that reputational risk is an elusive reason. The competing interests and public policy considerations at play have not yet been adjudicated by our courts. This research report argues that the complexities involved necessitates legislative reform to ensure certainty and fairness on both sides.Item House Prices Against the Wind: Analysis of the use of Monetary Policy to Moderate House Price Bubbles and the Case of New Zealand(University of the Witwatersrand, Johannesburg, 2024) Jinabhai, Nikhil; Creamer, KennethItem The constitutionality of COVID 19 Vaccination Policies and its implications on the right to freedom of religion in South Africa(University of the Witwatersrand, Johannesburg, 2024) Karuaihe, Janee Raahua SiegfriedCovid-19 was declared by the World Health Organisation (WHO) as a disease affecting people over a large geographical area. It caused severe illness to millions of people around the world and the death of over four million people. This impact on people had a direct effect on employers, employees and the workplace. Religions and those practicing their religion weren’t spared from the impact of Covid-19. To control the impact of Covid-19 on the workplace, employers were obligated to take steps to keep the workplace safe and to ensure that businesses can reopen in a manner that would ensure the safety of employees and the public. One of the measures taken by employers to ensure the safety of the workplace was the introduction of vaccination policies. These policies varied from workplace to workplace, but a consistent feature was that employees were required to be vaccinated to return to the workplace. If such workplace were to be implemented without exception, it would fail to recognise the fact that certain religious practices and certain people who practice various religions do not permit vaccines, and where they do, only certain vaccines are allowed. As there is no specific legislation governing the implementation of vaccination policies in the workplace, many employees across South Africa believed these policies unjustifiably limited rights protected by the Constitution, including the right to religion. The courts have accepted that vaccination policies may have the effect of limiting rights that are protected in terms of the Bill of Rights. Still, such limitations may be justified where the employer takes steps and introduces such a policy where necessary to ensure the safety of the workplace.Item Realising the right to healthcare: the legislative frameworks pertaining to private health establishments and private healthcare funding models in South Africa(University of the Witwatersrand, Johannesburg, 2024) Labuschagne-Kom, Lindsie; Mahery, Prinslean; Martin, BlakeThe Universal Declaration of Human Rights recognises access to healthcare as a fundamental human right and is guaranteed by the South African Constitution. An analysis of this right reveals that it comprises of two main components, namely financing and delivery of healthcare services. These are fulfilled by the government in the public sector and by private healthcare funders and private health establishments in the private sector. However, an analysis reveals that access to healthcare is substantively inequitable due to the fragmentation of the health system and unveils significant inefficiencies in the private sector that impeded realisation of this right. This dissertation examines the cause of this fragmentation and the inefficiencies within the private healthcare funders and private health establishments market. It investigates how these issues can be resolved to realise the right to healthcare. This study applied a qualitative desktop review of governmental policies, direct and incidental legislation, and multidisciplinary fields of academic reviews such as competition, healthcare, constitutional law and international policies to evaluate the effect of historical, contemporary and prospective policies and legislation, on access to healthcare. This analysis reveals that access to healthcare was historically manipulated to achieve political ideology through a legislative framework that provided the foundation for private funding models and private health establishments to flourish. This occurred at the expense of the public sector and embedded the fragmentation and inefficiencies in the health system. Notwithstanding the enactment of the Constitution, which envisioned a transformed and equal society, access to healthcare remains substantively inequitable. This is due to governmental failings to regulate these stakeholders. Given this state of affairs, the government intends to enact legislative reform through the National Health Insurance Bill to meet its constitutional mandate to realise the right to healthcare. An analysis of the Bill’s framework, however, reveals that it will have a cascading effect with the collapse of the private healthcare funders and private health establishment markets. This will ultimately cause a regression in access to healthcare and impede the practical realisation of this right. An investigation into alternative mechanisms to fulfil the right to healthcare reveals that incorporation and collaboration with private healthcare funders and private health establishments is a pragmatic alternative to the National Health Insurance Bill that will aid with the practical realisation and vindication of this right. These findings indicate the need for government to improve its stewardship of the health system and provide pragmatic solutions to reform the legislative and regulatory frameworks governing these stakeholders to resolve inefficiencies and to foster collaboration to fulfil the right to healthcare.Item The price effects of a hospital merger: a case study of the Mediclinic Southern Africa (Pty) Limited (Mediclinic) and Matlosana Medical Health Services (Pty) Limited (MMHS) merger(University of the Witwatersrand, Johannesburg, 2024) Laurence, Marcelle; Mncube, LibertyThis study evaluates the assessment conducted in the prohibited Mediclinic Southern Africa (Pty) Ltd and Matlosana Medical Health Services (Pty) Ltd (MMHS) proposed merger. The study employs a qualitative approach, centred on a case study methodology, to assess the theories of harm discussed. It aims to provide insights into the adequacy and outcome of the competition authorities’ assessment drawing comparisons to international literature and policy implications. It uses economic theory to analyse and show the significance of robust and nuanced regulatory frameworks in healthcare merger evaluation.Item Examining the relationship between governance and gross fixed capital formation in Sub-Saharan Africa(University of the Witwatersrand, Johannesburg, 2024) Machobani, Dennis; Mahonye, NyashaThis study delves into the intricate relationship between governance and Gross Fixed Capital Formation (GFCF) in Sub-Saharan Africa (SSA), aiming to address the substantial infrastructure deficit in the region. Employing the System GMM methodology, the primary research question focuses on understanding the correlation between institutions and GFCF in SSA. Subsequent sub-questions delve into the relationships between political stability and GFCF, as well as the composite index of institutions and GFCF. Policy recommendations highlight the pivotal role of good governance, advocating for reforms, institution strengthening, and enhanced transparency. The study's outcomes emphasize the intricate interplay of diverse factors impacting GFCF, prompting policymakers to adopt comprehensive strategies for sustainable development. Persistent effects of past investment choices underscore the necessity for continuous efforts to incentivize investment. Key determinants such as trade policies, current account balances, gross domestic savings, and government expenditure are identified, suggesting targeted interventions to stimulate private sector engagement and cultivate an environment conducive to heightened investment in Sub-Saharan Africa.Item Determinants of optimal capital structure for non-financial firms listed on the JSE(University of the Witwatersrand, Johannesburg, 2024) Chipeta, ChimwemweThis paper investigates the determinants of optimal capital structure while considering the influence of the cost of capital, specifically examining the relationship between firm-specific variables known to drive optimal capital structure (such as firm size, asset tangibility, growth, liquidity, and profitability) and the cost of capital. The analysis of these determinants in developing countries is intriguing due to the differences in firm characteristics compared to those in advanced economies. The study utilizes primary data sourced from Refinitiv Workspace for 189 firms across various sectors listed on the Johannesburg Stock Exchange (JSE) from 2015 to 2023, excluding financial services and insurance sectors. Panel econometric approaches, including Feasible Generalised Least Squares (FGLS) and the Generalised Method of Moments (GMM) regression method, are employed for analysis. The findings of the study unveil several noteworthy relationships between independent variables and the Weighted Average Cost of Capital (WACC). Firm size, profitability, asset tangibility, and growth emerge as key determinants affecting WACC to varying degrees. Firm size and profitability exhibit positive associations with WACC, supported by statistically significant coefficients. This implies that increases in firm size and profitability correspond to higher WACC levels. Conversely, asset tangibility and growth demonstrate negative correlations with WACC, backed by statistically significant coefficients. Furthermore, firm size and profitability maintain their positive relationships with WACC across various estimation models, including Feasible Generalized Least Squares (FGLS) and Generalized Method of Moments (GMM). This consistency underscores the robustness of these relationships, with larger and more profitable firms consistently exhibiting higher WACC.Item Measuring the performance and asset allocation of robo-advisors in BRICS(University of the Witwatersrand, Johannesburg, 2024) Maluleke, Lethabo; Seetharam, YudhvirThe financial industry has undergone some digital changes over the past decade. Financial technology (FinTech) is a result of this digital change and robo-advisors constitute FinTech in the wealth management space. The emergence of robo-advisors is a global phenomenon and, in this study, the performance and asset allocation of the robo-advisors from Brazil, Russia, India, China, and South Africa (BRICS) were measured. BRICS countries are one of the largest growing economies and provide international investors with diversification. The purpose of this study was to analyse if the recommended portfolios of the robo-advisor can perform similar to a benchmark and to explain the performance differences between the different recommended portfolios of the robo-advisors from each country using a returns-based style analysis. Furthermore, this study analysed the performance of robo-advisors before and after considering fees and the returns-based style analysis was also used to capture the exposure of each robo-advisor to mutually exclusive asset classes. The data included four robo-advisors in total with one robo-advisor from each country (a total of 62 portfolios) as there was a removal of the Russian EFTs due to the Russian- Ukraine war of 2022. The sample period was from 2015 to 2022 as most robo-advisors only became available after 2015. The performance tests that were performed were the Sharpe ratio, Jensen’s alpha, Treynor ratio and Manipulation-proof performance measure. It is found that there are certain countries that have robo-advisors with portfolios that perform similar to the benchmark and do not outperform the benchmark and other countries that have portfolios that outperform the benchmark and the portfolios do not perform similar to the benchmark. Furthermore, it is found that performance differences can be explained by the investment style i.e., whether the portfolios have exposure to the same assets. The performance differences can also be explained by asset allocation in each portfolio based on uncorrelated assets.Item Mobile banking apps curation: Assessing the factors that influence mobile banking’s continuous use amongst Millennials and Generation Z(University of the Witwatersrand, Johannesburg, 2024) Mashishi, Neo; Zulu, MelissaThe proliferation of mobile banking platforms and the widespread use of intelligent devices like smartphones and tablets have caused a paradigm change in the banking industry in recent times. Millennials and Generation Z (Gen Z), dubbed the "digital natives," make up most of these service consumers. Millennials and Gen Z are increasingly using mobile banking apps, which has transformed how financial services are delivered. Nevertheless, despite being widely adopted, banks need help to ensure the continuous use of these apps to sustain a devoted and loyal consumer base while competing in the market. This study, therefore, investigates the factors influencing Millennials and Gen Z's continuous use of mobile banking applications. Five theoretical frameworks have been adopted to direct the research inquiry: Computers As A Social Actor (CASA), Expectation Confirmation Theory (ECT-IS), Social Response Theory (SRT), Task Technology Fit (TTF), and the Unified Theory of Acceptance and Use of Technology (UTAUT). The study adopted these frameworks based on their theoretical and empirical applicability and ability to provide perspectives into the variables impacting Millennials and Gen Z's continuous use of mobile banking apps. The study employed SPSS (Statistical Package for the Social Sciences) for the analysis of descriptive statistics. To validate the theoretical model and investigate the interactions between variables, Partial Least Squares Structural Equation Modelling (PLS-SEM). PLS-SEM, Smart PLS software was used to assess the validity and reliability of the constructs as well as the strength and importance of the proposed paths in the structural model was made possible by the PLS-SEM methodology. This provided an overview of the dataset and made it possible to do a thorough analysis by outlining important features like means, frequencies, and standard deviations. The research used quota sampling for a sample size of 505 participants. The study's conclusions indicate that there is a substantial correlation among perceived anthropomorphism, expectation confirmation, service quality of mobile applications, mobile banking app satisfaction, technology fit, and consistent usage of mobile banking apps. The study’s goal is to advance our understanding of the field of banking and financial services marketing. The banking sector can apply the findings and insights to differentiate its offerings from its competitors and gain a competitive edge while potentially boosting profitability.