4. Electronic Theses and Dissertations (ETDs) - Faculties submissions
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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 Financial inclusion, institutional quality, and poverty reduction in Africa(University of the Witwatersrand, Johannesburg, 2023) Nsiah, Anthony Yaw; Tweneboah, GeorgeFinancial inclusion is seen as an enabler to growth in an economy, as such enhance poverty reduction, especially in developing regions like Africa. Poverty levels in Africa are still very high, especially with the advent of the Covid-19 pandemic, despite efforts of governments and development partners to address it. The extant literature has provided some information regarding the financial inclusion and poverty reduction nexus in the continent and elsewhere. However, the exact threshold level of inclusion at which poverty could be altered has not been thoroughly explored. Also, the critical role institutions play in transferring the benefits of financial services to households and firms towards poverty reduction has not been extensively interrogated. This thesis therefore consists of three separate empirical studies which all intend to fill the knowledge gap, using advanced econometric methodologies. For the first essay, we examined the determinants of financial inclusion in Africa, considering demand, supply as well as infrastructure side factors. Despite the importance of financial inclusion, many factors play a role in one’s decision to get involved in the financial sector. Using the GMM technique, the study revealed that GNI per capita (demand-side factor), Domestic credit to private sector (Supply-side factor) and institution quality (infrastructure-side factor) were significantly identified to be determinants of financial inclusion in Africa. It was further revealed that GNI per capita, Money supply and Institutional quality contribute to the minimization of barriers to financial inclusion. The second essay sought to estimate the threshold level at which financial inclusion, aided by strong institutions, will lead to poverty reduction in Africa. Financial inclusion has been identified as an important concept in fighting poverty due to its ability to increase income level of households. Using the Hansen’s threshold estimation method, the study found double threshold values at which financial inclusion would increase household consumption expenditure, leading to poverty reduction. The study also established a certain threshold level beyond which, financial barriers will have a negative iv impact on consumption which has the tendency to scare households from participating in the financial sector. The results further indicated that dependency ratio, gross national income, interest rate, inflation, education, and government expenditure contribute significantly to reducing barriers to reduce poverty. Institutional quality was also found to significantly moderate the financial inclusion and poverty reduction relationship. The last but not the least essay investigated the nature of the relationship between financial inclusion, financial stability, and poverty reduction in Africa. Financial inclusion plays an important role in enhancing stability of the financial system. It has however been argued that some level of financial inclusion has the tendency to destabilize the financial system, thwarting poverty reduction efforts. Using the panel Autoregressive Distributive Lag (ARDL) model, the study found that financial inclusion is positively related to financial stability in both short and long-run, with education, GNI per capita and domestic credit to private sector positively related to financial stability and trade openness negatively related to same, in the long-run. The study further established that financial stability is positively related to consumption as such leads to poverty reduction with trade openness, government expenditure, GNI per capita, education, domestic credit to private sector and institutional quality been positively related to household consumption, as such its effects lead to poverty reduction. This indicates that financial stability plays a complementary role in the financial inclusion drive to fight poverty in Africa. It is recommended that development partners, central banks and governments in the region should consciously implement policies that are aimed at promoting financial inclusion through the strengthening of institution, due to its ability to end poverty as well as take pragmatic measures to minimize barriers to financial inclusion. Despite the financial inclusion drive, regulations must not be taking for granted in order not to compromise stability of the financial system for the joint benefit in the fight against poverty as well as ensure financial stabilityItem Attitudes and perceptions of caregivers regarding their presence at induction of anaesthesia(University of the Witwatersrand, Johannesburg, 2021) Le Roux, Johannes Jacobus; Redelinghuys, CaraBackground Caregiver presence at their children’s induction of anaesthesia is practiced daily around the world. International studies demonstrated conflicting emotions in caregivers present at induction of anesthesia of their children. These positive and negative emotions ranged from comforting and reassuring, to traumatising and disturbing. Research exploring the attitudes and perceptions of caregivers regarding this practice is limited within the African context. Aims The aim of this study was to describe caregivers’ attitudes and perceptions regarding their presence at induction of their children’s anaesthesia. Methods This descriptive, phenomenological, qualitative study was conducted in 2020 at Chris Hani Baragwanath Academic Hospital, a 3200-bed facility in South Africa. Twenty caregivers of children (aged 2 to 8 years) undergoing elective surgery were recruited. Data was collected through face-to-face, in-depth, semi-structured individual interviews using purposive sampling. Interviews ranged between 11 and 55 minutes in duration and were conducted within 24 hours of induction of anaesthesia. The audio recorded interviews were transcribed and subjected to inductive reflexive thematic analysis. Results Six themes were developed: Fulfilment of caregiver role, A positive experience, A traumatic experience, Not prepared for the experience, My world is my reality, and Your world is a place different to mine. Conclusion A caregiver’s perception of the induction process is influenced by multiple factors. A finding specific to our cohort is the interplay between complex multifaceted cultural beliefs and anaesthesia of their children. By acknowledging and addressing these beliefs, a caregiver’s presence can be tailored to ensure a positive experience for all involved at inductionItem Banking industry response to competition from the financial inclusion paradigm in Africa(University of the Witwatersrand, Johannesburg, 2021) Kamau, Simon Muhia; Ojah, KaluThis study examines the effects of increased competition from microfinance institutions (MFIs)– reflective of the financial inclusion paradigm – on commercial banks in Africa. More specifically, I analyze the banking industry’s response to competition for financial inclusion and how the response affects the cost efficiency, asset portfolio risk, and social outreach (performance) of the banking industry. I employ panel data comprising 16 countries that possess the most advanced national banking markets in Africa, for the period 2010-2017. Fixed effects model (FE), Fractional Probit regression method (FRM), and Generalized methods of moments (GMM) are variously the main estimation techniques. I find that banks are responding to the competition for financial inclusion by increasing the supply of credit to households and SMEs, in support of the market power hypothesis of competition. Furthermore, estimation results show strong evidence that increased supply of credits to households and SMEs, in response to competition for financial inclusion, contributes positively to the banking industry’s cost-efficiency. Additionally, results suggest that increased bank lending to households and SMEs has a negative but statistically insignificant effect on banking stability. Interestingly, additional results indicate that banks’ positive response to the financial inclusion paradigm is mainly limited to the relatively wealthier segment of the low-income population. Moreover, these findings are robust to using alternative measures of competition for financial inclusion, and banking industry response, among several other robustness checks. From these results and more, I recommend policies such as enabling access to borrowers' information and supporting the development of financial market infrastructure, in order to promote competition in providing financial services to the low-income market and further drive financial inclusion. I also recommend the adoption of improved and proactive regulatory measures to ensure that competition for financial inclusion does not compromise the stability of the banking industry. Lastly, I propose policies that would ensure that competition for financial inclusion does not hurt outreach to the poorest segment of the population, as banks seek to enhance their efficiency while providing financial services to households and SMEsItem Essays on industrialisation, innovation, and sustainable development in Sub-Saharan Africa(University of the Witwatersrand, Johannesburg, 2023) Akorsu, Patrick Kwashie; Tweneboah, GeorgeSustainable development has attracted discourses from academics and policymakers for some time now. The United Nations has instituted seventeen (17) goals to promote sustainable development, and these goals have been decomposed into 169 sub-goals to be achieved under the 2030 agenda for sustainable development. The goals are essentially grouped into economic, ecological, and social goals. Following this, the African Union (AU) has embraced the SDGs by motivating member countries to come up with programmes that are directly related to the goals. However, whereas a lot of discussions have occurred, much of the talk has been oblivious to empirical data analysis. The AU has realised the importance of industrialisation in spearheading the bridging of the poverty gap in Africa. Industrialisation is seen as the panacea for job creation, prosperity, and wealth creation. Industrialisation induces innovation by introducing new equipment, new production techniques, increasing capacities and spreading improvements across sectors of the economy. However, since the 1990s when the policymakers started talking about industrialisation, not much has been achieved on that score. Common to industrialisation and economic development is financial development. The level of financial development can stimulate positive or negative externalities on sustainable development. The drive towards the promotion of sustainable development in Africa by the African Union and other parastatal bodies, especially the UN, motivated this thesis to examine the convoluted connections between financial development, technological innovation, industrialisation, and sustainable development in Africa in three related studies. The first study analysed the complementary role of financial development in the relationship between industrialisation and sustainable economic development in Africa. The system dynamic Generalised Method of Moments (GMM) technique was employed with a dataset covering 2010-2019 for 48 African countries. Under this analysis, this thesis found that Industrialisation, Innovation, and Sustainable Development in Africa © Patrick Kwashie Akorsu, 2023 industrialisation is a significant positive driver of economic development. The role of financial development in the economic development agenda among African economies was also emphasised by the results. The outcome of the moderation analysis suggested that the level of financial development significantly complements industrialisation towards improving economic growth. Thus, a more developed financial sector is potent in building an industrial economy which facilitates value addition in the manufacturing sector. The second empirical analysis examined the interactive role of technological innovation in the relationship between financial development and sustainable development in Africa after controlling for the influence of ICT infrastructure, trade openness, inflation, and population size. The results indicated significant effects of financial development on sustainable development as well as significant relationships between technological innovation and sustainable development. In terms of social sustainability, the findings suggested that financial development tends to reduce social sustainability among African economies such that increasing the quantum of broad money and increasing the amount of domestic credit to the private sector either by households or by banks would not necessarily improve the level of social development in Africa. Concerning economic sustainability, the findings divulged a positive relationship between financial development and the economic dimension of sustainable development (i.e., economic sustainability), suggesting that African countries could leverage financial development, particularly by encouraging the supply of credit to the private sector either by households or banks to enable industries to improve their operations. As regards ecological/environmental sustainability, findings from this empirical analysis indicated mixed relationships between financial development and ecological sustainability. Thus, depending on the proxy, financial development either increases or decreases energy consumption and carbon dioxide emissions in Africa. Meanwhile, the effect of technological Industrialisation, Innovation, and Sustainable Development in Africa © Patrick Kwashie Akorsu, 2023 innovation on sustainable development was positive for all dimensions of sustainability but had varied implications. This emphasised the need to analyse how sustainable development is affected by the interaction between financial development and technological innovation. The findings from the moderation effect divulged that more technological innovation lessens SDI but increases GDP growth per capita, carbon dioxide emissions, and energy consumption. The last empirical chapter revealed investigated the interactive role of technological innovation in the relationship between financial development and sustainable development in Africa. The findings from such an analysis highlighted the complementary role of technological innovation in the relationship between financial development and sustainable development in Africa. In an era of an increasing need for sustainability, these findings stressed the need to further ascertain possible convolutions between sustainable development, technological innovation, and industrialisation among African economies. The impetus for this analysis partly stemmed from the fact that industrialisation has some externalities it poses to economies. Therefore, there was a need to provide empirical evidence that helps understand the true role of industrialisation in the relationship between technological innovation and sustainable development to foster policy formulation. Upon analysing the mediating effect of industrialisation on the relationship between technological innovation and the three dimensions of sustainable development (social, economic, and ecological/environmental sustainability) in Africa, positive relationships between technological innovation and all dimensions of sustainable development, emphasise the need to analyse how sustainable development is indirectly affected by industrialisation. The findings provide evidence of a partial contribution from industrialisation toward the impact of technological innovation on sustainable development. As a result, this thesis Industrialisation, Innovation, and Sustainable Development in Africa © Patrick Kwashie Akorsu, 2023 concluded that the level of industrialisation complementarily mediates the relationship between technological innovation and sustainable development in Africa. The study recommends that economies within Africa should focus on industrialisation and financial development to achieve sustainable development. Policymakers should prioritise the development of a resilient financial sector to complement industrialisation, while promoting technological innovation to support all dimensions of sustainability. Also, a balanced approach to sustainable development should be promoted by managing the trade-offs between sustainability dimensions. Finally an effectively coordinated set of policies should be put in place to reduce negative externalities resulting from industrialisation, and policymakers should carefully select implementation policies and channelsItem What are the reasons behind the poor access of Covid-19 vaccines in Africa?(University of the Witwatersrand, Johannesburg, 2023-09) Xaba, Lumkile Thobile; Moore, CandiceDespite the pandemic and initiatives such as COVAX that were put in place for fair and equal distribution of vaccines, the African continent remains the least vaccinated continent in the world. Incorporating evidence from articles, journals and policies, this study demonstrates that the African continent had the least and poorest access to vaccines. This research paper aims to understand why Africa has received the least vaccines and is the least vaccinated continent. The paper looks at the availability of vaccines in Africa and the appropriate options available in healthcare settings to receive Covid-19 vaccines. Literature is used by various scholars to understand the reasons behind the poor access to vaccines which have resulted to low vaccine uptake in Africa. It aims to look at the various contributing factors to this phenomenon, “why has the African continent been the least vaccinated?” To respond to these issues, this study uses the theories of classical realism and institutional liberalism to discover why Africa was the least vaccinated continent. Data has been collected from March 2022 and subjected to discourse analysis to help further understand the reasons behind the poor access of vaccinations during Covid-19 in Africa. We find that there are both internal and external reasons behind the poor access in Africa and both national and international factors have contributed to poor vaccine access.Item To the captor goes the spoils: An investigation of Russian State Capture in Sudan and the Central African Republic, 2014 - 2021(University of the Witwatersrand, Johannesburg, 2023-06) Connock, Kendra; Mpofu-Walsh, Michael SizweFollowing a period of disengagement after the collapse of the Soviet Union, Russian engagement in Africa has resumed in earnest. In the almost-decade since Russia annexed Ukrainian Crimea, Russia has endured criticism and hostility from the international community. Some African nations have, however, continued to express support for Russia in diplomatic fora and continue to engage with Russia through both formal and informal means. Russian engagement in Africa has come into acute focus for its unconventional nature. Particular concern is shown for the use of disinformation and the deployment of Private Military Companies. A distinct pattern of Russian engagement is presenting itself in Africa whereby these services are traded in exchange for access to natural resources, specifically precious minerals. This transaction between Russia and African nations is allowing embattled leaders to hold onto power. This research report seeks to explain and understand this phenomenon.Item South Africa's State Capture Architecture: A critique of 'State Capture' and Development in 21st Century Post Apartheid South Africa, using the Estina Vrede Dairy Farm Project as a case study(University of the Witwatersrand, Johannesburg, 2023-07) Mfikili, Khanya Lulibo; Brown, JulianState Capture can be described as corruption on a macro-level, reaching unheard and unseen of levels involving the state, state organs and private business. It has been described as the erosion of democratic processes and a 'coup d'etat'1 of some sorts of the state and its functions-functions affected are mainly empowerment, development, fiscal responsibility and transparency-turning the state 'into a shadow state'. The recent uncovering of "state capture" at different levels of government in South Africa required an analysis of the relationship between 'state capture' and development in South Africa. In this paper, this will be achieved by looking at the Free State Estina Dairy Farm Project (EVDF Project) as a unit of analysis. Four research questions around this dairy farm project will be explored, to ultimately answer the overall question: What is the relationship between development and 'state capture' in 21st Century Post-Apartheid South Africa? An extensive literature review will be done in Chapter Two looking at the history of agricultural projects, illegal financial flows (IFFs) and state capture in South Africa, in the African region and internationally. This research is qualitative in nature, utilizing a case study method. Information used was publically available sources of information, with the testimonies and evidence in the Zonda Commission Reports forming a bulk of the data analyzed. The findings and policy implications in the last chapter informed possible future studies, centered on my research. One possible future study would be a look at the role of IFFs in rural development in (South) Africa.Item Comorbidities in a cohort of privately insured South Africans with systemic lupus erythematosus(2024) Ntumba, Mbombo Henriette NganduBackground: Comorbidities in systemic lupus erythematosus (SLE) impact negatively health related quality of life and life expectancy. We undertook a retrospective study of the burden of comorbidities in privately insured South Africans with SLE. Methods: Data review of patients insured with Discovery Health Medical Scheme (DHMS), ≥16years at diagnosis, ≥6months follow-up and diagnosed with SLE based on ICD 10 codes. Demographics, drug therapy and comorbidities listed in the Charlson Comorbidity Index (CCI) and other comorbidities occurring commonly in SLE patients were documented. Results: Of 520 patients with SLE ICD 10 codes, only 207 met the other inclusion/exclusion criteria for data analysis. Most were women (90.8%), median (IQR) age and follow-up duration of 39 (30.3-53.0) and 6.1 (3.7-8.1) years, respectively. All patients had at least one comorbidity, the most frequent CCI comorbidities being pulmonary disease (30.9%), congestive heart failure (CHF) (15%) and renal disease (14.5%). Common CCI comorbidities were hypertension (53.1%), mood and anxiety disorders (46.9%), infections (urinary tract infections (UTI) (37.7%) and pneumonia (33.8%)). Independent predictors of 1) CHF were renal disease (OR=855), dyslipidaemia (OR=15.3) and male gender (OR=43.0); 2) hypertension were age at diagnosis (OR=1.03), type 2 diabetes (OR=4.45) and renal disease (OR=4.34); and 3) mood and anxiety disorders were female gender (OR=3.98), cerebrovascular accident (OR=3.18), UTI (OR=2.39) and chloroquine use (OR=1.94). Conclusion: Comorbidities in this cohort of privately insured South Africans with SLE were common, with all patients having at least one comorbidity. Hypertension, infections and mood and anxiety disorders were the leading comorbidities.Item Testing assets pricing models on Africa’s mutual fund industry(University of the Witwatersrand, Johannesburg, 2022) Moola, Ahmed; Kodongo, OdongoThis paper concentrates on testing various asset pricing models on mutual fund returns in six African countries. The various asset pricing models include the CAPM, the Fama-French threefactor model, the Carhart four-factor model, the Fama-French five-factor model and the FamaFrench six-factor model. The models performances were evaluated using a range of performance measures and the best performing asset pricing model was identified in each country as well as across the African mutual fund industry as a whole. With the CAPM being deemed as unable to fully explain returns, it led to the development of new models including more factors that were thought to be vital in explaining returns. The top performing asset pricing model across the African mutual fund industry is the FamaFrench five-factor model as it outperforms both the CAPM and the Fama-French three-factor model. Diving deeper and looking at the performances of the models in each country, the results tend to differ. For South Africa, different models outperform the others across the different metrics, however, for the remaining sample countries, the Fama-French five-factor model outperforms the other models across most performance measures. Across all countries, except South Africa, the profitability factor, RMW, is the only nonredundant factor. All the other factors jointly explain one another. For South Africa, the momentum factor is non-redundant for both the Carhart four-factor model and the FamaFrench six-factor model.