4. Electronic Theses and Dissertations (ETDs) - Faculties submissions

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Subject: search.filters.subject.South AfricaSubject: search.filters.subject.Financial performanceHas files: Yes

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    The nexus between the World Governance Indicators’ scores on corruption and the financial performance of SOEs in South Africa
    (University of the Witwatersrand, Johannesburg, 2022) Mdluli, Mthokozisi Xolani
    South Africa, according to Crompton et al. (2017), is dealing with a triple threat of poverty, inequality, and unemployment. As a result, the government is faced with the task of meeting all of these urgent demands while being hampered by a tight budget and weak economic growth. Procurement is a critical component of the government's service delivery system, and it has been utilised as a policy tool to achieve the government's socioeconomic goals (Badenhorst-Weiss, 2012). Government spending is required to be thoroughly thought out on this basis before any public funds are spent. As a result, government expenditure should be monitored and evaluated as part of the architecture of all government-led projects (Crompton et al., 2017). SOEs (State-owned entities), also known as public entities, are tasked with specific responsibilities by the country's constitution in order to assist the state in fulfilling its mandate (Ovens, 2013). In line with international trends, South Africa has implemented corporatisation, or the transfer of state assets or agencies into state-owned corporations, in a number of areas to encourage more effective and efficient service delivery. Increased public procurement is the result of this. Public procurement involves a large amount of money, which has attracted corruption because of the scale at which it is carried out (Crompton et al., 2017). According to the South African Department of Commerce and Industries, government purchasing power contributed between 15% and 25% of GDP in 2016 (Makube, 2016). Makube (2016) estimates that, between 2013 and 2016, public infrastructure investment in healthcare facilities, schools, water, sanitation, housing, and electrification totalled R827 billion. As a result, the SOEs have been subjected to outside intervention, as well 2 as possible wrongdoing and corruption. According to recent media reports, the country has unacceptably high levels of corruption (Mantzaris, 2016). Understanding how this corruption affects the workings of SOEs is important if the country wants to attempt to start addressing this scourge. Therefore, this study seeks to investigate the relationship that exists between a known measure of governance in a country, namely the World Governance Indicators and the financial performance of SOEs in South Africa
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    The impact of risk factors on the commercial banking sector's financial performance in South Africa
    (2021) Chiyengerere, Nanette
    Banks face numerous financial and non-financial risks in their operations, and the banking sector plays a positive role in the country's economy. This study aims to find the impact of risk factors on the South African banking sector's financial performance. Fixed effects model was selected estimated together with Panel EGLS (cross-section SUR) to account for cross-sectional heteroscedasticity and correlation. Using annual frequency data from South Africa's systematic important financial institutions (SIFI's) banks, namely, ABSA, FirstRand Bank, Nedbank, Capitec, Investec, and Standard Bank. Return on capital employed (ROCE) and net interest margin (NIM) were bank performance measures. The study results showed that capital adequacy ratio, loan to deposit ratio, liquidity ratio, and unemployment are statistically significant determinants of bank performance measured by ROCE. Whereas GDP, nonperforming loans ratio and capital adequacy ratio are statistically significant to bank performance measured by net interest margin. The study concludes that credit risk, liquidity risk, solvency risk, and market risk factors are fundamental factors in determining South African commercial banks' profitability and financial performance. Therefore, banks have to present an appropriate sense of equilibrium when managing risk or to perform their risk management practices with financial performance. Because poor risk management policies can distress banks' performance badly as they influence asset quality and class, leading to increased advance losses.
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    Digital readiness and financial performance in the financial industry: evidence from emerging market economies
    (2022) Ndlovu, Chiedza
    This study examines the impact of digital readiness on financial performance of listed firms in Brazil, Russia, India, China and South Africa. It is based on 1 224 firms across BRICS where 135, 41, 711 and 337 firms represent banks, insurance, investments and real estate industries, respectively. The Arbitrage Pricing Theory was extended by including the digital readiness component from the Network Readiness Index Framework. Generalized Method of Moments regression was used as the main data analysis model. Key findings are as follows: [1] The extended Arbitrage Pricing Theory and the longitudinal research design approach was found to be ideal for the study as supported by model statistics. [2] The current state of enabling infrastructure is not a key determinant of financial performance. [3] Internet affordability effects generally have a positive and significant impact on financial performance of banking and insurance firms. [4] Skills and education have positive and significant impact on financial performance of banking and insurance firms. [5] Financial performance in investments and real estate firms generally respond negatively to variations in digital readiness. [6] Market-based financial performance measures respond better to variations in digital readiness when compared to accounting-based measures of financial performance.
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    The impact of risk factors on the commercial banking sector's financial performance in South Africa
    (2021) Chiyengerere, Nanette
    Banks face numerous financial and non-financial risks in their operations, and the banking sector plays a positive role in the country's economy. This study aims to find the impact of risk factors on the South African banking sector's financial performance. Fixed effects model was selected estimated together with Panel EGLS (cross-section SUR) to account for cross-sectional heteroscedasticity and correlation. Using annual frequency data from South Africa's systematic important financial institutions (SIFI's) banks, namely, ABSA, FirstRand Bank, Nedbank, Capitec, Investec, and Standard Bank. Return on capital employed (ROCE) and net interest margin (NIM) were bank performance measures. The study results showed that capital adequacy ratio, loan to deposit ratio, liquidity ratio, and unemployment are statistically significant determinants of bank performance measured by ROCE. Whereas GDP, nonperforming loans ratio and capital adequacy ratio are statistically significant to bank performance measured by net interest margin. The study concludes that credit risk, liquidity risk, solvency risk, and market risk factors are fundamental factors in determining South African commercial banks' profitability and financial performance. Therefore, banks have to present an appropriate sense of equilibrium when managing risk or to perform their risk management practices with financial performance. Because poor risk management policies can distress banks' performance badly as they influence asset quality and class, leading to increased advance losses