Modelling stock return volatility dynamics in selected African markets
- Authors: King, Daniel Jonathan
- Date: 2013
- Subjects: Rate of return -- Africa Stocks -- Prices -- Africa Finance -- Developing countries -- Econometric models
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1051 , http://hdl.handle.net/10962/d1006452
- Description: Stock return volatility has been shown to occasionally exhibit discrete structural shifts. These shifts are particularly evident in the transition from ‘normal’ to crisis periods, and tend to be more pronounced in developing markets. This study aims to establish whether accounting for structural changes in the conditional variance process, through the use of Markov-switching models, improves estimates and forecasts of stock return volatility over those of the more conventional single-state (G)ARCH models, within and across selected African markets for the period 2002-2012. In the univariate portion of the study, the performances of various Markov-switching models are tested against a single-state benchmark model through the use of in-sample goodness-of-fit and predictive ability measures. In the multivariate context, the single-state and Markov-switching models are comparatively assessed according to their usefulness in constructing optimal stock portfolios. It is found that, even after accounting for structural breaks in the conditional variance process, conventional GARCH effects remain important to capturing the heteroscedasticity evident in the data. However, those univariate models which include a GARCH term are shown to perform comparatively poorly when used for forecasting purposes. Additionally, in the multivariate study, the use of Markov-switching variance-covariance estimates improves risk-adjusted portfolio returns when compared to portfolios that are constructed using the more conventional single-state models. While there is evidence that the use of some Markov-switching models can result in better forecasts and higher risk-adjusted returns than those models which include GARCH effects, the inability of the simpler Markov-switching models to fully capture the heteroscedasticity in the data remains problematic.
- Full Text:
- Date Issued: 2013
- Authors: King, Daniel Jonathan
- Date: 2013
- Subjects: Rate of return -- Africa Stocks -- Prices -- Africa Finance -- Developing countries -- Econometric models
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1051 , http://hdl.handle.net/10962/d1006452
- Description: Stock return volatility has been shown to occasionally exhibit discrete structural shifts. These shifts are particularly evident in the transition from ‘normal’ to crisis periods, and tend to be more pronounced in developing markets. This study aims to establish whether accounting for structural changes in the conditional variance process, through the use of Markov-switching models, improves estimates and forecasts of stock return volatility over those of the more conventional single-state (G)ARCH models, within and across selected African markets for the period 2002-2012. In the univariate portion of the study, the performances of various Markov-switching models are tested against a single-state benchmark model through the use of in-sample goodness-of-fit and predictive ability measures. In the multivariate context, the single-state and Markov-switching models are comparatively assessed according to their usefulness in constructing optimal stock portfolios. It is found that, even after accounting for structural breaks in the conditional variance process, conventional GARCH effects remain important to capturing the heteroscedasticity evident in the data. However, those univariate models which include a GARCH term are shown to perform comparatively poorly when used for forecasting purposes. Additionally, in the multivariate study, the use of Markov-switching variance-covariance estimates improves risk-adjusted portfolio returns when compared to portfolios that are constructed using the more conventional single-state models. While there is evidence that the use of some Markov-switching models can result in better forecasts and higher risk-adjusted returns than those models which include GARCH effects, the inability of the simpler Markov-switching models to fully capture the heteroscedasticity in the data remains problematic.
- Full Text:
- Date Issued: 2013
The use of tax incentive measure in conjunction with carbon taxes to reduce greenhouse gas emissions and achieve economic growth: a comparative study with lessons for South Africa
- Authors: Poole, Richard
- Date: 2013
- Subjects: Elasticity (Economics) , Substitution (Economics) , Carbon taxes , Carbon taxes -- South Africa , Greenhouse gas mitigation , Greenhouse gas mitigation--South Africa , United Nations Framework Convention on Climate Change -- (1992). Protocols, etc. -- 1997 Dec. 11 , Kyoto Protocol , Substitution elasticity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:875 , http://hdl.handle.net/10962/d1001607 , Elasticity (Economics) , Substitution (Economics) , Carbon taxes , Carbon taxes -- South Africa , Greenhouse gas mitigation , Greenhouse gas mitigation--South Africa , United Nations Framework Convention on Climate Change -- (1992). Protocols, etc. -- 1997 Dec. 11
- Description: In 1997 industrialized nations, the Third Conference of the Parties to the United Nations Framework Convention on Climate Change, met in Kyoto, Japan to sign a treaty (the “Kyoto Protocol”) in terms of which industrialized nations would be required to reduce their greenhouse gas emission by at least five percent below 1990 levels by the end of the “first commitment period” 2008-2012. South Africa is not regarded as an industrialized nation, but nonetheless acceded to the Kyoto Protocol in 2002. The literature reviewed in the present research reveals that, although idealistic, the Kyoto Protocol has been problematic. Fourteen meetings of the Conference of Parties to the Kyoto Protocol between 1997 and 2011 have achieved little more than to repeatedly defer and redefine Kyoto obligations. This research was undertaken to document the existing environmental taxation policies employed in selected international jurisdictions with a view to providing a framework for environmental tax policy formation in South Africa to assist this country in meeting its “greenhouse gas” emission targets, while at the same time promoting economic growth. A doctrinal research methodology was adopted in this study as it mainly analysed and interpreted legislation and policy documents and therefore the approach was qualitative in nature. An extensive literature survey was performed to document the various environmental policies that have been legislated in the selected jurisdictions. Comparisons were drawn with proposed tax policy measures for South Africa. The literature indicates that in the selected international jurisdictions carbon taxes achieved less-than-optimal results, largely due to political and industry-competitive agendas. With South Africa planning to introduce a carbon tax, it is submitted that the implementation of a carbon tax regime in isolation will be counter-productive, given South Africa’s economic profile. On the basis of the literature reviewed, it was concluded that South Africa should consider “recycling” carbon tax revenues within the economy to fund a broad-based tax incentive regime that will stimulate the change to non-carbon energy whilst promoting growth through sustainable development
- Full Text:
- Date Issued: 2013
- Authors: Poole, Richard
- Date: 2013
- Subjects: Elasticity (Economics) , Substitution (Economics) , Carbon taxes , Carbon taxes -- South Africa , Greenhouse gas mitigation , Greenhouse gas mitigation--South Africa , United Nations Framework Convention on Climate Change -- (1992). Protocols, etc. -- 1997 Dec. 11 , Kyoto Protocol , Substitution elasticity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:875 , http://hdl.handle.net/10962/d1001607 , Elasticity (Economics) , Substitution (Economics) , Carbon taxes , Carbon taxes -- South Africa , Greenhouse gas mitigation , Greenhouse gas mitigation--South Africa , United Nations Framework Convention on Climate Change -- (1992). Protocols, etc. -- 1997 Dec. 11
- Description: In 1997 industrialized nations, the Third Conference of the Parties to the United Nations Framework Convention on Climate Change, met in Kyoto, Japan to sign a treaty (the “Kyoto Protocol”) in terms of which industrialized nations would be required to reduce their greenhouse gas emission by at least five percent below 1990 levels by the end of the “first commitment period” 2008-2012. South Africa is not regarded as an industrialized nation, but nonetheless acceded to the Kyoto Protocol in 2002. The literature reviewed in the present research reveals that, although idealistic, the Kyoto Protocol has been problematic. Fourteen meetings of the Conference of Parties to the Kyoto Protocol between 1997 and 2011 have achieved little more than to repeatedly defer and redefine Kyoto obligations. This research was undertaken to document the existing environmental taxation policies employed in selected international jurisdictions with a view to providing a framework for environmental tax policy formation in South Africa to assist this country in meeting its “greenhouse gas” emission targets, while at the same time promoting economic growth. A doctrinal research methodology was adopted in this study as it mainly analysed and interpreted legislation and policy documents and therefore the approach was qualitative in nature. An extensive literature survey was performed to document the various environmental policies that have been legislated in the selected jurisdictions. Comparisons were drawn with proposed tax policy measures for South Africa. The literature indicates that in the selected international jurisdictions carbon taxes achieved less-than-optimal results, largely due to political and industry-competitive agendas. With South Africa planning to introduce a carbon tax, it is submitted that the implementation of a carbon tax regime in isolation will be counter-productive, given South Africa’s economic profile. On the basis of the literature reviewed, it was concluded that South Africa should consider “recycling” carbon tax revenues within the economy to fund a broad-based tax incentive regime that will stimulate the change to non-carbon energy whilst promoting growth through sustainable development
- Full Text:
- Date Issued: 2013
The influence of motivational factors on corporate performance and customer satisfaction
- Authors: Potgieter, Adéle
- Date: 2013
- Subjects: Consumer satisfaction , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9312 , http://hdl.handle.net/10948/d1019738
- Description: South Africa is ranked 44th place out of 53 countries (IMD 2011). It would seem imperative for the South African Government and the private sector to pay close attention to studies of this nature that indicate the importance of certain factors on the motivation of employees. In essence this study could assist Government and the private sector in understanding the importance of different factors that influence motivation of employees and the profitability of organisations. Should organisations re-align their focus on motivation of employees by taking cognisance of the elements addressed in this study, it could have a positive effect on the productivity of individual firms as well as on national productivity. The purpose of this study was to establish which motivational factors have an effect on the motivation of employees that would affect their individual, the organisational performance and customer satisfaction. The study aimed at firstly identifying motivational factors that has an influence on organisational performance. Secondly, investigating the effect of employee performance on organisational performance and thirdly investigating the impact of employee performance on customer satisfaction. The primary objective of this study was to establish which motivational factors have an effect on the motivation of employees thus affecting their individual and organisational performance and customer satisfaction. The relationship between work motivation, performance and productivity is complex. Although work motivation seems to have a significant impact on performance and productivity, it is certainly not the only influencing factor (Fisher, Katz, Miller & Thatcher 2003:82). Research has indicated that besides motivation, productivity is influenced by a variety of factors which could include the employee’s ability, skills, training, and availability of resources, management practices and economic conditions. In the light of the above, this study endeavoured to establish which dominant motivational factors have an influence on employee, corporate performance and customer satisfaction. Different motivational factors including hygiene factors, such as attitude, job satisfaction, rewards, leadership styles and communication were discussed as well as their influence on employee and organisational performance Information was gathered through secondary research. The investigation also included an exploration of different research methodologies, methods of data collection and analysis for this specific study. The main empirical research findings indicated that there is a positive relationship between motivator factors and employee performance as well as between management communication and employee performance. It is recommended that a policy and control manual should be compiled and distributed to new employees as part of their induction programme. The policies should be updated annually to incorporate changes in the organisation and to indicate to employees that management is serious about creating positive relationships between employees and employers. There is also a positive relationship between employee performance and organisational performance. It is recommended that organisations implement employee performance management systems that link to organisational performance goals in order to be able to critically access the performance of the employee in relation to the broader goals and results of an organisation. The relationship between motivational factors and customer satisfaction should however be investigated further. There seems to be different views in the literature on whether customer satisfaction surveys (or other measurements) should be used to support this relationship.
- Full Text:
- Date Issued: 2013
- Authors: Potgieter, Adéle
- Date: 2013
- Subjects: Consumer satisfaction , Employee motivation
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9312 , http://hdl.handle.net/10948/d1019738
- Description: South Africa is ranked 44th place out of 53 countries (IMD 2011). It would seem imperative for the South African Government and the private sector to pay close attention to studies of this nature that indicate the importance of certain factors on the motivation of employees. In essence this study could assist Government and the private sector in understanding the importance of different factors that influence motivation of employees and the profitability of organisations. Should organisations re-align their focus on motivation of employees by taking cognisance of the elements addressed in this study, it could have a positive effect on the productivity of individual firms as well as on national productivity. The purpose of this study was to establish which motivational factors have an effect on the motivation of employees that would affect their individual, the organisational performance and customer satisfaction. The study aimed at firstly identifying motivational factors that has an influence on organisational performance. Secondly, investigating the effect of employee performance on organisational performance and thirdly investigating the impact of employee performance on customer satisfaction. The primary objective of this study was to establish which motivational factors have an effect on the motivation of employees thus affecting their individual and organisational performance and customer satisfaction. The relationship between work motivation, performance and productivity is complex. Although work motivation seems to have a significant impact on performance and productivity, it is certainly not the only influencing factor (Fisher, Katz, Miller & Thatcher 2003:82). Research has indicated that besides motivation, productivity is influenced by a variety of factors which could include the employee’s ability, skills, training, and availability of resources, management practices and economic conditions. In the light of the above, this study endeavoured to establish which dominant motivational factors have an influence on employee, corporate performance and customer satisfaction. Different motivational factors including hygiene factors, such as attitude, job satisfaction, rewards, leadership styles and communication were discussed as well as their influence on employee and organisational performance Information was gathered through secondary research. The investigation also included an exploration of different research methodologies, methods of data collection and analysis for this specific study. The main empirical research findings indicated that there is a positive relationship between motivator factors and employee performance as well as between management communication and employee performance. It is recommended that a policy and control manual should be compiled and distributed to new employees as part of their induction programme. The policies should be updated annually to incorporate changes in the organisation and to indicate to employees that management is serious about creating positive relationships between employees and employers. There is also a positive relationship between employee performance and organisational performance. It is recommended that organisations implement employee performance management systems that link to organisational performance goals in order to be able to critically access the performance of the employee in relation to the broader goals and results of an organisation. The relationship between motivational factors and customer satisfaction should however be investigated further. There seems to be different views in the literature on whether customer satisfaction surveys (or other measurements) should be used to support this relationship.
- Full Text:
- Date Issued: 2013
The effect of the Nelson Mandela Bay Stadium on surrounding house prices: a hedonic analysis
- Authors: Fernandes, Gladys Nicola
- Date: 2013
- Subjects: Housing -- Prices -- South Africa -- Port Elizabeth , Stadiums -- Economic aspects -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9026 , http://hdl.handle.net/10948/d1020216
- Description: Sports facilities increasingly feature amongst the most expensive development projects world-wide. One such facility includes world-class stadia. Such facilities tend to commit a considerably large amount of a country's public funds to the project. This public expenditure on new stadia, and the required public taxation, may be economically justified if the benefits from the new stadia outweigh the costs. 15 May 2004 saw South Africa winning the bid to host the FIFA 2010 Soccer World Cup tournament. This mega-event was played in 10 stadia across nine chosen host cities. Five of these stadia were newly constructed, while the other five needed upgrading. Both South Africa's national government and local governments of host cities bore the expenses of the new stadia construction and the upgrading to the existing stadia. This amounted to a total public expenditure of R13.5295 billion on the stadia alone. The Nelson Mandela Bay Stadium on the banks of the North End Lake in Port Elizabeth was amongst the five newly constructed stadia costing R1.7 billion. Many international studies have been conducted to assess the impact of new stadia on the economies of host cities. One particular aspect which has received a lot of attention as far as empirical research is concerned is the impact of stadia on residential property prices (Carlino & Couslon, 2004; Davies, 2005; Tu, 2005; Coates & Humphreys, 2006; Ahlfeldt & Maennig, 2007, 2010; Dehring, Depken & Ward, 2007; Feng & Humphreys, 2008, 2012; Kavetsos, 2010; Ahlfeldt, Maennig & Scholz, 2010; Kiel, Matheson & Sullivan, 2010; Ahlfeldt & Kavetsos, 2011; Coates & Matheson, 2011). The majority of the studies conducted have indicated that the presence of a new stadium in an area has a significantly positive effect on surrounding house values that decays with distance from the facility. As no study has yet been done in South Africa to investigate the impact of the announcement of the construction of new stadia on nearby residential property values, this study examines, by means of the hedonic pricing model, the effect of the announcement to construct the Nelson Mandela Bay Stadium on the banks of North End Lake on adjacent residential property values. The study period for this study was 2004 - 2006. This time period captured the stadium announcement effect. The residential properties in North End that were traded at least once during the period 2004 to 2006 made up the target population. According to the South African Property Transfer Guide (SAPTG), a total of 417 property transactions (excluding repeat sales) took place over the study period (2004 - 2006). The 417 transactions were deemed to be the size of the target population and a list of 100 property transactions were used as the sampling frame. As the study period was from 2004 - 2006, it was necessary to adjust the market prices to constant 2006 prices. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used so as to eliminate any inflationary effects on the property values over the study period. The results of the study revealed that the stadium has a statistically significant positive effect on adjacent residential properties situated within a 1 200 metres radius from the stadium. The average owner of a residential property in North End would be willing-to-pay between R10 7898 and R11 704.6 to be situated 435 metres closer to the stadium.
- Full Text:
- Date Issued: 2013
- Authors: Fernandes, Gladys Nicola
- Date: 2013
- Subjects: Housing -- Prices -- South Africa -- Port Elizabeth , Stadiums -- Economic aspects -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9026 , http://hdl.handle.net/10948/d1020216
- Description: Sports facilities increasingly feature amongst the most expensive development projects world-wide. One such facility includes world-class stadia. Such facilities tend to commit a considerably large amount of a country's public funds to the project. This public expenditure on new stadia, and the required public taxation, may be economically justified if the benefits from the new stadia outweigh the costs. 15 May 2004 saw South Africa winning the bid to host the FIFA 2010 Soccer World Cup tournament. This mega-event was played in 10 stadia across nine chosen host cities. Five of these stadia were newly constructed, while the other five needed upgrading. Both South Africa's national government and local governments of host cities bore the expenses of the new stadia construction and the upgrading to the existing stadia. This amounted to a total public expenditure of R13.5295 billion on the stadia alone. The Nelson Mandela Bay Stadium on the banks of the North End Lake in Port Elizabeth was amongst the five newly constructed stadia costing R1.7 billion. Many international studies have been conducted to assess the impact of new stadia on the economies of host cities. One particular aspect which has received a lot of attention as far as empirical research is concerned is the impact of stadia on residential property prices (Carlino & Couslon, 2004; Davies, 2005; Tu, 2005; Coates & Humphreys, 2006; Ahlfeldt & Maennig, 2007, 2010; Dehring, Depken & Ward, 2007; Feng & Humphreys, 2008, 2012; Kavetsos, 2010; Ahlfeldt, Maennig & Scholz, 2010; Kiel, Matheson & Sullivan, 2010; Ahlfeldt & Kavetsos, 2011; Coates & Matheson, 2011). The majority of the studies conducted have indicated that the presence of a new stadium in an area has a significantly positive effect on surrounding house values that decays with distance from the facility. As no study has yet been done in South Africa to investigate the impact of the announcement of the construction of new stadia on nearby residential property values, this study examines, by means of the hedonic pricing model, the effect of the announcement to construct the Nelson Mandela Bay Stadium on the banks of North End Lake on adjacent residential property values. The study period for this study was 2004 - 2006. This time period captured the stadium announcement effect. The residential properties in North End that were traded at least once during the period 2004 to 2006 made up the target population. According to the South African Property Transfer Guide (SAPTG), a total of 417 property transactions (excluding repeat sales) took place over the study period (2004 - 2006). The 417 transactions were deemed to be the size of the target population and a list of 100 property transactions were used as the sampling frame. As the study period was from 2004 - 2006, it was necessary to adjust the market prices to constant 2006 prices. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used so as to eliminate any inflationary effects on the property values over the study period. The results of the study revealed that the stadium has a statistically significant positive effect on adjacent residential properties situated within a 1 200 metres radius from the stadium. The average owner of a residential property in North End would be willing-to-pay between R10 7898 and R11 704.6 to be situated 435 metres closer to the stadium.
- Full Text:
- Date Issued: 2013
Factors influencing customer retention in the financial planning industry
- Authors: Dippenaar, Hendrik
- Date: 2013
- Subjects: Consumer satisfaction , Financial planning industry
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9323 , http://hdl.handle.net/10948/d1020809
- Description: As financial planners operate in a competitive business environment, it is important to identify how financial planners can apply relevant industry aspects to positively influence their customer satisfaction and customer retention levels. Although models of customer satisfaction and subsequently customer retention have been well researched for consumer products and services, there has been limited research in regards to financial planning. Previous research in the financial planning industry focussed on specific elements of financial planner-client relationships, for example trust, integrity and ethics. This research study reviews existing literature on customer satisfaction and customer retention, as relevant to the financial planning industry. Thus the primary objective of this study is to investigate the extent to which the four predetermined independent variables; namely, two-way communication, ethical responsibility, clients’ financial knowledge and commission fees can possibly influence the intervening variable customer satisfaction and ultimately the dependent variable customer retention in the financial planning industry. An empirical investigation was undertaken to establish whether the independent variables; namely, two-way communication, ethical responsibility, clients’ financial knowledge and commission fees can possibly influence customer satisfaction and ultimately customer retention in the financial planning industry. A positivistic research paradigm was followed for this study. Quantitative data was gathered by distributing questionnaires to a sample of financial planning clients. The sample size consisted of 250 financial planning clients in the Nelson Mandela Metropolitan area. A response rate of 76.40 percent was achieved. The usable questionnaires were statistically analysed using the computer programmes Microsoft Excel and Statistica Version 10. The validity of the study was confirmed by utilising EFA. Cronbach’s alpha coefficients were calculated to confirm the reliability and the internal consistency of the measurement instrument of this study. Data was analysed in four phases. Descriptive statistics were calculated for this study. The validity of the measuring instrument was tested by performing EFA to consider construct validity. Thereafter the internal reliability of the data was assessed using Cronbach’s alpha coefficients. Pearson’s product moment correlation coefficients and multiple regression calculations were calculated and discussed. Through multiple regression calculations, the factors that emerged were used to analyse the relationships predicted by the five hypotheses. Finally t-tests and analysis of variance (ANOVA) tests were conducted and discussed. The empirical investigation revealed that significant relationships exist between the independent variables two-way communication, ethical responsibility, commission fees and the intervening variable customer satisfaction as well as the dependent variable customer retention. The empirical investigation revealed that if a financial planner communicates financial information accurately and understandably to clients while acting in an ethical manner, clients are likely to be satisfied with the products/services of the financial planner and be retained by the financial planner. This study established and confirmed the significant positive relationship that exists between customer satisfaction and customer retention in the financial planning industry. Recommendations have been provided based on the main empirical findings. All financial planners in South Africa, including all the regulatory bodies, will benefit from the empirical findings as well as the recommendations of this study on how to improve customer satisfaction and customer retention which will ultimately increase service delivery of financial planners in the financial planning industry.
- Full Text:
- Date Issued: 2013
- Authors: Dippenaar, Hendrik
- Date: 2013
- Subjects: Consumer satisfaction , Financial planning industry
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9323 , http://hdl.handle.net/10948/d1020809
- Description: As financial planners operate in a competitive business environment, it is important to identify how financial planners can apply relevant industry aspects to positively influence their customer satisfaction and customer retention levels. Although models of customer satisfaction and subsequently customer retention have been well researched for consumer products and services, there has been limited research in regards to financial planning. Previous research in the financial planning industry focussed on specific elements of financial planner-client relationships, for example trust, integrity and ethics. This research study reviews existing literature on customer satisfaction and customer retention, as relevant to the financial planning industry. Thus the primary objective of this study is to investigate the extent to which the four predetermined independent variables; namely, two-way communication, ethical responsibility, clients’ financial knowledge and commission fees can possibly influence the intervening variable customer satisfaction and ultimately the dependent variable customer retention in the financial planning industry. An empirical investigation was undertaken to establish whether the independent variables; namely, two-way communication, ethical responsibility, clients’ financial knowledge and commission fees can possibly influence customer satisfaction and ultimately customer retention in the financial planning industry. A positivistic research paradigm was followed for this study. Quantitative data was gathered by distributing questionnaires to a sample of financial planning clients. The sample size consisted of 250 financial planning clients in the Nelson Mandela Metropolitan area. A response rate of 76.40 percent was achieved. The usable questionnaires were statistically analysed using the computer programmes Microsoft Excel and Statistica Version 10. The validity of the study was confirmed by utilising EFA. Cronbach’s alpha coefficients were calculated to confirm the reliability and the internal consistency of the measurement instrument of this study. Data was analysed in four phases. Descriptive statistics were calculated for this study. The validity of the measuring instrument was tested by performing EFA to consider construct validity. Thereafter the internal reliability of the data was assessed using Cronbach’s alpha coefficients. Pearson’s product moment correlation coefficients and multiple regression calculations were calculated and discussed. Through multiple regression calculations, the factors that emerged were used to analyse the relationships predicted by the five hypotheses. Finally t-tests and analysis of variance (ANOVA) tests were conducted and discussed. The empirical investigation revealed that significant relationships exist between the independent variables two-way communication, ethical responsibility, commission fees and the intervening variable customer satisfaction as well as the dependent variable customer retention. The empirical investigation revealed that if a financial planner communicates financial information accurately and understandably to clients while acting in an ethical manner, clients are likely to be satisfied with the products/services of the financial planner and be retained by the financial planner. This study established and confirmed the significant positive relationship that exists between customer satisfaction and customer retention in the financial planning industry. Recommendations have been provided based on the main empirical findings. All financial planners in South Africa, including all the regulatory bodies, will benefit from the empirical findings as well as the recommendations of this study on how to improve customer satisfaction and customer retention which will ultimately increase service delivery of financial planners in the financial planning industry.
- Full Text:
- Date Issued: 2013
The impact of estate planning on the effectiveness of estate duty as a wealth tax in South Africa
- Authors: Ostler, Luise Marie
- Date: 2013
- Subjects: Wealth tax -- Law and legislation -- South Africa Estates (Law) -- South Africa Inheritance and transfer tax -- Law and legislation -- South Africa Estate planning -- South Africa Tax planning -- South Africa Capital gains tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:894 , http://hdl.handle.net/10962/d1003741
- Description: The thesis examined the current system of the taxation of wealth in South Africa with an emphasis on the taxes that apply upon the death of the taxpayer. The focus of the research was on the problems associated with estate duty, namely the issue of double taxation; the alleged cumbersome administration of the tax and the limited revenue that it brings in; it’s questionable efficacy due to extensive estate planning on the part of taxpayers while they are still alive and its lack of uniformity with other wealth taxes. An interpretative research approach was followed which involved analysing documentary data. The conclusions that were reached were that estate duty as a wealth tax in South Africa has been rendered ineffective due to the inherent problems associated with its application, namely the fact that double taxation exists, not only in the context of capital gains tax, but also in that taxpayers resent being taxed upon death after having paid income tax during their lives. The perceived unfairness that is associated with estate duty has caused the creation of a secondary industry of estate planning, with the aim of minimising estate duty, which industry has resulted in the ineffectiveness of estate duty and its limited revenue. No evidence could be found regarding the Treasury’s assertion that estate duty is a cumbersome tax to administer. The final conclusion reached was that the current estate duty regime needs to be overhauled preferably by extending the current system of capital gains tax and abolishing estate duty, with due consideration being given to the consequences associated therewith.
- Full Text:
- Date Issued: 2013
- Authors: Ostler, Luise Marie
- Date: 2013
- Subjects: Wealth tax -- Law and legislation -- South Africa Estates (Law) -- South Africa Inheritance and transfer tax -- Law and legislation -- South Africa Estate planning -- South Africa Tax planning -- South Africa Capital gains tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:894 , http://hdl.handle.net/10962/d1003741
- Description: The thesis examined the current system of the taxation of wealth in South Africa with an emphasis on the taxes that apply upon the death of the taxpayer. The focus of the research was on the problems associated with estate duty, namely the issue of double taxation; the alleged cumbersome administration of the tax and the limited revenue that it brings in; it’s questionable efficacy due to extensive estate planning on the part of taxpayers while they are still alive and its lack of uniformity with other wealth taxes. An interpretative research approach was followed which involved analysing documentary data. The conclusions that were reached were that estate duty as a wealth tax in South Africa has been rendered ineffective due to the inherent problems associated with its application, namely the fact that double taxation exists, not only in the context of capital gains tax, but also in that taxpayers resent being taxed upon death after having paid income tax during their lives. The perceived unfairness that is associated with estate duty has caused the creation of a secondary industry of estate planning, with the aim of minimising estate duty, which industry has resulted in the ineffectiveness of estate duty and its limited revenue. No evidence could be found regarding the Treasury’s assertion that estate duty is a cumbersome tax to administer. The final conclusion reached was that the current estate duty regime needs to be overhauled preferably by extending the current system of capital gains tax and abolishing estate duty, with due consideration being given to the consequences associated therewith.
- Full Text:
- Date Issued: 2013
Organisational commitment in the automotive industry : a comparative study of employment contracts
- Authors: Bailey, Peter John
- Date: 2013
- Subjects: Organizational commitment , Employee motivation -- South Africa , Automobile industry and trade -- Management , Management -- Employee participation -- South Africa , Labor contracts -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9299 , http://hdl.handle.net/10948/d1014664
- Description: Organisations face many obstacles in maintaining high quality standards and enhancing their competitive positions. It is not just the external factors, such as market fluctuations, but also internal obstacles, that have an effect on the competitiveness of organisations. Most of the internal factors are the result of poor management practices such as insufficient employee development paths, lack of mentorship programmes or job insecurity which results in the poor performance and commitment levels of employees. However employees are more willing to provide efficient and effective practices if they are committed to the organisation. A committed workforce can be created through many practices. Some of these practices include, creating an environment where employees feel as though they are part of the organisation and that their actions directly influence the success of the organisation (Kingston 2007); building long lasting and fair relationships between staff and supervisors (Manetje 2009:50); providing partial organisational ownership for employees through employee share ownership schemes (Employee share ownership plan guidelines 2007:3); creating an organisation structure which binds employees and groups together and removes bureaucratic practices (Brooks 2009:190) and creating management styles that encourage employee involvement (Manetje 2009:51) Unfavourable conditions within the economy are not making it any easier for organisations to become more competitive. Organisations have had to downsize, restructure and transform in order to cut costs as the demands for goods and services slowed down. However, these practices have resulted in an insecure work environment for employees and have posed complex challenges for management. (Coetzee 2005). Employment contracts have therefore become popular tools for managing economic downturns. Organisations opt for more temporary staff so as to easily reduce headcount when costs need to be lowered. Employment contracts give organisations the advantage of flexibility which is a key area for success in turbulent business environments (Krausz, Bizman & Braslavsky 2001:302). Previous research on temporary contracts has revealed lower commitment levels of staff than other types of contracts such as permanent and fixed-term contracts (Guest 2004:12). Therefore, there needs to be a balance between various employment contracts; a balance which brings out the best in organisational performance. The different types of employment contracts are also important tools to use to enhance commitment within the organisation. For that reason, it is essential to understand the linkage between the types of contracts and organisational commitment and whether certain contracts result in higher levels of organisational commitment. The primary objective of the study is to identify factors which influence organisational commitment as well as to investigate whether organisational commitment and the different types of employment contracts can increase employee motivation and job involvement within the automotive industry environment. Given the primary objective of the study, a quantitative research paradigm was followed in testing the relevant hypotheses. A five-point Likert scale questionnaire was conducted to gather empirical data from the respondents employed within the automotive industry. The target population of the study was the employees within the automotive industry (Volkswagen of South Africa). A convenience sampling technique was used to distribute the questionnaires and the researcher made use of both manual hand-outs and an online system called the Survey Monkey to gather the data. The sample was restricted to 260 respondents. The main findings of this study revealed that the dimensions, workplace culture, job security, career development and personality were statistically significant and had a positive influence on organisational commitment. Workplace culture proved to be the most significant positive influence on organisational commitment. Thus, if an organisation adjusts this dimension to better suit the employees, the result could be an enhanced level of employee commitment. On the other hand, management style and mentoring were found to be the least important in influencing organisational commitment in the automotive industry. Furthermore, the results illustrated a significant positive relationship between organisational commitment and the dependent variables, employee motivation and job involvement. The study also identified the link between employment contracts and organisational commitment, job involvement and employee motivation. However, a statistically significant relationship only existed between employment contracts and job involvement. Thus the different types of contracts have an effect on the level of employee involvement within an organisation. The implications of the findings are that organisations within the automotive industry should focus on areas that have a substantially greater impact on organisational commitment. These areas include workplace culture, job security, personality and career development. Organisations thus need to find methods or processes which facilitate the development of these areas. In order for organisations to move from good to great, a workforce that is committed to the goals and objectives is required.
- Full Text:
- Date Issued: 2013
- Authors: Bailey, Peter John
- Date: 2013
- Subjects: Organizational commitment , Employee motivation -- South Africa , Automobile industry and trade -- Management , Management -- Employee participation -- South Africa , Labor contracts -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9299 , http://hdl.handle.net/10948/d1014664
- Description: Organisations face many obstacles in maintaining high quality standards and enhancing their competitive positions. It is not just the external factors, such as market fluctuations, but also internal obstacles, that have an effect on the competitiveness of organisations. Most of the internal factors are the result of poor management practices such as insufficient employee development paths, lack of mentorship programmes or job insecurity which results in the poor performance and commitment levels of employees. However employees are more willing to provide efficient and effective practices if they are committed to the organisation. A committed workforce can be created through many practices. Some of these practices include, creating an environment where employees feel as though they are part of the organisation and that their actions directly influence the success of the organisation (Kingston 2007); building long lasting and fair relationships between staff and supervisors (Manetje 2009:50); providing partial organisational ownership for employees through employee share ownership schemes (Employee share ownership plan guidelines 2007:3); creating an organisation structure which binds employees and groups together and removes bureaucratic practices (Brooks 2009:190) and creating management styles that encourage employee involvement (Manetje 2009:51) Unfavourable conditions within the economy are not making it any easier for organisations to become more competitive. Organisations have had to downsize, restructure and transform in order to cut costs as the demands for goods and services slowed down. However, these practices have resulted in an insecure work environment for employees and have posed complex challenges for management. (Coetzee 2005). Employment contracts have therefore become popular tools for managing economic downturns. Organisations opt for more temporary staff so as to easily reduce headcount when costs need to be lowered. Employment contracts give organisations the advantage of flexibility which is a key area for success in turbulent business environments (Krausz, Bizman & Braslavsky 2001:302). Previous research on temporary contracts has revealed lower commitment levels of staff than other types of contracts such as permanent and fixed-term contracts (Guest 2004:12). Therefore, there needs to be a balance between various employment contracts; a balance which brings out the best in organisational performance. The different types of employment contracts are also important tools to use to enhance commitment within the organisation. For that reason, it is essential to understand the linkage between the types of contracts and organisational commitment and whether certain contracts result in higher levels of organisational commitment. The primary objective of the study is to identify factors which influence organisational commitment as well as to investigate whether organisational commitment and the different types of employment contracts can increase employee motivation and job involvement within the automotive industry environment. Given the primary objective of the study, a quantitative research paradigm was followed in testing the relevant hypotheses. A five-point Likert scale questionnaire was conducted to gather empirical data from the respondents employed within the automotive industry. The target population of the study was the employees within the automotive industry (Volkswagen of South Africa). A convenience sampling technique was used to distribute the questionnaires and the researcher made use of both manual hand-outs and an online system called the Survey Monkey to gather the data. The sample was restricted to 260 respondents. The main findings of this study revealed that the dimensions, workplace culture, job security, career development and personality were statistically significant and had a positive influence on organisational commitment. Workplace culture proved to be the most significant positive influence on organisational commitment. Thus, if an organisation adjusts this dimension to better suit the employees, the result could be an enhanced level of employee commitment. On the other hand, management style and mentoring were found to be the least important in influencing organisational commitment in the automotive industry. Furthermore, the results illustrated a significant positive relationship between organisational commitment and the dependent variables, employee motivation and job involvement. The study also identified the link between employment contracts and organisational commitment, job involvement and employee motivation. However, a statistically significant relationship only existed between employment contracts and job involvement. Thus the different types of contracts have an effect on the level of employee involvement within an organisation. The implications of the findings are that organisations within the automotive industry should focus on areas that have a substantially greater impact on organisational commitment. These areas include workplace culture, job security, personality and career development. Organisations thus need to find methods or processes which facilitate the development of these areas. In order for organisations to move from good to great, a workforce that is committed to the goals and objectives is required.
- Full Text:
- Date Issued: 2013
The relationship between electricity supply, power outages and economic growth in South Africa
- Authors: Khobai, Hlalefang
- Date: 2013
- Subjects: Economic development -- South Africa , Energy consumption -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9024 , http://hdl.handle.net/10948/d1020069
- Description: The economic boom in South Africa following the 1994 democratisation led to increased welfare of the citizens and their purchasing power. This further resulted in increase in electricity consumption. The electricity supply did not increase proportionally to the increase in electricity consumption leading to the 2008 shortage of electricity which nearly damaged the power generating circuit. The literature review has shown that electricity supply and consumption have a positive impact on economic growth. It further showed that employment enhances economic growth. Conversely, it showed that power outages negatively affect economic growth. The research serves to investigate the relationship between electricity supply and economic growth in South Africa and to examine the impact of power outages on economic growth. It also seeks to find the appropriate structure for electricity supply industry that will lead to increase in economic growth. The autoregressive distributed lag (ARDL) bounds approach was used to find the relationship between economic growth, electricity supply, power outages and employment using quarterly data from 2000 to 2012. The ARDL technique was chosen over the conventional models such as Johansen technique for the research because it uses a single reduced form of equation to examine the long run relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. The ARDL technique is also suitable to use to test co-integration when a small sample data is used and does not require the underlying variables to be integrated of similar order. The Vector Error Correction Model (VECM) Granger causality was also employed in the study to establish the causality between economic growth and electricity supply. It was chosen for its ability to develop longer term forecasting, when dealing with an unconstrained model. The results from the ARDL bounds test showed that there is a long run relationship between economic growth, electricity supply, power outages and employment. Based on the causality tests, the findings showed a unidirectional causality flowing from electricity supply to economic growth. This implies that electricity supply affect economic growth in South Africa. The results further showed no causality flowing from economic growth to electricity supply which indicates that when economic growth is booming fewer funds are used for improvement of the electricity generation. Lastly, the results showed that power outages negatively affect economic growth in the long run. To sum up, electricity supply is an important factor for economic growth in South Africa. It is therefore necessary that South Africa must put in place measures aimed at stimulating electricity supply. One of the measures aimed at increasing output of electricity is to unbundle the electricity sector. This process involves allowing entry of the Independent Power Producers (IPPs), Independent System Operator (ISO) and Regional Electricity Distributors (REDs). This will lead to increased supply of electricity and competitively lower prices of electricity. The study further recommends that renewable energy sources should be used to produce electricity instead of coal and nuclear fuels as they failed to produce enough electricity for the nation.
- Full Text:
- Date Issued: 2013
- Authors: Khobai, Hlalefang
- Date: 2013
- Subjects: Economic development -- South Africa , Energy consumption -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9024 , http://hdl.handle.net/10948/d1020069
- Description: The economic boom in South Africa following the 1994 democratisation led to increased welfare of the citizens and their purchasing power. This further resulted in increase in electricity consumption. The electricity supply did not increase proportionally to the increase in electricity consumption leading to the 2008 shortage of electricity which nearly damaged the power generating circuit. The literature review has shown that electricity supply and consumption have a positive impact on economic growth. It further showed that employment enhances economic growth. Conversely, it showed that power outages negatively affect economic growth. The research serves to investigate the relationship between electricity supply and economic growth in South Africa and to examine the impact of power outages on economic growth. It also seeks to find the appropriate structure for electricity supply industry that will lead to increase in economic growth. The autoregressive distributed lag (ARDL) bounds approach was used to find the relationship between economic growth, electricity supply, power outages and employment using quarterly data from 2000 to 2012. The ARDL technique was chosen over the conventional models such as Johansen technique for the research because it uses a single reduced form of equation to examine the long run relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. The ARDL technique is also suitable to use to test co-integration when a small sample data is used and does not require the underlying variables to be integrated of similar order. The Vector Error Correction Model (VECM) Granger causality was also employed in the study to establish the causality between economic growth and electricity supply. It was chosen for its ability to develop longer term forecasting, when dealing with an unconstrained model. The results from the ARDL bounds test showed that there is a long run relationship between economic growth, electricity supply, power outages and employment. Based on the causality tests, the findings showed a unidirectional causality flowing from electricity supply to economic growth. This implies that electricity supply affect economic growth in South Africa. The results further showed no causality flowing from economic growth to electricity supply which indicates that when economic growth is booming fewer funds are used for improvement of the electricity generation. Lastly, the results showed that power outages negatively affect economic growth in the long run. To sum up, electricity supply is an important factor for economic growth in South Africa. It is therefore necessary that South Africa must put in place measures aimed at stimulating electricity supply. One of the measures aimed at increasing output of electricity is to unbundle the electricity sector. This process involves allowing entry of the Independent Power Producers (IPPs), Independent System Operator (ISO) and Regional Electricity Distributors (REDs). This will lead to increased supply of electricity and competitively lower prices of electricity. The study further recommends that renewable energy sources should be used to produce electricity instead of coal and nuclear fuels as they failed to produce enough electricity for the nation.
- Full Text:
- Date Issued: 2013
The influence of students' perceived happiness on their entrepreneurial intention at a higher educational institution in South Africa
- Authors: Mamoudou, Hamadou
- Date: 2013
- Subjects: Entrepreneurship -- Study and teaching , ntrepreneurship
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9319 , http://hdl.handle.net/10948/d1020764
- Description: Like most developing countries, South Africa is characterised by high rates of unemployment in general and even more so among the youth and graduates. One solution to this unemployment problem is encouraging people to become entrepreneurs. Most findings reveal however that entrepreneurial activities among the youth in general and university graduates in particular are low. Since entrepreneurial intention is the main precursor of future entrepreneurial actions, a secondary research was undertaken in this study to discover which factors influence entrepreneurial intention in order to increase students’ future entrepreneurial behaviour. Various determinants of entrepreneurial intention were found in the literature, but none of the previous studies investigated the influence of happiness on entrepreneurial intention, despite the growing importance of research on happiness. Consequently, the primary objective of this study was to identify and empirically test the possible influence of various determinants of students’ Perceived happiness on their Entrepreneurial intention at a higher educational institution in South Africa. The comprehensive literature review that was undertaken revealed eleven independent variables that could potentially influence students’ Perceived happiness. These independent variables were regrouped under two main categories, namely sociodemographic factors and psychological factors. Socio-demographic factors included: Perception of wealth, Satisfaction with health, Perception of employment, Leisure, Social relationships and Religion. On the other hand, psychological factors included: Extroversion, Neuroticism, Optimism, Self-esteem and Goals achievement. The independent variables, the mediating variable (Perceived happiness), as well as the dependent variable (Entrepreneurial intention) were clearly defined and operationalised and a hypothesised model, suggesting the hypotheses between the variables was built. During the creation of the measuring instrument, items were sourced from both reliable and valid scales used in previous studies, as well as self-generated items. The respondents of this study were identified through the simple random sampling technique and an electronic questionnaire was sent to each one of them. In total, 806 usable questionnaires were returned and data was subjected to several statistical analyses. An exploratory factor analysis was conducted to assess the validity of the measuring instrument, whereas reliability was gauged by calculating Cronbach’s alpha coefficients. These two tests allowed the extraction of the dependent variable (Entrepreneurial intention), the mediating variable (Perceived happiness) and seven independent variables, namely Perception of wealth, Perception of employment, Leisure, Religion, Extroversion, Neuroticism and finally Goals achievement. Pearson’s correlation coefficients were calculated in order to assess the degree of correlation or association that existed between the variables investigated in the present study. Multiple regressions analyses were used to test the influence of the independent variables on the mediating variable, whereas simple regression analysis was used to assess the influence of the mediating variable on the dependent variable. Additionally, a series of multiple regression analyses was conducted in order to verify the mediating effect of Perceived happiness between all the independent variables and Entrepreneurial intention. The following independent variables were identified as influencing the mediating variable Perceived happiness, namely: Perception of employment; Leisure; Religion; Extroversion; Neuroticism; and Goals achievement. The results of the series of multiple regression analyses revealed that Perceived happiness had a positive influence on Entrepreneurial intention. However, Perceived happiness did not mediate the relationships between the independent variables and Entrepreneurial intention. Thus, the following independent variables were identified as having a direct influence on the dependent variable Entrepreneurial intention, namely: Perception of wealth; Religion; Perception of employment; Extroversion; and Goals achievement. In order to investigate the influence of various demographic variables on the independent, the mediating and the dependent variables, an analysis of variance (ANOVA) was performed. The demographic variables Gender, Population group, Year of study and Faculty had influences on the dependent variable, Entrepreneurial intention, whereas only Population group and Faculty had influences on the mediating variables, Perceived happiness. By empirically investigating the influence of students’ Perceived happiness on their Entrepreneurial intention, this study has expended the limits of knowledge on both happiness and entrepreneurial intention research. It has made a significant contribution towards understanding the factors influencing students’ Perceived happiness and their Entrepreneurial intention. In addition, practical suggestions and recommendations towards increasing students’ levels of Perceived happiness and aspirations to become entrepreneurs after completing their studies have been proposed to students, lecturers and university management.
- Full Text:
- Date Issued: 2013
- Authors: Mamoudou, Hamadou
- Date: 2013
- Subjects: Entrepreneurship -- Study and teaching , ntrepreneurship
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9319 , http://hdl.handle.net/10948/d1020764
- Description: Like most developing countries, South Africa is characterised by high rates of unemployment in general and even more so among the youth and graduates. One solution to this unemployment problem is encouraging people to become entrepreneurs. Most findings reveal however that entrepreneurial activities among the youth in general and university graduates in particular are low. Since entrepreneurial intention is the main precursor of future entrepreneurial actions, a secondary research was undertaken in this study to discover which factors influence entrepreneurial intention in order to increase students’ future entrepreneurial behaviour. Various determinants of entrepreneurial intention were found in the literature, but none of the previous studies investigated the influence of happiness on entrepreneurial intention, despite the growing importance of research on happiness. Consequently, the primary objective of this study was to identify and empirically test the possible influence of various determinants of students’ Perceived happiness on their Entrepreneurial intention at a higher educational institution in South Africa. The comprehensive literature review that was undertaken revealed eleven independent variables that could potentially influence students’ Perceived happiness. These independent variables were regrouped under two main categories, namely sociodemographic factors and psychological factors. Socio-demographic factors included: Perception of wealth, Satisfaction with health, Perception of employment, Leisure, Social relationships and Religion. On the other hand, psychological factors included: Extroversion, Neuroticism, Optimism, Self-esteem and Goals achievement. The independent variables, the mediating variable (Perceived happiness), as well as the dependent variable (Entrepreneurial intention) were clearly defined and operationalised and a hypothesised model, suggesting the hypotheses between the variables was built. During the creation of the measuring instrument, items were sourced from both reliable and valid scales used in previous studies, as well as self-generated items. The respondents of this study were identified through the simple random sampling technique and an electronic questionnaire was sent to each one of them. In total, 806 usable questionnaires were returned and data was subjected to several statistical analyses. An exploratory factor analysis was conducted to assess the validity of the measuring instrument, whereas reliability was gauged by calculating Cronbach’s alpha coefficients. These two tests allowed the extraction of the dependent variable (Entrepreneurial intention), the mediating variable (Perceived happiness) and seven independent variables, namely Perception of wealth, Perception of employment, Leisure, Religion, Extroversion, Neuroticism and finally Goals achievement. Pearson’s correlation coefficients were calculated in order to assess the degree of correlation or association that existed between the variables investigated in the present study. Multiple regressions analyses were used to test the influence of the independent variables on the mediating variable, whereas simple regression analysis was used to assess the influence of the mediating variable on the dependent variable. Additionally, a series of multiple regression analyses was conducted in order to verify the mediating effect of Perceived happiness between all the independent variables and Entrepreneurial intention. The following independent variables were identified as influencing the mediating variable Perceived happiness, namely: Perception of employment; Leisure; Religion; Extroversion; Neuroticism; and Goals achievement. The results of the series of multiple regression analyses revealed that Perceived happiness had a positive influence on Entrepreneurial intention. However, Perceived happiness did not mediate the relationships between the independent variables and Entrepreneurial intention. Thus, the following independent variables were identified as having a direct influence on the dependent variable Entrepreneurial intention, namely: Perception of wealth; Religion; Perception of employment; Extroversion; and Goals achievement. In order to investigate the influence of various demographic variables on the independent, the mediating and the dependent variables, an analysis of variance (ANOVA) was performed. The demographic variables Gender, Population group, Year of study and Faculty had influences on the dependent variable, Entrepreneurial intention, whereas only Population group and Faculty had influences on the mediating variables, Perceived happiness. By empirically investigating the influence of students’ Perceived happiness on their Entrepreneurial intention, this study has expended the limits of knowledge on both happiness and entrepreneurial intention research. It has made a significant contribution towards understanding the factors influencing students’ Perceived happiness and their Entrepreneurial intention. In addition, practical suggestions and recommendations towards increasing students’ levels of Perceived happiness and aspirations to become entrepreneurs after completing their studies have been proposed to students, lecturers and university management.
- Full Text:
- Date Issued: 2013
The influence of organisational culture on the happiness of employees in the ICT industry
- Authors: Lama Ndai, Arnaud
- Date: 2013
- Subjects: Corporate culture -- South Africa , Job satisfaction , Organisational behaviour
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9318 , http://hdl.handle.net/10948/d1020609
- Description: Based on the increasing importance that information and communication technologies (ICT) plays in most global economies, the high demand for ICT employees and the influence of organisational culture on the success of ICT businesses, the purpose of this study was to provide ICT managers with ways to retain and keep their employees satisfied and happy in their jobs. Therefore, the primary objective of this study was to identify and empirically test the influence of various factors of organisational culture on Happiness and Job satisfaction of employees in the ICT industry in South Africa. After completing a comprehensive literature review, it appeared that limited research had been conducted on the happiness of employees in the ICT industry. Numerous factors were identified as influencing happiness; however, due to the difficulty to assess some of these factors, this study only focused on the influence of organisational culture on the happiness and in return the job satisfaction of employees. All the factors influencing organisational culture were reviewed in the literature and 13 independent variables were identified and hypothesised to influence the mediating variable Happiness and the dependent variable Job satisfaction. All the variables in this study were clearly conceptualised and operationalised. Valid and reliable items sourced from various measuring instruments used in previous studies, were used to operationalise theses variables. Furthermore, numerous items were self-generated from secondary sources. A convenience sampling method was used to identify the respondents and a structured questionnaire was completed online by respondents. The data collected from 187 usable questionnaires was subjected to various statistical analyses using the software program Statistica. A Confirmatory Factor Analysis was used to assess the validity of the dependent variable Job satisfaction and the mediating variable Happiness of this study, whereas an Exploratory Factor Analysis was used to assess the validity of the independent variables. To confirm the reliability of all the variables investigated, Cronbach’s alpha coefficients were calculated. Due to the large number of variables and the small number of respondents, conducting a factor analysis on the independent variables was not possible. This problem was solved by the use of the item parcelling method. After the item parcelling was conducted and the factor analysis conducted, only seven out of the 13 factors loaded together as expected. All the parcels measuring these factors did not load together as expected and where necessary these factors were renamed and operationalised again. The sample data was summarised using descriptive statistics. The majority of respondents reported that they were satisfied with their jobs and almost half of the respondents reported being happy with their lives. Pearson’s correlation coefficients were used to establish the degree of relationship between the factors investigated in this study. After the Multiple Regression Analysis was conducted, it was found that three independent variables influence the Happiness of employees in the ICT industry, namely, Customer focus, Strategic direction and intent and Family orientation and atmosphere. Happiness was also found to have a positive influence on the Job satisfaction of ICT employees. The influence of various selected demographic variables on the dependent, mediating and independent variables was investigated by means of an Analysis of Variance (ANOVA). The statistical significance between the differences in means scores was measured using the Bonferroni Post-hoc test. The Population group of the respondents, the Years of service and their Age group were found to significantly influence some of the independent variables and mediating variables investigated in this study. No relationship was found between any demographic variables and the dependent variable Job satisfaction. Limited studies on the influence of organisational culture on the happiness of nemployees and more particularly those in the ICT industry were found in the literature. This study has made a contribution to the field of happiness research by understanding the factors influencing the happiness and job satisfaction of employees in the ICT industry. As a result, the study presents recommendations and suggestions to assist ICT businesses to improve their organisational culture and at the same time enhance the happiness and job satisfaction of their employees.
- Full Text:
- Date Issued: 2013
- Authors: Lama Ndai, Arnaud
- Date: 2013
- Subjects: Corporate culture -- South Africa , Job satisfaction , Organisational behaviour
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9318 , http://hdl.handle.net/10948/d1020609
- Description: Based on the increasing importance that information and communication technologies (ICT) plays in most global economies, the high demand for ICT employees and the influence of organisational culture on the success of ICT businesses, the purpose of this study was to provide ICT managers with ways to retain and keep their employees satisfied and happy in their jobs. Therefore, the primary objective of this study was to identify and empirically test the influence of various factors of organisational culture on Happiness and Job satisfaction of employees in the ICT industry in South Africa. After completing a comprehensive literature review, it appeared that limited research had been conducted on the happiness of employees in the ICT industry. Numerous factors were identified as influencing happiness; however, due to the difficulty to assess some of these factors, this study only focused on the influence of organisational culture on the happiness and in return the job satisfaction of employees. All the factors influencing organisational culture were reviewed in the literature and 13 independent variables were identified and hypothesised to influence the mediating variable Happiness and the dependent variable Job satisfaction. All the variables in this study were clearly conceptualised and operationalised. Valid and reliable items sourced from various measuring instruments used in previous studies, were used to operationalise theses variables. Furthermore, numerous items were self-generated from secondary sources. A convenience sampling method was used to identify the respondents and a structured questionnaire was completed online by respondents. The data collected from 187 usable questionnaires was subjected to various statistical analyses using the software program Statistica. A Confirmatory Factor Analysis was used to assess the validity of the dependent variable Job satisfaction and the mediating variable Happiness of this study, whereas an Exploratory Factor Analysis was used to assess the validity of the independent variables. To confirm the reliability of all the variables investigated, Cronbach’s alpha coefficients were calculated. Due to the large number of variables and the small number of respondents, conducting a factor analysis on the independent variables was not possible. This problem was solved by the use of the item parcelling method. After the item parcelling was conducted and the factor analysis conducted, only seven out of the 13 factors loaded together as expected. All the parcels measuring these factors did not load together as expected and where necessary these factors were renamed and operationalised again. The sample data was summarised using descriptive statistics. The majority of respondents reported that they were satisfied with their jobs and almost half of the respondents reported being happy with their lives. Pearson’s correlation coefficients were used to establish the degree of relationship between the factors investigated in this study. After the Multiple Regression Analysis was conducted, it was found that three independent variables influence the Happiness of employees in the ICT industry, namely, Customer focus, Strategic direction and intent and Family orientation and atmosphere. Happiness was also found to have a positive influence on the Job satisfaction of ICT employees. The influence of various selected demographic variables on the dependent, mediating and independent variables was investigated by means of an Analysis of Variance (ANOVA). The statistical significance between the differences in means scores was measured using the Bonferroni Post-hoc test. The Population group of the respondents, the Years of service and their Age group were found to significantly influence some of the independent variables and mediating variables investigated in this study. No relationship was found between any demographic variables and the dependent variable Job satisfaction. Limited studies on the influence of organisational culture on the happiness of nemployees and more particularly those in the ICT industry were found in the literature. This study has made a contribution to the field of happiness research by understanding the factors influencing the happiness and job satisfaction of employees in the ICT industry. As a result, the study presents recommendations and suggestions to assist ICT businesses to improve their organisational culture and at the same time enhance the happiness and job satisfaction of their employees.
- Full Text:
- Date Issued: 2013
An empirical analysis of financial stress within South Africa and its apparent co-movement with financial stress emanating from advanced and emerging economies
- Authors: Graham, Brydone
- Date: 2013
- Subjects: Financial crises -- South Africa Financial crises -- Developing countries Globalization -- Economic aspects -- South Africa International economic relations South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1053 , http://hdl.handle.net/10962/d1006795
- Description: The identification of financial stress, and an understanding of financial contagion on a global scale, is of critical importance to a South African economy that is becoming increasingly integrated into the global economy. The last decade has been characterised by periods of high economic growth, but also periods of significant financial instability culminating in global economic crises. This study examines the extent to which the South African financial system is exposed to distress abroad by identifying and measuring the co-movement of financial stress originating from within and outside South Africa. The study can be separated into two sections: the identification of financial stress and the measurement of financial contagion. Using monthly data for the period 2000 to 2012, three indices were constructed for the emerging markets, advanced economies and South Africa using varianceequal weighting. The indices were tested for contagion using the Johansen and Jesulius (1990) multivariate cointegration approach supplemented with basic OLS architecture and Impulse Response analysis. The results indicate the three constructed indices were highly accurate at identifying the intensity and timing of financial stress over the three regions respectively. It was found that the South African financial sector is highly susceptible to financial stress originating from advanced economies. The results obtained for financial stress emanating from emerging markets were not as conclusive and found to be insignificant. Overall, it is clear that the methods employed to identify financial stress are highly accurate and that South Africa is highly susceptible to financial stress originating from abroad. It is clear that advanced economies have a greater ability to affect financial stress in South Africa via contagion. It must be noted that this does not conclude that South Africa is not affected by emerging market crises, but that these crises tend to affect South Africa through advanced economy channels as defined within this thesis.
- Full Text:
- Date Issued: 2013
- Authors: Graham, Brydone
- Date: 2013
- Subjects: Financial crises -- South Africa Financial crises -- Developing countries Globalization -- Economic aspects -- South Africa International economic relations South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1053 , http://hdl.handle.net/10962/d1006795
- Description: The identification of financial stress, and an understanding of financial contagion on a global scale, is of critical importance to a South African economy that is becoming increasingly integrated into the global economy. The last decade has been characterised by periods of high economic growth, but also periods of significant financial instability culminating in global economic crises. This study examines the extent to which the South African financial system is exposed to distress abroad by identifying and measuring the co-movement of financial stress originating from within and outside South Africa. The study can be separated into two sections: the identification of financial stress and the measurement of financial contagion. Using monthly data for the period 2000 to 2012, three indices were constructed for the emerging markets, advanced economies and South Africa using varianceequal weighting. The indices were tested for contagion using the Johansen and Jesulius (1990) multivariate cointegration approach supplemented with basic OLS architecture and Impulse Response analysis. The results indicate the three constructed indices were highly accurate at identifying the intensity and timing of financial stress over the three regions respectively. It was found that the South African financial sector is highly susceptible to financial stress originating from advanced economies. The results obtained for financial stress emanating from emerging markets were not as conclusive and found to be insignificant. Overall, it is clear that the methods employed to identify financial stress are highly accurate and that South Africa is highly susceptible to financial stress originating from abroad. It is clear that advanced economies have a greater ability to affect financial stress in South Africa via contagion. It must be noted that this does not conclude that South Africa is not affected by emerging market crises, but that these crises tend to affect South Africa through advanced economy channels as defined within this thesis.
- Full Text:
- Date Issued: 2013
A model for supporting environmental awereness in higher education using social media
- Authors: Tlebere, Thabo Eugene
- Date: 2013
- Subjects: Social media , Environmental education , Universities and colleges
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:10496 , http://hdl.handle.net/10948/d1020820
- Description: University sustainability is a field of research that has been gaining increased interest in recent years. The reduction of environmental impact has become a strategic objective of universities globally. Universities have been prompted to take necessary action to ensure that their environmental impact is at a minimum. The environmental component of sustainability deals with the current conservation of the earth’s natural resources so that future generations can also have access to them. Human beings, due to their increasing needs, are accountable for the exploitation of natural resources. They are regarded as the main contributors to imbalances in the natural systems. Environmental concerns such as global warming, deforestations, disposal of wastes, and ozone reduction are the outcomes of the damage caused by humans on the environment. The aim of environmental education is to acquire remediation of the environment by making individuals aware of the environment and by educating them about how to live a more sustainable lifestyle. Environmental awareness is perceived as knowledge of the factors that affect the environment and having sensitivity towards the environment. Higher Education Institutions (HEIs) bear the responsibility of educating individuals about environmental issues since they provide education to future leaders in society who may have an influence on future conditions in the environment. Social media are capable of delivering information to a large spectrum of audiences at a low cost. The Pew Internet American Life Project reported that the number of adults who utilise social media has increased by 57 percent from 2005 to 2011. Several environmental activist organisations utilise social media to carry out environmental awareness campaigns. In this study two environmental awareness campaigns which were powered by social media were conducted to improve environmental awareness of individuals in a higher education environment. A Social media Model for ENvironmental Awareness (SMENA) was developed to facilitate the environmental awareness campaigns. The SMENA includes a website, social media as well as theoretical guidelines for creating environmental awareness campaigns, and for using social media for environmental awareness campaigns. A case study at the Nelson Mandela Metropolitan University (NMMU) was used to empirically evaluate SMENA. Students at the Department of Computer Sciences of NMMU were exposed to information about environmental issues through social media with the intention of improving their environmental knowledge and awareness. The SMENA website usability was rated positively and students enjoyed the blogs and information distributed by means of social media. The results of the study intervention were positive and showed that social media can be used to improve the environmental knowledge of students. This study provides a valuable contribution to both the field of environmental education and social media usage and acceptance. The guidelines and requirements for using social media to improve environmental awareness provided in this study can be used to assist educators and university management with addressing the problems of reducing environmental impact.
- Full Text:
- Date Issued: 2013
- Authors: Tlebere, Thabo Eugene
- Date: 2013
- Subjects: Social media , Environmental education , Universities and colleges
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:10496 , http://hdl.handle.net/10948/d1020820
- Description: University sustainability is a field of research that has been gaining increased interest in recent years. The reduction of environmental impact has become a strategic objective of universities globally. Universities have been prompted to take necessary action to ensure that their environmental impact is at a minimum. The environmental component of sustainability deals with the current conservation of the earth’s natural resources so that future generations can also have access to them. Human beings, due to their increasing needs, are accountable for the exploitation of natural resources. They are regarded as the main contributors to imbalances in the natural systems. Environmental concerns such as global warming, deforestations, disposal of wastes, and ozone reduction are the outcomes of the damage caused by humans on the environment. The aim of environmental education is to acquire remediation of the environment by making individuals aware of the environment and by educating them about how to live a more sustainable lifestyle. Environmental awareness is perceived as knowledge of the factors that affect the environment and having sensitivity towards the environment. Higher Education Institutions (HEIs) bear the responsibility of educating individuals about environmental issues since they provide education to future leaders in society who may have an influence on future conditions in the environment. Social media are capable of delivering information to a large spectrum of audiences at a low cost. The Pew Internet American Life Project reported that the number of adults who utilise social media has increased by 57 percent from 2005 to 2011. Several environmental activist organisations utilise social media to carry out environmental awareness campaigns. In this study two environmental awareness campaigns which were powered by social media were conducted to improve environmental awareness of individuals in a higher education environment. A Social media Model for ENvironmental Awareness (SMENA) was developed to facilitate the environmental awareness campaigns. The SMENA includes a website, social media as well as theoretical guidelines for creating environmental awareness campaigns, and for using social media for environmental awareness campaigns. A case study at the Nelson Mandela Metropolitan University (NMMU) was used to empirically evaluate SMENA. Students at the Department of Computer Sciences of NMMU were exposed to information about environmental issues through social media with the intention of improving their environmental knowledge and awareness. The SMENA website usability was rated positively and students enjoyed the blogs and information distributed by means of social media. The results of the study intervention were positive and showed that social media can be used to improve the environmental knowledge of students. This study provides a valuable contribution to both the field of environmental education and social media usage and acceptance. The guidelines and requirements for using social media to improve environmental awareness provided in this study can be used to assist educators and university management with addressing the problems of reducing environmental impact.
- Full Text:
- Date Issued: 2013
Corporate social responsibility of private game reserves in the Eastern Cape Province
- Authors: Motala, Amina Sadiq
- Date: 2013
- Subjects: Social responsibility of busines -- South Africa -- Eastern Cape Game reserves -- South Africa -- Eastern Cape Ecotourism -- South Africa -- Eastern Cape Environmental responsibility -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1187 , http://hdl.handle.net/10962/d1004335
- Description: The primary aim of this research study was to determine the current state of practice of corporate social responsibility (CSR) within the ecotourism based private game reserve (PGR) industry in the Eastern Cape Province of South Africa. According to Carroll (1991) four kind of responsibilities constitute total CSR, namely economic, legal, ethical and philanthropic responsibilities. Given the context of this research a fifth responsibility concerning environmental responsibilities was added to Carroll 's (1991) pyramid ofCSR. A descriptive and illustrative case study approach, within the phenomenological research paradigm, was used for the purpose of this research. The unit of analysis is the Indalo group, the Association of Eastern Cape Private Game Reserves, made up of 12 ecotourism based PORs. As the current research focused on eight of the twelve PGRs a mUltiple case study was employed. To give effect to the aim a number of research objectives were identified. Firstly to desclibe and assess the current practice in implementing CSR within the ecotourism based PGR industry in the Eastern Cape Province. Secondly, to assess and evaluate the involvement of ecotourism based PGRs in the Eastern Cape Province in each of the five responsibilities comprising CSR. Thirdly, to identify the challenges faced by ecotourism based PGRs in the Eastern Cape Province with regard to the implementation of CSR initiatives. Lastly to provide pertinent conclusions and recommendations with regard to CSR strategies within the ecotourism based PGR industry in the Eastern Cape Province. Data were collected by means of in-depth interviews with the managers of each reserve. In addition the researcher conducted focus interviews with administrative employees at each of the member reserves of the Indalo group. Additionally the managers of each reserve were requested to respond to a structured five point Likert scale questionnaire based on the research by Aupperle, Carroll and Hatfield (1985). This research study found that the current practice at the Indalo group is towards a strategic, long term approach to CSR that aids in the development of a 'sustainable organisation.' The aspect of ' empowerment' emerged as the essence of the current practice ofCSR of the Indalo group. Based on the current practice it was concluded that the Indalo group is actively involved in the specific components of CSR namely, environmental, economic, legal, ethical and philanthropic responsibilities. With regard to the environmental responsibilities it was concluded that the environment is the foundation upon which all other components of CSR rest. In addition it was concluded that the economic responsibilities, if managed well, are key to unlocking the CSR potential of a reserve as well as ensuring widespread economic development. In terms of the legal and ethical responsibilities it was concluded that tourism policies both at the national and international level have not aided in the development of a CSR agenda of the Indalo group. Furthermore managers of the reserves have been instrumental in cultivating their own legal culture of CSR based on their experience in the tourism industry and their ethical stances. In terms of the philanthropic responsibilities it can be concluded that charitable activities that are long term and strategic in nature allow for direct and indirect benefits to all parties involved. Overall, it can further be concluded that despite Hudson and Miller's (2005:5) view that the "tourism industry is well hehind other industries in terms of CSR" the Indalo group is moving forward in terms of rooting CSR into their everyday operations.
- Full Text:
- Date Issued: 2013
- Authors: Motala, Amina Sadiq
- Date: 2013
- Subjects: Social responsibility of busines -- South Africa -- Eastern Cape Game reserves -- South Africa -- Eastern Cape Ecotourism -- South Africa -- Eastern Cape Environmental responsibility -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1187 , http://hdl.handle.net/10962/d1004335
- Description: The primary aim of this research study was to determine the current state of practice of corporate social responsibility (CSR) within the ecotourism based private game reserve (PGR) industry in the Eastern Cape Province of South Africa. According to Carroll (1991) four kind of responsibilities constitute total CSR, namely economic, legal, ethical and philanthropic responsibilities. Given the context of this research a fifth responsibility concerning environmental responsibilities was added to Carroll 's (1991) pyramid ofCSR. A descriptive and illustrative case study approach, within the phenomenological research paradigm, was used for the purpose of this research. The unit of analysis is the Indalo group, the Association of Eastern Cape Private Game Reserves, made up of 12 ecotourism based PORs. As the current research focused on eight of the twelve PGRs a mUltiple case study was employed. To give effect to the aim a number of research objectives were identified. Firstly to desclibe and assess the current practice in implementing CSR within the ecotourism based PGR industry in the Eastern Cape Province. Secondly, to assess and evaluate the involvement of ecotourism based PGRs in the Eastern Cape Province in each of the five responsibilities comprising CSR. Thirdly, to identify the challenges faced by ecotourism based PGRs in the Eastern Cape Province with regard to the implementation of CSR initiatives. Lastly to provide pertinent conclusions and recommendations with regard to CSR strategies within the ecotourism based PGR industry in the Eastern Cape Province. Data were collected by means of in-depth interviews with the managers of each reserve. In addition the researcher conducted focus interviews with administrative employees at each of the member reserves of the Indalo group. Additionally the managers of each reserve were requested to respond to a structured five point Likert scale questionnaire based on the research by Aupperle, Carroll and Hatfield (1985). This research study found that the current practice at the Indalo group is towards a strategic, long term approach to CSR that aids in the development of a 'sustainable organisation.' The aspect of ' empowerment' emerged as the essence of the current practice ofCSR of the Indalo group. Based on the current practice it was concluded that the Indalo group is actively involved in the specific components of CSR namely, environmental, economic, legal, ethical and philanthropic responsibilities. With regard to the environmental responsibilities it was concluded that the environment is the foundation upon which all other components of CSR rest. In addition it was concluded that the economic responsibilities, if managed well, are key to unlocking the CSR potential of a reserve as well as ensuring widespread economic development. In terms of the legal and ethical responsibilities it was concluded that tourism policies both at the national and international level have not aided in the development of a CSR agenda of the Indalo group. Furthermore managers of the reserves have been instrumental in cultivating their own legal culture of CSR based on their experience in the tourism industry and their ethical stances. In terms of the philanthropic responsibilities it can be concluded that charitable activities that are long term and strategic in nature allow for direct and indirect benefits to all parties involved. Overall, it can further be concluded that despite Hudson and Miller's (2005:5) view that the "tourism industry is well hehind other industries in terms of CSR" the Indalo group is moving forward in terms of rooting CSR into their everyday operations.
- Full Text:
- Date Issued: 2013
The effect of global e-commerce on taxation legislation and the permanent establishment concept in South Africa
- Authors: Young, Nikita Jade
- Date: 2013
- Subjects: Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa , South African taxation , E-commerce , Permanent establishment , Foreign business entity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:876 , http://hdl.handle.net/10962/d1001608 , Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa
- Description: The objective of this thesis was to analyse the effect of the increasing popularity of global e-commerce on the South African legislative framework in respect of the taxation of non-resident enterprises, and to propose a possible solution for the taxation of e-commerce, taking into account previous theories. The methodology utilised comprised of a critical analysis of the legal rules relating to the taxation of a foreign entity's business profits by virtue of the application of the permanent establishment principle, its definition and evolution as a conceptual basis for taxation. Furthermore, an in depth evaluation of the various solutions that have already been proposed and, in some cases, implemented was undertaken. It was concluded that the application of the permanent establishment principle is wholly ineffective as a means to levy tax on the e-commerce business profits of a foreign entity as the principle relies too heavily upon a physical intermediary in the source state, whereas e-commerce transactions are conducted on the intangible trading platform of the Internet. In light of the numerous policy proposals advanced over the years, it was concluded that the most feasible and practical solution for the taxation of foreign e-commerce would be the imposition on a foreign entity in South Africa of a low withholding tax on the active business profits in excess of a pre-determined threshold. Key words: South African taxation; e-commerce; foreign business entity; permanent establishment; withholding tax
- Full Text:
- Date Issued: 2013
- Authors: Young, Nikita Jade
- Date: 2013
- Subjects: Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa , South African taxation , E-commerce , Permanent establishment , Foreign business entity
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:876 , http://hdl.handle.net/10962/d1001608 , Electronic commerce , Electronic commerce -- Taxation , Electronic commerce -- South Africa , Taxation -- Law and legislation -- South Africa
- Description: The objective of this thesis was to analyse the effect of the increasing popularity of global e-commerce on the South African legislative framework in respect of the taxation of non-resident enterprises, and to propose a possible solution for the taxation of e-commerce, taking into account previous theories. The methodology utilised comprised of a critical analysis of the legal rules relating to the taxation of a foreign entity's business profits by virtue of the application of the permanent establishment principle, its definition and evolution as a conceptual basis for taxation. Furthermore, an in depth evaluation of the various solutions that have already been proposed and, in some cases, implemented was undertaken. It was concluded that the application of the permanent establishment principle is wholly ineffective as a means to levy tax on the e-commerce business profits of a foreign entity as the principle relies too heavily upon a physical intermediary in the source state, whereas e-commerce transactions are conducted on the intangible trading platform of the Internet. In light of the numerous policy proposals advanced over the years, it was concluded that the most feasible and practical solution for the taxation of foreign e-commerce would be the imposition on a foreign entity in South Africa of a low withholding tax on the active business profits in excess of a pre-determined threshold. Key words: South African taxation; e-commerce; foreign business entity; permanent establishment; withholding tax
- Full Text:
- Date Issued: 2013
The tax treatment of receipts and accruals arising from equity option contracts
- Authors: Doidge, Stephen
- Date: 2013
- Subjects: Derivative securities Options (Finance) Swaps (Finance) Income tax -- Law and legislation -- South Africa Taxation -- South Africa Futures
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:903 , http://hdl.handle.net/10962/d1007921
- Description: In this thesis the tax treatment of equity option contracts is examined. The writer gives an overview of the derivatives market in general and discusses the nature and effect of equity options in detail. Limited amendments have been made to the South African Income Tax Act No 58 of 1962 ('the Act') since the emergence of derivative instruments and at present only three types of derivative instruments are recognised: forward exchange and option contracts relating to forward exchange, interest rate swaps based on notional capital amounts and option contracts. Other than section 241 of the Act which deems all receipts and accruals from foreign exchange contracts to be income, the other sections dealing with derivatives do not concern themselves with capital or revenue classification. Accordingly, the classification of receipts and accruals arising from an equity option transaction is generally governed by the ordinary principles of South African tax law with the added problem of there being limited South African case law applying these general prinCiples to such transactions. The research undertaken in this thesis results in the establishment of a framework designed to determine the classification as revenue or capital the receipts and accruals arising from equity option contracts. Speculating, trading and investing in equity options is examined with regard to the general principles of South African tax and available case law. Hedging transactions are analysed with specific reference to their exact nature as well as general tax principles and available case law. The analogy of Krugerrands is used to draw parallels with the tax treatment of receipts and accruals arising from equity options used for hedging purposes. Once the theoretical framework has been established for revenue or capital classification, the actual tax treatment of both revenue and capital receipts is examined with reference to the Act and issues such as the gross income definition, the general deduction formula, trading stock and timing provisions are analysed and applied to receipts and accruals arising from equity option transactions. The thesis concludes with a summary of the findings and recommendations are made based on the research conducted.
- Full Text:
- Date Issued: 2013
- Authors: Doidge, Stephen
- Date: 2013
- Subjects: Derivative securities Options (Finance) Swaps (Finance) Income tax -- Law and legislation -- South Africa Taxation -- South Africa Futures
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:903 , http://hdl.handle.net/10962/d1007921
- Description: In this thesis the tax treatment of equity option contracts is examined. The writer gives an overview of the derivatives market in general and discusses the nature and effect of equity options in detail. Limited amendments have been made to the South African Income Tax Act No 58 of 1962 ('the Act') since the emergence of derivative instruments and at present only three types of derivative instruments are recognised: forward exchange and option contracts relating to forward exchange, interest rate swaps based on notional capital amounts and option contracts. Other than section 241 of the Act which deems all receipts and accruals from foreign exchange contracts to be income, the other sections dealing with derivatives do not concern themselves with capital or revenue classification. Accordingly, the classification of receipts and accruals arising from an equity option transaction is generally governed by the ordinary principles of South African tax law with the added problem of there being limited South African case law applying these general prinCiples to such transactions. The research undertaken in this thesis results in the establishment of a framework designed to determine the classification as revenue or capital the receipts and accruals arising from equity option contracts. Speculating, trading and investing in equity options is examined with regard to the general principles of South African tax and available case law. Hedging transactions are analysed with specific reference to their exact nature as well as general tax principles and available case law. The analogy of Krugerrands is used to draw parallels with the tax treatment of receipts and accruals arising from equity options used for hedging purposes. Once the theoretical framework has been established for revenue or capital classification, the actual tax treatment of both revenue and capital receipts is examined with reference to the Act and issues such as the gross income definition, the general deduction formula, trading stock and timing provisions are analysed and applied to receipts and accruals arising from equity option transactions. The thesis concludes with a summary of the findings and recommendations are made based on the research conducted.
- Full Text:
- Date Issued: 2013
Environmental sustainability leadership in South Africa: an empirical perspective
- Authors: May, Jode Joy
- Date: 2013
- Subjects: Organizational change , Leadership , Business -- Environmental aspects , Strategic planning -- Environmental aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9320 , http://hdl.handle.net/10948/d1020766
- Description: Striking the balance between managing a successful organisation and paying attention to environmental sustainability requires excellent leadership. There are several benefits associated with being an environmentally sustainable organisation such as improved image (reputation and brand), increased customer loyalty, improved bottom line, attracting skilled experienced staff and improving the relationships with local communities. The purpose of this study was to explore and describe the change leadership qualities needed to drive environmental sustainability in the South African landscape to reduce global warming reduction. The qualitative paradigm was utilised to investigate the change leadership qualities needed to affect create environmental sustainability, with focus on global warming reduction actions in the workplace. A literature review was conducted on environmental sustainability, change leadership, and leadership qualities necessary to effect change. A survey was conducted among 13 participants using an interview schedule in the Gauteng, Western and Eastern Cape provinces of South Africa in both private and public organisations in various business sectors. Data was collected in 2013 over a four–month period by conducting face-to-face, telephonic and email interviews. The returned questionnaires were subjected to constant comparative, content and grounded theory analysis. Biographical profiles of the respondents and participating organisations were presented as case studies. Trustworthiness of the data was ascertained using data triangulation. Data was analysed in terms of the issues of environmental sustainability and change leadership. In-depth analyses were also conducted by means of provincial, business and employment sector comparisons. It was found that environmental sustainability was being addressed by the selected organisations, specifically relating to GHG emissions, energy and water saving actions. Change leaders should implement specific environmental sustainability strategies to assist in the reduction of global warming, create awareness, focus on employee involvement, report on their sustainability results and put and incentives in place to encourage environmental sustainability. In order to effect such changes, change leaders need to set targets to measure their sustainability progress. Green campaigns should be conducted internally to educate employees on the effects of global warming, and externally to inform the public about their commitment to environmental sustainability and to advise the public on courses of actions to assist in the quest to reduce global warming. It would be advisable for organisations to appoint a specific environmental sustainability team to drive these efforts. It was found that in order to bring about such changes, certain qualities were needed by change leaders to enable them to act as a change agents. Associated change leadership styles were also addressed. Change leaders should be knowledgeable in order to effectively communicate the importance of environmental sustainability. They should adopt a blend of leadership styles to drive environmental sustainability depending on the extent of change actions planned. Organisations should identify, appoint and mentor female leaders as they have the nurturing qualities that could successfully drive environmental sustainability actions. Change leaders should also preferably be personally involved in environmental sustainability as their personal values together with their job role at top leadership level could contribute towards successful implementation of environmental sustainability actions in the workplace. The study has provided general guidelines on the environmental sustainability issues necessary to address global warming reduction as well as guidelines on the change leaders qualities necessary to drive environmental sustainability actions in the workplace.
- Full Text:
- Date Issued: 2013
- Authors: May, Jode Joy
- Date: 2013
- Subjects: Organizational change , Leadership , Business -- Environmental aspects , Strategic planning -- Environmental aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9320 , http://hdl.handle.net/10948/d1020766
- Description: Striking the balance between managing a successful organisation and paying attention to environmental sustainability requires excellent leadership. There are several benefits associated with being an environmentally sustainable organisation such as improved image (reputation and brand), increased customer loyalty, improved bottom line, attracting skilled experienced staff and improving the relationships with local communities. The purpose of this study was to explore and describe the change leadership qualities needed to drive environmental sustainability in the South African landscape to reduce global warming reduction. The qualitative paradigm was utilised to investigate the change leadership qualities needed to affect create environmental sustainability, with focus on global warming reduction actions in the workplace. A literature review was conducted on environmental sustainability, change leadership, and leadership qualities necessary to effect change. A survey was conducted among 13 participants using an interview schedule in the Gauteng, Western and Eastern Cape provinces of South Africa in both private and public organisations in various business sectors. Data was collected in 2013 over a four–month period by conducting face-to-face, telephonic and email interviews. The returned questionnaires were subjected to constant comparative, content and grounded theory analysis. Biographical profiles of the respondents and participating organisations were presented as case studies. Trustworthiness of the data was ascertained using data triangulation. Data was analysed in terms of the issues of environmental sustainability and change leadership. In-depth analyses were also conducted by means of provincial, business and employment sector comparisons. It was found that environmental sustainability was being addressed by the selected organisations, specifically relating to GHG emissions, energy and water saving actions. Change leaders should implement specific environmental sustainability strategies to assist in the reduction of global warming, create awareness, focus on employee involvement, report on their sustainability results and put and incentives in place to encourage environmental sustainability. In order to effect such changes, change leaders need to set targets to measure their sustainability progress. Green campaigns should be conducted internally to educate employees on the effects of global warming, and externally to inform the public about their commitment to environmental sustainability and to advise the public on courses of actions to assist in the quest to reduce global warming. It would be advisable for organisations to appoint a specific environmental sustainability team to drive these efforts. It was found that in order to bring about such changes, certain qualities were needed by change leaders to enable them to act as a change agents. Associated change leadership styles were also addressed. Change leaders should be knowledgeable in order to effectively communicate the importance of environmental sustainability. They should adopt a blend of leadership styles to drive environmental sustainability depending on the extent of change actions planned. Organisations should identify, appoint and mentor female leaders as they have the nurturing qualities that could successfully drive environmental sustainability actions. Change leaders should also preferably be personally involved in environmental sustainability as their personal values together with their job role at top leadership level could contribute towards successful implementation of environmental sustainability actions in the workplace. The study has provided general guidelines on the environmental sustainability issues necessary to address global warming reduction as well as guidelines on the change leaders qualities necessary to drive environmental sustainability actions in the workplace.
- Full Text:
- Date Issued: 2013
Value and size investment strategies: evidence from the cross-section of returns in the South African equity market
- Authors: Barnard, Kevin John
- Date: 2013
- Subjects: Financial risk -- South Africa , Saving and investment -- South Africa , Stock exchanges -- South Africa , Investments -- Psychological aspects , Investments -- Decision making , Value premium , Size effect , Rational finance , Behavioural finance , South African equity markets
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:874 , http://hdl.handle.net/10962/d1001606 , Financial risk -- South Africa , Saving and investment -- South Africa , Stock exchanges -- South Africa , Investments -- Psychological aspects , Investments -- Decision making
- Description: Value and size related equity investment strategies are supported by a large body of empirical research that shows a persistent premium, both longitudinally and crosssectionally. However, the competing rational and behavioural finance explanations for the success of these strategies are a subject of debate. The rational explanation is that the premium earned on value shares or shares of small companies can be attributed to higher risk. Behaviouralists argue that such shares are not riskier and attribute the premium to cognitive errors and biases in human decision making. The purpose of this study is to determine, firstly, whether the value and size premium exist in South Africa during the period July 2006 to June 2012, which includes one of the worst equity market crises in history. Secondly, this study sets out to determine whether the premium earned on value and size strategies are adequately explained by the principles of rational finance theory. To provide evidence regarding the existence of the value premium and size effect, returns are analysed, cross-sectionally, on portfolios of shares sorted by value and size. For evidence of a rational explanation, returns are regressed on value and size variables, and the relative riskiness of value and small companies is analysed. The results show evidence of a value premium in portfolios of small companies, but not big companies. The size effect is found not to be statistically significant. While regressions do show significant relationships between value and size variables and returns, these variables are found not to be associated with higher levels of risk. The conclusion is that the evidence does not support a rational, risk based explanation of the returns
- Full Text:
- Date Issued: 2013
- Authors: Barnard, Kevin John
- Date: 2013
- Subjects: Financial risk -- South Africa , Saving and investment -- South Africa , Stock exchanges -- South Africa , Investments -- Psychological aspects , Investments -- Decision making , Value premium , Size effect , Rational finance , Behavioural finance , South African equity markets
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:874 , http://hdl.handle.net/10962/d1001606 , Financial risk -- South Africa , Saving and investment -- South Africa , Stock exchanges -- South Africa , Investments -- Psychological aspects , Investments -- Decision making
- Description: Value and size related equity investment strategies are supported by a large body of empirical research that shows a persistent premium, both longitudinally and crosssectionally. However, the competing rational and behavioural finance explanations for the success of these strategies are a subject of debate. The rational explanation is that the premium earned on value shares or shares of small companies can be attributed to higher risk. Behaviouralists argue that such shares are not riskier and attribute the premium to cognitive errors and biases in human decision making. The purpose of this study is to determine, firstly, whether the value and size premium exist in South Africa during the period July 2006 to June 2012, which includes one of the worst equity market crises in history. Secondly, this study sets out to determine whether the premium earned on value and size strategies are adequately explained by the principles of rational finance theory. To provide evidence regarding the existence of the value premium and size effect, returns are analysed, cross-sectionally, on portfolios of shares sorted by value and size. For evidence of a rational explanation, returns are regressed on value and size variables, and the relative riskiness of value and small companies is analysed. The results show evidence of a value premium in portfolios of small companies, but not big companies. The size effect is found not to be statistically significant. While regressions do show significant relationships between value and size variables and returns, these variables are found not to be associated with higher levels of risk. The conclusion is that the evidence does not support a rational, risk based explanation of the returns
- Full Text:
- Date Issued: 2013
An evaluation of the use of testamentary and Inter vivos trusts as estate-planning vehicles and the development of holistic estate-planning models involving the use of these trusts
- Authors: Naidoo, Loganathan
- Date: 2013
- Subjects: Commission of Inquiry into Certain Aspects of the Tax Structure of South Africa Income tax -- Law and legislation -- South Africa Taxation -- Law and legislation -- South Africa Trusts and trustees -- South Africa Trusts and trustees -- Taxations -- South Africa Estate planning -- South Africa Estates (Law) -- South Africa Administration of estates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:904 , http://hdl.handle.net/10962/d1008100
- Description: Trusts are subject to multiple forms of legislative regulation dealing with taxation and governance. Trusts were widely used by planners as tax avoidance shelters. Tax legislation was amended to subject trusts, other than special trusts as defined, to the highest income tax rate of forty percent, in terms of section 5(2) of the Income Tax Act, 58 of 1962. The inter vivos trust is also subject to a wide range of anti-avoidance measures, including those contained in sub-sections (3) to (8) of section 7 of the Income Tax Act and Part X of the Eighth Schedule to the Act, as well as the general anti -avoidance measures in section 103. These measures impact negatively on the use of trusts for estate-planning purposes. The research objective was to evaluate the use of testamentary and inter vivos trusts for estate-planning purposes and to develop a holistic estate-planning model incorporating these planning instruments. Both the testamentary trust and the inter vivos trust were evaluated against broad principles of effective estate planning and the taxes and duties applicable to them. The research also reviewed the writings of financial planners on various techniques and models used for estate planning, as wells as case studies documented in the literature. The research developed and evaluated holistic estate-planning models incorporating testamentary trusts and inter vivos trusts, respectively. By neutralizing the effects of various taxes and duties, it was demonstrated that it is possible to develop an estate plan that satisfies most of the requirements of effective estate planning.
- Full Text:
- Date Issued: 2013
- Authors: Naidoo, Loganathan
- Date: 2013
- Subjects: Commission of Inquiry into Certain Aspects of the Tax Structure of South Africa Income tax -- Law and legislation -- South Africa Taxation -- Law and legislation -- South Africa Trusts and trustees -- South Africa Trusts and trustees -- Taxations -- South Africa Estate planning -- South Africa Estates (Law) -- South Africa Administration of estates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:904 , http://hdl.handle.net/10962/d1008100
- Description: Trusts are subject to multiple forms of legislative regulation dealing with taxation and governance. Trusts were widely used by planners as tax avoidance shelters. Tax legislation was amended to subject trusts, other than special trusts as defined, to the highest income tax rate of forty percent, in terms of section 5(2) of the Income Tax Act, 58 of 1962. The inter vivos trust is also subject to a wide range of anti-avoidance measures, including those contained in sub-sections (3) to (8) of section 7 of the Income Tax Act and Part X of the Eighth Schedule to the Act, as well as the general anti -avoidance measures in section 103. These measures impact negatively on the use of trusts for estate-planning purposes. The research objective was to evaluate the use of testamentary and inter vivos trusts for estate-planning purposes and to develop a holistic estate-planning model incorporating these planning instruments. Both the testamentary trust and the inter vivos trust were evaluated against broad principles of effective estate planning and the taxes and duties applicable to them. The research also reviewed the writings of financial planners on various techniques and models used for estate planning, as wells as case studies documented in the literature. The research developed and evaluated holistic estate-planning models incorporating testamentary trusts and inter vivos trusts, respectively. By neutralizing the effects of various taxes and duties, it was demonstrated that it is possible to develop an estate plan that satisfies most of the requirements of effective estate planning.
- Full Text:
- Date Issued: 2013
An economic analysis of concentrator photovoltaic technology use in South Africa: a case study
- Authors: Beukes, Justin
- Date: 2013
- Subjects: Renewable energy resources , Power resources -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9017 , http://hdl.handle.net/10948/d1018636
- Description: South Africa relies heavily on fossil fuels, particularly coal, to generate electricity and it is a well known fact that the use of fossil fuels contributes to climate change, as it produces greenhouse gases (GHGs). In fact, internationally South Africa is the 17th highest emitter of GHGs (Congressional Research Service (CRS), 2008). Coupled with the environmental consequences of fossil fuel use, South Africa has a further responsibility of addressing the inherited backlog of electricity provision to the rural, and previously disadvantaged communities. In an attempt to address these two problems, the government issued the White Paper on Renewable Energy. In this paper, renewable energy alternatives are proposed to replace a portion of traditional electricity generating methods. Concentrator photovoltaic (CPV) energy generation is one such renewable option available to government. CPV uses optic elements (such as lenses) to concentrate sunlight onto solar cells. Owing to the light being concentrated, the cells in CPV use less semiconductor material, which makes them more efficient in comparison to conventional photovoltaic (PV) cells. CPV is a technology that operates well in regions with high solar radiation. As such, South Africa is particularly well suited for this technology, with average solar radiation levels ranging from 4.5 to 6.5 05 ℎ/. CPV is also well suited for off-grid application, which addresses electricity demand in remote rural areas. This study is an economic project analysis of the installation, operation, maintenance, and decommissioning of CPV technology in a rural area in the Eastern Cape, South Africa. The study area chosen for this purpose is the Tyefu settlement in the Eastern Cape. Tyefu was deemed ideal for this type of analysis due to four characteristics. Firstly, Tyefu is a remote rural settlement at the end of the national grid. Secondly, the community is very poor and previously disadvantaged. Thirdly, many households are without Eskom generated electricity. Lastly, the study area is located in an area with ideal irradiance levels for CPV. Two methods of economic project analysis are applied to this case study, namely a costbenefit analysis (CBA) and a cost-effectiveness analysis (CEA). Additionally, two types of CBA are performed, namely a private CBA and a social CBA. The private CBA evaluates the Tyefu electrification project from a private investor's perspective and the social CBA evaluates the project from society's point of view. The CEAs carried out compare the costeffectiveness of the traditional PV technology to that of CPV in terms of private and social costs. The private costs and benefits of the CPV project were identified and valued in terms of market prices. Then, this cost benefit profile was used to calculate net benefits which in turn were discounted to present values using a private discount rate of 6.42 percent. Three decision making criteria were generated, namely the net present value (NPV), the internal rate of return (IRR) and the benefit cost ratio (BCR). Sensitivity analysis was carried out by varying the private discount rate and the bidding price. The social costs and benefits of the CPV project were identified and valued in terms of shadow prices. This cost benefit profile was used to calculate net benefits. The net benefits were discounted to present values using a composite social discount rate equal to 5.97 percent. The same decision making criteria used in the private CBA were used in the social CBA and a sensitivity analysis was completed by varying the social discount rate. In terms of the private CEA, the costs were identified and valued in terms of market prices. All costs were brought to present values using the private discount rate of 6.42 percent. In terms of the social CEA, the costs were identified and valued in terms of shadow prices. All costs were brought to present values using the social discount rate of 5.97 percent. The cost-effectiveness (CE) ratios calculated have identical denominators since the annual output for both technologies are identical - both CPV and PV systems deliver 30 300 kWh per annum. This output is based on the demand of the given case study. The private CBA showed unfavourable results. The private CBA has a NPV of R2 046 629.01, the IRR is undefined (this is due to no sign change being present in the cost benefit profile), and has a BCR of 0.365. However, the social CBA yielded positive results, with a NPV of R125 616.64, an IRR of 8 percent (which exceeds the social discount rate of 5.97 percent), and a BCR of 1.045. The CEA showed that the CPV is more cost-effective than the traditional PV both in terms of private and social costs. The private CE ratio of CPV is R4.23/kWh compared to PV's CE ratio of R4.39/kWh. Similarly, the social CE ratio of CPV is R3.51/kWh compared to PV's CE ratio of R3.69/kWh. CPV rollout appears to be socially efficient on a small scale according to the social CBA. Consequently, the CPV project is not seen as desirable in terms of the private CBA as the benefit (income received per kWh) in the private analysis is too small to outweigh the costs of implementing and running a CPV plant in Tyefu. On the other hand, a redeeming factor is that CPV may be feasible privately, for large scale applications. A major reason for the CPV project not being appealing to private investors is that the maximum bidding price of R2.85/kWh (as at August 2011) is not high enough for private investors to undertake the CPV project. The sensitivity analysis of the bidding price showed that the bidding price of R2.85/kWh needs to be increased in the range of 250 percent (R7.13/kWh) and 300 percent (R8.55/kWh) for a great enough incentive to exist for private investors. It is thus recommended that policymakers take this into consideration when formulating policy. In terms of the social CBA, it is recommended that government undertake CPV projects of this kind, as it will be a socially desirable allocation of resources. If government were to pursue these types of projects, it is recommended that CPV be implemented as it is more cost effective than PV.
- Full Text:
- Date Issued: 2013
- Authors: Beukes, Justin
- Date: 2013
- Subjects: Renewable energy resources , Power resources -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9017 , http://hdl.handle.net/10948/d1018636
- Description: South Africa relies heavily on fossil fuels, particularly coal, to generate electricity and it is a well known fact that the use of fossil fuels contributes to climate change, as it produces greenhouse gases (GHGs). In fact, internationally South Africa is the 17th highest emitter of GHGs (Congressional Research Service (CRS), 2008). Coupled with the environmental consequences of fossil fuel use, South Africa has a further responsibility of addressing the inherited backlog of electricity provision to the rural, and previously disadvantaged communities. In an attempt to address these two problems, the government issued the White Paper on Renewable Energy. In this paper, renewable energy alternatives are proposed to replace a portion of traditional electricity generating methods. Concentrator photovoltaic (CPV) energy generation is one such renewable option available to government. CPV uses optic elements (such as lenses) to concentrate sunlight onto solar cells. Owing to the light being concentrated, the cells in CPV use less semiconductor material, which makes them more efficient in comparison to conventional photovoltaic (PV) cells. CPV is a technology that operates well in regions with high solar radiation. As such, South Africa is particularly well suited for this technology, with average solar radiation levels ranging from 4.5 to 6.5 05 ℎ/. CPV is also well suited for off-grid application, which addresses electricity demand in remote rural areas. This study is an economic project analysis of the installation, operation, maintenance, and decommissioning of CPV technology in a rural area in the Eastern Cape, South Africa. The study area chosen for this purpose is the Tyefu settlement in the Eastern Cape. Tyefu was deemed ideal for this type of analysis due to four characteristics. Firstly, Tyefu is a remote rural settlement at the end of the national grid. Secondly, the community is very poor and previously disadvantaged. Thirdly, many households are without Eskom generated electricity. Lastly, the study area is located in an area with ideal irradiance levels for CPV. Two methods of economic project analysis are applied to this case study, namely a costbenefit analysis (CBA) and a cost-effectiveness analysis (CEA). Additionally, two types of CBA are performed, namely a private CBA and a social CBA. The private CBA evaluates the Tyefu electrification project from a private investor's perspective and the social CBA evaluates the project from society's point of view. The CEAs carried out compare the costeffectiveness of the traditional PV technology to that of CPV in terms of private and social costs. The private costs and benefits of the CPV project were identified and valued in terms of market prices. Then, this cost benefit profile was used to calculate net benefits which in turn were discounted to present values using a private discount rate of 6.42 percent. Three decision making criteria were generated, namely the net present value (NPV), the internal rate of return (IRR) and the benefit cost ratio (BCR). Sensitivity analysis was carried out by varying the private discount rate and the bidding price. The social costs and benefits of the CPV project were identified and valued in terms of shadow prices. This cost benefit profile was used to calculate net benefits. The net benefits were discounted to present values using a composite social discount rate equal to 5.97 percent. The same decision making criteria used in the private CBA were used in the social CBA and a sensitivity analysis was completed by varying the social discount rate. In terms of the private CEA, the costs were identified and valued in terms of market prices. All costs were brought to present values using the private discount rate of 6.42 percent. In terms of the social CEA, the costs were identified and valued in terms of shadow prices. All costs were brought to present values using the social discount rate of 5.97 percent. The cost-effectiveness (CE) ratios calculated have identical denominators since the annual output for both technologies are identical - both CPV and PV systems deliver 30 300 kWh per annum. This output is based on the demand of the given case study. The private CBA showed unfavourable results. The private CBA has a NPV of R2 046 629.01, the IRR is undefined (this is due to no sign change being present in the cost benefit profile), and has a BCR of 0.365. However, the social CBA yielded positive results, with a NPV of R125 616.64, an IRR of 8 percent (which exceeds the social discount rate of 5.97 percent), and a BCR of 1.045. The CEA showed that the CPV is more cost-effective than the traditional PV both in terms of private and social costs. The private CE ratio of CPV is R4.23/kWh compared to PV's CE ratio of R4.39/kWh. Similarly, the social CE ratio of CPV is R3.51/kWh compared to PV's CE ratio of R3.69/kWh. CPV rollout appears to be socially efficient on a small scale according to the social CBA. Consequently, the CPV project is not seen as desirable in terms of the private CBA as the benefit (income received per kWh) in the private analysis is too small to outweigh the costs of implementing and running a CPV plant in Tyefu. On the other hand, a redeeming factor is that CPV may be feasible privately, for large scale applications. A major reason for the CPV project not being appealing to private investors is that the maximum bidding price of R2.85/kWh (as at August 2011) is not high enough for private investors to undertake the CPV project. The sensitivity analysis of the bidding price showed that the bidding price of R2.85/kWh needs to be increased in the range of 250 percent (R7.13/kWh) and 300 percent (R8.55/kWh) for a great enough incentive to exist for private investors. It is thus recommended that policymakers take this into consideration when formulating policy. In terms of the social CBA, it is recommended that government undertake CPV projects of this kind, as it will be a socially desirable allocation of resources. If government were to pursue these types of projects, it is recommended that CPV be implemented as it is more cost effective than PV.
- Full Text:
- Date Issued: 2013
An investigation into the factors that influence the success of small business in Port Elizabeth
- Authors: Wilmot, Chloé Margot
- Date: 2013
- Subjects: Small business -- South Africa -- Port Elizabeth Job creation -- South Africa Entrepreneurship -- South Africa Success in business -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1162 , http://hdl.handle.net/10962/d1001629
- Description: South Africa has one of the highest unemployment rates in the world, currently 23.90%. One way for the government and policy-makers of South Africa to address this dire statistic is through the fostering and promotion of entrepreneurship and small business creation. The benefits of entrepreneurship are numerous and can include: increasing a country’s productivity, enhancing the welfare and well-being of its citizens, reducing emigration rates, improving economic development and perhaps, most importantly, increasing employment rates. Worldwide, small businesses within the private sector have become indispensable to sustainable job creation and therefore it is of the utmost importance that small businesses in any economy develop, grow and succeed. Despite the fact that research pertaining to small businesses has increased over the years, little empirical evidence has been established. In particular, research into what makes small businesses successful has been limited. Entrepreneurial activity in South Africa remains less than ideal and therefore it is appropriate that research into the success factors of small businesses in South Africa be investigated. Furthermore, the survival of South African small businesses beyond four to five years of being in operation is estimated at only 20.00%. It is evident that a lack of knowledge exists and with respect to this research the factors found to be the most common determinants of success for small businesses in Port Elizabeth were determined and investigated. Convenience- and snowball sampling techniques were used to identify potential participants. In total 43 usable questionnaires were returned. Methodological triangulation was used to analyse the data, according to descriptive- and inferential statistics, as well as content analysis. This being so, the research was conducted within two paradigms, primarily, the positivist research paradigm and also the phenomenological research paradigm. The key findings of this study indicate personal factors to be the most important success factor group, while the environmental success factor group is considered the least important. The most important factors attributable to the success of participants’ small businesses include: maintaining good customer services skills and relationships; having a strong commitment to product/service quality; and having honest employees with sound professional ii knowledge and a positive morale. The least important success factors include: trade exhibitions and business fairs; small business legislation; and industry structure and competition. Finally, the hypothesis tests indicate that significant differences only exist between: the relationship statuses and business factors and the business sectors and environmental factors. The results of this research have significant practical implications for the various stakeholders of entrepreneurship. It is hoped that the results will add to the existing body of knowledge and in turn aid South Africa in becoming aware of the factors essential for small business success. In doing so, South Africa at large will be able to take full advantage of entrepreneurship and small business creation, which continue to remain well within its reach
- Full Text:
- Date Issued: 2013
- Authors: Wilmot, Chloé Margot
- Date: 2013
- Subjects: Small business -- South Africa -- Port Elizabeth Job creation -- South Africa Entrepreneurship -- South Africa Success in business -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1162 , http://hdl.handle.net/10962/d1001629
- Description: South Africa has one of the highest unemployment rates in the world, currently 23.90%. One way for the government and policy-makers of South Africa to address this dire statistic is through the fostering and promotion of entrepreneurship and small business creation. The benefits of entrepreneurship are numerous and can include: increasing a country’s productivity, enhancing the welfare and well-being of its citizens, reducing emigration rates, improving economic development and perhaps, most importantly, increasing employment rates. Worldwide, small businesses within the private sector have become indispensable to sustainable job creation and therefore it is of the utmost importance that small businesses in any economy develop, grow and succeed. Despite the fact that research pertaining to small businesses has increased over the years, little empirical evidence has been established. In particular, research into what makes small businesses successful has been limited. Entrepreneurial activity in South Africa remains less than ideal and therefore it is appropriate that research into the success factors of small businesses in South Africa be investigated. Furthermore, the survival of South African small businesses beyond four to five years of being in operation is estimated at only 20.00%. It is evident that a lack of knowledge exists and with respect to this research the factors found to be the most common determinants of success for small businesses in Port Elizabeth were determined and investigated. Convenience- and snowball sampling techniques were used to identify potential participants. In total 43 usable questionnaires were returned. Methodological triangulation was used to analyse the data, according to descriptive- and inferential statistics, as well as content analysis. This being so, the research was conducted within two paradigms, primarily, the positivist research paradigm and also the phenomenological research paradigm. The key findings of this study indicate personal factors to be the most important success factor group, while the environmental success factor group is considered the least important. The most important factors attributable to the success of participants’ small businesses include: maintaining good customer services skills and relationships; having a strong commitment to product/service quality; and having honest employees with sound professional ii knowledge and a positive morale. The least important success factors include: trade exhibitions and business fairs; small business legislation; and industry structure and competition. Finally, the hypothesis tests indicate that significant differences only exist between: the relationship statuses and business factors and the business sectors and environmental factors. The results of this research have significant practical implications for the various stakeholders of entrepreneurship. It is hoped that the results will add to the existing body of knowledge and in turn aid South Africa in becoming aware of the factors essential for small business success. In doing so, South Africa at large will be able to take full advantage of entrepreneurship and small business creation, which continue to remain well within its reach
- Full Text:
- Date Issued: 2013