Market timing, market volatility and implied volatility have been well documented for equity markets. Implied volatility indices forecast the volatility expectation of stock index returns over the short term. Market timing and market volatility are closely linked and are used to optimise net investment returns. The South African Volatility Index (SAVI) is an index designed to measure the markets expectation of the three month volatility on the JSE. This study focus on the construction of an optimum market portfolio, taking into account the effects of market timing, market volatility and implied volatility as measured by the SAVI. The effect of transaction costs on a market timing strategy is evaluated. The annual returns of these portfolios are compared to those of a traditional buy and hold strategy for equities and bonds over the same period. A market timing portfolio is identified that outperforms a buy and hold strategy over the long term. Annualised returns of 24.4% have been achieved. The introduction of transaction costs makes this strategy not cost effective, depending on the level of costs. An investment in equities outperformed an investment in bonds for the period under review. / Mini Dissertation (MBA)--University of Pretoria, 2015. / ms2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The body of literature relating to staff retrenchment announcements is both extensive and broad and covers the impact of staff layoffs from an employee, company and wider society perspective. This paper takes the form of an event study and sets out to investigate whether investors on the Johannesburg Stock Exchange (JSE), are able to make abnormal returns, 35 days prior to a staff retrenchment announcement, and over a 180 day window, after an announcement has been made. The stock exchange news service (SENS) database was used as a source for all of the retrenchment announcements made over the period 2001 to 2014. All announcements containing confounding events were removed, before a final population of 60 announcements was selected. After stratifying the list of companies by market capitalisation and frequency of announcements, statistical tests were run on the five datasets to test for abnormal returns. The study observed significant abnormal returns on the first day after an announcement (Day 1) in three of the five datasets. Companies with small market capitalisations produced significant abnormal returns 25 to 35 days prior to the announcement, whilst the short-term effects of the announcement were less pronounced in the group of companies that made multiple announcements. / Mini Dissertation (MBA)--University of Pretoria, 2015. / sn2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

Enterprise Development (ED) is a worldwide concept which refers to the development of Enterprises. ED in SA includes the provision of financial and non-financial support to SMEs. The purpose of this research study is to gain an in-depth understanding of the performance of Financial Institution ED in SA as it relates to Impact Investing, the main focus being the funding of SMEs in SA by Financial Institutions. The key to reducing unemployment and poverty globally is through the creation and sustainability of small businesses which require funding to grow and develop. The research scope covers Financial Institution ED Funding in SA which includes Commercial Banks, Development Finance Institutions, Insurance Companies, Fund Managers and Specialist Risk finance companies. Government alone cannot solve social problems and private capital from institutions needs to be playing a bigger role in solving social problems. This research study is exploratory and qualitative in nature. The focus of the study is to obtain in-depth insights from ED funders. Qualitative data was gathered during the research process by interviewing participants from eleven (11) Financial Institution ED Funds in SA. / Mini-disseration (MBA)--University of Pretoria, 2015. / nk2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The increase in banking regulation globally is a rising trend and is demanding more time and attention from senior management. The aim of the case study is to analyse and asses the effects of banking sector regulations and corporate governance on the prioritisation of stakeholders by senior management. The role of senior management is to enter into contracts with the owners of the company to act as agents for the organisation. It is then the responsibility of management to establish contracts with various other stakeholders of the organisation. The responsibility of bank management is becoming more complex and senior management have the unenviable task of identifying and prioritising stakeholders based on how they perceive stakeholder salience as described in stakeholder theory. The research attempts to prove that managerial perception of stakeholder salience is affected by the regulatory institutions and the legislation, statutes and regulations that they enact, both internationally and locally. It is therefore critical for management to be aware of rate of change and frequency change in the regulatory environment to ascertain its ongoing effects on stakeholder salience to an organisation. The case study is specifically focussed towards the banking industry, but aims to contribute to understanding the effects of regulation on managerial perception on stakeholder salience which could be accepted in other highly regulated industries. / Mini-disseration (MBA)--University of Pretoria, 2015. / nk2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The provision of routine comprehensive medical examinations as part of the executive health management programme of company senior executives is controversial in academic and business literature. A difference between outcomes predicted in theory and those achieved in practice is evident. Programme design had a bearing on what outcomes could be achieved. This study was conducted to examine the change in health risks experienced by a group of company senior executives attending a commercially available executive health programme in Durban, South Africa. The study assessed the evidence base for screening tests offered as part of the programme, the health risk outcomes of participants on the programme and the perceptions of participants of the intervention and the employer. The study showed that executives perceive employers who provide executive medical examinations very positively. A high prevalence of health risk factors was noted, indicating the need for such an intervention. Although perceived to be comprehensive, only 29 per cent of recommended preventative health screening tests were offered. Of the tests offered 49 per cent were not considered preventative in nature. No statistically significant changes were found for all health risks studied, over a two year period, although the improvement in blood pressure might be considered clinically significant. Individuals displayed significant natural risk flow, some at low risk remained so, others became high risk; some at high risk became low, others remained high. These findings are similar to those of other studies where behaviour based interventions are not prominent. The findings suggest that an executive health programme based on medical examinations alone cannot reliably and consistently improve health risk of company senior executives. Evidence is provided that theory based and evidence-led interventions are required to address the real health concerns of executives. / Mini Dissertation (MBA)--University of Pretoria, 2015. / sn2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The aim of this dissertation was to provide a better understanding of how multinational enterprises (MNEs) can learn human resource (HR) practices originating from its subsidiaries, particularly in emerging markets. This study considered the effects of the MNE s centralisation decision on the diffusion of HR practices from subsidiaries. A qualitative approach was undertaken, investigating two case studies of MNEs with a strong presence throughout Africa, one with a centralised structure and a developed market headquarters (HQ) and another with a decentralised structure and an emerging market HQ. The cases were compared in terms of absorptive and diffusion capacities for reverse diffusion (subsidiary to HQ) and horizontal diffusion (subsidiary to subsidiary). The key contribution of this study is that the diffusion of HR practices originating at the subsidiary depends on the continuous interplay between its absorptive capacity with HQ s diffusion capacity, for forward diffusion, and its diffusion capacity with HQ s absorptive capacity, for reverse diffusion. Furthermore, this continuum is determined by the degree of centralisation in the MNE structure. Decentralisation limits the subsidiary s diffusion capacity with HQ fulfilling a coordination / Mini Dissertation (MBA)--University of Pretoria, 2015. / ms2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

Small to medium enterprises (SMEs) are key contributors to economic growth, and business incubation is widely acknowledged as a mechanism for improving the survivorship and growth of newly formed SMEs. Persistently poor performance over recent years by the SME sector has, however, drawn into question whether prevailing models of business incubation continue to be effective in creating a fertile entrepreneurship-enablement environment. The predominantly non-profit orientated nature of business incubators may have become out of tune with the principles of commercial viability that they preach, and a change towards more self-sustaining business incubation may be required. A qualitative research study was carried out with decision makers in the incubation environment, using a questionnaire that elicited indicators of self-sustainability, internal and external challenges, funding sources and challenges relating to the distribution of institutional funding. This research found that profit and non-profit business incubators alike are evolving their business models to incorporate revenue-generating activities as a means to minimise the volatility of institutional sources of funding. The ineffective distribution of institutional funding and the ever-changing policies that govern funding allocations are also necessitating higher levels of self-sustainability among incubators. A model was derived to explain the interplay between different categories of business incubation and the changing role and benefits of self-sustainability across these categories. / Mini-disseration (MBA)--University of Pretoria, 2015. / nk2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The question about how consumer lending benefits or harms society is unresolved. Significant strides have been made in terms of developing a rigorous methodology for assessing the benefits of microcredit using randomised control trials. This approach rules out the shortcomings of selection bias in earlier work. However, studies to date appear prone to anchoring bias associated with the intention of microfinance to eradicate poverty. In South Africa, the volatile socio-economic conditions (slow economic growth, high unemployment levels, heightened levels of labour unrest and high levels of inequality) emphasise the business need for studying the consumer lending market. Financial inclusion could play the role of aiding or harming South Africa s society. This research aimed to determine in what conditions rationally bounded borrowers find loans beneficial using an inductive approach. A two-phased research process was followed firstly, ten semi-structured interviews were conducted with a diverse group of key informants from government, industry, the media and regulators. Secondly, ten borrowers were interviewed and observed drawing on ethnographic research methods. Most of the interviews took place in the home of the respondent and where possible the researcher met the other members of the household. The sample of borrowers were potential positive deviants individuals that derive more benefit from consumer loans than their peers. The research uncovered sustained tension and ideological differences between stakeholders that results in incoherent policy and regulation and inadequate financial inclusion. The landscape is characterised by low levels of savings and a heavy reliance on loans. Borrowers in the sample were selected to participate in the research due to repeat borrowing patterns, yet many expressed a desire to stop or reduce borrowing. This saying-doing gap suggests that a structural and coordinated plan is needed if any behaviour change is likely amongst rationally bounded borrowers. A combination of restrictive regulation and positive incentives is proposed to encourage stakeholders to develop mutually beneficial strategies for achieving financial inclusion. The ability of stakeholders to develop coherence in this landscape will determine whether financial inclusion will make a positive contribution to South African society. / Mini Dissertation (MBA)--University of Pretoria, 2015. / sn2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

Research Purpose : The area of joint audits became increasingly popular after the global financial crisis in 2010. This was after the European Commission proposed to mandate joint audits. South Africa is one of a few countries in the world were joint audits were once mandated for financial services firms. Although empirical research has increased, little has been done on theoretical research. This research investigates the factors influencing on the success of joint audits using an interorganisational theory, the resource dependence theory and concepts from joint audit literature research. Research Methodology : The study adopted a quantitative descriptive approach. A self-administered online questionnaire was sent to a group of individuals with experience on joint audits. The questionnaire was based on interorganisational literature and research already conducted on joint audits. The group of individuals included individuals from companies that have been audited, individuals who have formed part of joint audits and regulators. Research Findings : The results of the research established important factors influencing joint audits. A suggested model which can be used by joint auditors, audited companies and regulators was developed from these findings. Opinion shopping ranked highest as the most important factor influencing joint audits, followed by similarity and goals where it was found that joint audits work best when firms are of a similar size, each firm has a unique value proposition and goals are clear. Market uncertainty was the next most influencing factor followed by the level of difficulty of the audit and lastly freeriding. Results suggested that gender does not to have any influence on the success of joint audits. / Mini Dissertation (MBA)--University of Pretoria, 2015. / ms2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

This research explores the way in which managers come together in groups to form innovative strategies. This was achieved by investigating managers usage of strategic thinking and influence through behavioural observation and thereafter subjecting the data to a qualitative thematic content analysis. Subsequently this study provides a deeper understanding of the five-element view of strategic thinking as well as proposes a set of collaborative influence tactics that may be used in accessing group level strategic thinking. Finally the synthesis of these insights are presented in an exploratory model describing a component-based view of group level strategic thinking for the development of innovative strategies. The study conclusions provide both theoretical and practical contributions to the existing understandings of strategic thinking, influence and strategy development. / Mini Dissertation (MBA)--University of Pretoria, 2015. / pa2016 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted