PhD (Financial Management) / Department of Mathematics and Applied Mathematics / See the attached abstract below

The share of corporate saving in total saving in South Africa has increased during the past four decades. In this dissertation various economic theories are examined in order to try to explain this change and to determine the possible implications of this change. The conclusion is that the relationship between the investment decision of companies and their savings decision is governed by the determinants of the financing choice of firms. These include cost, risk, control and availability. If, because of these factors, firms prefer to finance investment with retained earnings, there is a relationship between investment and the level of corporate saving. The degree to which the investment decision is dependent on the availability of internal financing will determine the importance of the level of corporate saving in a country. / Oor die afgelope vier dekades het die aandeel van maatskapybesparing in die totale besparing in Suid-Afika toegeneem. In hiersie vehandeling word veskillende ekonomiese teoriee ondersoek ten einde hierdie verandering te probeer veklaar en te probeer vasstel wat die implikasies van hierdie veandering is. Die gevolgtrekking waartoe gekom word, is dat die verband tussen die investeringsbeleid en die maatskappye se besparingsbesluit bepaal word deur faktore wat die finansieringskeuse van die firmas beinvloed, naamlik koste, risiko, beheer en beskikbaarheid. Indien hierdie faktore daartoe lei dat die maatskapye verkies om investering met terruggehoue bespaaring the finansier, is daar 'n verband tussen investering en die vlak van maatskappybesparing. Die mate waarin die investeringsbesluit afhanklik is van die beskikbaarheid van interne finansiering, sal bepaal hoe belangrik die vlak van maatskappybesparing in 'n land is. / Economics and Management Sciences / M.Com.

Existing literature and theories related to the separation of ownership and control and its impact on companies' financial performance, including dividend payment have left this subject in state of ambiguity and uncleamess, with various contradictions and inconsistencies being noted. In order to establish whether there is a significant difference in financial performance between owner-controlled and management-controlled companies in South Africa, as a result of the separation of ownership and control, this study has used appropriate mathematical and statistical methods for data processing and analysis. Results obtained from the study have revealed the existence of a significant difference in financial performance between owner-controlled and management-controlled companies in South Africa, as measured in terms of profitability, asset management, liquidity, leverage and dividend payment. The analysis has indicated that management-controlled companies have been more efficient, more mature financially and paying higher dividends, out of earnings available to shareholders, than their owner-controlled counterparts. / Business Management / M. Comm. (Business Management)

The share of corporate saving in total saving in South Africa has increased during the past four decades. In this dissertation various economic theories are examined in order to try to explain this change and to determine the possible implications of this change. The conclusion is that the relationship between the investment decision of companies and their savings decision is governed by the determinants of the financing choice of firms. These include cost, risk, control and availability. If, because of these factors, firms prefer to finance investment with retained earnings, there is a relationship between investment and the level of corporate saving. The degree to which the investment decision is dependent on the availability of internal financing will determine the importance of the level of corporate saving in a country. / Oor die afgelope vier dekades het die aandeel van maatskapybesparing in die totale besparing in Suid-Afika toegeneem. In hiersie vehandeling word veskillende ekonomiese teoriee ondersoek ten einde hierdie verandering te probeer veklaar en te probeer vasstel wat die implikasies van hierdie veandering is. Die gevolgtrekking waartoe gekom word, is dat die verband tussen die investeringsbeleid en die maatskappye se besparingsbesluit bepaal word deur faktore wat die finansieringskeuse van die firmas beinvloed, naamlik koste, risiko, beheer en beskikbaarheid. Indien hierdie faktore daartoe lei dat die maatskapye verkies om investering met terruggehoue bespaaring the finansier, is daar 'n verband tussen investering en die vlak van maatskappybesparing. Die mate waarin die investeringsbesluit afhanklik is van die beskikbaarheid van interne finansiering, sal bepaal hoe belangrik die vlak van maatskappybesparing in 'n land is. / Economics and Management Sciences / M.Com.

Existing literature and theories related to the separation of ownership and control and its impact on companies' financial performance, including dividend payment have left this subject in state of ambiguity and uncleamess, with various contradictions and inconsistencies being noted. In order to establish whether there is a significant difference in financial performance between owner-controlled and management-controlled companies in South Africa, as a result of the separation of ownership and control, this study has used appropriate mathematical and statistical methods for data processing and analysis. Results obtained from the study have revealed the existence of a significant difference in financial performance between owner-controlled and management-controlled companies in South Africa, as measured in terms of profitability, asset management, liquidity, leverage and dividend payment. The analysis has indicated that management-controlled companies have been more efficient, more mature financially and paying higher dividends, out of earnings available to shareholders, than their owner-controlled counterparts. / Business Management / M. Comm. (Business Management)

Many theorists have linked dividends with the ability to carry signals regarding a firm’s expected financial performance. Despite being grounded on a sound theoretical framework, empirical evidence has failed to unanimously corroborate the dividend signalling hypothesis, with some authors resignedly concluding that dividends are the puzzle of finance literature. Recent empirical evidence has shown that limiting the dividend signalling hypothesis to earnings has contributed to that puzzle. To try and decipher the puzzle, this study extends the dividend signalling hypothesis to measures of financial performance seldom linked with dividend signalling such as liquidity and gearing. Using panel data regression models and data for 39 firms listed on the JSE from 1995 to 2016, the study reveal that when one controls for the mean reversion and autocorrelation of profitability, dividends lose the power to signal earnings. The results further show that managers in South Africa use dividends to signal expected changes in liquidity and gearing. / Business Management / M. Phil. (Accounting Sciences)

This study explores the financial performance measurement of South Africa's Top Companies. It aims to find a conclusion on the research problem, that is 'Do South Africa's Top Companies use the available arsenal to measure their financial performance?' Commerce and industry are the cornerstones of the economy of a country. This study purports to contribute to the ways and means of minimising the risk of business failures due to the resultant effects on the economy. The sample comprises of sixty companies. The sampling frame is the first hundred companies of the Financial Mail 200 Top Performers for 2004. The arsenal that is available to measure financial performance is researched in the financial literature. Mainly, this covers ratio analysis and interpretation, and the bankruptcy prediction models. To arrive at a conclusion on the research problem, a research instrument is developed from the host of financial ratios in the literature, including the bankruptcy prediction models. The research instrument comprises of popular ratios that are also found to be 'logical', as well as the ratios that make up the Z-Score bankruptcy prediction model. The instrument is called the Ratio Map and Z-Score and is applied to test the financial strengths/weaknesses of the Top Companies. In addition to the Ratio Map and Z-Score, the measures applied by the Top Companies as 'highlights' are analysed. This is done to determine the extent at which the measures unearth the strengths/weaknesses of the Top Companies. The conclusion drawn is that the Top Companies do not utilise the available arsenal to measure their financial performance. The supporting evidence is that the most frequently applied 'highlights' measures by the Top Companies cover only one area of the many financial fields of a company, that is, share performance. On the other hand, the analyses per Ratio Map and Z-Score have not revealed major material weaknesses in the financial position of the Top Companies. It is proposed that: ïf  More information be given in the notes to the financial statements to facilitate meaningful analysis; and ïf  A follow-up research study be done to assess the trends of the Top Companies. / Business Management / D.Comm. (Business Management)

This study explores the financial performance measurement of South Africa's Top Companies. It aims to find a conclusion on the research problem, that is 'Do South Africa's Top Companies use the available arsenal to measure their financial performance?' Commerce and industry are the cornerstones of the economy of a country. This study purports to contribute to the ways and means of minimising the risk of business failures due to the resultant effects on the economy. The sample comprises of sixty companies. The sampling frame is the first hundred companies of the Financial Mail 200 Top Performers for 2004. The arsenal that is available to measure financial performance is researched in the financial literature. Mainly, this covers ratio analysis and interpretation, and the bankruptcy prediction models. To arrive at a conclusion on the research problem, a research instrument is developed from the host of financial ratios in the literature, including the bankruptcy prediction models. The research instrument comprises of popular ratios that are also found to be 'logical', as well as the ratios that make up the Z-Score bankruptcy prediction model. The instrument is called the Ratio Map and Z-Score and is applied to test the financial strengths/weaknesses of the Top Companies. In addition to the Ratio Map and Z-Score, the measures applied by the Top Companies as 'highlights' are analysed. This is done to determine the extent at which the measures unearth the strengths/weaknesses of the Top Companies. The conclusion drawn is that the Top Companies do not utilise the available arsenal to measure their financial performance. The supporting evidence is that the most frequently applied 'highlights' measures by the Top Companies cover only one area of the many financial fields of a company, that is, share performance. On the other hand, the analyses per Ratio Map and Z-Score have not revealed major material weaknesses in the financial position of the Top Companies. It is proposed that: ïf  More information be given in the notes to the financial statements to facilitate meaningful analysis; and ïf  A follow-up research study be done to assess the trends of the Top Companies. / Business Management / D.Comm. (Business Management)

Abstracts in English, Zulu and Xhosa / The banking sector is an important industry that needs to be safeguarded because its failure is bound to have a negative knock-on effect on the economy at large. The 2007-2009 financial crises were occasioned by banks assuming disproportionate levels of risk resulting in a high incidence of non-performing loans on their books. As such, this study examined the impact of credit risk on the financial performance of 18 South African banks for the period 2008 to 2018. Panel data techniques, namely the pooled ordinary least squares (pooled OLS), fixed effects and random effects estimators were employed to test the relationship between credit risk and financial performance proxied by non-performing loans (NPLs) and by return on assets (ROA) or return on equity (ROE) respectively. The results of the study documented that credit risk is negatively related to financial performance. Thus, the higher the incidence of non-performing loans, the lower the profitability of the bank. Secondly, the study documented that growth has a positive effect on financial performance. This indicates that productivity capacity is ameliorated through bank development. Thirdly, it was found that capital adequacy is positively related to financial performance. While a greater capital adequacy ratio may instil confidence of stakeholders in a bank, making it competitive, a high capital base may be perceived as a lack of initiative and tying up resources which could have yielded better returns in alternative investments. Fourthly, the study did not find any conclusive relationship between size and financial performance. Lastly, the study found that bank leverage and financial performance are negatively related. The implications of the findings are that at a micro level, banks should observe prudent and stringent credit policies in order to limit the incidence of non-performing loans. At a macro level, regulators must enforce supervision in order to ensure that banks manage their credit risk according to the regulations to minimise the risk of bank failure. / Umkhakha wezamabhanga kulibubulo eliqakathekileko eliding ukobana litjhejwe ngombana ukwehluleka kwalo kuqaleka kungaba nomthelela omumbi kezomnotho ngokubanzi bawo. Umraro wezomnotho weminyaka ephakathi kuka -2007-2009 yayikhambisana nesikhathi lapho amabhanga athoma ukuzifaka engozini ekulukazi, kanti lokho kwarholela ebujameni besehlakalo esikhulu seenkolodo ezingenzi inzuzo encwadini zamabhanga. Yeke-ke, leli rhubhululo belihlola umthintela wesikolodo mayelana nobujamo beemali bamabhanga weSewula Afrika ali-18 ukusukela ngomnyaka ka 2008 ukufika ku 2018. Amano wephanele yedatha, wona ngilawa pooled ordinary least squares (pooled OLS), fixed effects kanye namatshwayo ameda alinganisa imithintela kusetjenzisiwe ngehloso yokuhlola itjhebiswano eliphakathi kobungozi besikolodo kanye nobujamo beemali obukhambisana neenkolodo ezingananzuzo (non-performing loans )(NPLs) begodu lokhu kukhambisana nenzuzo elethwa msebenzi wepahla eligugu (return on assets) (ROA) nanyana inzuzo elethwa magugu womnotho anjengemali/matjhezi (return on equity) (ROE) ngaleyo ndlela.. Imiphumela yerhubhululo itlolwe bona ubungozi bokulodisa buhlobene ngendlela embi nobujamo beemali. Yeke-ke, kutjho bona lokha izinga lezehlakalo zeenkolodo ezingangenisi inzuzo naliya phezulu, kutjho bona izinga lokwenza inzuzo ezincani nalo liya phasi emabhangeni. Kwesibili, irhubhululo litlolwe bona ukuhluma komnotho kunomthelela omuhle ebujameni beemali. Lokhu kutjengisa bona amandla wokukhiqiza asekelwa kuthuthukiswa kwamabhanga. Kwesithathu, kuye kwatholakala bona iimali ezaneleko zikhambisana kuhle nobujamo beemali. Kanti godu, isilinganiso esikhulu seemali ezaneleko singaletha ukuzethemba kwabadlalindima ebhangeni, lokhu kwenze ibhanga bona ibe sezingeni lokuphalisana, isisekelo esiphezulu sezeemali singathathwa njengokutlhogeka komzamo wokuhlanganisa imithombo ebeyingaletha iinzuzo ezincono kwamanye amahlelo wokutjalwa kweemali. . Kwesine, irhubhululo akhange lithole nginanyana ngiliphi itjhebiswano phakathi kobukhulu kanye nobujamo beemali. Kokugcina, irhubhululo lithole bonyana ukuqiniswa kwebhanga ngeemali kanye nobujamo beemali kuzizinto ezingahlobani kuhle. Ilwazi elitholiweko lihlathulula bona ezingeni lamabhizinisi amancani, amabhanga kufanele aqale imigomo eqinileko yokukolodisa ukobana akwazi ukwehlisa izehlakalo zeenkolodo ezingangenisi inzuzo. Ezingeni lamabhizinisi amakhulu, iimbethamthetho kufanele ziqinise ilihlo ukobana aqinisekise ukuthi amabhanga alawula ubungozi bokukolodisa ngokwemithetho ukuphungula ubungozi bokwehluleka kwamabhanga. / Icandelo lezeebhanki lushishino olubalulekileyo olufuna ukukhuselwa kuba ukusilela kwalo ngokuqinisekileyo kunganesiphumo esigangqalanga esingasihlanga kuqoqosho ngokubanzi. Ixesha lobunzima kwezemali ngowe-2007-2009 labangelwa ziibhanki ngamazinga omngcipheko angalamananga athe agqibelela kwisehlo esiphezulu seemalimboleko ezingazaliyo kwiincwadi zazo. Kananjalo, olu phononongo luvavanye impembelelo yomngcipheko wonikezomatyala kwizinga lokuphuma nokungena kwemali kwiibhaki zaseMzantsi Afrika ezili-18 kwisithuba sowe-2008 ukuya kowe-2018. Uluhlu lweenkcukachalwazi zobugcisa, olubizwa ngokuba yi-pooled ordinary least squares (i-pooled OLS), iziqikeleli zeziphumo ezizinzileyo kunye nezeziphumo zebhaqo zasetyenziswa ukuvavanya unxulumano phakathi komngcipheko wonikezomatyala kunye nezinga lokuphuma nokungena kwemali okumelwe ngokwelungelo ziimalimboleko ezingazaliyo (ii-NPL) kunye nembuyekezo yeeasethi (i-ROA) okanye imbuyekezo yezabelo (i-ROE) ngokulandelelana. Iziphumo zophononongo zingqine ngamaxwebhu ukuba umngcipheko wonikezomatyala unonxulumano olungaluhlanga nezinga lokuphuma nokungena kwemali. Ngoko ke, okona isehlo seemalimboleko ezingazaliyo siphezulu, kokona inzuzo yebhanki iphantsi. Okwesibini, uphononongo lungqine ngamaxwebhu ukuba uhlumo lunesiphumo esihle kwizinga lokuphuma nokungena kwemali. Oku kudandalazisa ukuba isakhono sokuvelisa senziwa ngcono ngophuhliso lwebhanki. Okwesithathu, kufunyaniswe ukuba isilinganiso senkunzi sinxulumene ngokukuko nezinga lokuphuma nokungena kwemali. Ngelixa umlinganiselo wesilinganiso senkunzi omkhulu unganika ukuthembeka koqoqosho kwabachaphazelekayo kwibhanki leyo, kuyenze ukuba ibe kwizinga lokukhuphisana nezinye, isiseko senkunzi ephezulu singathathwa njengokusilela kokusungula kunye nokudibanisa imithombo engeyivelise iimbuyekezo ezingcono kutyalomali olulolunye. Okwesine, uphononongo alukhange lufumanise naluphi na unxibelelwano olubonakalayo phakathi kobungakanani nezinga lokuphuma nokungena kwemali. Okokugqibela, uphononongo lufumanise ukuba inkxasomali yebhanki kunye nezinga lokuphuma nokungena kwemali zinxulumene ngokungakuhlanga. Okubhekiselele kokufunyanisiweyo kukuba kwicandelo loshishino olunganeno, iibhanki kufuneka ziqwalasele imigaqonkqubo yamatyala enobulumko nengqongqo ngenjongo yokunciphisa isehlo seemalimboleko ezingazaliyo. Kwicandelo loshishino olubanzi, abalawuli kufuneka banyanzele ukubekwa kweliso ukuqinisekisa ukuba iibhanki zilawula umngcipheko wonikezomatyala lwazo ngokwayamene nemigaqo ukunciphisa umngcipheko wokusilela kwebhanki. / Business Management / M. Com. (Business Management)

The emerging financial industry of asset-backed short-term finance was investigated by this study. Literature indicated that banks, locally and globally, are forced by regulation and the use of information technology, to rely less on human judgement and more on programmed decision-making, when evaluating loan applications. This leads to time-consuming processes with non-standard loan applications and loss of opportunities for business persons. Asset-backed short-term finance is a market response to this tendency. Due to the emerging nature of this industry, no previous academic description of or investigation into this industry could be found – a gap in academic literature which this study aims to fill. The industry is strategically positioned in relation to banks by focusing on functionality for urgent non-standard loan applications (period between application and decision, and access to decision-makers) as value proposition, where banks are found lacking. Relatively high interest rates form the profit proposition, as firms in this industry have limited access to funds. Collateral is central as risk-mitigating strategy, forming a part of the profit proposition. The people proposition is essential, as the industry is distinguished by individualised decision-making. A survey among customers of this industry identified four clusters of potential customers: The first had no needs unfulfilled by banks, while the other three clusters were attracted by either functionality, or the evaluation of collateral in contrast to repayment ability, or a combination of the two. A survey among providers revealed hesitance to supply information and a low level of agreement on strategic matters – possibly due to the emergent nature of the industry. It is asserted that the basis for further study was laid. / Business Management / D. Com. (Business Management)