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Submitted in compliance with the requirements for the Doctorate degree in Technology, Department of Public Management and Economics, Durban University of Technology, 2014. / Identifying the best level of debt financing within corporations and its determinants is one of the main issues in financial management theory, as the use of debt is believed to have an important influence on the performance of corporations. The majority of studies on debt financing have been undertaken using data from developed economies, focusing more on private sector non-financial corporations. This study investigated the factors influencing debt financing and whether the use of debt positively or negatively influences the financial performance of state corporations in Kenya. The “financial leverage”, which is the proportion of debt financing of state corporations in the Kenyan region, based on the total debt and the total assets, was the object of analysis for the period 2007 to 2011. Applying both descriptive and inferential statistics, and a hybrid of cross sectional and longitudinal quantitative surveys, primary data from questionnaires, and secondary data from the corporations’ financial statements, were utilized. The sample size used was 50 income generating state corporations in Kenya. Using the primary and secondary data, the study, in addition, determined the extent of debt financing and analysed the different types of debt financing used by the various state corporations. It focused on the use of financial ratio analysis to identify the financial performance of the corporations by applying a pooling of cross-section analysis. Moreover, the “financial leverage” ratio was analysed in correlation with the financial performance ratios, in order to identify the potential of anticipation for future financing options for state corporations in Kenya. Further, the regression analysis result was used to demonstrate whether there is a relationship between the corporation’s “financial leverage” and its financial performance ratios and the debt financing theory suitable for explaining debt capital structure within the state corporations. The panel data for financial performance helped in identifying whether there was a significant relationship between “financial leverage” of corporations and their financial performance. The results identified the main factors influencing debt financing within state-owned corporations in Kenya to include profitability, asset tangibility and corporation growth. It was also determined that debt financing is inversely related to financial performance of state-owned corporations in Kenya. In addition, the results revealed that state-owned corporations from developed and developing economies use capital market debt securities, such as bonds and notes, and derivative financial instruments, such as swaps, options and forward contracts. In contrast, these types of debt are not common within the Kenyan state-owned corporations. The developed and developing economies state-owned corporations are perceived to have embraced the new public sector financial management reforms agenda and operate in more developed and efficient capital markets. However, in Kenya, the new public sector financial management agenda may have not been implemented positively within the state-owned corporations and the country’s capital market may still be efficient. It is expected that the findings of this study would have vital policy implications for Kenyan state-owned corporations, in particular, and the government, in general.

This paper will discuss the role that corporate governance can play in promoting sustainable development. Sustainable development is discussed in relation to three things: • Current development which does not result in the damage and destruction of the environment to the detriment of future inhabitants of this planet. This paper will discuss the role that corporate governance can play in promoting sustainable development. Sustainable development is discussed in relation to three things: • Current development which does not result in the damage and destruction of the environment to the detriment of future inhabitants of this planet.

The reason for the existence of any company is to make a profit, which means increasing turnover and keeping costs as low as possible. Optimisation of the Value Chain and Procurement were identified as the two largest contributors when one needs to improve the bottom line of any company. The purpose of this research was to develop an integrated Value Chain and Procurement cost reduction methodology and system specifications for a software solution which captures, tracks and accurately reports the impact of the improvement initiatives. The main research question was structured as follows: What should the specifications of a software solution be that will integrate the cost reduction processes of the Value Chain and of Procurement, in a manner that will ensure maximum sustainable bottom-line savings for companies in the manufacturing or service industries? The objective was to define the key phases in the Value Chain and Procurement cost reduction process and to determine how and where they integrate. It is important to note that according the literature review and the survey, both the Value Chain and Procurement cost reduction processes consist of seven phases. The phases of the Value Chain cost reduction process were: Phase 1: Budget/ABC costing and data analysis; Phase 2: Generate ideas; Phase 3: Evaluate and approve ideas; Phase 4: Implementation planning and approval; Phase 5: Development of project (idea) specific KPI's; Phase 6: Implementation of ideas; Phase 7: Track and report savings. The phases of the Procurement (Strategic Sourcing) cost reduction process were: Phase 1: Team selection/data collection/spend analysis/work plan development Phase 2: Access requirements/internal and external analysis; Phase 3: Develop strategy/shape value proposition; Phase 4: Screen suppliers, issue RFI/P/Q, implementation planning; Phase 5: Conduct commercial event/negotiate/finalise contract; Phase 6: Implement contract; Phase 7: Contract management/track and reporting. The above two cost reduction processes integrate at each phase of the respective processes and should thus be implemented at the same time due to their interdependencies. Based on the findings of the research it was clear that an integrated Value Chain and Procurement cost reduction process alone is not going to solve the cost reduction problems of companies. It is essential for the successful implementation of the integrated cost reduction process to develop skills and knowledgeable resources to implement the integrated cost reduction process, improve collaboration between the Value Chain and Procurement, and to implement a system to track and report performance during implementation. Further research should include how to adapt the current company processes, structures, procedures and systems in order to gain maximum benefit from the implementation of an integrated cost reduction process. The integrated Value Chain and Procurement cost reduction process, supported by a software system, should improve the success of cost reduction projects in companies. It is, however, important to note that the application of the methodology will vary between industries and that service-related industries might put more emphasis on Procurement cost reduction, while the manufacturing industries might place a bigger emphasis on cost reduction in operations. In conclusion, irrespective of the industries, it is evident that this methodology will enhance the cost reduction results previously obtained from similar efforts.

Thesis (Ph. D. Commerce (Business Management)) -- University of Limpopo, 2021 / The current work assessed the link between environmental sustainability commitment and financial performance of firms listed on the Johannesburg Stock Exchange (JSE). Broadly, the researcher aimed to establish whether environmental sustainability commitment as measured by energy efficiency, water efficiency, waste management, carbon emission reduction, material efficiency, green products and services innovation, environmental compliance and stakeholder engagement do affect financial performance. Furthermore, the study tested the moderation effect of industry type on the link between environmental sustainability commitment and financial performance. The study was quantitative in nature with a case study research design. The longitudinal design was adopted where the researcher collected panel data from 2011-2018. The population of the study included all firms listed on the JSE Responsible Investment Index in South Africa. The sample constituted of 32 firms listed on the FTSE/JSE Responsible Investment Index in South Africa. The researcher employed panel regression analysis model to analyse the data. Specifically, the Feasible Generalised Least Squares regression model was utilised in this study. Financial performance was treated as the dependant variable and was measured using return on equity (ROE), return on assets (ROA), earnings per share (EPS), share price and Tobin’s q. The independent variables of the study included components of environmental sustainability; energy efficiency, water efficiency, waste management, carbon emission reduction, material efficiency, green products and services innovation, environmental compliance and stakeholder engagement. Control variables such as firm size and liquidity were used in the study. Mixed findings emerged from the statistical tests. The findings on the relationship between energy efficiency and financial performance suggested that energy efficiency has no significant effect on financial performance as measured by ROE, ROA and Tobin’s Q. Conversely, a significant and negative link was established when energy efficiency was tested against EPS and share price. A significant positive relationship was established between water efficiency and EPS as well as share price. The results further revealed that being water efficient may not significantly affect financial performance when ROE, ROA and Tobin’s Q are used. The results showed no significant relationship between waste management and all dependent variables. The findings indicated that carbon emission reduction was positively and significantly related to EPS and share price. Nevertheless, it was discovered that the nexus between carbon emission reduction and measures of financial performance such as ROE, ROA and Tobin’s Q was positive but insignificant. In terms of material efficiency and financial performance, the findings indicated that material efficiency had an insignificant effect on ROE, ROA, share price and Tobin’s Q. Nevertheless, a significant and negative relationship was established between material efficiency and EPS. Considering green products and services innovation and performance, the findings established a significant negative relationship between green products and services innovation and share price. However, the results further indicated that the link between green products and services innovation and ROE, ROA, EPS as well as Tobin’s Q was insiginificant. The findings exhibited that environmental compliance was negatively related to ROE and Tobin’s Q yet positively related to EPS and share price. An insignificant relationship was established between environmental compliance and ROA. Stakeholder engagement was found to be positively related to EPS. It was also found that the effect of environmental sustainability commitment on financial performance did not differ based on the industry type. The findings rather showed that firms within each industry had specific environmental sustainability commitment and financial performance combinations which were unique to that industry. It was also found that industry type significantly moderates the relationship between environmental sustainability commitment and financial performance. It was concluded that firms can enhance their financial performance from environmental investments which are unique to certain industries as determined by key stakeholders in that sector. Recommendations were made to different stakeholders such as the government, corporate managers and organisations which provide environmental reporting guidelines to play an active role in promoting environmental sustainability commitment among firms. Keywords: environmental sustainability commitment; financial performance; firms; sustainable development; Johannesburg Stock Exchange; South Africa

This study examined the nature and extent of relations between Management of Technology [MOT] and cost management. It explores the roles of competencies and competency measurement in these relations and its associations with company performance. The problem statement asks how the MOT community deals with cost management, whether MOT-based cost management competencies can be isolated and measured, whether a tool for measurement can be created, tested and validated and indeed whether it can be used to assess relations between MOT-based cost management competencies and company performance. To answer these questions, a MOT-based cost management competency index is formulated, consisting of problem statements representing MOT-based cost management insights, knowledge and practices. Designed in the format of a typical research survey, the index is used to source data from sampled companies listed on the Johannesburg Stock Exchange [JSE]. Although too small a sample to generalise about the population, sufficient data is collected and processed with statistical software programs. A second set of variables, about financial performance of the responding companies, consists of Asset Turnover [ATO] and Return on Assets Managed [ROAM]. Data for these variables is sourced from their annual financial statements and processed into ATO and ROAM indicators. The combined research data set is used to critically describe statistical qualities of variables such as ATO, ROAM, MOT-based cost management competencies of company executives, their education and exposure to the executive management teams in their respective organizations. The research data is subsequently subjected to correlation analysis, as foundation for hypothesis testing. Among the relationships described by correlation analysis and warranting further examination with regression analysis, are associations between MOT-based cost management competencies and ATO and between Education and MOT-based cost management competencies. The former association is found to be not significant, having the research hypothesis rejected. A significant association between Education and MOT-based cost management competencies is indeed found. Utilizing regression equations yielded by the analyses, the predictive capacity of regression analysis is used to demonstrate results of interventions in those associations postulated in the research hypotheses. The study concludes that it achieved a qualified success in its first objective, which was to formulate a MOT-based cost management competency index, and to demonstrate its application as measurement and management tool on executive managers of JSE-listed companies. The study failed in its second objective, which was to demonstrate a significant association between MOT-based cost management competencies and financial performance of sampled companies. Critical perspectives on the data and the associations tested reveal important shortcomings in the research. These perspectives do though create opportunities for refinement of the MOT-based cost management competency index as measurement and management tool, validation of its status, and indeed demonstration of its business value to the MOT and business community in particular. In closure, the study was meant as a contribution to the discourse on a credo for MOT and the MOT body of knowledge, and it subjects itself to critical analysis by the research community so as to establish whether it succeeded in indeed making such a contribution. / Business Management / M.Tech. (Business Administration)

This study examined the nature and extent of relations between Management of Technology [MOT] and cost management. It explores the roles of competencies and competency measurement in these relations and its associations with company performance. The problem statement asks how the MOT community deals with cost management, whether MOT-based cost management competencies can be isolated and measured, whether a tool for measurement can be created, tested and validated and indeed whether it can be used to assess relations between MOT-based cost management competencies and company performance. To answer these questions, a MOT-based cost management competency index is formulated, consisting of problem statements representing MOT-based cost management insights, knowledge and practices. Designed in the format of a typical research survey, the index is used to source data from sampled companies listed on the Johannesburg Stock Exchange [JSE]. Although too small a sample to generalise about the population, sufficient data is collected and processed with statistical software programs. A second set of variables, about financial performance of the responding companies, consists of Asset Turnover [ATO] and Return on Assets Managed [ROAM]. Data for these variables is sourced from their annual financial statements and processed into ATO and ROAM indicators. The combined research data set is used to critically describe statistical qualities of variables such as ATO, ROAM, MOT-based cost management competencies of company executives, their education and exposure to the executive management teams in their respective organizations. The research data is subsequently subjected to correlation analysis, as foundation for hypothesis testing. Among the relationships described by correlation analysis and warranting further examination with regression analysis, are associations between MOT-based cost management competencies and ATO and between Education and MOT-based cost management competencies. The former association is found to be not significant, having the research hypothesis rejected. A significant association between Education and MOT-based cost management competencies is indeed found. Utilizing regression equations yielded by the analyses, the predictive capacity of regression analysis is used to demonstrate results of interventions in those associations postulated in the research hypotheses. The study concludes that it achieved a qualified success in its first objective, which was to formulate a MOT-based cost management competency index, and to demonstrate its application as measurement and management tool on executive managers of JSE-listed companies. The study failed in its second objective, which was to demonstrate a significant association between MOT-based cost management competencies and financial performance of sampled companies. Critical perspectives on the data and the associations tested reveal important shortcomings in the research. These perspectives do though create opportunities for refinement of the MOT-based cost management competency index as measurement and management tool, validation of its status, and indeed demonstration of its business value to the MOT and business community in particular. In closure, the study was meant as a contribution to the discourse on a credo for MOT and the MOT body of knowledge, and it subjects itself to critical analysis by the research community so as to establish whether it succeeded in indeed making such a contribution. / Business Management / M.Tech. (Business Administration)

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)