Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: The research on this topic was motivated by the concern about the state of disarray in the public hospitals infrastructure and that due to budget constrain across the globe, the governments can no longer afford to provide public health services alone without the assistance of the private sector. South African public healthcare system continues to function in a state of disarray. Public hospitals serve the vast majority of the South African population, but are underfunded and in most cases these hospitals have ailing infrastructure. The study will look at the mechanism to fund public hospitals. This study examines the role that the Industrial Development Corporation and the Development Bank of Southern Africa can play in addressing the gap that exists in funding public hospitals. It will attempt to answer the following questions of concern, how is public healthcare financed in South Africa, what are the major challenges in financing public hospitals, what is the current role played by the Industrial Development Corporation and the Development Bank of Southern Africa in funding the public hospitals and what are the other possible solutions to address these challenges. The findings indicate that, despite the government funding the public hospitals there is a shortfall of funds for hospitals to complete the project that they are engage in. Chris Hani Baragwanath Academic Hospital and other five cases of hospitals in KwaZulu Natal were looked at and confirmed that there is definitely a gap in funding public hospitals

M.Comm. / The purpose of this study is to identify and investigate potential obstacles for local and international investors in the Maputo Development Corridor (MDC). This study focuses exclusively on the Maputo-Mpumalanga Corridor axis which could be considered as an important nucleus of the eastern region of Southern Africa. The possibility of cooperation concerning the Corridor offers both South Africa and Mozambique - who have until recently both experienced less than optimal international trade relations – the opportunity for enhanced competitiveness. The study therefor attempts to measure the perceptions of potential investors to identify obstacles regarding the process of regional economic integration involving the Map uto-Mp umalanga Corridor in attracting investments. After thorough evaluation of the potential investment sectors among the various role players it became clear that tourism is the sector with the largest potential for investment. Next are the transport and agricultural sectors which show great potential and then, to a lesser extent manufacturing projects. By putting emphasis on these sectors as investment opportunities in particular, will result in more concentrated and graduated progress. With reference to the fact that investment is taking place slowly or does not take place at all, it is obvious that the,re are certain obstacles in the way of investment. The response that has been obtained shows clearly that the different role players do not regard the same factors as obstacles. This mere fact is probably already the biggest obstacle of them all. The fact that international investors regard safety and security as well as bureaucracy in the public sector as the two biggest obstacles, is a serious cause for concern. It shows that overseas investors are not as yet convinced of South Africa's democracy and its new government. Taking all the role players' opinions into consideration, it can be said that the general obstacles in investment in the Corridor can mainly be identified as follows: Safety and security. Bureaucracy in the public sector. Labour problems (productivity and demands by trade unions). Quality of products from Mozambique. Unless both governments address the above-mentioned obstacles immediately, potential investors would continue to regard the Maputo Corridor as unfavourable to a certain extent. This study therefor provides a clear explanation of the most important sectors for investment. It also identifies the most important obstacles to investment in the Maputo-Mpumalanga Development Corridor. It should be seen as an introduction to further research, for a more in-depth investigation of each sector will provide more specific problems and opportunities.

Submitted in partial fulfillment of the requirements for the degree of Masters of Management Sciences Business Administration, Durban University of Technology. Durban, South Africa, 2017. / The discipline of corporate finance has undergone numerous transformations over the past two-and-a-half decades. One such change has been in the area of corporate finance. Driven by certain behavioral biases, it has been observed that managers sometimes make subjective decisions that do not always follow the norms of traditional corporate finance. One such behavioral influence is overconfidence or optimism. There is a paucity of research on the impact that managerial overconfidence through corporate investments has on the general movement of a company’s share price. This study bridges that gap by investigating the effect of managerial overconfidence on the share price of 10 companies from the JSE/FTSE top 40 index. Its main objective was to inspect the relationship between managerial overconfidence and share price. The results show the presence of managerial overconfidence observed through the investment-cash flow sensitivity of firms. The fixed effects panel regression reveals that Tobin’s Q which is the proxy measure of the investment-cash flow sensitivity of a firm, does affect the share price. Holding every other explanatory variable constant, an increase in Tobin’s Q causes the share price to rise, which leads to the conclusion that managerial overconfidence does have an influences on the stock price. It is further observed that managerial overconfidence tends to increase with firm size. This is shown by the weak positive correlation between the Q ratio and LnTA, and Q ratio and sales. In order to avoid the possible loss in value of a firm caused by an overconfidence manager, it is recommended that shareholders or owners ensure that the manager clearly understands the company’s objectives and vision. Due to the resultant influence of managers’ on the value of a company’s stock, investors should not only look at a company’s past performance, as well as the price earnings ratio (PE ratio), dividend yield, DPS, or any other market value ratios. They should also consider the characteristics of the CEO before making their investment decisions. / M

This research examines the role that modern portfolio theory (MPT) plays in current South Africa asset management practice in comparison to other portfolio management techniques and security evaluation methods. The purpose of asset management is to pool complementary financial market expertise, in order to generate returns in excess of the market return on the investments of the owners of financial resources that are entrusted to the firm, since the owners of financial resources might not be able to make superior investment decisions on their own. The research presents and discusses the literature pertaining to modern portfolio theory, traditional portfolio theory (fundamental and technical analyses), and behavioural finance theory. The implication of the efficient market hypothesis in relation to all the portfolio management theories is also presented and discussed. In line with a positivist paradigm, the survey research methodology, which combines both qualitative and quantitative aspects, was adopted. The instrument used for data collection was a questionnaire, which was found to be reliable and valid for this research. The questionnaire encompassed the Lickert scale to measure the data. The results of the analysis were interpreted using descriptive statistics. The results of this research suggest that modern portfolio theory does not play a significant role in the management of portfolios and security evaluation in South Africa. South African asset managers regard fundamental analysis as the most significant method of security evaluation in the management of portfolios. Technical analysis and econometric models are regarded as playing a moderate role and complement fundamental analysis whilst behavioural finance models play the least role. This research recommends an integrated portfolio management strategy that incorporates MPT, traditional portfolio theory and behavioural finance models to enhance investor value and protection.

Financial liberalization in South Africa was a process that took the form of various legal reforms very a long period of time. This study uses quarterly financial data from 1969 quarter one to 2009 quarter four to analyse this process. The data used was pertinent to the financial liberalization theorem by McKinnon (1973) and Shaw (1973). The examination of the relationships between the various macro economic variables has important implications for effective policy formulation. The empirical analysis is carried out in four phases: the preliminary analysis, the principal component analysis (PCA), the cointegration analysis and pair wise Granger causality tests. The preliminary analysis examines trends over the sample period and reports the on the correlation between the selected variables. The PCA analysis was used to create indexes for financial liberalization, taking into account the phase wise nature of legal reforms. The generated index was representative of the process of financial liberalization from 1969 to 2009. A financial development index was also created using the various traditional measures of financial development and through PCA which investigated interrelationships among the variables according to their common sources of movement. Cointegration analysis is carried out using the Johansen cointegration procedure which investigates whether there is long-run comovement between South African economic growth and the selected macroeconomic variables. Where cointegration is found, Vector Error-Correction Models (VECMs) are estimated in order to examine the short-run adjustments. For robustness, many control variables were added into the model. The results showed that there are positive long run relationships between economic growth and financial liberalization, financial development and a negative relationship with interest rates. The Granger results suggested that the MS hypothesis does not manifest accurately in the South African data. The implications of the results were that financial liberalization has had positive effects on economic growth and thus any impediments to full financial liberalization must be removed albeit with considerations towards employment and local productivity. Financial development also possessed positive long run relationships with economic growth, although results differed based on the financial development proxy used. Thus, financial development must be improved primarily through liberalizing the banking sector and spurring savings.

This study aims to investigate the relationship between private saving and investment for South Africa using a Vector Error Correction Framework. Saving and investment are considered to be important factors for sustainable economic growth in the country, particularly as these variables have been recorded at significantly lower levels than those of other developing nations. By examining the direction of causality between saving and investment, the most suitable policy measures can be used in stimulating either savings or investment, and as a result aggregate growth. The study found a positive two-way causality to exist between these two variables, proving that both saving and investment-led policies are necessary in raising saving and investment levels. With the inclusion of credit extension as the third variable used to remove any variable bias, the study not only found credit extension to Granger cause private saving, but the reverse relationship was found to be present as well. This relationship was however found to be negative, confirming that lower borrowing constraints may have a negative effect on saving levels. The negative relationship between credit supply and private saving (substitution effect) proves that credit supply will only yield a positive result for savings if channelled through investment expenditure.

South African trade unions affiliated to Congress of South African Trade Unions (COSATU) have taken advantage of the arrival of democracy and newly found opportunities available through Black Economic Empowerment to venture into the world of business by setting up their own investment companies. The declared desire behind these ventures was to break the stranglehold of white capital on the economy and to extend participation in the economic activities of the country to previously disadvantaged communities. Using the National Union of Mineworkers and the Mineworkers’ Investment Company as case studies, this dissertation seeks to determine whether unions affiliated to the Congress of South African Trade Unions (COSATU) are advancing the struggle for socialism through their investment schemes. Secondly, the dissertation determines whether, in the activities of the schemes, internal democracy is preserved and strengthened. The theoretical framework of this dissertation emerges from arguments advanced by Lenin and Gramsci on the limitations of trade unions in terms of their role in the struggle against capitalism. In addition, the argument draws on the assertions by Michels regarding the proneness of trade union leadership to adopt oligarchic tendencies in their approach to leadership. Of interest is how, according to Gramsci, trade unions are prone to accepting concessions from the capitalist system that renders them ameliorative rather than transformative. Drawing from Michels’ ‘iron law of oligarchy’, the thesis examines whether there is space for ordinary members of the unions to express views on the working of the union investment companies. By looking at the extent to which the investment initiatives of the companies mirror the preferences of the ordinary members of the unions, one can determine the level of disjuncture between the two. The study relies on data collected through interviews and documentary material. Interviews provide first-hand knowledge of how respondents experience the impact of the investment schemes. This provides a balanced analysis given that documents reflect policy stances whereas interviews provide data on whether these have the stated impact. What the study shows is a clear absence of space for ordinary members to directly influence the workings of union investment companies. It is also established that, in their current form, the schemes operate more as a perpetuation of the capitalist logic than offering an alternative system.

Research studies on portfolio diversification have tended to focus on developed markets and paid less attention to emerging markets. Traditionally, correlation analysis has been used to determine potential benefits from diversification but current studies have shifted focus from correlation analysis to exploring cointegration analysis and other forms of tests such as the Vector Error Correction Methodology. The research seeks to find if it is beneficial for a South African investor to diversify their portfolio of emerging market equities over a long-term period. Daily weighted share indices for the period of January 1996 to November 2008 were collected and analysed through the application of the Johansen cointegration technique and Vector Error Correction Methodology. Granger Causality tests were also performed to established whether one variable can be useful in forecasting another variable. The study found that there was at least one statistically significant long-run relationship between the emerging markets. After testing for unit roots for all the share indices and their first difference using the Augmented Dickey-Fuller test (ADF), Philips-Perron and Kwiatkowski, Phillips, Schmidt, and Shin (KPSS) unit root tests, similar conclusions were m~de. All the unit root tests and their levels could not be rejected for all the series. However, unit root tests on the first differences were rejected, meaning that all series are of order 1(1) - evidence of cointegration. Simply put, emerging markets tend not to drift apart over time. This suggests that emerging markets offer limited benefits to investors who are looking to add some risk to their portfolios. In addition, the study also found evidence of both unidirectional and bidirectional causality (Granger-Cause tests) between markets. This implies that the conditions for a particular market are exogenous of the other market. The study concludes that emerging markets are gradually adopting the same profile as developed markets.

This study explores issues of sustainability, viability and stability in the projects funded by the Department of Social Development, situated in the Nelson Mandela Bay. The researcher makes use of a combination of qualitative and quantitative research designs to gather data. The sample consisted of about three members from each of the four projects selected, as well as two officials of the Department of Social Development in the Nelson Mandela Bay. The respondents participated in structured and semi-structured interviews exploring their demographic information, information about the project and how it is managed, views and opinions about differences between a business venture and a project, their understanding of what constitutes a sustainable, viable and stable income-generating project as well as their opinions about what would contribute to ensuring sustainability, viability and stability in these projects. The results of the study reveal that it is important to structure and run the income generating projects using business principles which include vigorous marketing and proper costing. There is also a need to train the participants in business management so that they can run the ventures successfully. It has also become apparent that a clear leader or manager is lacking and thus decision making process is too long, meaning a meeting must take place involving all project members before a decision that affects the operations can be made. Almost all key factors contributing to a sustainable and viable income generating project, as defined by Mango (2004) and Madi (2007) were also found to be lacking in these projects.

Investment planning (as one of the key components of financial planning) is seen as an important solution to investment problems and challenges. Previous research however indicated that compare to men, women are not as confident and knowledgeable about financial and investment matters. As a result, women do not conduct investment planning until it is often too late and when they are confronted with a financial crisis or a life predicament such as a divorce or death. Given the lack of research attention focusing on women's perceptions of financial and investment planning in South Africa, and in particular the Eastern Cape, the objective of this research is to investigate the factors that influence women‟s Perceived successful investment planning in the Nelson Mandela Bay area. After conducting a comprehensive literature study, seven factors (independent variables) namely Values, Attitudes, Time horizon, Personal life cycle, Risks and Returns, Investment Knowledge, were identified as influencing the Perceived successful investment planning (dependent variable) of women. Various hypotheses were formulated to be tested in the empirical investigation. The validity and reliability of the measuring instrument were tested among 207 respondents. The Exploratory Factor Analysis, as well as the Cronbach‟s alpha coeffient analysis, revelead that Investment knowledge, Personal life cycle and Values are important factors that influence the women‟s Perceived successful investment planning. As a result of these analyses, the hypotheses had to be reformulated. In order to establish whether correlations existed between the various factors investigated in this study, Pearson Product Moment Correlation Coefficients were calculated. Positive correlations were found between all the variables, except between Values and Personal life cycle and between Values and Perceived successful investment planning. To analyse the association in which the effects of the independent variables (Investment knowledge, Personal life cycle and Values) have on the dependent variable (Perceived successful investment planning) of this study, multiple regression analysis was conducted. Only one independent variable emerged as having a significant influence on Perceived successful investment planning of women, namely Investment knowledge. In order to investigate the influence of the various demographic variables on the dependent variable, an Analysis of Variance was performed. No significant differences were found between the selected demographic variables, namely Age, Ethnic group, Marital status, Education and Investment experience and the independent variables or dependent variable of this study. By investigating the influence of women‟s Perceived successful investment planning, this study has added to the body of knowledge of both financial and investment planning. Based on the empirical results of this study, several recommendations have been made in an attempt to assist women to make better investment decisions and manage their investment planning more effectively.