This study was motivated by low rates of economic growth and insufficient investment in infrastructure to balance infrastructure backlogs and growth that the South African economy has been facing in recent years. The main objective of the study is to examine the impact of disaggregated government investment and consumption spending on economic growth in South Africa using the Auto-Regressive Distributed Lag (ARDL) technique and Error Correction Model (ECM). Annual time series data spanning the period 1983– 2017 was employed. Earlier studies conducted in South Africa measured the impact of aggregated government expenditure on economic growth using different methodologies, including estimating procedures, model specifications and time frames. To the best of our knowledge, this paper is the first to study the effect of disaggregated government investment spending on the South African economy. This study, therefore, examines the disaggregated government spending on education, health, defence and social protection along with other control variables. The ARDL cointegration test result indicates the existence of a long-run relationship between the variables. The estimated ECM model reveals that the short-run impact of each explanatory variable is significant in explaining changes in economic growth in South Africa. These results will enable the spheres of government to formulate and adjust economic development policies that will produce the needed economic growth in line with the radical economic transformation programme in South Africa. / Economics / M. Com. (Economics)

Thesis (MCOM.) -- University of Limpopo, 2019 / Responsible investment combines shareholder’s objective of financial performance with environmental, social and governance (ESG) issues when making investment decisions. Responsible investment has become necessary because most companies neglect the impact of their operation on the environment; society while focusing on short-term profits. Moreover, the collapse of big companies due to poor governance also demand that they focus on the need to strengthen good corporate governance. This study examines whether SA mutual funds companies listed on the JSE incorporate environmental, social and governance (ESG) factors in making investment decisions. The study further examines the relationship between selected ESG factors and financial performance measured using ROE. A total of 28 companies where SA mutual fund companies have invested their funds were sampled and studied between 2007 and 2017. Secondary data was used whereby raw data was collected from the annual, integrated and sustainability reports of the selected companies’ websites and the IRESS database. Although many ESG factors could influence responsible investment such as climate change, waste and pollution, deforestation, working conditions, local community, bribery and corruption, however, some of these factors cannot be easily quantified. Hence, this study focused on one component per ESG factor that can be quantified. All these factors are required to have a deeper understanding of responsible investment. This study adopts the quantitative research method and adds to the growing number of studies by examining the relationship between independent variables represented by water usage (environmental), employee health and safety cost (social) and gender diversity (governance) and dependent variable which is financial performance measured by ROE. The Stata statistical software utilising the panel data method was used to analyse the data. The iii | Page study results show a positive and insignificant relationship between water usage and ROE, a positive an insignificant relationship between employee health and safety cost (number of work-related fatalities) and ROE and negative and insignificant relationship between the percentage of women on corporate boards and ROE. The results show that UN PRI guideline that encourages responsible investments is not followed by South African (SA) mutual fund companies. This study recommends that SA mutual funds companies follow the UN PRI educate different stakeholders as to the importance of incorporating ESG factors in business operations and the benefits thereof. Future studies can consider incorporating ESG indicators other the ones presented in this study.

M. Tech (Department of Accountancy, Faculty of Management Sciences) Vaal University of Technology. / Numerous studies have been conducted to ascertain factors that impact on wealth creation of companies. It has been suggested by various researchers that economic value added (EVA) could be used to measure company wealth creation and a number of factors have been suggested that contribute to wealth creation for company shareholders. The purpose of this study is to determine the company characteristics that influence wealth creation. The study uses EVA, the dependent variable, as a measure of a company’s wealth creation. The company characteristics, independent variables, are operating capital size, capital gearing, export and domestic distribution market segments, sub-sectors and the type of product companies release into the market. Identifying company characteristics that influence wealth creation could enlighten investors on where capital should be directed in order to maximise wealth creation for the companies’ shareholders and the entire economy. Logistic regression analysis models were used to analyse 61 industrial companies listed on the Johannesburg Stock exchange (JSE) for the 10-year period of 2005 to 2014. The use of logistic regression for this analysis was necessitated by the binary nature of the data (EVA positive or negative) and logistic regression analysis is suitable for such binary data. A series of tests were conducted to assess the suitability of logistic regression analysis in evaluating the impact of company characteristics on EVA. The classification accuracy test, which shows the predictive accuracy or the forecast strength of the logistic regression model for this study yielded a forecast strength of the highest of 97.2 percent for 2006 and lowest of 63.2 percent for 2014. The results indicated the appropriateness of the logistic regression model for the study. The data on the EVA of companies were collected from INET-BFA. Other sets of data also obtained from INET-BFA include companies’ volume of operating capital, capital gearing, company product types, distribution channels and sub-sectors to which each company belongs. The historical inflation and exchange rates were also obtained and applied in comparing with EVA. The comparison was to determine if there was any relationship between EVA, exchange rates and inflation. Results of the logistic regression analysis model reveal that the sub-sector factor, capital size factor and capital gearing factor impact on EVA, while market segment and company product type do not impact on EVA. The results show that the sub-sector categories of manufacturing, retail and extraction have significant positive impact on EVA while property management does not impact on EVA. The large capital category of the capital size factor shows significant positive impact on EVA while the medium capital category shows a negative impact on EVA, leaving small capital size having no impact on EVA. The high as well as moderate capital gearing categories of the capital gearing factor show negative impact on EVA, while low gearing shows no impact on EVA. However, some years covered in the study did not have any significant factors. Results of wealth creation evaluation of the industrial companies using EVA as a metric reveals that the industrial companies created more value than was destroyed in terms of EVA. The results show that manufacturing, extraction and retail sub-sectors achieved net positive EVA, while the property management sub-sector achieved net EVA negative in the 10-year period. Furthermore, results of EVA comparison with foreign exchange and inflation rates indicated a relationship between EVA, exchange rate and rate of inflation. The results show that as inflation rises, foreign exchange depreciates, while EVA performance of companies drops during the same period. Findings and recommendations of this study are important to company managers as they offer crucial information regarding the types of activities organisations could engage in and for investors to consider the types of businesses in which to invest. The findings are also important in suggesting how companies could organise their capital structure as well as the size of the capital in order to optimise wealth creation. Such considerations by company managers and investors alike would help to increase wealth creation within the economic system. This study made use of five company characteristics, which were stated into various categories. Additional company characteristics should be used in a further study to identify other company attributes that may impact on EVA. There is also the need to carry out further studies using other methods to find out if different results could be achieved. In addition, a study is recommended to establish why no significant factor was identified in some of the years.

Thesis (MPhil)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: This study is an investment performance review covering the ten years from 1990 to 1999. To many investors the 1990s were a tough decade because of the political, economic and social changes, which caused investment uncertainty. The primary focus is to examine the implications of these changes during the 1990s on the investment strategies of South Africans. Furthermore, the aim is to provide insight into investment decision-making during the period of transition and transformation. The analyses specifically address the importance of the investment environment on portfolio construction and maintenance. The objective is to see how far the investors ventured in their efforts to 'beat" the South African share market under changing conditions. The structure of the portfolio was evaluated as well as the investor's preferences and beliefs during the period under review. It also looked at the investors' attitudes and philosophies. Effective portfolio management was important because changing conditions were becoming challenging. The investor's investment mix and the risk associated with each investment determined the effectiveness of managing the portfolio. Furthermore, this study examines the investors' objectives, constraints and strategies. In the final analysis, this study examines investment strategy and investment performance in retrospect. It presents a ten-year historical analysis of the South African environment which was affecting investment decisions. It was also found that investors were fulfilling their expectations, they were looking at medium and long-term investment opportunities. Furthermore, stock-picking was done with greater caution. The opening of global investment markets further enhanced the investment opportunities. Moreover the investors realised the importance of diversification in order to reduce risk. The investors will be presented with challenges and opportunities in the next decade (or century). Therefore this study also concludes with an assessment of possible future investment scenarios for the South African investors. Finally, investment decision was interpreted against the political, economical, social and other changes that took place during the period of transition. The key to investment success was the investor's ability to manage the changing South African environment. / AFRIKAANSE OPSOMMING: Hierdie studie is 'n oorsig van die beleggingsvaardighede gedurende die tydperk 1990 tot 1999. Vir baie beleggers was die negentigs 'n baie moeilike dekade as gevolg van die politieke, ekonomiese en sosiale veranderings. Hierdie veranderings het onsekerheid laat ontstaan by die beleggers. Die primêre fokus is om die implikasies van die veranderings op die beleggingsstrategieë van die Suid Afrikaanse belegger te ondersoek. Verder, is die doelook om insig te bekom oor die beleggingsbesluitneming gedurende die periode van verandering en transformasie. Hierdie analise salook in besonder aandag gee aan die belangrikheid van die gepaardgaande beleggingsomgewing en op die konstruksie en instandhouding van die beleggingsportefeulje. Die doel is om ook vas te stel hoe die beleggers gespekuleer het om die Suid Afrikaanse aandele mark te klop gedurende die periode van verandering. Die samestelling van die portefeulje is ge-evalueer sowel as die beleggers se voorkeure en menings. Daar is ook ondersoek ingestel na die belegger se houding en filosofie. Effektiewe beleggingsbestuur was belangrik gedurende die tydperk omdat die veranderde omstandighede uitdagend geword het. Die belegger se beleggingssamestelling en die gepaardgaande risiko het die doeltreffendheid van die bestuur van die portefeulje bepaal. Verder ondersoek hierdie studie ook die beleggers se doelwitte, beperkinge en strategieë. In die finale analise is dit hoofsaaklik 'n retrospektiewe ontleding van beleggingbestuursvaardighede gedurende die 1990s. Dit is n tienjaar historiese analise van die Suid Afrikaanse beleggingsomgewing wat 'n invloed gehad het op die beleggingsbesluitnemings. Die beleggers het hul verwagtings goed hanteer en het gesoek na medium- en langtermyn beleggingsmoontlikhede. Bowendien is die beleggings gedoen met groter omsigtigheid. Die opening van die wêreld markte het ook groter beleggingsmoontlikhede geskep. Verder het die beleggers ook besef dat diversifikasie belangrik is om risiko te verminder. Beleggers sal te staan kom voor uitdagings sovel as gunstige beleggingsmoontlikhede in die volgende dekade (of eeu). Daarom sluit hierdie studie af met toekomstige beleggingsmoontlikhede en die faktore wat sal bydra tot die toekomstige beleggingsaksie en besluitneming. Ten slotte, die beleggingsbesluit is geïnterpreteer teen die politieke, ekonomiese en sosiale veranderinge wat plaasgevind het. Die sleutel tot die beleggingssukses was die vermoë van die beleggers om die veranderde omstandighede te kan hanteer.

This thesis examines the relationship of monetary policy and investment in a theoretical framework in which monetary and real economic forces are intrinsically interlinked. The full shift from a money, real dichotomy in historical economic thought to the notion of money being an essential determinant of economic outcomes is traced to the work of Keynes, partly in the Treatise (1930), but more completely in the General Theory (1936). The treatment of monetary forces in economic growth models is examined. It is found that the money, investment relationship, with close money, real interaction, is appropriately pursued in the approach to monetary theory adopted by those who could broadly be characterised as Post Keynesian. The operation of monetary forces through the banking system is examined using this theoretical backdrop. A symbolic model is developed of the influence channels implied by the theoretical analysis, using the South African monetary system as the specific focus. The symbolic model is expressed in a form which enables empirical examination. South African data are compiled and used to determine the nature and statistical significance of hypothesised relationships. The implications of the theoretical analysis and empirical examination are drawn out both for monetary theory within the Post Keynesian mould, and for the conduct of monetary policy, in South Africa in particular. / Economics / D. Litt. et Phil. (Economics)

This study investigates the association between traditional and alternative working capital measures and the returns of industrial firms listed on the Johannesburg Stock E"change. Twenty five variables for all industrial firms listed for the most recent 10 years were derived from standardised annual balance sheet data of the University of Pretoria's Bureau of Financial Analysis. Traditional liquidity ratios measuring working capital position, activity and leverage, and alternative liquidity measures, were calculated for each of the 135 participating firms for the 1 0 years. These working capital measures were tested for association with five return measures for every firm over the same period. This was done by means of a chi-square test for association, followed by stepwise multiple regression undertaken to quantify the underlying structural relationships between the return measures and the working capital measures. The results of the tests indicated that the traditional working capital leverage measures, in particular, total current liabilities divided by funds flow, and to a lesser e"tent, long-term loan capital divided by net working capital, displayed the greatest associations, and e"plained the majority of the variance in the return measures. At-test, undertaken to analyse the size effect on the working capital measures employed by the participating firms, compared firms according to total assets. The results revealed significant differences between the means of the top quartile of firms and the bottom quartile, for eight of the 13 working capital measures included in the study. A nonparametric test was applied to evaluate the sector effect on the working capital measures employed by the participating firms. The rank scores indicated significant differences in the means across the sectors for si" of the 13 working capital measures. A decrease in the working capital leverage measures of current liabilities divided by funds flow, and long-term loan capital divided by net working capital, should signal an increase in returns, and vice versa. It is recommended that financial managers consider these findings when forecasting firm returns. / Business Management / D. Com. (Business Management)

Thesis (MSc)--University of Stellenbosch, 2002. / See article for abstract

Thesis (MDF)--Stellenbosch University, 2012. / In recent years South Africa has started to embark on policies to increase FDI and boost the country’s manufacturing sector. FDI inflows are important for their perceived role of bridging the savings-investment gap, while increasing the country’s manufacturing capacity will help diversify the economy and could contribute towards job creation. The literature has revealed that the debate on causality between FDI and trade has not yet been resolved. Furthermore, the FDI/trade relationship has not been adequately addressed in African literature. The research study has investigated the causal link between FDI and manufacturing exports and FDI and manufacturing imports in South Africa for the period 1994 – 2011. Unit root tests of stationarity were performed on the respective time series and it was found that the included variables are non-stationary at their levels, but stationary at first differences. Tests of cointegration revealed that FDI and manufacturing exports as well as FDI and manufacturing imports and vice versa were cointegrated, implying a long-run relationship between the two sets of variables. The study then utilised causality tests based on the significance of the ECM coefficient as well simple Granger causality tests in a bivariate setting. The results indicate one-way causality from manufacturing exports to FDI and from manufacturing imports to FDI. These results suggest that exports and imports of the manufacturing sector matter in the locational inflows of FDI in South Africa. It is recommended that the South African government should encourage FDI policies that have an export component or export strategy. This could attract more FDI inflows that would close the investment gap in the manufacturing sector.

M.Comm. / The general conclusion arrived at in this dissertation is that the quality of infrastructure in South Africa has resulted in a large and increasing inflow of students from the other African countries. The ensuing influx of international students has been sustained through the activities of networks based on kin, acquaintance and the support of the source country governments. This has resulted in a large inflow of foreign revenue and growth of employment opportunities and income for South Africa. Although the revenue from the inflow of international students in South Africa is impressive, it is still trivial in comparison to what other countries such as the USA, the UK, Australia and China receive. Another advantage is that the presence of international students offers a potential boost to the skills shortage in South Africa. The direct benefits from international students to South Africa have the capacity to be further enhanced but a proper policy for facilitating such inflow is lacking. Certain administrative processes and practices in South Africa aggravate the situation. These procedures include visa application difficulties, university registration bureaucracy, and police behaviour. Worse still, crime and xenophobia in South Africa are common and they present some of the greatest threats to the continued inflow of international students.

Empirical evidence indicates that companies that reduce information asymmetry by increased voluntary disclosures achieve several benefits, such as lower cost of capital, improved pricing, and liquidity of their shares. Despite the possibility of such benefits, many studies report varying degrees of voluntary disclosure behaviour that is attributable to various factors. Recent studies indicate that investors’ investment horizon has a significant effect on actions taken by management. Companies with predominantly short-horizon investors spend less on research and development, invest in shorter-term projects that are less profitable than longer-term projects, and are more likely to manipulate earnings to meet short-term earnings expectations. This study investigates whether investors’ investment horizon has an effect on the quality of companies’ information environment. Long-horizon investors should be familiar with their investee company’s risks and rewards, using both their own internal information gathering processes and the cumulative information disclosed by management over time. Moreover, over the course of a long-term relationship, they can become familiar with management’s capability to deliver long-term sustainable returns. Long-horizon investors should therefore be less concerned with short-term fluctuations of earnings and management’s public explanations and disclosures thereof. I hypothesise that higher (lower) proportions of long-horizon investors are associated with lower (higher) quality voluntary disclosure. The shareholder familiarity hypothesis was tested in this study, using an ordinary least squares regression. Voluntary disclosures were observed via the channel of companies’ websites. A checklist was compiled of best practices for online investor relations, and content analyses were conducted on the websites of 205 companies listed on the Johannesburg Stock Exchange. Shareholder familiarity was proxied by shareholder stability, measured over nine years. The stability measure was lagged by one year to create a temporal difference between the shareholder profile and disclosure behaviour. I found that companies with a profile of unstable investors that are larger, younger, dual-listed and have a Big4 auditor have higher quality online investor relations practices. The hypothesis of a negative association between shareholder familiarity and voluntary disclosure quality is therefore accepted. This study extends the theory on information asymmetry and voluntary disclosure by providing evidence supporting the argument that investor horizon is a predictor of voluntary disclosure quality. The dictum of more is better does not hold in all scenarios. It is important for financial directors and investor relations officers to establish the investment horizon profile of their respective companies’ shareholders before they embark on extensive disclosure programmes. / Financial Intelligence