PhD / Department of Development Studies

MSCAGR (Agricultural Economics) / Department of Agricultural Economics / This research aimed to assess the profitability of sweet potato production enterprises. The focus areas were on: determining differences in profitability of different sweet potato enterprises located in different villages; identifying factors that affect the profitability of sweet potato enterprises; determining differences in the sweet potato markets; and identifying marketing channels utilised by sweet potato enterprises. The study was carried out in 8 villages in Makhado and Thulamela local municipalities of the Vhembe district of Limpopo province. There were 78 sweet potato farmers identified and interviewed as respondents in the study. A gross margin analysis model was used to calculate the profitability of sweet potato enterprises, while a multiple regression model was adopted to analyse factors that affect profitability of sweet potato enterprises. The study revealed the domination of females in sweet potato production, wherein 69.2% of the respondents were females. Furthermore, the study revealed that 16.7% of the respondents were illiterate, 24% of the respondents had never received any form of agricultural training. The findings of the study revealed that sweet potato production is a viable and profitable enterprise in the study area. Farmers recorded an average gross margin of R11 329.94 per ha. Furthermore, labour cost and fertilizer cost accounted for the highest costs incurred in production contributing 45% and 32% respectively to total costs. The results of the study further revealed that six variables were statistically significant to profitability. Occupation status, farming experience, unpaid family members, and labour cost were statistically significant to profitability at the 1% level of significance; whereas tractor hire cost and chemical cost were statistically significant to profitability at the 5% level of significance. The study recommends that stakeholders involved in agriculture and community development should attend to issues such agro-processing trainings and extension services offered to the farmers in the Vhembe district.

For many financial analysts the relationship between dividend policy and share price volatility remains inconclusive. The purpose of this study was to ascertain whether the relationship between dividend policy and share price volatility for JSE-listed firms in South Africa differs from previous, similar research done on different markets. The research study answered the research question and determined what the relationship is between dividend policy and share price volatility for a representative sample of JSE-listed firms. In addition, it met the objective of finding and evaluating the relationship between dividend policy and share price volatility for a selection of JSElisted firms, under various economic conditions. The research study spanned a 12- year period with more than 1 065 observations noted. Quantitative, secondary data was collected and descriptive statistics were used during the analysis phase. Two standard multiple regression models were used to regress dividend policy and share price volatility, with the first regression model only providing a crude test between the variables. The second regression model accounted for factors that affect both variables and was included to provide a more accurate test estimation. The relationship between the dividend payout ratio and share price volatility and the relationship between dividend yield and share price volatility were evaluated and reported on, under various different economic conditions (pre, during and post the 2008 financial crisis). The study concluded that there is a negative correlation between a firm’s dividend policy and share price volatility. It further found that a firm’s dividend payout ratio, and not the dividend yield ratio, remains the single biggest contributor in explaining the variance in share price volatility throughout the different economic phases presented by pre, during and post the 2008 global financial crisis. / Finance, Risk Management and Banking / M. Com. (Financial Management)

The disclosure of headline earnings is one of the JSE Limited (JSE)’s listing requirements. All listed entities are required to comply with this disclosure requirement. Guidance in the form of The Circular on headline earnings is issued by the South African Institute of Chartered Accountants (SAICA), and is updated every time when there are changes to the International Financial Reporting Standards (IFRS). The Circular adopts a rules-based approach and specifies what is included and excluded in the calculation of headline earnings. The rules consist of general rules, which apply to all entities other than those industry groups with special provisions such as the life insurance entities. This study questions whether a rules-based headline earnings approach or a principles-based approach is more appropriate for the calculation of headline earnings of listed property entities on the JSE, for economic decision-making purposes. The research method consisted of questionnaires that were sent out to stakeholders. The responses from the CFOs and investment analysts show that principles-based headline earnings guidance is preferred over rules-based headline earnings guidance. / Business Management / M. Phil (Accounting Sciences)

Dissertation (PhD)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: The dissertation firstly outlines the findings of recent studies that have recorded the relationship between transport and economic development. This includes the assessment of a number of economic evaluation techniques that are available to predict the impact of improvements in transport on economic development. An historic overview is provided of the role that transport has played in the development of Cape Town. Due to the fact that the phases of development followed international development trends, it is concluded that development in Cape Town will follow the global trend. A number of economic growth scenarios are developed for Cape Town to assess how the City will be able to cope with the socio-demographic challenges facing it in the next century. The relationship between land price and the economic development potential of land is outlined, as are the factors that determine industrial land price, namely the demand and supply of industrial land. The process of determining the economic value of industrial land is described. This includes the collection and analysis of occupation rent of industrial townships in Cape Town, the calculation of property values and the calculation of the shadow price of land. A procedure of determining accessibility to industrial townships in Cape Town was developed. Firstly, accessibility was defined in broad terms. This was followed by a discussion of each of the elements of accessibility namely proximity, access and mobility in order to understand the factors that may impact on the level of accessibility. Finally, the level of accessibility is quantified in terms of generalised cost. A regression analysis was undertaken to establish a statistical relationship between the economic value of industrial land and accessibility to the industrial townships. The development of a numerical model was based on the regression analyses to forecast changes in industrial land price given a change in accessibility. The model was then tested on a case study. The main conclusions of the study are as follows: (a) The accessibility of industrial land in Cape Town is linked closely to its CSD I Port (it was not possible to separate the CSD and the port), which is typical of a monocentric city structure. (b) There is a positive, significant, quantifiable relationship between accessibility as quantified by means of generalised cost and the economic value of industrial land, which was calculated by means of the shadow price technique. (c) There are a number of conditions that should be met for an increase in local industrial production potential to be translated into an equal amount of economic output. / AFRIKAANSE OPSOMMING: Die proefskrif som eerstens die bevindings van onlangse studies op wat die verwantskap tussen vervoer en ekonomiese ontwikkeling dokumenteer. Dit sluit die taksering van 'n aantal ekonomiese evaluasietegnieke in wat beskikbaar is om die impak van vervoer op ekonomiese ontwikkeling te voorspel. 'n Historiese oorsig word verskaf van die rol wat vervoer gespeel het in die ontwikkeling van Kaapstad. As gevolg van die feit dat die fases van ontwikkeling in die verlede internasionale ontwikkelingstendense gevolg het, word tot die gevolgtrekking gekom dat Kaapstad die globalisasie markera, wat tans internasionaal gestalte kry, sal navolg. 'n Aantal ekonomiese groeiscenarios word vir Kaapstad ontwikkel ten einde te bepaal hoe die stad die sosiodemografiese uitdagings van die volgende eeu sal hanteer. Die verwantskap tussen grondprys en die ekonomiese ontwikkelingspotensiaal van grond word omskryf, asook die faktore wat industriële grondprys bepaal. Die proses van die bepaling van die ekonomiese waarde van industriële grond word beskryf. Dit sluit die insamel en analise van besettingshuurdata van industriële dorpsgebiede, die berekening van eiendomswaarde en die berekening van die skaduprys van grond in. 'n Prosedure is ontwikkel vir die berekening van die toeganklikheid van industriële dorpsgebiede in Kaapstad. Eerstens is toeganklikheid in breë trekke gedefinieër. Dit is gevolg deur 'n bespreking van elk van die elemente van toeganklikheid, naamlik nabyheid, aansluiting en mobiliteit ten einde die faktore wat op die vlak van toeganklikheid mag impakteer te verstaan. Laastens is die vlak van toeganklikheid gekwantifiseer in terme van veralgemeende vervoerkoste. 'n Regressie-analise is onderneem ten einde die statistiese verwantskap tussen die ekonomiese waarde van industriële grond en toeganklikheid na industriële dorpsgebiede te bepaal. Die ontwikkeling van 'n numeriese model is op die regressie-analise gebaseer ten einde veranderinge in industriële grondpryse te voorspel, gegewe 'n verandering in toeganklikheid. Die model is op 'n gevallestudie toegepas. Die vernaamste gevolgtrekkings van die studie is : (a) Die toeganklikheid van industriële grond in Kaapstad is nou gekoppel aan die sentrale sakekern I hawe (dit was nie moontlik om die sentrale sakekern en hawe te skei nie), wat tipies is van n monosentriese staduitleg. (b) Daar is n noemenswaardige positiewe kwantifiseerbare verwantskap tussen toeganklikheid, soos gekwantifiseer in terme van veralgemeende koste, en die ekonomiese waarde van industriële grond wat deur middel van die skaduprystegniek bereken is. (c) Daar is 'n aantal voorwaardes waaraan voldoen moet word alvorens 'n toename in plaaslike industriële produksiepotensiaal tot 'n soortgelyke toename in ekonomiese ontwikelingspotensiaal sal lei.

This study presents two separate competitiveness analyses to assess changes in, and factors influencing, the long-term competitiveness of a panel of commercial milk producers in East Griqualand (EG), South Africa. The Unit Cost Ratio (UCR) method was used to measure competitiveness of EG milk producers. It is defined as the ratio of dairy enterprise accounting costs plus an opportunity cost of management at 5% of milk revenue, to total dairy enterprise revenue. The initial UCR analysis was used to partly investigate the impact of dairy market deregulation on the relative competitiveness of EG milk producers over the period 1983 to 2006. The results of this UCR analysis found that the sample of EG milk producers were not competitive based on the net local price, PL, received for milk but were competitive when dairy cattle trading income was included. This suggests that dairy cattle trading income played an important role in enhancing the competitiveness of EG dairy enterprises in the study period. Further UCR analysis revealed that differences in the inherent ability of members of the EG group to manage market deregulation impacted on the relative competitiveness of EG milk producers. The top onethird of the sample of EG milk producers remained relatively competitive from 1983 to 2006 due to higher real milk prices and lower real unit costs than producers in the bottom one-third category. Differences in relative competitiveness between the top and bottom one-third categories of producers were statistically significant. Based on the findings of the UCR analysis, a Ridge regression analysis was then used to investigate other factors influencing the long-term competitiveness of selected milk producers from EG using unbalanced panel data for the period 1990 – 2006. Results of the regression analysis showed that dairy herd size, the level of farm debt, annual production per cow, technology and policy changes over time, and the ratio of trading income to total milk income influence the long-term competitiveness of these milk producers. To enhance their competitiveness in a deregulated dairy market, relatively small and profitable EG milk producers should consider increasing herd sizes as the importance of herd size in explaining competitiveness suggests that size economies exist. All EG milk producers should consider utilising more pasture and other forages to lower feed costs and select dairy cattle of superior genetic merit to improve milk yields. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2009.

Energy poverty is a major obstacle to human development. Energy services supply the benefits that “trigger” wider social and economic changes and create the conditions for improving social equality and economic growth. The South African government has scaled up electricity access to its poor population to such an extent that 85% of the country’s population had access to electricity in 2017. Nevertheless, access to electricity is not the same as the ability to use it, as the poor find the price of electricity unaffordable. The government therefore embarked on a programme to provide households’ that they consider ‘indigent’ or ‘poor’ 50kWh of free energy. This is criticized by many as not being enough to sufficiently satisfy household energy needs. Even the generous supply of 100kWh electricity provided by the City of Tshwane and the City of Johannesburg municipalities is considered to be insufficient. This study investigates the impact of the 100kWh free basic electricity subsidy on the energy use of the urban poor in the township of Soshanguve in the City of Tshwane municipality. It focuses on whether the 100kWh is enough to meet these household’s’ energy needs. The finding of the study is that the 100kWh FBE is enough to meet these households’ needs for lighting, some cooking and appliance use, but not for space and water heating. / Development Studies / M.A. (Development Studies)

The disclosure of headline earnings is one of the JSE Limited (JSE)’s listing requirements. All listed entities are required to comply with this disclosure requirement. Guidance in the form of The Circular on headline earnings is issued by the South African Institute of Chartered Accountants (SAICA), and is updated every time when there are changes to the International Financial Reporting Standards (IFRS). The Circular adopts a rules-based approach and specifies what is included and excluded in the calculation of headline earnings. The rules consist of general rules, which apply to all entities other than those industry groups with special provisions such as the life insurance entities. This study questions whether a rules-based headline earnings approach or a principles-based approach is more appropriate for the calculation of headline earnings of listed property entities on the JSE, for economic decision-making purposes. The research method consisted of questionnaires that were sent out to stakeholders. The responses from the CFOs and investment analysts show that principles-based headline earnings guidance is preferred over rules-based headline earnings guidance. / Business Management / M. Phil. (Accounting Sciences)

Abstracts in English, Afrikaans and Zulu / The advancement and development of the financial sector is fundamental for building an efficient economic system that enhances foreign and domestic investments. The aim of this study was to compare the relationship between the price performance of initial public offerings and macroeconomic indicators in the South African and the Nigerian economy. With the increase of IPO listing on both stock exchanges, it is of paramount importance that an analysis and examination of IPO performance and its contribution to the economy is conducted. Using the 91 and 19 initial public offerings that were listed on the Johannesburg Stock Exchange and the Nigerian Stock Exchange respectively during the years 2005 to 2015, price performance was measured by using the market-adjusted abnormal returns and the wealth relative model. The linear ordinary least squares regression model was used to measure the relationship between initial public offering performance and macroeconomic indicators. Based on the mean market adjusted returns, initial public offerings listed between 2005 and 2015 were under-priced. The regression model established that the first day, week and month price changes in Nigeria were 0.19, 0.48 and 0.77 times higher respectively than to South Africa. The regression analysis found that inflation and interest rates were positively correlated with price changes at the end of the first month of trade, whereas gross domestic product growth was not statistically significant. Therefore, to evade financial loss, investment decision making processes should consider factors such as geographic location, interest rates, inflation and the industry prior to making the decision. / Die bevordering en ontwikkeling van die finansiële sektor is fundamenteel vir die ontwikkeling van ʼn doeltreffende ekonomiese stelsel wat buitelandse en binnelandse investering aanmoedig. Die doel van hierdie studie was om die verhouding tussen die prysprestasie van aanvanklike openbare aanbiedinge en makro-ekonomiese aanwysers in die Suid-Afrikaanse en Nigeriese ekonomie te vergelyk. Met die toename in AOA-notering op albei aandelebeurse, is dit uiters belangrik dat ’n ontleding van en ondersoek na AOA-prestasie en sy bydrae tot die ekonomie uitgevoer word. Deur gebruikmaking van die 91 en 19 aanvanklike openbare aanbiedinge wat onderskeidelik op die Johannesburgse Effektebeurs en die Nigeriese Effektebeurs gedurende die tydperk 2005 tot 2015 genoteer is, is prysprestasie gemeet deur gebruikmaking van die markaangepaste abnormale opbrengste en die rykdomrelatiewe model. Die lineêre gewone kleinste kwadrate-regressiemodel is gebruik om die verwantskap tussen die prestasie van aanvanklike openbare aanbod en makro-ekonomiese aanwysers te meet. Op grond van die gemiddelde markaangepaste opbrengste was aanvanklike openbare aanbiedinge wat tussen 2005 en 2015 genoteer is, onderprys. Die regressiemodel het vasgestel dat die eerste dag-, week- en maandprysveranderinge in Nigerië onderskeidelik 0.19, 0.48 en 0.77 keer hoër as in Suid-Afrika was. Die regressieontleding het bevind dat inflasie en rentekoerse ’n positiewe korrelasie gehad het met prysveranderinge aan die einde van die eerste handelsmaand, terwyl bruto binnelandse produk se groei nie statisties beduidend was nie. Derhalwe, om finansiële verlies te ontduik, behoort investeringbesluitnemingsprosesse faktore soos geografiese ligging, rentekoerse, inflasie en die bedryf in aanmerking te neem voordat besluite geneem word. / Ukuqhubekela phambili kanye nentuthuko yomkhakha (sector) yezezimali kubalulekile ekwakheni inqubo yezomnotho esebenza kahle neqhubekela phambili ukutshalwa kwezimali zangaphandle kanye nezangaphakathi ezweni. Inhloso yalolu cwaningo bekuwukuqhathanisa ubuhlobo phakathi kokusebenza kwentengo yama-initial public offerings kanye nezinkomba zama-macroeconomic kumnotho weNingizimu Afrika kanye nowase-Nigeria. Ngokwenyuka kwe-IPO listing kuwo womabili ama-stock exchange, kubaluleke kakhulu ukuthi kwenziwe uhlaziyo nohlolo lokusebenza kwe-IPO kanye nomthelela wakho kumnotho kumele kwenziwe. Ngokusebenzisa ama-initial public offerings ka 91 no 19 kwi-Johannesburg Stock Exchange kanye nakwi-Nigerian Stock Exchange ngokuhambisana phakathi kweminyaka ka 2005 kanye no 2015, ukusebenza kwamanani entengo kwakalwa ngokusebenzisa ama-market-adjusted abnormal returns kanye ne-wealth relative model. Imodeli ye-linear ordinary least squares regression model kwasetshenziswa ukukala ubuhlobo phakathi kwama-initial public offering performance kanye nezinkomba ze-macroeconomic. Ngokulandela i-mean market-adjusted returns, ama-initial public offerings okwafakelwa kuhla phakathi kweminyaka ka 2005 kanye no 2015 kwakufakelwe ngentengo ephansi. I-regression model yathola ukuthi ngosuku lokuqala, ngeviki, kanye nenyanga, ukushintsha kwamanani entengo eNigeria, kwakungu 0.19, 0.48 kanye ne 0.77 ngezihlandla eziphezulu kuneNingizimu Afrika. Uhlaziyo lwe-regression analysis lwathola ukuthi i-infleshini kanye namazinga enzalo achaphazeleka ngendlela enhle ngokuhambisana noshintsho lwentengo ekupheleni kwenyanga yokuqala yokuhwebelana, lapho khona ukukhula kwe-gross domestic project kwakungakhulile kakhulu ngokwezibalo. Ngakho-ke, ukugwema ulahlekelo kwezezimali, izinqubo zokuthatha izinqumo ngotshalo-mali kumele kubonelele izinto ezifana nendawo okuyi-geographical location, amazinga enzalo, i-infleshini kanye nemboni ngaphambi kokuthatha isinqumo. / Finance, Risk Management and Banking / M. Com. (Business Management)