Thesis M.COM. (Accounting)) -- University of Limpopo, 2019 / The apparent weaknesses in corporate governance of state-owned enterprises and poor audit reports have heightened the concern of investors and the state as the major shareholder of these enterprises returns. Audit committees as a mechanism for good corporate governance plays a major role in enterprise performance. These state-owned enterprises play a vital role in the economy of South Africa. This study examines the effect of audit committee composition (independence, gender diversity, financial expertise and size) on financial performance measured by return on assets using major state-owned enterprises listed on Schedule 2 of PFMA. The results show that the audit committee size, gender diversity and financial expertise has an insignificant positive relationship with ROA, whereas the independence of audit committee members has an insignificant negative association. The result of the study may be beneficial to various stakeholders and boards of enterprises to make some proper decisions on audit committee composition to attract more investors and at the same time safeguarding the investments of shareholders.

A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Science in Engineering, 2016 / The purpose of this research is to identify and outline the sustainable funding models for BEE transactions in the South African mining industry. It is proposed that from the early 2000s to 2014 the sustainability of BEE funding models was driven by regulatory pressure. In the absence of regulatory pressure, there would be a need to develop alternative funding models. The study uses a quantitative research methodology by examining the frequency of use of various funding models, the impact of regulatory interventions and use of various funding sources on the sustainability of funding models, regression analysis and significance testing. The research results show that the percentage of third party finance in funding structures has a negative correlation with the success of BEE transactions. Vendor finance shows a positive correlation with the sustainability of transactions, more so above 60% in the funding structures. Equity finance has a positive impact on the success of transactions from as low as 20% in the funding structures. An ideal funding structure would consist of the following funding sources:  Third party: Vendor: Equity = 40%: 20%: 40%, in the case of a BEE company that has equity available and  Third party: Vendor = <40%: > 60%, where no equity is available to BEE entrepreneurs. In the absence of BEE laws third party finance will dominate funding of empowerment transactions. Funding models based on third party finance must rely more on cash flow based payments rather than dividend payments to service debt.

The prediction of a company's financial health is of critical importance to a variety of stakeholders ranging from auditors, creditors, customers, employees, financial institutions and investors through to management. There has been considerable research in this field, ranging from the univariate dichotomous approach of Beaver (1966) to the multivariate multi-state approaches of Lau (1987) and Ward (1994). All of the South African studies namely, Strebel and Andrews (1977), Daya (1977), De La Rey (1981), Clarke et al (1991) and Court et al (1999), and even, Lukhwareni's (2005) four separate models, were dichotomous in nature providing either a "Healthy" or a "Failed" state; or a "Winner" or "Loser" as in the latter case. Notwithstanding, all of these models would be classified as first stage, initial screening models. This study has focused on following a two stage approach to identifying (first stage) and analysing (second stage) the States of Health in a company. It has not adopted the rigid "Healthy" or "Failed" dichotomous methodology. For the first stage, three-state models were developed classifying a company as Healthy, Intermittent or Distressed. Both three year and five year Profit after Tax (PAT) averages for Real Earnings Growth (REG) calculations were used to determine the superior definition for the Intermittent state; with the latter coming out as superior. Models were developed for the current year (Yn), one (Yn-1), two (Yn-2) and three years (Yn-3) forward using a Test sample of twenty companies and their predictive accuracy determined by using a Holdout sample of twenty-two companies and all their data points or years of information. The statistical methods employed were a Naïve model using the simple Shareholder Value Added (SVA) ratio, CHAID and MDA, with the latter providing very disappointing results - for the Yn year (five year average), the Test sample results were 100%, 95% and 95%, respectively; with the Holdout sample results being 81.3%, 83.8% and 52.5%, respectively. The Yn-1 to Yn-3 models produced very good results for the Test sample but somewhat disappointing Holdout sample results. The best two Yn models namely, the Naïve and the CHAID models, were modified so as to enable a comparison with the notable, dichotomous De La Rey (1981) model. As such, three different approaches were adopted and in all cases, both the modified Naïve (100%, 81.3%, 100%) and the modified CHAID (100%, 85.9%, 98%) produced superior results to the De La Rey model (84.8%, 62.6%, 75.3%). For the second stage, a Financial Risk Analysis Model (FRAM) using ratios in the categories of Growth, Performance Analysis, Investment Analysis and Financial Status were used to provide underlying information or clues, independent of the first stage model, so as to enable the stakeholder to establish a more meaningful picture of the company. This would pave the way for the appropriate strategy and course of action to be followed, to take the company to the next level; whether it be taking the company out of a Distressed State (D) or further improving on its Healthy status (H). / Business Management / D. BL.

The South African Reserve Bank presents an annual balance sheet for the South African household sector constructed from macro-economic data estimates. Broad asset and liability classes are presented which can be disaggregated with the use of micro-level data obtained directly from households. At the time of the study, however, micro-level data on the different asset and liability classes accumulated by households was not available. The main objective of the study was to disaggregate and measure the asset and liability base of South African households in metropolitan and non-metropolitan areas using micro-level data. The study used a mixed methodological approach, consisting of both qualitative and quantitative data and was conducted in three phases. In the first phase, a comprehensive literature review was conducted on the recognition and measurement of household assets and liabilities. Economic theories that explain asset and liability accumulation were reviewed and international surveys on household net wealth measurement scrutinised. A heuristic model of a financial position section for the South African household sector was developed. In the second and qualitative phase, online and face-to-face focus group deliberations were conducted with experts in the field of household finance to ensure that the newly developed financial position section would robustly recognise and measure all possible household asset and liability classes. In the third and quantitative phase, the financial position section was included in an omnibus survey and data was collected from a representative sample of 2 606 households in South Africa. The weighted data was segmented in terms of metropolitan and non-metropolitan areas and presented as statements of financial position based on the classification, recognition and measurement principles of “The Conceptual Framework for Financial Reporting 2010”. Composition analyses presented a secondary objective, namely to explore the effect of identified independent demographic variables on asset and liability accumulation. Multivariate analysis of variance (MANOVA) identified meaningful interaction effects for (1) age, income and area; (2) income and age; (3) education, income and age; and (4) education and income on asset accumulation and an age and income interaction effect on liability accumulation. The study contributes to the body of knowledge on the contemporaneous effect of age, income, education and area of residence on household asset and liability accumulation and provides information on South African household net wealth not yet available. The disaggregated asset and liability base will assist policy makers both at micro- and macro-economic level with the overview and management of South African household net wealth. / Business Management / D. Accounting Science

Tertiary education campuses are no more the heart of peacefulness and scholastic study. They are turned into battlefields, administration and lecture hall buildings become the objects of siege, invasion and occupation. This is caused by the demands by students for adequate financial aid, the declining financial resources from government and the government's call for more access to tertiary education especially for the historically disadvantaged students. The problems in tertiary education pertain not only to financial problems, they also include cultural diversity, social and political issues. The financial aid to tertiary institutions is the main theme in this research. The research is based on a study of international and South African tertiary education systems in order to find ways to manage student affairs in tertiary education effectively and efficiently and to establish management strategies that will be acceptable to students, management, parents, all stakeholders and interest groups. In the end the management in tertiary education institutions should be able to effect the transformation based on the profound deficiencies of the present system which inhibit Higher Education's ability to meet the moral, social and economic demands of the new South Africa in the context of national and global opportunities and challenges. / Educational Leadership and Management / M.Ed. (Educational Management)

The South African Reserve Bank presents an annual balance sheet for the South African household sector constructed from macro-economic data estimates. Broad asset and liability classes are presented which can be disaggregated with the use of micro-level data obtained directly from households. At the time of the study, however, micro-level data on the different asset and liability classes accumulated by households was not available. The main objective of the study was to disaggregate and measure the asset and liability base of South African households in metropolitan and non-metropolitan areas using micro-level data. The study used a mixed methodological approach, consisting of both qualitative and quantitative data and was conducted in three phases. In the first phase, a comprehensive literature review was conducted on the recognition and measurement of household assets and liabilities. Economic theories that explain asset and liability accumulation were reviewed and international surveys on household net wealth measurement scrutinised. A heuristic model of a financial position section for the South African household sector was developed. In the second and qualitative phase, online and face-to-face focus group deliberations were conducted with experts in the field of household finance to ensure that the newly developed financial position section would robustly recognise and measure all possible household asset and liability classes. In the third and quantitative phase, the financial position section was included in an omnibus survey and data was collected from a representative sample of 2 606 households in South Africa. The weighted data was segmented in terms of metropolitan and non-metropolitan areas and presented as statements of financial position based on the classification, recognition and measurement principles of “The Conceptual Framework for Financial Reporting 2010”. Composition analyses presented a secondary objective, namely to explore the effect of identified independent demographic variables on asset and liability accumulation. Multivariate analysis of variance (MANOVA) identified meaningful interaction effects for (1) age, income and area; (2) income and age; (3) education, income and age; and (4) education and income on asset accumulation and an age and income interaction effect on liability accumulation. The study contributes to the body of knowledge on the contemporaneous effect of age, income, education and area of residence on household asset and liability accumulation and provides information on South African household net wealth not yet available. The disaggregated asset and liability base will assist policy makers both at micro- and macro-economic level with the overview and management of South African household net wealth. / Business Management / D. Com. (Accounting Science)

This study assessed the link between financial literacy and levels of debt among junior permanent bank employees. Based on the mixed purposive and simple random sampling approach, a structured questionnaire was used to collect primary data from a sample of 275 junior permanent bank employee participants. Frequencies, descriptive statistics and binary logistic regression techniques were applied to analyse data using the SPSS 23 statistical package. The Cronbach’s alpha criterion and Keiser-Meyer-Olkin measure of sampling adequacy results indicate that the research instrument’s items were statistically reliable and statistically valid. The descriptive statistics results on the financial behaviour and attitude dimension indicate that permanent junior bank employees on average pay reasonable attention to their financial affairs. The classification summary statistics indicate that financial literacy and financial behaviour and attitudes were significant predictors of the debt level. The Nagelkerke R-square indicates that some significant amount of overall variation in debt level was accounted for by financial literacy and financial behaviour and attitudes. Based on the odds ratios results, a statistically significant relationship between financial literacy and debt level was found in the study. Conversely, the estimated odds ratios results indicate a statistically significant negative relationship between financial behaviour and attitudes, and the level of debt / Business Management / M.Com. (Business Management)

The prediction of a company's financial health is of critical importance to a variety of stakeholders ranging from auditors, creditors, customers, employees, financial institutions and investors through to management. There has been considerable research in this field, ranging from the univariate dichotomous approach of Beaver (1966) to the multivariate multi-state approaches of Lau (1987) and Ward (1994). All of the South African studies namely, Strebel and Andrews (1977), Daya (1977), De La Rey (1981), Clarke et al (1991) and Court et al (1999), and even, Lukhwareni's (2005) four separate models, were dichotomous in nature providing either a "Healthy" or a "Failed" state; or a "Winner" or "Loser" as in the latter case. Notwithstanding, all of these models would be classified as first stage, initial screening models. This study has focused on following a two stage approach to identifying (first stage) and analysing (second stage) the States of Health in a company. It has not adopted the rigid "Healthy" or "Failed" dichotomous methodology. For the first stage, three-state models were developed classifying a company as Healthy, Intermittent or Distressed. Both three year and five year Profit after Tax (PAT) averages for Real Earnings Growth (REG) calculations were used to determine the superior definition for the Intermittent state; with the latter coming out as superior. Models were developed for the current year (Yn), one (Yn-1), two (Yn-2) and three years (Yn-3) forward using a Test sample of twenty companies and their predictive accuracy determined by using a Holdout sample of twenty-two companies and all their data points or years of information. The statistical methods employed were a Naïve model using the simple Shareholder Value Added (SVA) ratio, CHAID and MDA, with the latter providing very disappointing results - for the Yn year (five year average), the Test sample results were 100%, 95% and 95%, respectively; with the Holdout sample results being 81.3%, 83.8% and 52.5%, respectively. The Yn-1 to Yn-3 models produced very good results for the Test sample but somewhat disappointing Holdout sample results. The best two Yn models namely, the Naïve and the CHAID models, were modified so as to enable a comparison with the notable, dichotomous De La Rey (1981) model. As such, three different approaches were adopted and in all cases, both the modified Naïve (100%, 81.3%, 100%) and the modified CHAID (100%, 85.9%, 98%) produced superior results to the De La Rey model (84.8%, 62.6%, 75.3%). For the second stage, a Financial Risk Analysis Model (FRAM) using ratios in the categories of Growth, Performance Analysis, Investment Analysis and Financial Status were used to provide underlying information or clues, independent of the first stage model, so as to enable the stakeholder to establish a more meaningful picture of the company. This would pave the way for the appropriate strategy and course of action to be followed, to take the company to the next level; whether it be taking the company out of a Distressed State (D) or further improving on its Healthy status (H). / Business Management / D. BL.

Tertiary education campuses are no more the heart of peacefulness and scholastic study. They are turned into battlefields, administration and lecture hall buildings become the objects of siege, invasion and occupation. This is caused by the demands by students for adequate financial aid, the declining financial resources from government and the government's call for more access to tertiary education especially for the historically disadvantaged students. The problems in tertiary education pertain not only to financial problems, they also include cultural diversity, social and political issues. The financial aid to tertiary institutions is the main theme in this research. The research is based on a study of international and South African tertiary education systems in order to find ways to manage student affairs in tertiary education effectively and efficiently and to establish management strategies that will be acceptable to students, management, parents, all stakeholders and interest groups. In the end the management in tertiary education institutions should be able to effect the transformation based on the profound deficiencies of the present system which inhibit Higher Education's ability to meet the moral, social and economic demands of the new South Africa in the context of national and global opportunities and challenges. / Educational Leadership and Management / M.Ed. (Educational Management)

With the advent of the new National Health Act, health care in South Africa is at a critical point as this will be the first time in history that a National Health Insurance is being implemented in this country. Globally National Health Insurance has been around for more than a hundred years, however some countries with long established national health schemes are currently grappling with funding issues surrounding their health systems. South Africa should take note of these issues as it embarks on this journey. The objective of this study was to perform a literature review on how South Africa’s National Health Insurance can be funded taking cognisance of the history of the country and experiences of other countries. It is imperative for each country to achieve optimal health care funding to ensure the success and long-term sustainability of National Health Insurance. The analysis of the problems experienced by other countries revealed that balancing the three main funding options namely, allocated from the national revenue fund, user charges and or donations or grants from international organisations, is critical as the funds needed in a system to achieve coverage at an affordable cost is dependent on the current state of health care in a country. Considering South Africa’s history and current inequality in society and health care it is clear that the majority of funding for the National Health Insurance should be supplied by the national revenue fund. The required funds can either be raised by increasing existing taxes or introducing a new tax specifically aimed at financing the National Health Insurance. The use of user charges is important however, although not purely for a revenue collection point, but from a cost control point of view as well. Some studies have revealed that the lack of user charges results in a misuse of the system. / Financial Accounting / M. Phil. (Accounting Science)