Thesis (MBA)--Stellenbosch University, 2001. / A database on South African industrial companies listed on the Johannesburg Stock Exchange called FIN01 was created by the Graduate School of Business (USB), University of Stellenbosch, to capture the various companies' financial data from 1970 to date. FIN01 database is being updated to capture financial data of listed companies from other African countries. Against the background, the purpose of the study project was to update the University database (FIN01) by creating a database for listed Botswana Stock Exchange companies. The creation of the database required gathering and analysis of information of the various Botswana companies. Before the information from the Annual Reports could be captured into the main database, it was captured into Excel created spreadsheets. This information was captured under the respective workbooks as created for the cash flow statements, income statements and balance sheet items. To conform to the requirements of the FIN 01 database, the Botswana companies were allocated codes. The summarised data was then transferred to the main USB database (FIN01). A thorough analysis on performance of the various companies was then carried out. This was done through trend analysis, common size analysis and ratio analysis. Problems were encountered during the process of data capturing and analysis. These included unavailability of Annual Reports, various different reporting formats and the standard Excel spreadsheets provided. The various companies' inconsistency in reporting was further reflected in the non-reporting of turnover and share prices by most of the listed companies. However, the creation and incorporation of the listed Botswana companies was a success. It is recommended that the project be continued as an ongoing process. The information should be updated on a yearly basis. Companies should be encouraged to continue sending the Annual Reports to the University. The companies should in return get regular feedback on key performance indicators as reflected in the database.

The study examines the dynamic relationship between financial development and investment in three Southern African countries (Botswana, South Africa and Mauritius) during the period 1976 – 2014 using annual data. The motivation for selecting these countries is mainly based on their different characteristics in their economic and financial structure. Employing the Autoregressive Distributed Lag (ARDL) bounds test approach, the study examines the role of financial development in boosting investment; and the causal relationship between financial development and investment. The study makes use of composite financial development indices and divides financial development into bank-based and market-based financial development. In addition, both the impact of bank- and market-based financial development on investment, on the one hand; and the causality between bank- and market-based financial development and investment, on the other, were examined within the flexible accelerator model/framework. For both models, both bank-based and market-based financial development are assumed as having an accelerator-enhancing effect on investment. Empirical results show that, for Botswana, the impact of bank-based financial development on investment is positive in both the short run and the long run while no impact of market-based financial development is found for both periods. For South Africa, the effect of bank-based financial development on investment is found to be negative in the short run and has no impact in the long run. However, market-based financial development has only a positive effect on investment in the long run. For Mauritius, market-based financial development is the only type of financial development found to have a significant positive effect on investment, and only, in the short run. The results of the causality test show that: for Mauritius, both bank-based and market-based financial development tend to drive investment, both in the short run and in the long run; while- in South Africa, investment drives both bank-based and market-based financial development only in the short run. In Botswana, bank-based and market-based financial development and investment drive each other in the short run while investment tends to only drive bank-based financial development in the long run. Therefore, all three countries show differing results and tend to confirm that there are inter-country differences that determine the relationship between investment and financial development. The inter-country differences maybe as a result of the different stages of financial and economic development for each country. / Economics / D. Phil. (Economics)