This paper examines the effect of recent regulations on executive incentive compensation contracting among US banks. Following regulations (the Guidance on Sound Incentive Compensation Policies and the Dodd-Frank Act Section 956) intended to prevent incentive compensation arrangements that encourage imprudent risk-taking, I test whether pay-for-performance is weaker and the penalty for downside tail risk is stronger in the post-crisis period as compared to the pre-crisis period. Specifically, I compare the impact of the regulations on large banks versus small banks, using the latter to control for concurrent events. Consistent with regulatory intent, I find evidence of weaker pay-for-performance and larger penalties for downside tail risk for CEOs of large banks in the post-crisis years, as compared to small banks. Together, the results provide evidence on the effectiveness of new regulations in curbing bank CEOs’ incentives, as well as introduce downside tail risk as a determinant of compensation in the banking industry.

This thesis tests, firstly, the relevance of the OECD Model article 17 (the sportsperson article). Secondly, and accepting the current format of the sportsperson article in South African Double Tax Agreements (DTAs), the withholding tax applied to sportspersons performing in South Africa is analysed against the sportsperson article to determine whether these are appropriately aligned. The interpretational rules applicable to fiscal legislation in South Africa provide the methodology applied to the analysis of the withholding tax on sportspersons and the applicable DTA articles. Comparative analyses were conducted on all the South African DTAs in force at 1 June 2008 against the OECD, UN and USA Models. The OECD Model provides the core commentary as it is the general basis for most South African DTAs. Substantive analyses were conducted on the DTA articles of 'taxes covered' (OECD Article 2); sportspersons (OECD Article 17) and exchange of information (OECD Article 26). The scope of the withholding tax, both as regards persons and income, was found to be wider than that of the South Africa DTA sportsperson articles. This misalignment renders the withholding tax inapplicable in many cases when applied to a resident of a Contracting State. Naturally the misalignment has no influence on sportspersons from States that have not concluded a DTA with South Africa. The misalignment has also been replicated in the concessionary legislation promulgated for the 2009 FIFA Confederations Cup and 2010 FIFA World Cup in South Africa. As South Africa has not concluded DTAs with the bulk of the potential qualifying countries for the 2010 FIFA World Cup, the possibility of double taxation for sportspersons, support and auxiliary staff is increased. The difference in scope between the DTAs and the withholding tax is also an indicator of the increasing inappropriateness of the sportsperson article in current DTAs in force. While the initial justification for the article's inclusion may have been valid, in a global economy with business and individuals more mobile than national tax systems, an article focussed on only one class of mobile worker is inappropriate and lacks relevance. University of Cape Town Abstract iv As national governments react to global tax issues, development in exchange of information is bound to occur. However, to supplant withholding taxes in source States and to fully support the residence basis of taxation, regular (and reciprocal) exchange of information is required between States. Currently, differences in domestic tax systems and inefficiencies in exchanges render withholding taxes a necessary (albeit a crude) substitute to ensure that the income is taxed at least once between the source State and resident State. Advances in exchange of information are progressing rapidly and it is hoped that automatic relevant exchange of information in the future will remove the need for unnecessary withholding taxes and ensure that the right tax is levied on the right person in the appropriate State (Pocock, 2001). The South African withholding tax on sportspersons should be aligned with the sportsperson article in the interim (or a replacement article in the future). South Africa should also continue to actively pursue exchanges of information with other States and encourage other States to do so in global forums. It is recommended that the DTA sportsperson article be deleted and replaced with a more appropriate and relevant DTA article concerning all mobile individuals.

Includes abstract. / Includes bibliographical references. / Corporate governance is not a new concept, although researchers have only shown interest in the topic in the past few decades. The recent financial crisis reignited debate on appropriate mechanisms for making management more accountable to shareholders. Management and boards of directors have been accused of not doing much to protect the interests of shareholders and other relevant stakeholders. This study examines the relationship between board attributes and corporate performance for publicly listed companies in South Africa. In contrast to prior studies, in this research performance is defined as the efficiency of the value added by a firm’s total resources, and its two major components, physical capital (PC) and intellectual capital (IC).

Includes abstract. / The use of ESOs as a form of employee remuneration has grown dramatically in recent years, fuelling a significant amount of research. The current accounting standards (IFRS 2 and IAS 33) do not reference this research and as a result the accounting records do not accurately reflect the economic nature of these transactions. This study will: 1. Evaluate the requirements of IFRS 2 and IAS 33 by developing an accounting model for each standard and comparing the current rules with this theoretical benchmark. 2. Further examine any identified differences by means of empirical tests. The objective is thus to establish a theoretically sound approach to ESO accounting that can be confirmed by empirical testing.

Bibliography: leaves 277-287.

Bibliography: pages 261-272. / This thesis examines the impact on share prices of voluntary reporting of financial targets and constraints, particularly the target rate of return, target dividend payout ratio and target debt ratio. Hypotheses developed about of this reporting are that a positive impact on in estimation risk the potential share price impact there will be share prices through a reduction an increase in the dispersion of share price changes owing to a revision of expectations a positive impact on share prices owing to a signalling effect. The hypotheses are tested by examining share price behaviour accompanying the voluntary reporting of financial targets and constraints over the period 1974 to 1982 by thirty-four companies listed on the Johannesburg Stock Exchange. This is an event study, in which the event is defined as the first occasion on which a company reports the specified financial targets and constraints. To test for a positive impact on share prices, weekly excess returns are calculated using the market model. To test for an increase in the dispersion of share price changes, weekly variability ratios are calculated which provide a measure of returns in the event week relative to the average variability of returns in the estimation period. The controls applied in this study to demonstrate the link between the event and the share price impact are the market model, diversification of calendar dates and two control groups. The results of the study reveal a positive impact on share prices when companies first report financial targets and constraints. This is consistent with all three hypotheses. As this form of voluntary reporting has not previously been tested in this way, the results should be of interest to financial managers and to those concerned with the regulation of financial reporting in South Africa.

Financial institutions are often reluctant to lend to smaller entrepreneurs due to perceived information asymmetry and lack of available collateral. At the nascent and new entrepreneurial levels, it is generally more difficult for loan applicants to provide the information required to secure the necessary funds. Inadequate financial information coupled with uninformative credit histories heighten the information opacity thus diminishing the entrepreneur's prospects of securing loan funding. Viable entrepreneurial projects may therefore remain unfunded largely due to uncertainty rather than riskiness. This study therefore highlights the creditworthiness assessment process and seeks to address the information opacity problem by looking to alternative sources of entrepreneurial information that may aid the loan officer.

A thesis submitted to the Faculty of Commerce, Administration & Law in partial fulfillment of the requirements for the Degree of Doctor of Commerce in Management at the University of Zululand, South Africa, 2005. / Small and medium-scale enterprises (SMEs) form the majority of the enterprises in the Kenyan economy. They employ a large share of the labour force. The sector is perceived as an alternative employer. Recent studies show that SMEs are at least as important as large firms in the creation of gross and net new jobs. Notwithstanding their importance, most SMEs are unable to exploit the increased market opportunities due to a number of constraints. This is because of either low productivity, incapacity to face competition from imports or in export markets, constraints to adapt new technologies and or a lack of finance. Financing of the sectors' activities is always cited as one of the problems facing the sector. The literature review on SME's access to bank finance indicates that most SME operators have limited access to bank finance. SME access to the formal financial sector is constrained by high risks and transaction costs associated with commercial lending. To develop them and maintain their contribution, initiatives are required to enable them grow and flourish. The aim of this study was to provide a perspective on use of alternative finance by SMEs in Kenya. The study focused on three manufacturing sub-sectors, namely: Textile and Garment, Furniture and Wood products and Metal and Metal products. To achieve this aim, the study sought to identify factors influencing the financing structure of SMEs such as enterprise demographic factors, investigate alternative methods or models of SME financing; identify factors which limit SMEs access to credit from the formal financial market, main sources of SMEs finance, and suggest and recommend measures to improve SMEs finance in Kenya. The study employed survey research design methodology in which combinations of research methods were used. These included questionnaire survey, observation; face to-face interviews and literature review. Various enterprise finance theories making up the meta-theoretical framework used in the study and empirical studies of small enterprises' capital structure are discussed as aprelude to the empirical study. Empirical data was collected from 380 respondents in order to answer research questions and to test various hypotheses concerning the determinants of capital structure of the enterprises in the study. The aspects of capital structure covered in the analyses were alternative sources of finance [long-term and short-termj and the demographic characteristics of the SME operators and their enterprises. Quantitative data from the survey was analyzed with the application of microfit software and descriptive statistics. Content analysis was applied to qualitative data from open-ended questions and structured interview schedule on key informants. The findings indicates that the SME manufacturing activity is male dominated; majority of the manufacturing SME operators fell in the 30-49 age categories; had secondary education; do not to have any formal training in business management; have not changed accounts from one bank to the other; and majority of the enterprises in the survey are sole proprietorships. Further, empirical results indicate that interest rate and collateral requirement are the major factors influencing choice of finance. The overall results show that personal savings is used as the main source of enterprise financing. Specifically, there was general agreement amongst the operators that bank finance is least used and that alternative finance is least used and poorly understood or not understood at all. In addition, there was a very insignificant level of computer literacy among the SME operators in the study. The study notes that SME financing in Kenya; and in particular the use of alternative finance needs to be addressed. It is recommended that a Small Business policy division be established by the government of Kenya, responsible for promoting small business policy; establishment of a business portal to not only harmonise, but also facilitate provision of online support services to the maximum number of financial and other services; establishment of a central data bank on national business activities including those of small and medium-scale enterprises. The system to maintain comprehensive and objective data sets relating to the financing of SMEs, particularly on demand for and supply of financing; promote inter-firm linkages and provide information on availability of alternative sources of finance. The study further suggests a hybrid structure of SME financing between the micro-finance institutions (MFIs) and the formal financial institutions. The model suggests an introduction of micro and small business finance windows in commercial banks, developing linkages between micro financial institutions and commercial banks. In addition, the study proposes the establishment of a national SMEs development bank that will act as a revolving fund to boost the development of SMEs. The proposed bank to be linked to municipal/city council SMEs revolving funds. This will ensure that there is an all round concerted effort at stimulating and monitoring SME activities. The strategy will help allocate limited national resources to target industrial activities that will jump-start the industrial process, using both local and foreign resources. It is further recommended that longitudinal studies be considered to meet data needs in the SME sector. Such studies will help identify real financing gaps among other gaps in the sector for the application of intervention measures. In conclusion, the study makes a distinct contribution to the theory and practice of financial management, specifically alternative financing in the small and medium-size organizations, not only in Kenya but for other countries in Africa as well. The study also presents a basis for educational, developmetal and training parameters, which enlightened institutions can implement in formal training programmes. Finally, organisations that facilitate the financing of small and medium-size businesses are encouraged to maintain comprehensive and objective data sets relating specifically to the financing of SME's.

Includes abstract. / Includes bibliographical references (p. 212-228 ). / The existence and prevalence of financial constraints has been extensively discussed in the international economic literature, and is implicit in debates on the performance and needs of South Africa’s Small, Medium and Micro Enterprises (SMMEs). However, there is little solid research measuring financial constraints among South African SMMEs. In addition, the reasons advanced for their financial constraints are often speculative and anecdotal rather than the result of sound research. The hypothesis of credit rationing, resulting from information asymmetries, is well established in theory but an additional explanatory hypothesis, the fragile financial structure of SMMEs, is often voiced by the South African finance community. With South African data being scarce and patchy, none of these hypotheses has been validated by empirical studies. The most likely reason for these gaps in literature is not a lack of interest, but the considerable difficulty of raising reliable data from SMMEs, a joint result of confidentiality, widespread informality in the sector, and the limitations of publicly available statistics in developing countries. Surveys of banks or SMMEs raise risks of partiality and limited ability of respondents to provide quantitative data, while accounting data are characterised by limited usability and reliability. This thesis attempts to address those challenges by exploring primary and secondary sources of data, combining the respective strengths of interview and financial data.

Includes bibliographical references (leaves 217-236).