The main objective of the thesis was to investigate the factors that determine capital structures of financial firms using two separate samples of banks and insurance companies. In the first instance, the results of the study showed that the financing behaviour of banks mirrors that of non-financial firms. It was also observed bank financing behaviour can be best explained by the pecking order theory. Risk and size variables were observed to be negatively related to the Tier 1 regulatory capital ratio, whereas the dividend variable was positively related. Similarly, risk and size were found to be negatively associated with buffer capital, while dividends were positively related. The 2007–2009 global financial crisis (GFC) was found to have negatively affected the financial structures of banks. Consistent with similar studies, it was observed that banks have a target capital structure, and adjust to this target at an adjustment speed of 44%. With regard to insurance companies, it was observed that the firm-level determinants of capital structure explain insurer leveraging. Unlike banks, the 2007–2009 GFC positively affected the capital structure of insurance companies. Similar to banks, results showed that insurers have target capital structures which they seek to achieve in their financing and adjust to such targets at a rate of 21%, which is lower than that of banks. The study contributes to the body of knowledge in four major ways. Firstly, it adds to the literature on the capital structure of financial firms, which area has not been extensively and conclusively studied. Using a different environment, it validates the ‘standard corporate finance view’ as has been observed in the few studies on financial firms. Secondly, it validates the ‘buffer view’ and ‘regulatory view’ of capital structures of financial firms that have taken prominence since the last GFC. Thirdly, the study recognises that banks and insurance companies are fundamentally different with regard to capital structure and regulation and therefore warranted separate treatment in studies. This is in contrast with recent studies that do not recognise the heterogeneity of the two types of firms. Fourthly, to the researcher’s knowledge this study is the first to examine the impact of business cycles/financial crises on the financing patterns of financial firms. Confirming the fundamental differences between banks and insurance companies, the study observed that financial crises have a negative impact on capital structures of banks (meaning that they deleverage during crises). In contrast, financial crises have a positive impact on capital structures of insurance companies (meaning, unlike banks, they leverage during crises). / Business Management / D. Phil. (Management Studies)

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2017. / A highly uneven income distribution and South Africa’s economic structure has over the years produced a larger number of the so called ‘unbankable’ families or households that are not served by the commercial retail-banking sector. Microfinance institutions (MFIs) emerged as an important tool for poverty alleviation and as a substitute in providing access to credit facilities to those individuals. However, many MFIs have failed to sustain and grow their business due to malpractices and poor implementation of sound corporate governance mechanisms. This study aims to identify the impact of corporate governance mechanisms on sustainability at selected MFIs in Cape Town. The study was undertaken in order to bridge the information gap and increase the knowledge base on the issues of corporate governance and sustainability of MFIs as this lack of information may be due to insufficient research in the sector. A survey research design by employing the triangulation method was used to gather data from selected MFIs (n=15) in Cape Town. Quantitative, qualitative and secondary data instruments were used for data collection. Participants for this study were selected through the use of purposive sampling. Data were analysed through SPSS V24 to generate descriptive and statistical results. Cronbach’s alpha value was employed to determine the reliability of the dataset. The study found that most MFIs have no governance mechanisms in place that act as a blue print to address governance issues. Only a few MFIs distinguish the positions of Chief Executive Officer (CEO) and Chairman. In addition, this research showed that MFIs are struggling to be profitable as most of them continuously record lower levels of operational self-sufficiency and return on assets. The study recommends the ideal board size of MFIs, board diversity, separation on the positions of CEO and the Chairman, the use of the King IV report, and strategies for sustainability.

A voluminous literature attempts to explain the various channels of the monetary policy transmission mechanism through which central banks ultimately achieve price stability. However, most research focuses on interest rate pass-through and the demand for money phase, while there is limited research on the demand for credit. This study endeavours to contribute to the understanding of this neglected phase of monetary policy transmission by exploring the response of the real demand for bank credit by the private sector to changes in the real prime rate from 1990:1 to 2004:4 in South Africa. Firstly, the behaviour of the real prime rate in relation to the repo rate is explored using graphical analysis. The study observes that an increase in the repo rate causes an increase in the real prime rate, such that there is always a margin of three or four percentage points between the two rates. Secondly, using secondary data, the Johansen methodology is used to determine the relationship between the demand for bank credit and its determinants (GDP, inflation, real prime rate and real yield on government bonds). Two co-integrating relationships are found. The Gaussian errors from one co-integrating vector are used to model the Vector Error Correction Model, which provides the short-run dynamics and the long-run results, through the use of Eviews 5 software. The results of the study show that while all other variables are negatively related to the demand for bank credit in the long-run, GDP has a positive influence. In the short-run, yield on government bonds and inflation coefficients depict a positive association, while the coefficients of real prime rate and GDP are negative. The error correction coefficient is -0.32, which implies that a 32% adjustment to equilibrium happens in the demand for bank credit in a quarter and that the complete adjustment takes about three quarters to complete. Thirdly, the generalised impulse responses results indicate that the impact on the real prime rate affects the demand for bank credit from the first quarter. The study concludes that the real prime rate has a negative impact on the demand for credit both in the short-run and long-run.

This study seeks to investigate the trends and interactions of market volatility as a source of instability in the South African financial markets. Financial instability can be manifested in the form of banking and currency crisis, institutional failures and extreme asset price volatility. This study, however, focuses on a single aspect of financial instability - asset price volatility. Asset price volatility reflects changes in market expectations as investors react to such changes, and thus on its own is not necessarily a source of instability. However, volatility spillovers can propagate volatility shocks across the market, increasing the risk of widespread instability. Using a combination of graphical and trend analysis as well as more formal estimation techniques, the study examined volatility in the stock, money and foreign exchange markets. To obtain estimates of market volatility, the study experimented with various volatility models that include the GARCH, TARCH and EGARCH. An analysis of volatility interactions and the transmission of volatility shocks across the market is crucial to understanding financial instability. To examine volatility interaction and the transmission of volatility shocks, a VAR model was estimated. This framework allowed us to examine the propagation of shocks across the markets. Volatility in the financial markets was found to be highly persistent and in the case of exchange rates, volatility was also characterised by an increasing trend. Significant linkages between the financial markets were found. The links also extended to the volatility relationship as evidenced by significant volatility spillovers across the markets. While volatility spillovers from the money market were found in the stock market and the foreign exchange market, no volatility spillovers from these markets were found in the money market. Thus the money market was identified as the major source of volatility spillovers and shocks in the financial markets. These results highlighted the role of monetary policy in the financial system, specifically the need to make monetary policy stable and predictable to ensure that interest rate shocks are not an additional source of instability. / KMBT_363 / Adobe Acrobat 9.54 Paper Capture Plug-in

Dissertation submitted in fulfillment of the requirement for the Degree of Master of Technology: Quantity Surveying at Technikon Natal, 2002. / This research investigates the key question of whether banks discriminate against black people in the process of granting mortgage bonds which consequently affects homeownership in South Africa in general, and KwaZulu-Natal in particular / M

MSc (Statistics) / Department of Statistics / See the attached abstract below

M. Tech. (Department of Human Resource Management, Faculty of Management Sciences), Vaal University of Technology. / Corporate social responsibility (CSR) has become as an important topic as it has ramifications for practitioners. Corporate social responsibility can change employees’ approaches, demands and behaviours. Organisations can build a sound relation with its employees by promoting CSR in the organisation and inspiring employees to partake in these activities. The primary objective of the study is to explore the relationship between organisational commitment, job satisfaction as well as explore the relationship between job satisfaction and CSR among employees in a financial institution in Gauteng. A quantitative research approach method was used to achieve the primary objective. A structured questionnaire was issued to 250 respondents. Furthermore, composite means and factor analysis were performed to determine the level of organisational commitment, job satisfaction and corporate social responsibility of employees and to establish the underlying factors of the constructs respectively. Additionally, correlation analysis was conducted to establish the strength and direction of the relationship between the factors. Finally, a regression analysis was performed to confirm the predictive relationship between the study constructs. The findings of this study showed a positive correlation between affective commitment, normative commitment and continuance commitment and JS, and also showed a positive correlation between JS and CSR. Based on the findings, it was recommended that the more committed the financial institution employees, the more they are satisfied with their job in the institution. Furthermore, JS contributed positively to CSR, which implied that the more satisfied the employees of the financial institution, the more they feel being part of the CSR activities of the financial institution.

A survey of literature has revealed that there is a need for a reliability study of the Denison Organisational Culture Survey (DOCS) for use in a financial institution in South Africa. The major objective of this research was therefore to determine the internal consistency reliability of the DOCS - in other words, to determine the accuracy or consistency with which the set of survey items measures one particular scale. The total sample of 2 735 individuals used in this research consisted of both male and female full-time employees of a financial institution in South Africa. The results of this introductory study on the reliability of the DOCS in South Africa demonstrated clear support for similar research conducted abroad and proved to be compatible with the cognitive-behaviouristic psychology movement's original concept of organisational culture. The reliability of the DOCS, as applicable to this South African sample, reflects statistical significant internal consistency. / Industrial and Organisational Psychology / M. Comm.

The purpose of this study was to determine whether there is a relationship between emotional intelligence and leadership among senior leaders in a South African financial services organisation. The sample consisted of 973 participants. A convenience sample was used, as the leaders were part of a strategic organisational initiative and completed measurement instruments as part of this process. All participants completed the Bar-On EQ-i, in order to measure emotional intelligence, whereas the leadership data were obtained from an organisation-specific multi-rater which accessed self-ratings, peer and subordinate ratings as well as manager ratings in terms of leadership behaviours linked to organisational worldviews of leadership effectiveness. The results show that there was a statistically significant relationship between emotional intelligence and leadership among the leaders, but that there was poor predictive strength between these variables. / Industrial & Organisational Psychology / MCom (Industrial and Organisational Psychology)

A survey of literature has revealed that there is a need for a reliability study of the Denison Organisational Culture Survey (DOCS) for use in a financial institution in South Africa. The major objective of this research was therefore to determine the internal consistency reliability of the DOCS - in other words, to determine the accuracy or consistency with which the set of survey items measures one particular scale. The total sample of 2 735 individuals used in this research consisted of both male and female full-time employees of a financial institution in South Africa. The results of this introductory study on the reliability of the DOCS in South Africa demonstrated clear support for similar research conducted abroad and proved to be compatible with the cognitive-behaviouristic psychology movement's original concept of organisational culture. The reliability of the DOCS, as applicable to this South African sample, reflects statistical significant internal consistency. / Industrial and Organisational Psychology / M. Comm.