In South Africa, less than 10% of individuals are financially independent after retirement, with an increasing number becoming dependent on social grants from government – hence the importance of analysing the asset composition of high net worth individuals who have achieved financial independence. To achieve the aim of this study, it was first necessary to define net worth and to develop a theoretical framework of the assets and liabilities included in the measurement of an individual’s net worth and how these assets and liabilities should be valued. A definition of high net worth individuals was then formulated. Secondly, the factors influencing the asset composition of high net worth individuals, as well as selected demographic factors that influence net worth, were investigated. Finally, following a quantitative approach, data collected from the liquidation and distribution accounts of deceased individuals were analysed according to the developed framework. The results of this study suggest that are indeed differences in the contribution of the different asset types when measured using the mean, relative contribution and importance of the asset class in comparison with total assets. Further analysis revealed that the richest individuals included in the survey invested more in shares than the other groups for whom immovable property was the primary asset. Based on the analysis of selected demographic factors, the findings indicated that for many of the dependent variables, the asset used most by respondents in that group was not the same asset that made the highest contribution to the net worth of the individuals in the group. / Business Management / M. Com. (Accounting)

Thesis (MA)--University of Stellenbosch, 2011. / ENGLISH ABSTRACT: This thesis explores the relationship between the state and mining capital in South Africa since the beginning of gold mining. It provides a historical analysis centered around the notion that neither state nor capital have been able to dominate each other wholly but retained their respective relative strength and independence. By applying a qualitative approach, this thesis seeks to determine whether this notion still holds true today, how the relationship between the state and mining capital has evolved over time and by what factors was it determined. I suggest that structurally the nature of the state-capital relationship continues to endure fifteen years after apartheid. Accordingly the thesis is organized in terms of two critical junctures, one in the 1920s and one in the long 1970s when the balance of power between the state and mining capital experienced a number of shifts. Recent developments in post-apartheid South Africa seem, as of now at least, to represent more of a continuation of the shift that materialized in the long 1970s rather than a new conjuncture of its own or one in the making. Contrasting these findings with the adamant calls of the ANCYL for a nationalization of mines indicates that nationalization as the ANCYL foresees it does not seem to be informed by a historical understanding of the mining capital-state relations and that it is ceteris paribus unlikely to materialize. / AFRIKAANSE OPSOMMING: Die tesis ondersoek die verhouding tussen die staat en mynbou kapitaal in Suid-Afrika sedert die begin van die goudwedloop. Op grond van ’n historiese oorsig word daar aan die hand gedoen dat nòg die staat nóg mynbou kapitaal mekaar oorheers het en dat hierdie tendens vyftien jaar na apartheid steeds voortduur. Die magsbalans tussen die staat en kapitaal word egter gekenmerk deur twee uiteenlopende periodes, naamlik die Twintiger jare en die langdurige Sewentigs. Verwikkelinge in post-apartheid Suid-Afrika suggereer ’n voortsetting van die dinamika van die Sewentigs. Volgens onlangse uitlatings deur die ANC Jeugliga blyk dit asof die beweging nie bewus is van die kompleksiteit van hierdie historiese verhouding nie en dat dit dus hoogs onwaarskynlik is dat nasionalisering in terme van ANC Jeugliga beleid die lig sal sien.

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)

This study shows that managers of short-term insurers may improve their financial results if they can identify and manage the factors that are critical to their financial results. The development and application of the concept of critical success factors are therefore used as a basis for this study. The study reviews the functions performed by short-term insurers, focusing on the effect these functions have on their cash flows. Selection and pricing of risk are discussed in detail. The underwriting cycle in South Africa, and several possible causes of the cycle are investigated. Reinsurance, claims handling and rilanagement expenses are important components of the cash flows of short-term insurers and are therefore examined in detail. The optimum risk level at various combinations of underwriting and investment income is empirically tested, using the financial results of several insurers. The study investigates different approaches to the measurement of financial success of insurers, and the return on shareholders' funds is found to provide the fairest and most reliable method. Empirical comparisons are made on the financial results of the insurers that participated in the study to distinguish between those that are financially successful and those that are not. To discover what the industry consider to be their critical financial success factors, a postal survey was done of key decision makers in the South African short-term insurance industry. Respondents identified several success factors, but did not include some success factors discovered during the review of the literature. Respondents apparently experienced difficulty in separating strategic issues from operational ones. The survey revealed that the pricing of risk is problematic for short-term insurers. The importance of the investment function is also underestimated by the industry. The study concludes that the combined systematic risk of the investment and underwriting portfolios is a critical success factor, along with the capital base of the insurer, the ability of the insurer to use the leverage provided by using policyholders' funds as free reserves and the size and direction of an insurer's cash flows. / Business Management / D. Com (Business 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)

It is generally acknowledged that the share price of listed companies is not usually a true reflection of the value imbedded in the said companies. The main purpose of this study is to explore the correlation between selected performance measurement tools, namely Return on Equity (ROE) and Economic Value Added (EVA®), and the share price of companies listed on the Johannesburg Stock Exchange. The study is a quantitative one as it uses data extracted from McGregor BFA database to investigate the relationship between the variables studied. Correlation and linear regression analyses were used in determining such relationships. This study found that there is a synergy in using ROE and EVA® as performance measurement tools and that their interaction explains 8.06% of the movement in the share price of listed companies, all things being equal. Hence it is recommended to identify and study possible synergies between other performance measurement tools. / Management Accounting / M. Phil. (Accounting Sciences)

In South Africa, less than 10% of individuals are financially independent after retirement, with an increasing number becoming dependent on social grants from government – hence the importance of analysing the asset composition of high net worth individuals who have achieved financial independence. To achieve the aim of this study, it was first necessary to define net worth and to develop a theoretical framework of the assets and liabilities included in the measurement of an individual’s net worth and how these assets and liabilities should be valued. A definition of high net worth individuals was then formulated. Secondly, the factors influencing the asset composition of high net worth individuals, as well as selected demographic factors that influence net worth, were investigated. Finally, following a quantitative approach, data collected from the liquidation and distribution accounts of deceased individuals were analysed according to the developed framework. The results of this study suggest that are indeed differences in the contribution of the different asset types when measured using the mean, relative contribution and importance of the asset class in comparison with total assets. Further analysis revealed that the richest individuals included in the survey invested more in shares than the other groups for whom immovable property was the primary asset. Based on the analysis of selected demographic factors, the findings indicated that for many of the dependent variables, the asset used most by respondents in that group was not the same asset that made the highest contribution to the net worth of the individuals in the group. / Taxation / M. Com. (Accounting)

The Nelson Mandela Metropole is the largest contributor to the Eastern Cape Province’s economy and its share of the production of the Eastern Cape is about 41, 3 % per annum. This requires that the competitiveness of the Metropole be improved in order to enable it to meet the challenges of the Province. The objective of the GEAR policy strategy places a focus on the leading coastal industrial locations of South Africa. Furthermore, the national government has shifted the responsibility of service delivery to local governments in an effort to reinforce the integrated development planning process in municipalities. To meet those challenges, the Metropole has focused its attention on improving local resources. To enhance the performance of the manufacturing industry of the Metropole, it is necessary to ensure that the Metropole has locational attributes to attract new investment. Such attributes include creation of closely located industries. This will help the firms to engage in competition as well as engage in co-operative activities among themselves. The study employs a variety of theories to highlight the need to enhance productivity of industries in order to attract new investment. These theories include the new (endogenous) growth theory that argues that productivity growth is determined by introduction of new technologies. Such technologies accrue because ideas that contribute to their development are nonrival, and thus their creation has a fixed cost and zero marginal cost. The property of fixed cost in the creation of ideas results in the emergence of increasing returns to scale. The Porter’s Diamond framework is used in the study to take the issue of productivity growth further. Its thrust is that in particular nations some industries experience high productivity growth rates. It further argues that the locational attributes are responsible for these industries in registering high productivity growth levels. These attributes include the creation of advanced resources such as a skilled labour force. The data obtained from the survey of the research on the manufacturing industries forms part of this study. The findings of the survey reveal that although the manufacturing sector of the South African region has registered some significant success, there is still some room for improving its competitiveness. It revealed that development of the local markets through competition and cooperation among the industries would help to render these industries internationally competitive. This study concludes with some recommendations. These recommendations place emphasis on improvement of infrastructure, quality of labour force, and development of the region’s market. In order to carry out the recommendations effectively, government policy has to be repositioned so as to enhance its visibility among the stakeholders in the economy. Of importance is to ensure the promotion of policy that supports geographically concentrated businesses.

The Industrial Development Corporation is the largest provider of development funding in South Africa. Despite having documented processes for assessing funding applications, which include traditional performance measures, the impairments as a percentage of outstanding funding book are increasing. However, scholarly literature indicates that traditional performance measures seem inadequate, with Economic Value Added providing more detailed performance company. The study assesses the Industrial Development Corporation employee’s perceptions on stipulated and additional performance measures and its funding processes. The study followed a quantitative research design using a questionnaire. The Statistical Package for Social Sciences was used to analyse the data. The study found that stipulated performance measures are mostly used, but not Economic Value Added. Funding processes could be enhanced through more performance measures and additional pre and post investment processes. It is recommended that processes be enhanced and the addition of Economic Value Added be investigated to assist in reducing impairments. / Management Accounting / M. Phil.

The study has empirically examined the relative impact of public and private investment on economic growth and has also tested the crowding in or crowding out effect of public investment on private investment in four Southern African economies – Malawi, South Africa, Zambia and Zimbabwe. The analysis used annual time-series data covering the period from 1970 to 2014. The study provides new evidence to contribute firstly to the current debate regarding the relative importance of public and private investment in economic growth processes and secondly, on whether public investment crowds in or crowds out private investment in the selected countries. For this purpose, the study employed two empirical models using the recently developed Autoregressive Distributed Lag (ARDL)-bounds testing approach to cointegration. Model 1 examines the relative impact of public and private investment on economic growth while Model 2 investigates the crowding in or crowding out effect of gross public investment and its subcomponents (infrastructural and non-infrastructural) on private investment. The results of Model 1 largely supported the private investment-led economic growth strategy. In all the study countries, private investment had a positive impact on economic growth. Also, public investment positively contributed to economic growth in Zimbabwe, but in the remaining study countries, public investment had a negative relationship with economic growth. Results from Model 2 reveal that: (i) the crowding out effect of gross public investment on private investment predominates in the study countries; (ii) infrastructural public investment crowds in private investment in South Africa and Zimbabwe in the long run while it crowds out private investment in Malawi and Zambia in the short run; and (iii) non-infrastructural public investment crowds out private investment in South Africa and Zambia. On balance, the results from Model 2 show that public investment tends to crowd out private investment in the selected countries and this further underscore the importance of the private sector-led economic growth processes in the study countries. / Economics / D. Phil. (Economics)