The volatility of stock markets has important implications for investment decision making, financial stability and overall macroeconomic stability. This study examines the risk-return relationship as well as the behaviour of volatility of the South African equity markets using both aggregate, industrial level and sector level data. The study is divided into three parts. The first part investigates the behaviour of volatility in each of the industries, sectors and the benchmark series focussing on whether volatility is symmetric or asymmetric. Subsequently we investigate which, among the GARCH family of models appropriately captured the riskreturn relationship under which distributional assumption. The second part examines the riskreturn relationship on the SA stock market. The third part examines the long term trend of volatility and whether volatility significantly increases during financial crises and during major global shocks. The GARCH-M, EGARCH-M and TARCH-M models under the Gaussian, Student –t and the GED are used. The findings this study makes are as follows: firstly, there is no clear relationship between risk and return. Secondly, volatility is asymmetrical, implying that bad news has a greater effect on volatility than good news in the South African equity market. Thirdly, the TARCH-M model under the GED was found to be the most appropriate model. Fourthly, volatility increases during financial crises and major global shocks. Overall, volatility is generally not priced on the South African equity markets. Thus, both local and international investors need to consider other factors that influence returns such as skewness. The general increase in volatility during financial crises and major global shocks poses a major concern for policy makers as this may cause financial instability. Thus policy makers need to be mindful of the behaviour of volatility in the South African equity market in response to external shocks.

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This study considers the nature of savings behaviour amongst low income earners residing in the township areas of Kouga Municipal District. It reflects on the popularity and persistence of informal savings and credit associations, also known as stokvels, in these communities in the face of an increase in the availability of formal savings products. This study argues that despite financial deepening taking place within the South African economy, the popularity and widespread usage of stokvels can largely be attributed to the lack of appropraite formal products available for low income earners. This study does not conclude that the usage of informal savings products results in increased savings behaviours amongst this group, but it does conclude that they provide a suitable mechanism in which savings can take place.

This study examined whether or not financial intermediation can explain the variations in the savings-investment ratio in South Africa during the period 1990 to 2012. The study specifically tests the McKinnon Conduit Effect hypothesis which states that increasing interest rate raises the capacity of financial savings via financial intermediaries based on data from South Africa. Apart from informal graphical test, this study employed formal tests such as the Augmented Dickey-Fuller and Phillips Perron stationarity tests to test the properties of the variables considered, including interest rates, for stationarity. In order to ascertain the long-run and short-run dynamics between its variables, the Johansen co-integration test is utilized, while the Error Correction Mechanism is also employed. Results from the study state that financial assets (a proxy for financial intermediation), income and real interest rate all positively impact the savings-investment ratio. Additionally, short-run analysis results showed that income, financial assets and real interest rates positively influence the savings-investment ratio. Real interest rates were seen as being both positive and statistically significant. Therefore the study recommended that the financial services sector and the South African Reserve Bank (SARB) should work together as this will result in the improvement of efficiencies in price discovery with regards to bank charges, access to banking facilities and the timely provision of services in order to encourage savings (for investment purposes) in the South African economy.

The study uses the conventional economic approaches to savings behaviour as a point of departure. In the past, agricultural programmes and policies overlooked the importance of savings mobilization in favour of credit extension programmes. This line of economic development approach arose from the assumption that poor rural people cannot save and will not respond to opportunities to save. The latest research results clearly demonstrate that rural people do mobilise significant voluntary savings, even at their low levels of income. The thrust of the study was to research savings behaviour and motivation to save by resource poor farmers, with specific reference to farmers in Moretele District, Northwest Province. The study tested the hypothesis that poor people cannot save, and went further to analyse determinants of savings behaviour, motivations to save, sources of savings mobilization, savings accounts used and motivations to use a specific savings product. The application of the life cycle hypothesis was also analysed. Linear multiple regression, Ordinary Least Squares (OLS) technique, analysis of variance (ANOV A), and factor analysis (FA) were used to analyse the data pertinent to the study. The findings of the study confirmed income as a major determinant of savings mobilization in the district. The extent of dependency, defined as the proportion of the population of a country falling in the age groups of 0-15 and 64 years and older, considered economically unproductive and therefore not counted as part of the country's labour force was found to have a negative effect on the ability of farmers to save. This is due to large family sizes and high levels of dependency in households. Age was also discovered to influence savings behaviour, but not in accordance with the application of the life cycle hypothesis. With regards to motivations to save, it was found that farmers in the district mainly save to cater for emergencies and for grandchildren's education, and not for accumulation/investment purposes. In addition to the abovementioned savings motives, farmers were however found to consider an investment imperative as reflected by an interaction between savings for accumulation and emergency purposes. The low investment imperative may change if other emergency management structures are considered. The main sources of savings mobilization for the farmers were income from livestock sales and government social security grant (government old age pension). These farmers were discovered to prefer ordinary savings plans. The rationale for this choice was found to be motivated by ease of quick access to savings and the liquidity provided by this savings product. The liquidity requirement is regarded as a strategy to address emergencies and any other financial need that might arise. The findings of the study calls for policy instruments that will expedite the implementation of outreach programmes and strategies for voluntary savings mobilization that will cater for investment imperative and emergency needs. Critical to this will be the development of savings products that respond to the various needs of resource poor farmers as well as to serve different categories of rural savers. The decentralization of savings institutions and linking of formal and informal financial institutions will enhance access to financial services by the rural population. Policies intended to discourage large families would help reduce the high rates of dependencies and relieve pressure on household income, which could be used for savings. / Dissertation (MSc (Agricultural Economics))--University of Pretoria, 2007. / Agricultural Economics, Extension and Rural Development / unrestricted

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America's population is aging. People are living longer and medical advances continue to make that true. Many citizens count on social security as a major source of retirement income. Future retirees will find that there will be fewer workers to support them and unless the nation stops borrowing from the social security fund to finance the deficit, there will be less money for retirees. All of this means that it is important for individuals to save for retirement. Martin Fishbein developed the Behavioral Intention Model to explain various behaviors. According to the model, attitude and subjective norm explain the variation in the intention to behave a certain way and there is a high correlation between intention and behavior when using this model. Indirect measures of attitude and subjective norm increase understanding of these variables. The Fishbein model and an extended version of it, to which demographic variables were added, were tested in this study. Five hundred Virginia Tech classified employees received the mail survey instrument, which was based upon Dillman's specifications, in June 1988. A 74.6% response was received. The data were analyzed using descriptive statistics, correlations, t-tests, multiple regression, and path analysis. While the Fishbein model accounted for 22% of the variation in the intention to save for retirement, the extended model accounted for 40% of the variation. In addition to attitude, number of assets, having a dependent child between the ages of 5 ard 13, number of years expected to live after retirement, and age made significant contributions to the variation in the intention. It was concluded that the extended model is a better theoretical framework for explaining the intention to save for retirement. There were statistically and practically significant differences in the indirect measures of attitude and subjective norm for those who intended to save and those who did not. However it was apparent that neither group believed that saving now will assure than of financial security in retirement. Additional research is needed to further explore the variables which influence individual's intentions to save for retirement. / Ph. D.

The problem under investigation in this study is the determination of the usefulness of the concept of saving set forth by John M. Keynes in his The General Theory of Employment, Interest and Money, both as a method of prediction and prevention of business cycles and as a conceptual framework which is for use in explaining past economic activity, particularly economic growth. The study has a twofold purpose. The first is to evaluate the workability of the Keynesian definitions when applied to existing sources of economic data; to see if a meaningful savings aggregate is a statistical possibility. The second is to attempt to explain in terms of related parts of the rest of Keynes' theoretical system the conclusions reached under the first purpose above.

The first essay uses Chinese Urban Household Survey (CUHS) data from 1988 to 2003 to conduct a cohort analysis of household income, household consumption, and household saving rate, and then uses synthetic panel data to explore the determinants of household saving rate. The cohort analysis not only offers stylized patterns of age profiles on household income, household consumption, and household saving rate but also their profiles of cohort effect and age effect by decomposition work. The cohort analysis likewise tests the relation between cohort effect and productivity growth. Overall, the empirical results present a different pattern compared with other studies and also contradict with the general predictions of the standard model in the consumption theory. In investigating the determinants of household saving rate, this essay examines the roles of household income, economic growth rate, inflation rate, and demographic variables, especially from the perspective of income inequality and systematic difference among cohorts. / The second essay examines the existence of a precautionary saving motive due to labor income uncertainty, using CUHS data from 2002 to 2003. Methodologically, this essay adopts a novel method to construct the proxy for labor income uncertainty, by the ratio of infra-group dispersion conditional on the individuals' labor income determinants to labor income. The empirical results present robust evidence that labor income uncertainty negatively affects household consumption, and there exists obviously different responses to labor income uncertainty from three perspectives: between old households and young households, among different households whose household heads are in different occupations, and between households whose household heads work in the State-owned Units and their counterparts. / The third essay then attempts to explore the determinants of housing wealth and housing price by a hedonic pricing model and evaluate the housing wealth effect on household consumption behavior. For the determinants of housing wealth and housing price, this essay demonstrates that incomplete property rights depress the value of housing asset by both a theoretical model and the empirical results. Regarding housing wealth's effect on household consumption behavior, the empirical results show that the housing wealth effect is significant and that it is obviously smaller for those observations whose houses' property rights are incomplete, compared with their counterparts. / Zhou, Shaojie. / "August 2007." / Advisers: Jun Sen Zhang; Hong bin Li. / Source: Dissertation Abstracts International, Volume: 69-02, Section: A, page: 0704. / Thesis (Ph.D.)--Chinese University of Hong Kong, 2007. / Includes bibliographical references (p. 219-222). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. [Ann Arbor, MI] : ProQuest Information and Learning, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. Ann Arbor, MI : ProQuest dissertations and theses, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstract in English and Chinese. / School code: 1307.