Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> http://www.scielo.org.za/rss.php?pid=2222-343620150001&lang=en vol. 18 num. 1 lang. en <![CDATA[SciELO Logo]]> http://www.scielo.org.za/img/en/fbpelogp.gif http://www.scielo.org.za <![CDATA[<b>Mixed methods research in <i>The South African Journal of Economic and Management Sciences: </i>An investigation of trends in the literature</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100001&lng=en&nrm=iso&tlng=en Mixed methods research (MMR), which is touted as a third methodological movement is increasingly becoming a popular approach in several fields as a result of the promise it holds to providing a better and balanced investigation of research problems in context. In spite of that, there is limited knowledge about its pervasiveness in economic and management sciences in South Africa. Based on a content analysis of 332 articles published in The South African Journal of Economic and Management Sciences from 2003 to 2011, the main purpose of this quantitative study is to explore the prevalence of MMR in SAJEMS. Although methodological advances have been made in the field of economic and management sciences as reflected in the articles in SAJEMS, the findings reveal that scholars employ quantitative and qualitative methodologies than MMR. Given the paucity of MMR in the field, this study underscores the potential benefits of embracing methodological pluralism as it offers methodological and theoretical benefits. First, the use of MMR provides the possibility for researchers to obtain a comprehensive picture of a phenomenon under investigation and achieve their research purpose effectively. Secondly, its utilisation may also contribute to theory development and the maturity of the field as reflected in SAJEMS. <![CDATA[<b>Derivation of a framework for annual financial statements of a property-casualty insurance firm: From Adam Smith to the modern insurance firm</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100002&lng=en&nrm=iso&tlng=en This article derives a framework for annual financial statements of a property-casualty insurer from first principles using Adam Smith's statement of the operation of an insurer as the point of departure. The derivation incorporates current standard accounting principles and regulatory requirements. In the end it will be seen that a substantial correlation exists between the final derived framework and current published statements of a modern property-casualty insurer. It remains to be seen if a similar correlation will continue to exist once the long awaited international accounting standard for insurers is finalised. The article accordingly demonstrates that Adam Smith's statement can be used to derive a workable framework for the accounting and hence management of modern property-casualty insurers. A number of important conclusions flow from the article. Firstly the distinction between provisions and reserves must be understood and maintained failing which solvent insurers may be portrayed as being insolvent, second a new provision should be raised, a Year to Close Provision where it is unclear that existing provisions adequately cover outstanding liabilities and third the IBNR provision should be restricted to claims in the pipeline for the year under consideration. <![CDATA[<b>Employee well-being, intention to leave and perceived employability: A psychological contract approach</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100003&lng=en&nrm=iso&tlng=en Employability emerged as a "new psychological contract" that may have beneficial effects on both individual and organisational outcomes. The study set out to investigate the relationship between perceived employability and employee well-being on the one hand and perceived employability and employees' intention to leave on the other. The role of the state of the psychological contract, in terms of retaining employable employees while improving their well-being, was also investigated. Cross-sectional data were obtained from employees representing various organisations (N = 246). Contrary to expectations, structural equation modelling (SEM) indicated no significant relationship between perceived employability and well-being. Perceived employability was a significant predictor of employees' intention to leave the organisation. Results also indicated that the state of the psychological contract does not moderate the relationship between perceived employability and employee well-being and their intention to leave, respectively. The study stresses the importance of fulfilling promises made to employees ensuring that promises are fair and continuing to fulfil promises. The importance of interventions on individual-level, to enhance well-being in the workplace, is also emphasised. <![CDATA[<b>Economic inequality as a source of interpersonal violence: Evidence from Sub-Saharan Africa and South Africa</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100004&lng=en&nrm=iso&tlng=en This article examines whether the close association of income inequality and violence identified for high income countries applies also to sub-Saharan Africa and, in particular, to South Africa. Cross sectional analysis across sub-Saharan countries provided no evidence of such an association. However, using homicide rates and several measures of inequality across South Africa's 52 districts does provide evidence of a significant positive relationship between homicide rates and expenditure inequality. A one per cent increase in inequality is associated with an increase in the homicide rate of 2.3 to 2.5 per cent. This relationship remains significant after controlling for other characteristics of the district. <![CDATA[<b>The perceived treatment of employees from designated groups in the workplace</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100005&lng=en&nrm=iso&tlng=en This article reports on employees' perceptions of the treatment of employees from designated groups in the workplace. The objective of the study was to identify the components of workplace treatment that indicate the perceived treatment of employees from designated groups. The study further investigated the influence of demographic factors on these perceptions. A quantitative approach was followed, and a questionnaire was developed to collect data pertaining to employees' biographical details and their perceptions of the treatment of employees from designated groups in the workplace. The population consisted of 29 688 employees at a leading South African bank and a sample of 1720 was used. A disproportionate, stratified sampling method was adopted and a sample of 349 employees participated. Factor analysis, correlations, T-tests and analysis of variance statistics were computed to achieve the objectives. The factor analysis identified four factors relating to the treatment of employees from designated groups: task autonomy, respect, responsibility and realistic expectations. The results of the T-tests revealed that race, years of service and staff category do influence employees' perceptions of the treatment of workers from designated groups in terms of task autonomy and respect. Black respondents, unlike white respondents, believe that employees from designated groups are not treated with respect, nor are they accorded task autonomy. This study represents a vital step towards a better understanding of the dimensionality of perceptions of fair and just treatment and should ultimately contribute to more effective treatment of all employees in the workplace. <![CDATA[<b>Cost-effective infrastructure choices in education: Location, build or repair</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100006&lng=en&nrm=iso&tlng=en The purpose of this study is to develop a model to arrive at a joint optimising strategy for capital budgeting for the construction of new school buildings and for the renovation of existing schools. This model provides a practical tool for ranking construction projects so as to yield the maximum positive impact on the education system. A key aspect of the model is that it provides the optimal mix of renovation and new construction that should be undertaken under a fixed budget constraint. The model is applied to a sample dataset from the education sector of Limpopo province, South Africa, in order to quantify the benefits of using the model. The benefits from using this model for decision making on the evaluation of new and renovation investments in school infrastructure is estimated to increase the effectiveness of these investments by up to 300 percent over the counterfactual system for making these decisions. <![CDATA[<b>The role of cost of capital in regulatory capital discrepancies among developing countries</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100007&lng=en&nrm=iso&tlng=en Capital as a regulatory instrument has been shown to contribute to competitiveness distortions between developed and developing countries. There is a dearth of literature that analyses the possibility of further competitiveness discrepancies to which capital requirements may contribute among developing countries. This article explores whether regulatory capital requirements lead to unequal competitive conditions between developing countries based on their costs of capital. It also attempts to identify drivers of such discrepancies. Data of 52 financial institutions from 20 countries spread across 4 geographical regions are used for the analysis. <![CDATA[<b>Implementing the countercyclical capital buffer in South Africa: Practical considerations</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100008&lng=en&nrm=iso&tlng=en The Basel II regulatory framework significantly increased the resilience of the banking system, but proved ineffective in preventing the 2008/9 financial crisis. The subsequent introduction of Basel III aimed, inter alia, to supplement bank capital using buffers. The countercyclical buffer boosts existing minimum capital requirements when systemic risk surges are detected. Bolstering capital in favourable economic conditions cushions losses in unfavourable conditions, thereby addressing capital requirement procyclicality. This paper contains an overview of the countercyclical capital buffer and a critical discussion of its implementation as proposed in Basel III. Consequences of the buffer's introduction for South African banks are explored, and in particular, potential systemic risk indicator variables are identified that may be used by the South African Reserve Bank (SARB) as early warning indicators of imminent systemic financial distress. These indicators may be of value to the SARB, which could use them in taking decisions on the build-up and release of the countercyclical buffer for South African banks. <![CDATA[<b>Multinational corporations as channels for international technology transfer: Evidence from the South African innovation survey</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362015000100009&lng=en&nrm=iso&tlng=en In this article, we investigate the importance of South African subsidiaries of foreign multinationals as channels to introduce foreign innovations in the South African market. We use firm-level data from the 2008 wave of the South African Innovation Survey, which covers the period 2005-07. We find that subsidiaries of foreign multinationals are significantly more likely to introduce product and process innovations, as well as foreign new products and processes than domestic firms. However, we also find that they are not more likely to introduce foreign innovations developed in collaboration with or mostly by another firm outside their own multinational, or innovations that are new to the South African market.