Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> vol. 20 num. 1 lang. en <![CDATA[SciELO Logo]]> <![CDATA[<b>Determinants of the capital structure of Portuguese firms with investments in Angola</b>]]> BACKGROUND: This article seeks to complement the previous literature and clarify the particularities of the capital structure policy of firms with foreign direct investment in Angola. AIM: This article seeks to identify the determinants of the capital structure of Portuguese firms with direct investment in Angola and to understand whether the determinants normally considered by standard finance theory are in line with those used by firms when structuring their capital structure policy to participate in the specific market of Angola. SETTING: This article examines 26 large Portuguese firms with investments in Angola using econometric panel data for the period 2006-2010. METHODS: The study applied fixed and random effects methods and panel-corrected standard errors that maintain efficiency and unbiased behaviour even in the presence of panel-level heteroscedasticity and contemporaneous correlation of observations among panels. RESULTS: The results provide evidence that the determinants normally considered by standard finance theory are in fact - in terms of sign and coefficient dimension - those used by firms for structuring their capital structure policy when involved in the internationalisation process of entering Angola. Specifically, age, asset structure, return on assets and tangibility have a positive influence on the capital structure of Portuguese firms that have invested in Angola, while non-debt tax shields and liquidity have a negative influence on these companies' leverage ratios. When comparing our results with studies that have analysed the capital structure determinants of listed Portuguese firms - firms belonging to the PSI 20 Index and large firms in the Portuguese corporate sector - we found similarities in the sign and coefficient dimension of the determinants of capital structure. However, the profitability coefficient sign is in line with the trade-off framework (i.e. profitability is positively related to debt) but not with pecking order theory (i.e. profitability is negatively related to debt. CONCLUSION: Our results suggest that the high-growth Angolan market is seen by larger Portuguese firms as a low-risk diversification process because of the economic hardship Portugal has gone through, as well as cultural and linguistic similarities to Portugal. As such, the Angolan market is seen as an extension of the Portuguese domestic market that has increased potential. This scenario potentially reduces the firm default probability and the cost of debt. Maintaining the tax shield benefits of debt and decreasing the cost of debt - through a reduction in the default probability - have induced profitable firms to use more debt. <![CDATA[<b>Firm characteristics and excellence in integrated reporting</b>]]> BACKGROUND: Integrated reporting has attracted much attention in the past few years, and South Africa has taken the lead in its development worldwide. An annual survey is published by Ernst & Young regarding the quality of the integrated reports of the top 100 entities listed on the Johannesburg Stock Exchange (JSE). AIM: The study on which this article is based was aimed at determining whether the assessment of an entity's characteristics can predetermine the quality of the integrated report generated by that entity. SETTING: This article focuses on an analysis of the integrated reporting of the top 100 entities listed on JSE for the financial years ending in 2013, 2014 and 2015. METHODS: Comparison of categorical variables, mixed-model repeated measures ANOVA and generalised estimating equations were applied to identify the best classificators to distinguish between excellent integrated reporting and those reports where progress could still be made. RESULTS: The results show that the type of industry the entity finds itself in, the size and profitability of the entity, as well as the composition of the members of the board, have an effect on the quality of the integrated report. CONCLUSION: Our results indicated that the type of industry, size of an entity, the profitability and composition of the board of directors, all have an effect on the quality of the integrated reporting. Our evidence will assist current and prospective stakeholders in evaluating the expected quality of an entity's integrated report, through the evaluation of certain firm characteristics. <![CDATA[<b>Efficiency of international cooperation schemata in African countries: A comparative analysis using a data envelopment analysis approach</b>]]> BACKGROUND: Efficiency measurement by means of data envelopment analysis (DEA) in the non-profit sector has focused on the so-called Stage I of non-profit organisations, namely, fundraising efforts (which are the most influential determinants of raising funds in order to increase the amount of contributions). However, for the so-called Stage II of non-profit organisations, namely, spending the achieved resources to program services delivery, DEA studies are very scarce. In attempting to address this research gap and to the best of our knowledge, this investigation is the first study that applies DEA to the assessment of international cooperation schemata. Consequently, we offer a significant contribution to the literature by overcoming the limitations of other techniques used to assess the efficiency and providing new insight into the efficiency of targeted different international cooperation schemata (ICS) in international cooperation development projects. AIM: The purpose of this study is to evaluate and compare the efficiency of the ICS of developmental projects funded by the Spanish Agency for International Cooperation for Development. SETTING: Our setting is composed of different international cooperation projects funded with different schemata by the Spanish Agency for International Cooperation for Development between 2002 and 2006 in two African countries that are top priority targets of Spanish international aid: Morocco, and Mozambique. METHODS: Using a sample of 48 international cooperation projects carried out in two African countries considered priorities in the Spanish Cooperation Master Plan, we analyse project efficiency using DEA. RESULTS: The findings suggest that some schemata are more efficient than others when applied to international cooperation projects (ICS). Specifically, we find that permanent open-call subsidies are more efficient than non-governmental development organisation subsidies. CONCLUSION: Measures for evaluating international aid projects with respect to efficiency are problematic. The DEA method provides an ex-post meausure of efficiency that allows for the measurement in a specific and objetive way of the results achieved by each project and to propose corrective actions for the future. The comparison among ICS provides an opportunity to identify the conditions under which an ICs may achieve greater efficiency.