Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> http://www.scielo.org.za/rss.php?pid=2222-343620080002&lang=en vol. 11 num. 2 lang. en <![CDATA[SciELO Logo]]> http://www.scielo.org.za/img/en/fbpelogp.gif http://www.scielo.org.za <![CDATA[<b>A critical assessment of the perceptions of potential graduates regarding their generic skills level:</b> <b>An exploratory study</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200001&lng=en&nrm=iso&tlng=en This article outlines the perceptions of potential Business Management graduates regarding their generic skills level. To achieve the aim of this article, a literature study and empirical research were undertaken. A self-administered questionnaire was distributed to 205 potential Business Management graduates at a tertiary institution. To investigate the relationship between the independent and dependent variables, thirteen null-hypotheses were tested. The results revealed some significant relationships between these variables. Seven predetermined generic skills factors, namely basic, communication, management, environmental awareness, intellectual, self and career management as well as interpersonal skills, were identified and empirically tested in this article. Skills development should take place within an overall framework providing for the coordination and progression of skills development from first to final year of study. Future curricula development should specifically focus on developing those skills lacking most in potential graduates as identified in this article. <![CDATA[<b>The influence of length of relationship, gender and age on the relationship intention of short-term insurance clients: An exploratory study</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200002&lng=en&nrm=iso&tlng=en Building long-term relationships with clients is extremely beneficial for organisations. This does not necessarily imply, however, that the clients themselves need or want a long-term relationship with an organisation. Relationship marketing could profitably be looked at from the client's perspective, at the same time identifying those clients who have a strong relationship intention and would, in fact, like to engage in a long-term relationship with organisations. The objective of this research was to explore whether three aspects relating to clients, that is, the varying lengths of their relationship with organisations, their age and their gender display significantly different levels of relationship intention. Relationship intention is measured in terms of constructs like involvement, expectations, forgiveness, feedback and fear of relationship loss. Non-probability sampling was used in this study, and 114 respondents from the short-term insurance industry completed self-administered questionnaires. Findings indicate that, for a group of high relationship-intention clients of a short-term insurance organisation, no practically significant discrimination exists on any of the relationship-intention constructs for clients' length of relationship, gender or age. <![CDATA[<b>Examining the ethical predisposition of the next generation of business leaders in China and the Republic of South Africa</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200003&lng=en&nrm=iso&tlng=en This study was undertaken in an effort to determine the attitudes of business students in South Africa and China toward a battery of questionable actions undertaken by anonymous business entities. In general, practices such as the outsourcing of labour and celebrity endorsements met with little opposition on the part of the students. Conversely, actions such as the shipment of unsafe products to overseas markets and a doctor smuggling a potentially beneficial (but illegal) drug across international borders in an effort to help a patient were strongly condemned. A comparison of the means of the 14 scenarios resulted in statistically significant differences for the two countries on eight of the questionable actions. In seven of the eight, the South Africans exhibited stronger opposition (or a lower level of support for) the behaviour of the organization. Furthermore, the grand means for the two countries also favored the RSA as the country with the higher ethical predisposition. <![CDATA[<b>Adapting the Macaulay duration for defaultable and option-embedded bonds</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200004&lng=en&nrm=iso&tlng=en Most contemporary bonds have embedded options and all face the possibility of default. Both features introduce risk (the former market risk and the latter credit risk) by altering the quantity and timing of the promised cash flows. The Macaulay duration, although a popular risk tool, is increasingly unable to cope in this complex financial environment. While the Macaulay duration has undergone modifications before, a new theoretical framework is now introduced which augments its functionality while retaining its tractability. The approach - though still unable to isolate the effects of the two features - yields consistent results which agree well with empirical data. <![CDATA[<b>Evaluating the macroeconomic impacts of IMF programmes in Latin America, 1975-2004: A GEE analysis</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200005&lng=en&nrm=iso&tlng=en Using panel data for 21 Latin American countries over the period 1975-2004, this paper analyses macroeconomic effects of IMF programmes by using GEE methodology. In line with the results of previous studies, it is shown that these programmes have positive effects on the balance of payments, current account and investment. However, they negatively affect budget deficit, per capita GDP, FDI, inflation and consumption. <![CDATA[<b>Portfolio liquidity-adjusted value-at-risk</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200006&lng=en&nrm=iso&tlng=en An important, yet neglected, aspect of risk management is liquidity risk; changes in value due to reduced availability of traded financial instruments. This ubiquitous risk has emerged as one of the key drivers of the developing "credit crunch" with global financial liquidity plummeting since the crisis began. Despite massive cash injections by governments, the crisis continues. Contemporary research has focussed on the liquidity component of single instruments' value-at-risk. This work is extended in this article to measure portfolio value-at-risk, employing a technique which integrates individual instruments' liquidity-adjusted VaR into a portfolio environment without a commensurate increase of statistical assumptions. <![CDATA[<b>Bank lending, expenditure components and inflation in South Africa: Assessment from bounds testing approach</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200007&lng=en&nrm=iso&tlng=en This empirical study examines the long-run relationship between inflation and its determinants in South Africa. Three models of inflation involving money supply, bank credit and expenditure components are tested using the unrestricted error correction models of Pesaran et al. (2001). Unlike other existing studies on the subject, one of the models in the present study considers various components of real income as determinants. The disaggregated components are final consumption expenditure, expenditure on investment goods and exports. Based on "bounds" testing, the presence of a long-run equilibrium relationship between inflation and its determinants is confirmed for all three models. The study found that the major causes of inflation in South Africa are import prices, real income, and final consumption expenditure. The relationship is elastic for import prices and final consumption expenditure. Monetary variables, money supply and bank credit are found to have an indirect effect on inflation. <![CDATA[<b>South African price changes and inflation since 1974: A note on the testing of inflation accuracy</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362008000200008&lng=en&nrm=iso&tlng=en As inflation credibility in South Africa records low readings when measured in terms of inflation credibility barometers, this note aims at assessing whether actual price movements provide any grounds for low inflation credibility. It compares the price movements of similar items with the rate of inflation over a period of 32 years, i.e. from 1974 to 2006, and discusses the use of an inflation accuracy indicator to compare estimated price levels adjusted by the rate of inflation and actual price levels. Over the period of comparison no systematic over- or under-reporting of changes in prices in terms of the rate of inflation could be detected and the analysis suggests that little or no basis can be found to justify low inflation credibility. Inflation credibility is more likely than not influenced by the most recent purchasing experiences of consumers. Doubts concerning the accuracy of inflation figures could nevertheless result in the general public concluding that monetary policy aiming at the achievement of an inflation target brings only the pain of high interest rates without the tangible benefits of lower inflation, thereby jeopardising the usefulness of an inflation-targeting monetary policy framework.