Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> vol. 16 num. 1 lang. en <![CDATA[SciELO Logo]]> <![CDATA[<b>Intellectual capital</b>: <b>measurement, recognition and reporting</b>]]> In the past few decades, the economy has moved from an industrial to a knowledge economy. Consequently, basic factors of production now no longer comprise only natural resources, capital and labour, but also intellectual capital. Despite the shift from an industrial to a knowledge economy, the accounting framework and financial reporting have not changed sufficiently to include intellectual capital. The research problem attempts to explore whether the theory of accounting should be modified for a standardised and comparable approach when accounting and reporting on intellectual capital. To solve the research problem, a literature review and content analysis on corporate annual reports were used. The results of this study indicate that the theory of accounting should be modified to ensure a standardised and comparable approach when accounting and reporting on intellectual capital in corporate annual reports. <![CDATA[<b>To report or not to report</b>: <b>in what context is a 'reportable irregularity' reportable?</b>]]> Whistle-blowing can play an important role in enhancing the effectiveness of corporate governance processes. In particular, legislation mandating that auditors blow the whistle on their clients' transgressions can assist in overcoming agency-related costs and improve confidence in external audit. This is, however, only the case if regulatory reform enjoys cohesion. The Companies Act No. 71 of 2008, by introducing a definition of 'reportable irregularities' different from that in the Auditing Profession Act No. 26 of 2005 (APA); excluding 'independent reviews' from the scope of APA; and effectively exempting the majority of South African companies from the requirement either to be audited or reviewed, may materially undermine whistle-blowing by auditors in South Africa. In turn, this begs the question: for how long will South Africa rank first globally for the quality of its auditing practices? <![CDATA[<b>Vodacom and MTN's brand positioning based on the brand Associations of Principal Estate Agents in Gauteng</b>]]> This article investigates Vodacom and MTN's brand positioning based on the perceptions of a group of LSM seven to ten respondents who are principal estate agents in Gauteng. An empirical study was conducted. The profile of the sample in terms of access to telecommunication-related services confirmed that of individuals in the LSM seven to ten groups with a skew towards LSM ten. As a minimum requirement for the target market brands in the category should be strongly associated with the statements market leader, local brand, technologically sophisticated brand, trusted brand, South African brand and prestigious/upmarket brand. At an overall level, Vodacom has established a more favourable brand positioning compared to MTN. However, both Vodacom and MTN have failed to establish a personal brand relationship with the target market. <![CDATA[<b>On the economics of happiness</b>: <b>the influence of income and non-income factors on happiness</b>]]> The quest for individual happiness and a better life for all is an important economic objective in countries as different as South Africa and France or Zimbabwe and Bhutan. Economists have focused attention on the effects of consumption, income and economic growth or development on well-being and whether economic growth can be the sole basis for delivering prosperity (Dutt & Radcliff, 2009; Jackson, 2010). The search for happiness is an important individual and national economic goal. In the Benthamite utilitarian tradition, happiness is the sum of all pleasures and pains. People often obtain or perceive their happiness from what they have in comparison with others. At the macroeconomic level, more happiness may come from a sustained growth in GDP that enables households to enjoy an improved quality of life, with rising income, consumption and employment opportunities. At the microeconomic or individual level, more income may also enable people to live happier and fuller lives relative to those who are poor. But this accounts for only a small contribution to happiness. Life circumstances, such as marital status, health, having children and the nature of the working environment statistically make a greater contribution to happiness than income. <![CDATA[<b>A network branch and bound approach for the traveling salesman model</b>]]> This paper presents a network branch and bound approach for solving the traveling salesman problem. The problem is broken into sub-problems, each of which is solved as a minimum spanning tree model. This is easier to solve than either the linear programming-based or assignment models. <![CDATA[<b>Month of the year and pre-holiday effects in African Stock Markets</b>]]> This paper investigates the existence of two anomalies in African stock returns: the month of the year and the pre-holiday effects, and their implications for stock market efficiency. We extend the traditional approach to modelling anomalies and examine the mean and variance of returns. We document high and significant returns in days preceding a holiday in South Africa. Our results indicate that the month of the year effect is prevalent in African stock returns. However, we argue that, owing to illiquidity and round trip transactions costs, the anomalies uncovered do not necessarily violate the no-arbitrage condition. <![CDATA[<b>Prevalence of sustainability reporting practices of a sample of listed companies on established and emerging stock exchanges</b>]]> The business sector has a substantial role in addressing current environmental issues and concerns. Consequently, there is a growing adoption of corporate sustainability principles and practices across all market sectors. This study examined four developed and four emerging stock markets and the sustainability reporting practices of the top 20 and bottom 20 companies in each. The results illustrate that the developed market sector was more advanced in its corporate sustainability reporting, both in the proportion of companies issuing a sustainability report (approximately 60 per cent) and the proportion of company webpages dedicated to sustainability reporting. This difference was largely due to the effect of the top 20 companies. There was little difference between developed and developing markets when only the bottom 20 companies were considered, of which less than one-third provided sustainability reports. These results show that sustainability reporting is prevalent in both developed and developing markets, especially among market leading companies, but that overall, most developing markets have some catching up to do. <![CDATA[<b>The role and value of water in natural capital restoration on the Agulhas Plain</b>]]> The Agulhas Plain is a low-lying coastal area within the Cape Floristic Region. It is heavily invaded by alien vegetation that infringes upon the sustainable supply of ecosystem goods and services provided by the native fynbos vegetation. Alien clearing and natural capital restoration is expected to recover these ecosystem goods and services and in particular to increase water availability. The study conducts cost-benefit analyses to assess whether alien clearing and natural capital restoration would add value to the Agulhas Plain through sufficiently increasing the supply of marketable ecosystem goods and services. The results indicate that the costs of alien clearing and restoration cannot be justified in the absence of water as a valued commodity. Other ecosystem goods and services included have a negligible impact on justifying costs.