Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> vol. 21 num. 1 lang. pt <![CDATA[SciELO Logo]]> <![CDATA[<b>Bibliometric analysis of organisational culture using CiteSpace</b>]]> BACKGROUND: As organisational culture plays an important role in forming a sustained competitive advantage, numerous studies about organisational culture have been completed. However, few studies have been conducted by analysing the references of publications with a visual pattern. Moreover, this subject has reached a certain degree of maturity; hence, a review that analyses the trends of organisational culture is urgent. AIM: The aim of this study was to provide broad information on organisational culture, including authors, journals, countries and references. In addition, the evolution of organisational culture is depicted and potential future research focuses are predicted. SETTING: Using the Web of Science as a data source, we captured 1479 publications in Science Citation Index (SCI) and Social Science Citation Index (SSCI) from 2005 to 2016 with 63 682 corresponding references for analysis. METHODS: A bibliometric approach using CiteSpace software was applied to quantitatively and visually analyse organisational culture. RESULTS: 1) The USA is the most productive country followed by the UK and then Australia in terms of publication; (2) scholars are mainly focused on 'performance', 'innovation' and 'knowledge management' aspects; (3) most fundamental theories and frameworks were created from the 1980s to the 1990s; (4) the Journal of Business Ethics is the most appropriate journal for contributions, whereas the Academy of Management Review is suitable for scholars to do a literature review, construct a theoretical framework and develop a research design; and (5) future research on this field has been justified accordingly. CONCLUSION: These findings not only provide basic background knowledge about organisational culture for new researchers but also provide a framework for visual and quantitative research to management scholars and fill the gap between organisational culture and bibliometric analysis. <![CDATA[<b>A review of biodiversity reporting by the South African seafood industry</b>]]> BACKGROUND: Biodiversity reporting is an area of sustainability accounting research that has received comparatively little attention from the academic community. This is despite the growing scientific concern about climate change, habitat destruction and extinction of species and mounting evidence on the implications of these environmental issues for our current way of life. This necessitates additional research on biodiversity reporting, especially in a South African context given that the country is home to some of the richest biodiversity regions on earth. AIM: This research examines what information companies in the South African seafood industry are reporting on biodiversity. This includes the development and application of an easy-to-use disclosure scorecard to track the quality of biodiversity-related disclosures. SETTING: The study focuses on South African biodiversity reporting. The choice of region is informed by the country's significant marine resources and mature corporate reporting environment, where non-financial disclosures are expected to be well developed. METHODS: Content analysis was used to collect data from a sample of companies' integrated and sustainability reports. The data were analysed interpretively to determine what biodiversity disclosures companies provide and the quality of those disclosures. CONCLUSION: The study shows that while the quantum of biodiversity reporting is relatively low, some companies are starting to provide more detailed accounts of their biodiversity impact, pointing to higher levels of reporting quality. There is still room for improvement, but these findings suggest that reporting on non-financial sustainability issues is maturing and that companies are beginning to appreciate the importance of preserving biodiversity for ensuring long-term sustainability. <![CDATA[<b>Flexi work, financial well-being, work-life balance and their effects on subjective experiences of productivity and job satisfaction of females in an institution of higher learning</b>]]> BACKGROUND: Expressions such as 'there are not enough hours in the day' and 'the 25 h workday' or cliché statements such as 'working 24/7' have become common overtones in the way employees feel about time at work. Because of this 'lack of time' feeling, alternative work arrangements such as flexitime, telecommuting and practices such as work-life balance have emerged as popular topics for researchers, employees, organisations and the like in the past few decades. SETTING: Women are still the main caregivers of family members and households, and compared to men, they are less likely to be granted flexitime by their employers. It therefore seems realistic to imagine that women would suffer more from work-life conflict. Women still earn, on average, less than men and are more likely to have part-time jobs. This has an impact on the financial well-being of women. These issues have yet to be investigated in an institution of higher learning in South Africa. AIM: This study was aimed at determining: (1) the relationship between flexi work, financial well-being and work-life balance, productivity and job satisfaction, (2) the role of flexible work, financial well-being and work-life balance in productivity and job satisfaction, and (3) the mediating effect of productivity (job satisfaction in the alternative model) in the relationship between flexible work, financial well-being and work-life balance and job satisfaction (productivity in the alternative model. METHODS: A cross-sectional survey was used with a convenience sample (n = 252) of female support employees, employed in a higher education institution in the North West province of South Africa RESULTS: Findings of the study indicated a statistically significant relationship between the variables. Results indicated that financial well-being, work-life balance and productivity were statistically significant predictors of job satisfaction, and in addition, subjective experiences of productivity serve as partial mediators in the relationship between financial well-being and work-life balance on the one hand, and job satisfaction on the other hand. CONCLUSION: It seems like financial well-being and work-life balance play a more important role in job satisfaction and that financial well-being and work-life balance are more important for job satisfaction through subjective experiences of productivity. It would therefore make sense to increase experiences of financial well-being and work-life balance to address experiences of low levels of job satisfaction and subjective experiences of productivity. <![CDATA[<b>Corporate social responsibility and earnings management of South African companies</b>]]> BACKGROUND: Enron was considered a strong corporate social performer when their infamous accounting scandal emerged in 2000. Literature suggests that companies use corporate social responsibility (CSR) to disguise corporate misconduct. AIM AND SETTING: This study examines one type of corporate misconduct, namely, earnings management (EM). Prior studies have found significant associations between CSR performance and EM; however, none of these studies controlled for CSR disclosure. This study unbundles the effects of CSR performance and CSR disclosure on EM. To examine the relationship between CSR performance and CSR disclosures and EM of listed South African companies. METHODS: A company included on the Socially Responsible Investment (SRI)¹ index is used as an indicator of CSR performance. Four measures of CSR disclosure are used. RESULTS AND CONCLUSION: The study tests both CSR performance and CSR disclosure against both real earnings management (REM) and accrual-based earnings management (AEM). CSR performance and earnings management: Companies with better CSR performance were more likely to engage in EM through income increasing discretionary accruals. This suggests that managers who inflate earnings may engage in CSR activities to avoid unwanted scrutiny from stakeholders. Companies with better CSR performance were less likely to engage in REM, suggesting that managers with better CSR performance regard the management of earnings through accruals that reverse in the next period less incriminating than managing earnings through actual company resources. CSR disclosure and earnings management: Companies that integrated their CSR disclosures more into their annual report engaged less in income decreasing discretionary accruals, suggesting that managers with incentives to make more CSR .disclosures to reduce information asymmetry will also be less inclined to manage earnings. <![CDATA[<b>Private hospital expenditure and relation to utilisation: Observations from the data</b>]]> BACKGROUND: This study contributes to the detailed understanding of the drivers of medical scheme expenditure on private hospitals in South Africa over 2006-2014. This is important in the context of various regulatory reforms that are being considered at present. AIM: The aim is to provide an updated analysis and description of the drivers of medical scheme expenditure on private hospitals in South Africa. SETTING: Private hospital market, South Africa. METHODS: Data from the three largest private hospital groups - which account for approximately 70% of the South African private hospital market share - are collected, aggregated and analysed. This study uses targeted descriptive and exploratory analyses, relying on a residual approach to hospital expenditure. RESULTS: It is found that over time medical scheme beneficiaries, on average, are being admitted to private hospitals more frequently, as well as staying in hospital for longer during each admission. The data also indicate that over time older people are being admitted to hospital more often. CONCLUSION: This study's findings contradict previous assertions that it is only prices driving increased medical scheme expenditure on private hospitals. <![CDATA[<b>Does the national innovation system spur economic growth in Brazil, Russia, India, China and South Africa economies? Evidence from panel data</b>]]> The question as to whether the national innovation system (NIS) plays a significant positive role in influencing economic growth has been intensely debated by academics as well as policy analysts. The main controversy, however, is the fact that the ongoing empirical evidences on the relationship between innovation and economic growth are still mixed. The aim of this paper is to provide further evidence on the relationship between the NIS and economic growth using consistent and reliable data from a sample of emerging economies (Brazil, Russia, India, China and South Africa [BRICS]). The research has a BRICS focus and constructs NIS using historical panel data set for the main variables, that is, university enrolment rate for science and engineering students, government research and development expenditure, high-tech export and the enclosure of control variables covering the period 2000Q1-2013Q4. The study employed a dynamic panel estimation technique with a view of evaluating the relative impact of the NIS on economic growth in BRICS. The results revealed that the NIS as a whole has a positive effect on economic growth in BRICS economies. An important policy implication emerging from this study is that extra efforts are needed by emerging economies to promote the development of a NIS so as to explore the potential growth-inducing effects of a well-functioning NIS. Consequently, findings from this study have offered some persuading indicators for BRICS economies to explore the development of a NIS as a potential opportunity to speed up their economic growth. <![CDATA[<b>Internet access and its relationship to subjective well-being in a developing region</b>]]> Internet access has been shown to play an important developmental role and Internet access to all people has become an international goal. This is also true for South Africa where the 'South Africa Connect' policy was introduced in 2013. The question arises whether Internet access goes beyond meeting developmental goals to improving the subjective well-being of people. Furthermore, if the association between Internet access and subjective well-being vary between different race and age groups. Previous research was performed in developed countries at a national level or for specific small subsamples, like the elderly; however, this study contributes to the literature by analysing a substantial sample, at sub-national level, in a heterogeneous, unequal society, in a developing country. The benefit is that heterogeneities masked in studies at a national, macro level are highlighted in a study at a sub-national, micro level. This article investigated the relationship between subjective well-being and Internet access within a developing region with a heterogeneous, unequal society. The article used a data set representative of the Gauteng population, the economic centre of South Africa, which was collected in 2013 by the Gauteng City Region Observatory. To analyse the data, ordered probit, ordinary least square and instrumental variable regression techniques were used. The results show that Internet access is positively related to subjective well-being and this relationship holds across all race groups and all age groups, from 18 years to over 65 years of age. In addition, it seems that the stark inequalities between race groups present in South Africa are fading among younger generations. Based on the results, the 'South Africa Connect' policy, which aims to give Internet access to all people, including those in Gauteng, the region analysed, is supported, as it not only contributes to the development of the region but also to the life satisfaction of the citizens. <![CDATA[<b>A regression and comparative study of United States and South African yield curves using principal component analysis</b>]]> Volatile markets and economic environments can significantly distort the shape and smoothness of yield curve movements. This study explores the influence of movements in United States interest rates on South African interest rates. This study aims to identify the main underlying movements present in the United States and South African yield curves and to further determine the dominant factors that are responsible for driving South African interest rate movements. The principal settings for the study were the United States and South African markets representing, respectively, a developed and developing market. Principal component analysis was used to discern the major drivers of developing and developed market interest rates. The findings show that the principal component analysis technique is able to effectively classify and quantify the movements of yield curves across both markets in terms of three main factors, namely level, slope and curvature shifts. During certain periods, South African yield curve changes were largely driven by variations in United States interest rates and the rand/dollar exchange rate. Results also demonstrated that a volatile market and economic environment can significantly distort the shape and smoothness of yield curve movements. <![CDATA[<b>Empirical analysis of inbound open innovation and small and medium-sized enterprises' performance: Evidence from oil and gas industry</b>]]> BACKGROUND: This article contributes to existing literature by examining the relationship between inbound open innovation and firms' financial performance in the Nigerian oil and gas industry AIM: This article seeks to identify the factors of inbound open innovation and whether these factors influence the financial performance of small and medium-sized enterprises (SMEs) in the Nigerian oil and gas industry. SETTING: This article examines 150 indigenous oil and gas SMEs in the upstream subsector of the Nigerian petroleum sector through a survey, using a questionnaire, conducted in 2015 METHODS: The study applied the structural equation modelling (SEM) method. This method is used to test the relationships between the factors and to calculate the measurement errors in the hypotheses formulated. RESULTS: The results show that technology scouting, vertical technology collaboration (VTC) and horizontal technology collaboration (HTC) positively and significantly contribute to inbound open innovation, which are thus significant in influencing the financial performance of SMEs. The size of technical staff and research and development (R) fund allocations also have a positive and significant correlation with the SMEs' financial performance. Meanwhile, the age of SMEs is negative and not significant in influencing financial performance. CONCLUSION: The results suggest that inbound open innovation through scouting, HTC and VTC should therefore be encouraged among SMEs to boost their internal capabilities, which have hitherto enhanced their financial performance. The management members of each SME should continually consider collaboration with the external actors because they cannot singularly possess all the innovative skills required in the industry. Also, each firm should commit itself to allocate more funds to R and at the same time should hire those who have relevant production skills and train the existing ones in their firms. <![CDATA[<b>Density forecasting for long-term electricity demand in South Africa using quantile regression</b>]]> BACKGROUND: This study involves forecasting electricity demand for long-term planning purposes. Long-term forecasts for hourly electricity demands from 2006 to 2023 are done with in-sample forecasts from 2006 to 2012 and out-of-sample forecasts from 2013 to 2023. Quantile regression (QR) is used to forecast hourly electricity demand at various percentiles. Three contributions of this study are (1) that QR is used to generate long-term forecasts of the full distribution per hour of electricity demand in South Africa; (2) variabilities in the forecasts are evaluated and uncertainties around the forecasts can be assessed as the full demand distribution is forecasted and (3) probabilities of exceedance can be calculated, such as the probability of future peak demand exceeding certain levels of demand. A case study, in which forecasted electricity demands over the long-term horizon were developed using South African electricity demand data, is discussed. AIM: The aim of the study was: (1) to apply a quantile regression (QR) model to forecast hourly distribution of electricity demand in South Africa; (2) to investigate variabilities in the forecasts and evaluate uncertainties around point forecasts and (3) to determine whether the future peak electricity demands are likely to increase or decrease. SETTING: The study explored the probabilistic forecasting of electricity demand in South Africa. METHODS: The future hourly electricity demands were forecasted at 0.01, 0.02, 0.03, … , 0.99 quantiles of the distribution using QR, hence each hour of the day would have 99 forecasted future hourly demands, instead of forecasting just a single overall hourly demand as in the case of OLS. RESULTS: The findings are that the future distributions of hourly demands and peak daily demands would be more likely to shift towards lower demands over the years until 2023 and that QR gives accurate long-term point forecasts with the peak demands well forecasted. CONCLUSION: QR gives forecasts at all percentiles of the distribution, allowing the potential variabilities in the forecasts to be evaluated by comparing the 50th percentile forecasts with the forecasts at other percentiles. Additional planning information, such as expected pattern shifts and probable peak values, could also be obtained from the forecasts produced by the QR model, while such information would not easily be obtained from other forecasting approaches. The forecasted electricity demand distribution closely matched the actual demand distribution between 2012 and 2015. Therefore, the forecasted demand distribution is expected to continue representing the actual demand distribution until 2023. Using a QR approach to obtain long-term forecasts of hourly load profile patterns is, therefore, recommended. <![CDATA[<b>New perspectives on the role of customer satisfaction and commitment in promoting customer citizenship behaviours</b>]]> BACKGROUND: It is widely accepted that the relationship quality dimensions of customer satisfaction and commitment may impact on customer citizenship behaviour. The positive effect of customer satisfaction on customer commitment is also undisputed within the relationship marketing literature. AIM: It was the aim of this study to examine the extent to which customer commitment mediates and strengthens the relationship between customers' perceived satisfaction and their citizenship behaviour. In the context of Internet banking, the study aimed to examine the extent to which customer's commitment towards the service provider (the bank) strengthens the relationship between satisfaction with the service provided (Internet banking) and customer citizenship behaviour (consumer advocacy and the helping of other customers. SETTING: The study was conducted in the South African Internet banking environment, which could benefit from a model of factors contributing to customer citizenship behaviour, specifically the sub-dimensions of consumer advocacy and helping behaviour. METHODS: A descriptive and quantitative research design was followed and the survey responses obtained from 491 existing users of Internet banking services were used in the analysis. RESULTS: Following the structural equation model results, the direct relationships between all constructs were confirmed. Customer commitment, however, has only a partial mediating effect on the relationships between customer satisfaction and the sub-dimensions of consumer advocacy and helping behaviour. CONCLUSIONS: From a theoretical perspective, the research findings provide more insight into the role of customer satisfaction and commitment in contributing to customer citizenship behaviour and the extent to which both relationship quality factors are needed in order to do so. From a practical perspective, banks should adapt their marketing strategies to facilitate greater relationships with customers responsible for citizenship behaviours. Customers promoting the benefits of the service to other customers and helping them to use the service may ultimately contribute to greater adoption and use of Internet banking services. <![CDATA[<b>Supervisory trust to be earned: The role of ethical leadership mediated by person-organisational fit</b>]]> BACKGROUND: The trust relationship between employees and their supervisors (called supervisory trust) has a definite impact on employee behaviour and attitudes. Furthermore, various studies found that ethical leadership impacts on supervisory trust, but in different contexts, and often with homogeneous or limited samples. The interactionist construct of person-organisational fit (P-O fit), consisting of a combination of supplementary fit (indirect fit or value congruence) and complementary fit (direct or person-job fit, as well as needs-supply fit), may however impact on the relationship between ethical leadership and supervisory trust. The unique permutations of these relationships are important not only for conceptualisation purposes, but also for intervention design to enhance the employees' trust in their supervisors; this would contribute to positive employee behaviour and attitudes. AIM: The purpose of this study was to determine whether a relationship exists between ethical leadership and supervisory trust, with possible mediation by P-O fit. SETTING: The research was conducted among ±60 employees from each of 17 private sector and 4 public sector organisations in South Africa. METHOD: This study utilised a positivist methodology based on an empirical approach, while using a cross-sectional design and quantitative analysis. The sample is relatively representative (in terms of race, gender and the South African work force), as it consisted of 60 employees from each of the 21 South African organisations that participated in the study, with 1260 respondents in total RESULTS: Significant, positive relationships were found between ethical leadership, P-O fit and supervisory trust. Additionally, it was found that P-O fit partially mediates the relationship between ethical leadership and supervisory trust, confirming the proposed model. CONCLUSION: A strong, positive relationship exists between ethical leadership (consisting of morality and fairness, role clarification leadership and power-sharing leadership) and supervisory trust, which is partially mediated by P-O fit (consisting of supplementary fit and complementary fit. <![CDATA[<b>The impact of fiscal policies on corruption: A panel analysis</b>]]> This article seeks to complement the previous literature and clarify whether fiscal policy plays a role in the level of corruption of a country. The present work investigates whether the increase in fiscal pressure leads to a higher level of corruption and whether the results differ from developed to developing countries. This article examines a large sample consisting of over 185 countries, during the period 2005-2014. The technique employed was short panel data. Five statistical models were used such as the pooled OLS, pooled FGLS, within model, between model and random-effects GLS model. Our main contribution consists in finding differentiated results of the influence of fiscal policy on the level of corruption among developed and developing countries. For developed countries, we found that, with high-quality institutions, low fiscal pressure leads to a lower level of corruption, which is in line with expectations. Conversely, in developing countries, with low-level institutional quality, low fiscal pressure increases corruption, because of low governance efficiency under which people may easily circumvent the law. Our findings suggest that governments and policy-makers need to acknowledge that the anti-corruption fight requires not only the right fiscal policies but also the right way of implementing these policies, recognising the role of quality institutions, which need to prevail in any country. <![CDATA[<b>Does the Baltic Dry Index predict economic activity in South Africa? A review from 1985 to 2016</b>]]> BACKGROUND: The ability of the Baltic Dry Index to predict economic activity has been evaluated in a number of developed and developing countries. AIM: Firstly, the article determines the primary factors driving the dynamics of the Baltic Dry Index (BDI) and, secondly, whether the BDI can predict future share price reactions on the Johannesburg Stock Exchange All Share Index (JSE ALSI), South Africa. SETTING: This article investigates the dynamics and predictive properties of the BDI in South Africa between 1985 and 2016. METHODS: The article uses a review of a wide range of published data and two time-series data sets to adopt a mixed methods approach. An inductive contents analysis is used to answer the first research question and a combination of a unit root test, correlation analysis and a Granger causality model is employed to test the second research question. RESULTS: The results show that the BDI price is primarily driven by four underlying constructs that include the supply and demand for dry bulk shipping, as well as risk, cost and logistics management factors. Secondly, the results indicate a break in the BDI data set in July 2008 that influences a fundamental change in its relationship with the JSE ALSI index. In the pre-break period (1985 to 2008), the BDI is positively correlated with the ALSI (0.837, α = 0.05) before sharply diverging in the second period from August 2008 to 2016. In the first period, the BDI showed an optimal lag period of 6 months as a predictor of the ALSI index, but this predictive ability ceases after July 2008. The article makes a two-part contribution. Firstly, it demonstrates that the BDI is a useful predictor of future economic activity in an African developing country. Secondly, the BDI can be incorporated in government and industry sector planning models as a variable to assess future gross domestic product trends. CONCLUSION: The study confirms that the BDI is only a reliable indicator of future economic activity when the supply of shipping capacity is well matched with the demand. <![CDATA[<b>Ethical practices of small and medium-sized enterprises in developing countries: Literature analysis</b>]]> BACKGROUND: There is increasing pressure on business organisations to behave ethically, in addition to running their operations in the most economical, efficient and effective manner possible to increase performance. Customers have also become increasingly mindful of the reputation of the businesses they patronise. Small and medium-sized enterprises (SMEs) have become the worst affected since they lack the funds, strategic information and relevant alliances to implement ethical practices. AIM: This article aims at evaluating the aspects of business ethics, significance of business ethics to SMEs, ethical dilemmas and challenges of SMEs, particularly in developing countries, and suggests strategies to address ethical dilemmas and challenges.. METHODS: The background literature review on ethical practices in SMEs in the context of developing countries was conducted on several journal articles. Peer-reviewed articles in recent journals were analysed to identify the aspects of business ethics, significance of business ethics to SMEs, ethical dilemmas and challenges of SMEs and the proposed strategies to address ethical dilemmas and challenges thereof. RESULTS AND CONCLUSION: It is clear that business enterprises can no longer afford to disregard business ethics. There are continuous business failures as a result of unethical practices, especially those associated with employees and top executives. This article has added to the body of existing literature on ethical practices of SMEs in developing countries. As such, SME owners and managers can use the findings of this article to design ethical policy frameworks and guidelines to improve their reputations and competitiveness. <![CDATA[<b>Quantitative efficiency assessment based on the dynamic slack-based network data envelopment analysis for commercial banks in Ghana</b>]]> BACKGROUND: Gains in bank efficiency improvement have widely been regarded as one of the most effective and efficient means of ensuring sustainability of a financial system. AIM: This article proposes a relative dynamic two-stage network data envelopment analysis model for measurement of bank efficiency based on the slack-based measure.. SETTING: Twenty-seven banks in Ghana during the period of 2009-2014. METHODS: By considering simultaneous processes within the framework of two-stage data envelopment analysis, the slack-based measure approach identifies the sources of inefficiency in the banks.. RESULTS: In the empirical analysis, non-performing loans are an undesirable output in one production process, which should also be treated as a carry-over factor; that is to say, some non-performing loans from the preceding year can be collected in the current year. The carry-over factors should be used to indicate the presence of performance gaps that exist in the banks. The proposed model was used to measure the efficiency of the 27 banks in Ghana during the period of 2009-2014. We also present useful suggestions for improvement in bank efficiency based on the empirical results. CONCLUSION: The 27 main commercial banks in Ghana are far from efficient. For all banks, the efficiency score in the second stage is much higher than that of the first stage. That means more attention should be paid to the first stage of production in order to increase the banks' efficiency. <![CDATA[<b>The impact of food prices on the welfare of households in South Africa</b>]]> BACKGROUND AND SETTING: The global food price surge of 2006 to 2008 has negatively impacted South African households. Rising food prices adversely affect food security in South Africa. The ever-increasing prices for food commodities and lack of access to finance make it very difficult to strengthen food security amongst households in South Africa. AIM: The aim of the study is to examine the impact of food prices on household welfare in South Africa. Additionally, the study attempts to analyse the short- and long-run relationship between food prices and household welfare in South Africa. This is done by determining how real household welfare responds and/or reacts whenever there is a shock in food prices and its fundamental determinants. Finally, the study attempts to distil recommendations toward a conceptual framework for the mitigation of the impact of high food prices on households in South Africa. METHOD: The Vector Error Correction Modelling (VECM) technique is utilised to estimate a regression model. RESULTS: The results reveal that a 1% increase in food prices would reduce household welfare by 21.3%. The study, therefore, confirms a negative correlation between food prices and welfare. CONCLUSION: Short-run policy recommendations include: (1) subsidising staple food baskets for households in South Africa, (2) reducing prices of staple foods through the reduction of food tariffs and (3) reducing household expenditure on basic needs through subsidisation. These policy options could lessen the burden on households when there is a rise in the prices of staple food sources and therefore improve household welfare. Long-run policy recommendations include: (1) improving the unemployment rate in South Africa and (2) improving access to finance and credit for South African households. By addressing the rising unemployment rates and improving access to finance and credit in South Africa through job creation initiatives and improving micro-credit strategies, an environment can be created where households improve their disposable income. <![CDATA[<b>The impact of gainsharing in the automotive parts manufacturing industry of South Africa</b>]]> The majority of South Africans expect greater prosperity that can be accomplished through greater employment, high productivity and wage increases. Increased productivity can finance higher wages without burdening the customer with higher selling prices. Consequently, there should be strong co-operation between management and labour to improve productivity, thereby ensuring the survival of South African companies. To achieve this objective, organisations find themselves turning to their employees for creative suggestions and ideas on better ways of doing things. This sentiment underpins the concept of gainsharing. Gainsharing is a formula-based company-wide programme that offers employees a share in the financial gains of a company as a result of its improved performance. This motivation boosts a company's productivity and radically reduces the cost of waste, spoilage, rejects and rework. This study examined the impact of a gainsharing programme on the improvement of labour productivity in the automotive parts manufacturing sector. The study investigated the production and related experience of two automotive parts manufacturing companies (referred to as A and B in this study) that have adopted a gainsharing strategy. The two companies operate in the eThekwini District Municipality in KwaZulu-Natal. It assessed if gainsharing is responsible for company labour productivity improvements. The investigation was achieved by collecting pre- and post-gainsharing quarterly data for spoilage, absenteeism, capital investment and labour productivity. Gainsharing improves labour productivity and reduces spoilage and absenteeism rates. In order to maximise performance, a comprehensive performance policy must be developed, which aligns pay (and other incentives) to performance. The study uncovered the strengths and weaknesses of gainsharing for labour productivity improvement in South Africa. <![CDATA[<b>Assessing the financial implications of quality management system accreditation on small training providers in KwaZulu-Natal</b>]]> BACKGROUND: A quality management system (QMS) in education and training is designed in accordance with industry quality models of ISO 9001. Its techniques ensure quality in skills development. However, training providers incur significant costs to obtain QMS accreditation. Therefore, the discourse on the economic effect of QMS accreditation in small training providers is crucial.. AIM: This paper investigates the influence of QMS accreditation on the financial performance of small training providers in KwaZulu-Natal (KZN). SETTING: The South African Qualification Authority (SAQA) is a statutory body, regulated in terms of the National Qualification Framework (NQF) Act No. 67 of 2008 to oversee the development and implementation of the NQF. They are responsible for accrediting 21 sector-based Education and Training Quality Authorities (ETQAs) for the purpose of monitoring and auditing training achievements in terms of the national standards and qualifications. METHODS: For this study to achieve its objectives, the ETQAs belonging to 12 different Sector Education and Training Authorities (SETAs) provided the sample frame of accredited training providers in KZN. The SETAs are responsible for administering education and training within their industrial sectors. Of the 89 small training providers, 81 participated in the study. Descriptive and correlation analysis were used to test the two objectives. That is, to examine whether the management and marketing practices of QMS accredited small training providers improve their financial performance. RESULTS: The study indicates that there is no statistical significant relationship between the management and marketing practices of QMS accredited small training providers and their financial performances. This shows that small training providers do not incorporate financial measures during QMS implementation. The accounting departments are not covered in the QMS strategy. CONCLUSION: Small training providers should take advantage of QMS accreditation for their business's financial performance. They should incorporate financial indicators during QMS implementation and measure QMS's economic effects on an ongoing basis. The original value of this paper is in its approach in uncovering the strengths and weaknesses of QMS accreditation in the financial performances of accredited small training providers in KZN. <![CDATA[<b>The role of tax incentives in encouraging energy efficiency in the largest listed South African businesses</b>]]> BACKGROUND: South Africa is faced with a significant challenge of securing the supply of electricity as well as reducing its greenhouse gas emissions. The implementation of energy efficiency (EE) and renewable energy (RE) measures by energy consumers, especially businesses, is becoming increasingly important and a number of tax incentives have been introduced to promote EE and RE OBJECTIVE: The objective of this preliminary study was to determine the role that the available tax incentives play in the decision making of South African businesses regarding investment in RE or EE projects. AIM: To determine this role, the largest South African businesses were selected from the Johannesburg Stock Exchange Top 40 Index. METHOD: The study contained both empirical and non-empirical elements. A literature review was conducted to determine the role of tax incentives globally, while questionnaires were distributed to determine the role in South Africa. RESULTS: Findings highlighted that, while tax incentives do play a role in decision making, various other non-tax factors drive South African businesses' decisions to invest in EE and/or RE projects. These businesses do not perceive the available tax incentives as effective, nor do they regard them as sufficiently motivating for businesses to change their environmental behaviour. They also feel that the government should reduce the burden of complying with the requirements of Section 12L (the EE allowance). CONCLUSION: Improving the available RE and EE tax incentives in South Africa might result in more businesses considering the implementation of RE or EE projects. It is therefore recommended that the available tax incentives are expanded and/or the qualifying criteria simplified. <![CDATA[<b>What are the indicators of a successful business rescue in South Africa? Ask the business rescue practitioners</b>]]> BACKGROUND: Business rescue, in terms of Chapter 6 of the Companies Act No 71 of 2008, is still relatively new to the South African business environment. The need for a successful business rescue regime is beyond doubt. However, a consistent manner to measure the success of the regime has not been determined. Previous research into possible indicators of business rescue success was based on a review of international business rescue regimes that share the same underlying philosophy as the South African business rescue regime. AIM AND SETTING: This study extends previous research efforts by soliciting the opinions of 16 South African, senior business rescue practitioners on the indicators of business rescue success. METHOD: The researchers used a qualitative research approach. The Delphi research technique was used to gather qualitative and quantitative empirical data from business rescue practitioners. RESULTS: The experts reached a high level of consensus on various indicators of a successful business rescue. Most notable are that business rescue should save as many jobs as possible and that the actual outcome should be compared to that estimated in the business rescue plan. A novel indicator of success is the business rescue points saved or rescued, when using the public interest score. CONCLUSION: The study makes a valuable contribution to the debate on what constitutes a successful business rescue by adding the considered opinion on indicators of success by one group of experts in the field of business rescue, namely senior business rescue practitioners. <![CDATA[<b>Business rescue decision-making: Post-mortem evaluation of an 'orgy'</b>]]> BACKGROUND: Sensemaking of the extreme vagaries and external considerations that influence decision-making and judgement during business rescue events (BREs) are currently sparse but details about evaluation criteria are desperately needed. AIM: Learning from and applying post-mortem analysis (PMA) is investigated to propose an evaluation framework. SETTING: Following the problems by and expectations of the Regulator to 'govern' the business rescue (BR) industry, a recent decision to decentralise the accreditation of business rescue practitioners (BRPs) changed the landscape significantly. METHODS: From literature and interviews, the study identified seven interactive evaluation criteria from PMA thinking to be included in a conceptual framework. RESULTS: Following the determination of the contextual difficulty evaluation, the measurement criteria included: taking management control, initial feasibility judgement, viability analysis, decision-making, BRP competencies, the rescue plan and compliance within the supreme task. One mediating factor, namely the BRP dominated. Secondly, the evaluation process can be costly to ensure validity of the data, collection and evaluators. Finally, BRE evaluators (executors/decision makers) require a high level understanding of contextual issues that may disproportionately influence an evaluation. Expert and master level competencies are required to inform the proper judgement of the evaluation criteria and variables. CONCLUSION: The study addresses educators' need for a framework for PMA to guide the teaching of BRP competencies, direct the regulatory authorities (and professional bodies) accreditation framework for licensing BRPs, inform banks as creditors to enhance their information systems, advise upcoming BRPs on outcomes while courts may consider the framework as useful for judging issues. <![CDATA[<b>Competencies for the effective management of legislated business rehabilitations</b>]]> BACKGROUND: In 2011 a new Companies Act (No. 71 of 2008) was implemented in South Africa. A feature of this Act was the introduction of business rescue legislation. Although this legislation was implemented in May 2011, statistics indicate that the success rate for business rescues is approximately only 12%. This low success rate prompted debate relating to the effectiveness, and continued suitability of a legislated business rescue as a mechanism to rehabilitate financially distressed companies. A feature of the business rescue environment in South Africa is the lack of knowledge, necessitating more research in the field. AIM: Due to the importance of the business rescue practitioner in the overall success of a rescue, the research focused on establishing competencies required to be a successful practitioner SETTING: The research was undertaken in South Africa between 2015 and 2017. METHODS: A mixed methods research approach was utilised to identify the important competencies of a successful practitioner. A survey was conducted with the membership of the Turnaround Management Association of Southern Africa. The survey was mailed to 130 members and the response rate was 54%. The survey was complemented by undertaking interviews with 7 of the top 10 business rescue practitioners, according to their number of practitioner appointments. RESULTS: The original contribution to knowledge of this study is the identification of a set of competencies that can be utilised to accredit business rescue practitioners and the emphasis on an accounting qualification and effective cash management skills that a successful practitioner must possess. CONCLUSION: The knowledge generated from this research will benefit business rescue practitioners, the financial sector and stakeholders of companies intending to go into a legislated business rehabilitation. <![CDATA[<b>The link between Internet investor relations and information asymmetry</b>]]> BACKGROUND: Information asymmetry manifests when one party has more or better information than the other. Information asymmetry is said not only to increase transaction costs and decrease liquidity, but also to diminish the quality of the investment decisions taken by investors, thus weakening the overall functioning of markets. AIM AND SETTING: A well-developed Internet investor relations (IIR) strategy, coupled with increased disclosure levels, should theoretically decrease information asymmetry levels. The majority of related studies to date used either an indirect disclosure proxy or involved an examination of the annual report, and have used data from United States or European companies. Empirical studies to date have produced mixed results. The aim of this study was to ascertain whether a relationship exists between the quality of IIR (via corporate websites) and information asymmetry. METHOD: This study used data from Johannesburg Stock Exchange (JSE)-listed companies. Multiple regression analysis was applied with information asymmetry as dependent variable and IIR as one of a set of selected explanatory variables. A self-constructed measurement instrument was used to measure IIR for a sample of 85 companies. Given the inherent difficulty with direct observation of information asymmetry, three different proxies were used to estimate information asymmetry. RESULTS: A significant negative association was found between IIR and information asymmetry for all three information asymmetry proxies that were used: bid-ask spread, price impact, and analyst following. CONCLUSION: Empirical support is provided for the notion that companies may potentially benefit from a well-developed IIR strategy through reduced information asymmetry. <![CDATA[<b>Filter selection for countercyclical capital buffers</b>]]> BACKGROUND: Procyclicality plays a pivotal role in finance in both thriving and crisis periods. This influence stems not only from the way market participants behave but also from risk metrics used and regulatory capital amassed and released during bust and boom periods, respectively. The introduction of the regulatory Countercyclical Capital Buffer aims to thwart procyclicality by accumulating (releasing) capital in upswings (downswings), subsequently reducing the amplitude of the financial cycle and promoting macroprudential stability. The timing of the accumulation and release of buffer capital is critical so identifying accurate indicators is important. AIM: This paper applies a Kalman filter to South African data and confirms the procyclicality of the Basel Committee on Banking Supervision (BCBS) proposal. SETTING: For South Africa, studies suggest alternatives such as residential property indices because research has demonstrated that the BCBS proposal is procyclical rather than countercyclical. METHODS: This paper applies a Kalman filter to South African data and compares the results obtained with those filtered using the Hodrick-Prescott filter. RESULTS: Results indicate that buffer signals are dependent upon the filter employed. CONCLUSION: Buffer signals are strongly dependent upon the filter employed to detect procyclicality. The South African Reserve Bank and other regulators should reconsider the use of the Hodrick-Prescott filter and entertain the possibility of using the Kalman filter instead. <![CDATA[<b>Determinants of urban consumers' participation in informal vegetable markets: Evidence from Mahikeng, North West province, South Africa, and implications for policy</b>]]> BACKGROUND: This article seeks to examine the perceptions of urban dwellers towards participating in informal vegetable markets and determine the underlying factors shaping their decisions to participate in such markets. AIM AND SETTING: The objectives were achieved by using cross-sectional data obtained from a random sample of 230 households from Mahikeng in the North West province of South Africa. Households' perceptions were measured using numeric responses to several questions, which covered various issues related to vegetable marketing and consumption. Principal component analysis (PCA) was employed to draw dominant perceptions from the set of responses. METHOD: The probit model was used to determine factors influencing households' decisions of whether or not to participate in informal vegetable markets. Explanatory variables included demographic and socio-economic factors as well as perception-related factors, which were proxied by the dominant principal components (PCs) obtained from the PCA results. RESULTS: Two PCs were found dominant, representing safety and quality perceptions as well as the convenience and bargaining opportunities provided by informal traders. The probit regression results indicated that households' preference for the informal vegetable market were positively influenced by age of household head, low level of education of adult household members, and convenience provided by informal markets. However, households' wealth status and the perceptions on safety and quality of vegetables were found to have a significant negative influence on participation in the informal market. CONCLUSION: Given that informal vegetable trade forms an integral part of the urban economy by offering easy access to food in public spaces and connecting with the formal economy where informal traders source their supplies, the study concludes by highlighting policy interventions aimed at improving the quality of food traded in the informal sector. <![CDATA[<b>Exploring the South African tax consequences of a residential property lottery</b>]]> BACKGROUND: Disposing of a residential property by way of a lottery sounds peculiar, but a number of these transactions relating to residential properties in South Africa have recently taken place. As this is not an ordinary way of disposing of and acquiring residential property, it is submitted that it is necessary to explore the tax consequences resulting from such a transaction. AIM: The objective of this article is to explore some of the most pertinent South African tax consequences of such a residential property lottery transaction, from the viewpoint of the owner ('seller') who disposes of the residential property and the winner ('purchaser') who acquires the residential property in terms of the lottery. SETTING: This article examines existing literature in a South African income tax environment to explore the tax consequences resulting from a disposal and acquisition of residential property by way of a lottery. METHODS: A non-empirical study, which entails the study of the various South African tax provisions and an application thereof to the facts of the lottery transaction, was conducted. A doctrinal research approach was followed within the realm of exploratory research. RESULTS: Disposing of and acquiring residential property by way of a lottery results in a number of actual tax consequences, as well as a number of uncertainties regarding taxes (referred to as uncertain considerations. CONCLUSION: The conclusion is reached that the possible tax consequences of such a transaction can create tax risks or can result in unintended tax consequences relating to inter alia income tax (including capital gains tax), transfer duty and donations tax. The insights provided in this article do not always result in conclusive answers but they may, however, result in further research to be conducted, and a number of such areas for further research were identified. Should residential property lottery transactions occur more frequently in South Africa in future, it is recommended that the South African Revenue Services (SARS) issues clear guidance on the tax treatment from the perspective of the owner and the winner of such a transaction to ensure that any uncertainties are dealt with correctly. <![CDATA[<b>A Lean Six Sigma framework to enhance the competitiveness in selected automotive component manufacturing organisations</b>]]> BACKGROUND: Currently, globalisation, economic uncertainty and fluctuating market demands prompt leaders all over the world to improve their operations and to enhance innovations in processes, products and services in a very reactive manner. Literature shows that the adoption of an integrated Lean Six Sigma tool can assist them to compete with the rest of the world in a manner where productivity, quality and operational costs reduction are crucial for economic success. AIM: This article investigates the integration of Lean and Six Sigma tools as a unified approach to continuous improvement and develops a Lean Six Sigma framework for selected automotive component manufacturing organisations in KwaZulu-Natal (KZN), South Africa. METHOD: The quantitative methods of research were adopted. The target population (42) was organisations within the Durban Automotive Cluster of which five were used for the pilot work. An empirical study was conducted using a survey questionnaire in measurable format to gather practical information from the sample organisations on the status of their existing business improvement programmes and quality practice. RESULTS: The results of the study demonstrated that the organisations had a very low success rate of Lean and Six Sigma adoption as standalone systems, as they found it difficult to maintain the transition from theory to practice. CONCLUSION: Hence the adoption of an integrated Lean Six Sigma approach was absent and it can be concluded that the proposed Lean Six Sigma framework affords the KZN automotive sector a unique opportunity to integrate and operate with both tools of quality that complement its management style and industry demands. <![CDATA[<b>Determinants of pricing objectives and price flexibility policies of pork-based agro-businesses in Mashonaland Central province, Zimbabwe</b>]]> BACKGROUND: The article focuses on the pricing strategies that are used in a dynamic institutional environment of land reform and indigenisation policies. Zimbabwe underwent a land reform incorporating new players in the pork agribusinesses, as well as indigenisation, altering agro-business decision-making structures. One such decision is effective pricing. AIM: The objective of the study was to highlight the determinants of utilising a particular pricing objective and price flexibility policy in the Zimbabwean pork industry. SETTING: The study examined the pricing objectives and price flexibility policies of pig producers, pork abattoirs and butcheries in Mashonaland Central province, Zimbabwe. METHODS: The study used a cross-sectional, descriptive and quantitative survey of pig producers, pork abattoirs and pork butcheries. A structured precoded questionnaire-based interview of 166 pig producers, 6 pork abattoirs and 24 butchers was used as the data collection tool and method. A logit model was used for analysis, ascertaining determinants of a binary choice model. RESULTS: The study found that agribusinesses' pricing objectives were determined by the product portfolio, margin, merchandise handled, distance the furthest buyer travels and consideration of other industry players' pricing at the p < 0.01 level. Furthermore, factors such as seasonality in April to September sales, quality considerations (p < 0.05), frequency of retailers and size considerations (p < 0.1) were also significant determinants of pricing objectives. Also, the agribusinesses' price flexibility policies were shown to be determined by agribusiness location, average weight of merchandise, frequency of individual customers, size consideration and consideration of other industry players' pricing at the p < 0.01 level. In addition, margin, frequency of abattoir buyers (p < 0.05) as well as pork product portfolio (p < 0.1) were also observed to be major factors towards a flexible pricing policy. CONCLUSION: The results suggest that pork industry players in Zimbabwe are myopic in their pricing strategies, having factors such as product portfolio, margin, merchandise handled and considerations of other industry players' strategies as dualistically determining pricing objective and price flexibility policy utilised. The study recommends that pork industry players shift from myopic pricing objectives of profit and survival and devise new pricing strategies based on sales and competitive pricing. There is also need for less rigidity in flexible price policies to take advantage of the dynamic external environment. <![CDATA[<b>The effect of industry nuances on the relationship between corporate governance and financial performance: Evidence from South African listed companies</b>]]> BACKGROUND: Premised on agency, resource dependence and stewardship theories, the study investigates empirically the existence of industry nuances in the relationship between corporate governance and financial performance of companies listed in the Johannesburg Stock Exchange AIMS: The main objective of the study is to understand the relationship between internal corporate governance and company performance from the perspective of three distinct economic periods, as well as industry nuances, cognisant of endogeneity issues. SETTING: South Africa, as an emerging African market, offers an interesting research context in which the corporate governance and financial performance nexus can be examined empirically. METHOD: A sample of 90 companies from the five largest South African industries, covering a 13-year period from 2002 to 2014 (1170 firm-year observations) was examined with three estimation approaches. RESULTS: Two key trends emerged from this study. First, the relationship between corporate governance and company performance differed from industry to industry. Second, the association between corporate governance and company performance also changes during steady and non-steady periods, which is an indication that the nexus is driven by the state of the global economy and the type of the industry. CONCLUSION: Evidence from the study suggests that companies should be allowed to optimise rather than maximise their corporate governance options. This finding questioned the approach of the recently published King IV Code of Good Corporate Governance, which requires Johannesburg Stock Exchange-listed companies to 'apply and explain' as opposed to 'apply or explain' as pronounced by King III Code of Good Corporate Governance. <![CDATA[<b>Assessing fiscal sustainability in Swaziland</b>]]> BACKGROUND: Understanding and assessing fiscal sustainability is essential in ensuring financial and macro-economic stability. Fiscal sustainability has emerged as an important subject for Swaziland given the increasingly volatile government revenues especially those coming through the South African Customs Union (SACU), which threw the country into a severe fiscal crisis between 2010 and 2012, as well as the pressures on increased government spending in the post-fiscal crisis era. AIM: This article primarily focuses on studying whether Swaziland's fiscal policy remains on a sustainable path or whether corrective measures would be required. SETTING: Study focuses on Swaziland, a small open economy that is vulnerable to external shocks. The country also relies heavily on South African Customs Union (SACU) revenues. METHODS: The study employs a broad approach to assessing fiscal sustainability in Swaziland covering both deterministic and stochastic analysis. On the deterministic analysis, the article studies the evolution of debt given macro-economic variables and further estimates fiscal sustainability indicators such as the primary gap and tax-gap. From a stochastic analysis, the article uses the Trehan and Walsh Methodology as well as Hakkio and Rush Methodology. RESULTS: Fiscal sustainability indicators reflected that the country is on an unsustainable path with a primary gap and tax-gap of about 7% of gross domestic product (GDP) that has to be corrected. The econometric results also portray an evidence of 'weak-form' sustainability in the long-run. This is because public expenditures are rising at a faster pace than revenues thereby rendering government deficits unsustainable in the medium term. The econometric results also suggest a tax-spend hypothesis in the long-run, while short-run developments point to a spend-tax hypothesis. In both instances the correction measure is cutting expenditure, mainly recurrent expenditure. CONCLUSION: The study recommends corrective measures (mainly cuts in government expenditure) for fiscal policy to be brought back into a sustainable path without which a fiscal crisis is imminent. The recommendations are mainly based on the fiscal sustainability indicators as they are more forward looking for the short to medium term. The article suggests fiscal rules based on these indicators. <![CDATA[<b>Repatriation turnover revisited: A focus on South African multinational enterprises</b>]]> BACKGROUND: The topic of repatriation turnover as a major source of concern for repatriates and their multinational enterprise has been covered extensively in the literature over the years, with the literature showing that between 15% and 38% of repatriated expatriates leave the employment of their multinational enterprise within the first year after repatriation. However, no such study has focused on the repatriation of South African expatriates. AIM: The primary aim of this study was to determine if there is a correlation between the repatriation practices of South African multinational enterprises and their repatriation turnover rates. The secondary aim of the study was to determine why repatriated employees leave the employment of South African multinational enterprises. METHOD: This quantitative study surveyed 41 expatriate managers of South African multinational enterprises, with the Mann-Whitney U test and Spearman's correlation coefficient being used to test for correlations between the repatriation practices of South African multinational enterprises and their repatriation turnover rates. RESULTS: The results revealed positive correlations between appointing a mentor to an expatriate to assist with the repatriation process, conducting an orientation programme prior to repatriation and supporting the expatriate with various initiatives during repatriation and lower repatriation turnover rates. Meanwhile a negative correlation was found between when a multinational enterprise starts with an orientation programme prior to repatriation and repatriation turnover rates. CONCLUSION: These findings provide valuable insights for South African multinational enterprises into practices they can employ to reduce their repatriation turnover rates. <![CDATA[<b>The relationship between strategic thinking and leadership effectiveness in Kenyan indigenous banks</b>]]> BACKGROUND: Leadership effectiveness is critical to organisational performance and survival. To be effective, organisational leaders must possess the right competencies. One vital leadership competency is strategic thinking, which is described as the ability to synthesise and utilise intuition and creativity in order for an organisation to achieve an integrated perspective. Strategic thinking remains a critical area for research, owing to lack of supporting empirical literature, and to theories that give little or no guidance to leaders AIM: The purpose of this study is to empirically test the relationship between strategic thinking competency and leadership effectiveness in Kenyan indigenous banks SETTING: The setting of the study is the indigenous banks in Kenya METHODS: The study was based on a positivist research paradigm which is quantitative in nature and utilised a survey method to collect data. Both probability and non-probability methods were used to determine the target population. The research instrument was a self-administered, closed-ended questionnaire. From a target population of 494 individuals, a total of 257 responses were received and analysed. The analysis was performed using structural equation modelling with confirmatory factor analysis, Cronbach's alpha and goodness-of-fit indices being used for analysis and testing relationships RESULTS: The overall findings are that a positive relationship exists between strategic thinking and leadership effectiveness in indigenous banks in Kenya. The study further establishes positive relationships between the strategic thinking competency and its sub-constructs of general strategic thinking, intent-focused and hypothesis-driven, but a negative relationship with intelligent opportunism. A similar positive relationship exists between leadership effectiveness and its sub-constructs of influence, follower commitment and versatility CONCLUSION: This research has established that strategic thinking is an important determinant of leadership effectiveness for indigenous banks in Kenya, and therefore supports prevailing literature and theory indicating a positive relationship. The implication of the study is that bank management should strive to maintain strategic thinking competency for effective leadership, successful bank performance and stability <![CDATA[<b>Informal financial transactions and monetary policy in low-income countries: Interpolated informal credit and interest rates in Malawi</b>]]> BACKGROUND: Official monetary data usually exclude informal financial transactions although the informal financial sector (IFS) forms a large part of the financial sector in low-income countries. AIM AND SETTING: Excluding informal financial transactions in official monetary data, however, underestimates the volume of financial transactions and incorrectly presents the cost of credit, bringing into question the accuracy of expected effects of monetary policy on economic activity. METHODS: Using IFS data for Malawi constructed from two survey data sets, indigenous knowledge and elements of Friedman's data interpolation technique, this study employs innovation accounting in a structural vector autoregressive model to compare monetary policy outcomes when IFS data are taken into account and when they are not. RESULTS: The study finds evidence that in certain instances, the formal and informal financial sectors complement each other. For example, it is observed that the rate of inflation as well as output increase following a rise in either formal financial sector (FFS) or IFS lending. Further investigation reveals that in other cases, the FFS and IFS work in conflict with each other. Demonstrating this point, the study finds that a rise in FFS interest rates is followed by a decline in FFS lending while IFS lending does not respond significantly and the response of FFS and IFS loans combined is insignificant. When IFS interest rates are raised, total loans decline significantly. CONCLUSION: The study, therefore, concludes that exclusion of IFS transactions from official monetary data has the potential to frustrate monetary policy through wrong inferences on the impact of monetary policy on economic activity. <![CDATA[<b>Psychological Capital: Convergent and discriminant validity of a reconfigured measure</b>]]> BACKGROUND: Although attention has been given to the importance of positivity in the workplace, it has only recently been proposed as a new way in which to focus on organisational behaviour. The psychological resources which meet the criteria for positive organisational behaviour best are hope, self-efficacy, optimism and resilience AIM: The purpose of this study was to investigate the construct validity of the Psychological Capital Questionnaire (PCQ), with specific reference to its psychometric properties SETTING: The sample included a total of 1749 respondents, 60 each from 30 organisations in South Africa METHODS: A multi-factorial model was statistically explored and confirmed (with exploratory factor analysis and confirmatory factor analysis, respectively RESULTS: The results support the original conceptualisation and empirically-confirmed factorial composition of Psychological Capital (PsyCap) by four elements, namely Hope, Optimism, Resilience and Self-efficacy. However, the study yielded a three-factor solution, with Hope and Optimism as a combined factor and Resilience and Self-efficacy made up of a reconfigured set of substantively justifiable items (three of the original 24 items were found not to be suitable). The three reconfigured factors showed good psychometric properties, good fit (in support of construct validity) and acceptable levels of convergent and discriminant validity. Recommendations were made for further studies CONCLUSION: Based on the results obtained, it seems that the PCQ is a suitable (valid and reliable) instrument for measuring PsyCap. This study could thus serve as a reference for the accurate measurement of PsyCap <![CDATA[<b>Impact of gender on small and medium-sized entities' access to venture capital in South Africa</b>]]> BACKGROUND: The debate on the influence of gender on small and medium-sized entities' (SMEs) access to finance from a demand-side perspective is still ongoing. This study seeks to contribute to the debate from an emerging economy (South Africa) perspective. AIM: The study investigated whether there is a gender gap in SME access to venture capital, a distinct source of finance. SETTING: SMEs play a significant role in South Africa's economy. Despite the importance of SMEs, access to finance is one of the major constraints affecting their success rate. Globally, to enhance the probability of SME survival, small business practitioners and governments are in search of relevant support measures. One of those measures could be adequate access to venture capital. However, it is sad to note that SMEs seldom use this distinct source of finance. METHODS: The study made use of the quantitative method of research and is descriptive by design. Self-administered questionnaires were emailed to respondents for the purposes of gathering primary data. The t-test was used to statistically analyse primary data. RESULTS: The results reveal that there is a statistically significant difference in the accessibility of venture capital between male- and female-owned SMEs. CONCLUSION: The article concludes that a gender gap in access to venture capital exists owing to differences in business approach between female entrepreneurs and their male counterparts. Female entrepreneurs are cautious about the level of risk they are willing to take and the amount of control they wish to exercise in firm ownership. <![CDATA[<b>The relationship between remuneration and financial performance for companies listed on the Johannesburg Stock Exchange</b>]]> BACKGROUND: The executive directors of a company are the agents of the shareholders and should manage the company in the best interest of the shareholders, not only for personal gain. It is therefore important for companies to ensure that they implement remuneration policies which will result in motivated employees who will execute decisions and actions which are in the best interest of the shareholders. However, it is widely acknowledged that the relationship between company performance and executive remuneration is weak. This implies that executives are still rewarded excessive remuneration regardless of the performance of their companies. AIM: The purpose of this study was to determine whether a relationship exists between the performance-based remuneration of executive directors and the financial performance of South African companies. SETTING: The study was conducted in South Africa, specifically on companies listed on the Johannesburg Stock Exchange. METHODS: The study design was quantitative and made use of a Pearson correlation and generalised least squares regression with bootstrapping at a 95% confidence interval to analyse the relationship between executive director remuneration and the financial performance of 42 companies in the consumer goods and services industry of the Johannesburg Stock Exchange (JSE) from 2006 to 2015. RESULTS: The study established that the remuneration policies in place for South African executive directors within the consumer goods and services industry seem to be affected by the share price of the company. CONCLUSION: In the South African environment, executive director remuneration is thus not directly related to profitability or company size, as was the case in some earlier studies. The link between executive director remuneration and share performance may be an indication that remuneration policies are based on the share price and are thus directly connected to the principle of shareholder wealth maximisation. <![CDATA[<b>The practice turn within strategy: Competitive intelligence as integrating practice</b>]]> BACKGROUND AND AIM: This article investigated the positioning of competitive intelligence within the field of strategy. METHODS: Publications on strategy and competitive intelligence were reviewed through thematic content analysis based on an extended literature review to determine their respective contents and how strategy as practice related to the crystallised competitive intelligence themes. RESULTS: The research demonstrated that strategy and competitive intelligence are inextricably interwoven. Competitive intelligence was shown to be not merely an activity or sequence of activities within the broader strategic management process, but a significant strategic practice. CONCLUSION: We argued, based on a comprehensive literature review, that competitive intelligence is an integral practice within strategy that should be explored further for its contribution to emergent and deliberate strategies and the linkage between intra-organisational and extra-organisational activities. We proposed a framework to position competitive intelligence within strategy as practice and in relation to the process view of strategy. The conceptualised framework contributes to the corpus of strategy research as it formalised competitive intelligence as a critical part in the thinking about and the practice of strategy. It moved competitive intelligence from a position on the periphery of strategic management literature, where it was regarded as a mere activity, to an integral practice of strategy to be recognised by strategy scholars and worthy of further research. <![CDATA[<b>A critical analysis of the meaning of the term 'value' in Section 30(6)(e) of the Companies Act</b>]]> BACKGROUND: Sections 30(4) and 30(5) of the Companies Act 71 of 2008 (the Act) require, inter alia, disclosure of the remuneration received by each director in a company's annual financial statements. Section 30(6) defines the term 'remuneration', which includes, inter alia, in Section 30(6)(e) the 'value' of any option or right granted to a director, as contemplated in Section 42, which deals with options for the allotment or subscription of securities or shares of a company. It is uncertain what the intended meaning of the term 'value' is in this context and it is interpreted differently by different companies in practice. AIM: The objective of this study was to understand the meaning of the term 'value' in Section 30(6)(e) of the Act (including the date of measurement thereof), as intended by the legislature. SETTING: This article examined existing literature in a South African corporate and legislative environment. METHOD: A non-empirical study of existing literature was conducted by performing a historical analysis within a South African context. A doctrinal research approach was followed. RESULTS: Possible interpretations of the term 'value' include the grant date fair value of the rights, the fair value at reporting date, the fair value on vesting date, the expense calculated in terms of the International Financial Reporting Standard on share-based payments, the gain on exercise of the rights and the intrinsic value on reporting date. It is submitted that the most likely meaning is the grant date fair value. CONCLUSION: It was found that the meaning of the term 'value', for purposes of Section 30(6)(e) of the Act, is unclear and interpreted differently by different companies. It is, therefore, recommended that the wording of Section 30(6)(e) is amended to reflect the meaning intended by the legislature. <![CDATA[<b>Management perceptions regarding factors impacting privatisation of parastatals in a developing country</b>]]> BACKGROUND: Worldwide, the ownership of public organisations has been transferred to the private sector through privatisation. The poor performance of public organisations has necessitated privatisation of these organisations. AIM: This article explored management perceptions regarding factors impacting the privatisation of parastatals in a developing country, namely Zimbabwe. SETTING AND METHOD: A comprehensive literature study provided the theoretical framework for this research. Primary data were collected by means of a survey obtaining 301 self-administered structured questionnaires from 27 parastatals in Zimbabwe. Seven null-hypotheses were tested using advanced statistical techniques such as regression and correlation analyses. RESULTS AND CONCLUSIONS: Factors identified in this study that could impact privatisation of parastatals in Zimbabwe are stakeholder consultation, stable macroeconomic conditions, government transparency and a well-developed privatisation process plan. If privatisation is implemented effectively, it could lead to increased organisational performance, effective governance and economic empowerment. It also appeared that variables such as union consultation, role ambiguity, political intervention, attractiveness to foreign investment and government commitment do not exert a significant influence on perceptions of privatisation. Practical guidelines were also provided to enhance the implementation of privatisation in parastatals. <![CDATA[<b>The subjective well-being of day labourers in South Africa: The role of income and geographical location</b>]]> BACKGROUND: The informal economy in South Africa provides employment to large numbers of people who would otherwise have no opportunity to earn a living. Yet informal activities, such as day labouring, generate highly uncertain returns. Although it seems reasonable to conclude that day labourers would be dissatisfied with their lives, this is not necessarily the case as several factors contribute to people's subjective well-being. AIM: This study is in response to a call for more research on the subjective well-being of marginalised groups in South Africa's informal labour market. SETTING: The day labour market in South Africa, whose members congregate at hiring sites hoping to be picked up by passers-by in need of temporary, casual workers. METHODS: Using Sen's Capability Approach, the study builds on earlier research conducted on the general well-being of day labourers in South Africa, with specific focus on their subjective well-being and geographical location. The results from a countrywide survey of 3830 day labourers were used in a regression analysis to compare the subjective well-being among day labourers across the nine provinces of South Africa. RESULTS: There are statistically significant differences in the well-being of day labourers across the nine provinces. Economic variables play a role in both objective and subjective measures of well-being, while attitudinal and comparison variables are significant for the objective and subjective measures, respectively. CONCLUSIONS: Although they have to operate in harsh conditions, day labourers in South Africa display agency by choosing to migrate to richer provinces in search of greater economic opportunity and reward. However, these potential gains are often negated by increased levels of competition and thus depressed wage levels. How to nurture marginalised groups' abilities to exercise agency and take more control of their lives represents fertile ground for researchers in future. <![CDATA[<b>Relationship between strategic planning and financial performance: The case of small, micro- and medium-scale businesses in the Buffalo City Metropolitan</b>]]> BACKGROUND: Arguments are made for strategic planning as an important organisational capability used to realise a firm's goals and objectives. Despite this, conflicting views appear to emerge from the extant literature over the link between strategic planning and financial performance. Notably, within a South African context, a few studies have been conducted ascertaining this relationship especially within small, medium and micro-enterprises (SMMEs). AIM AND SETTING: The study aimed to determine this relationship using survey responses from a sample of 225 respondents classified as owners or managers of SMMEs operating within the Buffalo City Metropolitan in the Eastern Cape Province of South Africa METHOD: Data were analysed through regression and correlation analysis. RESULTS: Findings reveal strategic planning to have a positive relationship with the financial performance of the SMMEs. Furthermore, aspects of strategic planning (formulation, implementation, evaluation and control) were also found to have a positive relationship with financial performance. CONCLUSION: Suggestions for theory and practice are made based on these findings, including how the adoption and usage of strategic planning cannot only be an important organisational capability but also a basis for attaining a competitive advantage within the SMME. <![CDATA[<b>The socio-economic effects of mechanising and/or modernising hard rock mines in South Africa</b>]]> BACKGROUND AND AIM: This article aims to explore stakeholders' views on the potential effects of modernising hard rock mines in South Africa. METHODS: This objective was achieved through eliciting and bringing together the views of different stakeholders. Different stakeholders were interviewed using qualitative research methodologies. The sample demographics were fairly representative and ranged from operators to executives and from employee to employer representatives. The main form of data collection was one-on-one face-to-face interviews. RESULTS: One of the major findings of this research is that stakeholders have different levels of understanding of mechanisation and modernisation. The levels of understanding were found to be proportional to the levels of education. CONCLUSION: There seems to be general support for mechanisation and modernisation among the participants. The identified socio-economic challenges and benefits were relatively similar and aligned among participants. The main difference, however, pertained to the depth and scope of the problem or opportunity as perceived by different participants. Interviewees were also unanimous in identifying the social-economic benefits of mechanisation; these were in line with those identified in the literature, namely benefits in occupational health and safety issues, efficiency, costs and improved life of mines. Furthermore, participants viewed mechanisation and modernisation as an opportunity to reskill themselves and to improve operations and quality of life. More importantly, stakeholders seemed to share a common vision and interest of the future; as such, they were able to see beyond their constituencies and interests. <![CDATA[<b>Extending green supply chain management activities to manufacturing small and medium enterprises in a developing economy</b>]]> BACKGROUND: The implementation of green supply chain management activities as a business strategy remains unfamiliar to many small and medium enterprises (SMEs) in developing countries such as South Africa. SETTING: Implementation of green supply chain management activities by South African SMEs is necessary, given both the high failure rate of such enterprises in the country and the proven ability of such activities to promote the success of businesses. AIM: The aim of this study was to investigate the relationship between green supply chain management activities, operational performance and supply chain performance in manufacturing SMEs in South Africa. METHODS: Data were collected from 219 manufacturing SMEs operating within Gauteng. A confirmatory factor analysis was conducted to assess the psychometric properties of measurement scales. Hypotheses were tested using structural equation modelling. RESULTS: Four green supply chain management activities, namely green purchasing, reverse logistics, environmental collaboration with suppliers and green manufacturing, exerted a positive influence on operational performance. Environmental collaboration with suppliers exerted the highest influence on operational performance when compared to green purchasing, reverse logistics and green manufacturing. In turn, operational performance exerted a strong positive influence on supply chain performance. CONCLUSION: The results of the study suggest that manufacturing SMEs in developing countries could benefit by adopting green supply chain management activities, with improvements being realised in terms of increases in both operational and supply chain performance. <![CDATA[<b>High inventory levels: The raison d'être of township retailers</b>]]> BACKGROUND: This study investigates the cardinal role of optimal inventory decision-making in the performance of small formal retailers in Soweto, constituting a projected, lucrative retail environment. AIM: The research question was how Soweto small retailers make inventory decisions to promote their income growth and age of the business. For this study, a descriptive research design was followed. SETTING: The universe of the study comprised all the formal small, medium and microenterprises located in Soweto township. METHODS: Using probability sampling, the sample size was set at 650 businesses. Of the 650 completed questionnaires, the responses of 297 respondents operating in the retail grocery and retail general stores sectors were analysed quantitatively using exploratory factor analyses, cluster analysis and cross-tabulation. RESULTS: This study showed that being more inclined to proactively maintain a high level of inventory could result in positive business performance in terms of both growth in income and age. Younger businesses (less than 5 years) could grow if they decide to stock up on sale items, purchase more items for sale, provide for customers' fluctuating demands and buy more stock to save on transport costs. Purchasing less or the exact amount of stock as what can be sold within a month could be detrimental to the performance of general and grocery retailers in Soweto. CONCLUSIONS: The results also show that if retailers want to grow and exist for 5 years and more, they should consider both proactively maintaining a high level of inventory and doing so with ease. In this study, the older (5 years and older) business groups were mostly owned by older people, who showed a tendency to establish themselves in stand-alone shops or smaller shopping centres. Older businesses also tend to buy stock daily or weekly, or when stock is low. These older businesses without income growth were mostly family businesses who displayed contentment with the status quo of business performance and seemed to lack entrepreneurial skills. <![CDATA[<b>Procyclicality in tradeable credit risk: Consequences for South Africa</b>]]> BACKGROUND: Tradeable credit assets are vulnerable to two varieties of credit risk: default risk (which manifests itself as a binary outcome) and spread risk (which arises as spreads change continuously). Current (2017) regulatory credit risk rules require banks to hold capital for both these risks. Aggregating these capital amounts is non-trivial. AIM: The aim was to implement the bubble value at risk (buVaR) approach, proposed by Wong (2011) to overcome the risk aggregation problem. This method accounts for diversification and for procyclicality and operates by inflating the positive side of the underlying return distribution, in direct proportion to prevailing credit spread levels (usually liquid credit default swap spreads. SETTING: The principal setting for the study was the South African credit market which represents a developing market. Previous work by Wong (2011) focussed only on developed markets. METHODS: Using South African data, closed form solutions were derived for free parameters of Wong's formulation, and the relationship between the spread level and the response function was developed and calibrated. RESULTS: The results indicate that the original calibrations and assumptions made by Wong (2011) would result in excessive capital requirement for South African banks. Estimates obtained from this work suggest further calibration is required to cover the unique features of the South African milieu. Considerable differences compared with other markets were also found. CONCLUSION: The application of buVaR to South African government bond credit default swaps spreads highlighted the metric's countercyclical properties that would potentially have countered bubble developments had they been implemented during the credit crisis of 2008/2009. Regulatory authorities should take this important metric into account when allocating South African bank's credit risk capital. <![CDATA[<b>Measuring and profiling financial literacy in South Africa</b>]]> BACKGROUND: Microeconomic theories of financial behaviour tend to assume that consumers possess financial skills necessary to undertake related financial decisions. AIM AND SETTING: We investigated this assumption by exploring the distribution of financial literacy among South Africans. METHOD: In the absence of a standard measure, a financial literacy index was constructed for the country using data collected on attitudes (towards), access to and use of financial services over the period 2005-2009. In a multivariate regression analysis, we used the index to examine the extent to which differences in financial literacy correlate with demographic and economic characteristics. RESULTS: The index revealed substantial variation in financial literacy by age, education, province and race. Overall, demographic characteristics contributed up to 10% of the financial literacy differences among individuals in South Africa. CONCLUSION: These results can be used to guide policy makers where to place more emphasis in terms of financial education for South Africans. <![CDATA[<b>Influence of self-motivation and intrinsic motivational factors for small and medium business growth: A South African case study</b>]]> BACKGROUND: This study investigates the influence of intrinsic motivational factors for small and medium enterprise (SME) growth in the eThekwini District Municipality in South Africa (SA) AIM: It examines whether self-motivation of business owners operating in the furniture manufacturing sector has an influence on SME growth. SETTING: Of the 127 SMEs operating in the eThekwini District Municipality, 112 participated in the study representing 88% of the target population. METHODS: Descriptive, chi-square and correlative analyses were used to test the two objectives. That is, to determine the influence of self-motivation of business owners for SME growth, as well as to establish the intrinsic motivational factors that stimulate creativity for SME growth. RESULTS: The study revealed that the intrinsic motivational factors of business owners do influence SME growth in SA. These factors include exerting effort for business growth interest, finding new solutions to business problems to achieve growth, growing business for recognition, belief to produce the desired outcomes, taking responsibilities for business expansion, the need for advancement, and growth aspiration that enables the business owner to take risks in order to grow the business. CONCLUSION: The outcome is that a self-motivated business owner has the ability to grow the business. The study provides valuable data relating to intrinsic motivational factors. Such factors are the enablers of creativity and business growth. It provides initial baseline data upon which to base future work. <![CDATA[<b>An optimised credit scorecard to enhance cut-off score determination</b>]]> BACKGROUND: Credit scoring is a statistical tool allowing banks to distinguish between good and bad clients. However, literature in the world of credit scoring is limited. In this article parametric and non-parametric statistical techniques that are used in credit scoring are reviewed. AIM: To build an optimal credit scoring matrix model to predict which clients will go bad in the future. This article also illustrates the use of the credit scoring matrix model to determine an appropriate cut-off score on a more granular level. SETTING: Data used in this article are based on a bank in South Africa and are Retail Banking specific. METHODS: The methods used in this article were regression, statistical analysis, matrix and comparative study. RESULTS: The matrix provides uplift in the Gini-coefficient when compared to a one-dimensional model and provides greater granularity when setting the appropriate cut-off. CONCLUSION: The article provides steps to construct a credit scoring matrix model to optimise separation between good and bad clients. An added contribution of the article is the manner in which the credit scoring matrix model provides a greater granularity option for establishing the cut-off score for accepting clients, more appropriately than a one-dimensional scorecard. <![CDATA[<b>An archival review of preferred methods for theory building in follower research</b>]]> AIM: The purpose of this research was to delineate methodological trends in articles published both internationally and locally that will reveal the extent of new theory building. SETTING: The research strategy and methodology examined trends in theory building over a 52-year period (1962-2014). METHOD: An archival review of the published literature was conducted and each article was examined to identify the general research method employed. The chi-square test was used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more of four categories. RESULTS: The archival data indicate that articles published over the past 52 years in major international and South African journals are skewed towards quantitative and conceptual research. This implies that researchers in leadership studies employed qualitative and mixed methodologies in their work less often than quantitative and conceptual methodologies. CONCLUSION: This trend has implications for the development of leadership-followership research. Research methods should be used with mindfulness, with qualitative methods being used to observe social and human problems, followed by quantitative methods to test inductively formulated followership theories. It is particularly important, in the context of diverse cultures, to note that local attempts to formulate authentic theory development will remain difficult and unsuccessful until endogenous management systems are established and institutionalised. This is very important for scholars who believe that an affinity for qualitative methodology affords the opportunity for emic research rather than merely for testing theories and constructs that may not capture local followership phenomena. <![CDATA[<b>The influence of behavioural intention on third-party e-commerce payment</b>]]> BACKGROUND: Third-party e-commerce payment has been used by many businesses and consumers, enabling customers to easily access the payment platform during e-commerce transactions. Thus, the emergence of such new technology has become a major topic for organisations to study factors that have influenced the people's adoption and acceptance of new technology as well as mutual influence. SETTING: The Technology Acceptance Model is one of the most studied models of behavioural intention to use new information technology AIM: However, in terms of the causal relationship of variables in the model, one variable is considered independent, ignoring the possibility of mutual influence, and many samples are required for statistical empirical research. This study aims to resolve these above two deficiencies. METHODS: This study adopts the Decision-Making and Trial Evaluation Laboratory method, and applies the latest Technology Acceptance Model (TAM3) to examine. RESULTS: The results found several extra causal relationships which are not present in the TAM3 model, and understood that Experience and Computer Playfulness are the driving factors of third-party e-commerce payment, and Computer Anxiety is the core factor. CONCLUSION: The feasibility of this approach was demonstrated through an empirical study, and these results could be used to guide management direction and marketing strategy. <![CDATA[<b>The structural validity and measurement invariance across gender of the Brief Corporate Entrepreneurship Assessment Instrument</b>]]> BACKGROUND: Corporate entrepreneurial activity and innovation are presented as essential elements of organisational success, and gender diversity is often seen as an important variable in this context. The efficient measurement of these variables is essential to the management thereof. It is within this context that the Brief Corporate Entrepreneurship Assessment Instrument (BCEAI) was developed. Shorter instruments seem to be favoured by researchers and practitioners alike. However, little is known about the psychometric properties of the BCEAI, particularly regarding measurement invariance AIM: This study seeks to address the structural validity and measurement invariance for the BCEAI applied for men and women. The objective was to establish the utility of the instrument within the South African context, with specific emphasis on cross-gender comparisons SETTING: Medium to large South African organisations, with more than 60 employees, were targeted for inclusion in the study. Once organisations indicated their willingness to participate, 60 employees per organisation were randomly selected to participate in the study METHODS: Data on the BCEAI were captured and pairwise multi-group confirmatory factor analyses with robust maximum likelihood estimation were used to examine four levels of measurement invariance, as well as the equivalence of latent means pertaining to male and female respondents RESULTS: Data were collected from 3180 employees representing 52 South African organisations. The results support the structural validity of the BCEAI and demonstrate strict measurement invariance for the BCEAI across gender. Equivalence of latent means across gender was also supported CONCLUSION: These results reveal that the BCEAI mirrors the structure of the original instrument in the South African context and that BCEAI yields psychometrically equivalent scores among employees of both genders. Researchers and practitioners can therefore use the BCEAI with the knowledge that its theoretical structure is sound and can apply it with confidence when comparing male and female employees in the workplace <![CDATA[<b>An exploratory study of the effect of country-by-country reporting ambiguities on Johannesburg Stock Exchange-listed companies</b>]]> BACKGROUND: South Africa issued regulations implementing country-by-country (CbC) reporting standards for multinational enterprises (MNEs) on 23 December 2016. Country-by-country reporting will be applicable to all MNEs with a group revenue in excess of R10 billion AIM: The aim of the study was twofold: to identify ambiguities that might influence the filing obligation and subsequent scope of CbC reporting in South Africa and to quantitatively measure the potential impact of any identified ambiguities SETTING: This study used data from Johannesburg Stock Exchange-listed companies METHODS: The study commences with a review of the relevant regulations and other applicable literature and continues with a quantitative analysis exploring alternative interpretations deduced from this review RESULTS: The review identified conflicting interpretations of how companies can be categorised as an MNE Group or not, as well as in measuring the revenue threshold. An analysis of the group structures and annual reports of a selected sample of 78 companies showed that the scope of CbC reporting will depend on the definitions applied to an MNE Group and revenue CONCLUSION: Further guidance is needed to determine whether non-controlling entities must be considered as Constituent Entities, as well as how to measure revenue (i.e. whether only the International Financial Reporting Standards [IFRS] 15 revenue line item should be used or whether other income should also be included <![CDATA[<b>Perceptions of post-multicurrency regime financial inclusion confidence challenges in Zimbabwe</b>]]> AIM: The study sought to assess the informal trader's perceptions of the post-multicurrency regime financial inclusion confidence challenges in Zimbabwe and also through further future studies explore the potential of explicating a framework for achieving optimal financial inclusion in an economy recovering from a recession through further future studies SETTING: A non-probability judgment sample of 1000 informal traders in the Avondale area of Harare was used in this study METHOD: The study established four potential financial inclusion construct pillars: demand side factors, supply side factors, behavioural factors and individual factors; these were largely influenced by age, which can be investigated in further future grounded theory studies to develop a framework RESULTS: The results indicate that healing from the financial experiences of the hyperinflation era of 2008 still has not been achieved. The study suggests a need for Zimbabwe to restore human rights, political stability, and ensure compliance with the Financial Action Task Force regulations regarding money laundering and terror financing in order to boost external confidence in the financial system of the country CONCLUSION: There is still a challenge of confidence in the country's financial system. The proposed framework is envisaged to minimise the negative impacts of the mistrust of formal financial service providers and boost confidence in the financial system. It is hoped that the findings will aid government to craft policies that will be perceived as supportive of the informal sector to achieve optimal financial inclusion. The study further suggests penetration of the rural areas through technological advances such as mobile networks <![CDATA[<b>Contextual factors and the experience of unemployment: A review of qualitative studies</b>]]> This study aimed to review qualitative studies on the contextual factors affecting the experience of unemployed individuals. From the analysis of the findings of 13 qualitative studies, the conclusion was reached that the contextual factors, namely the broader society, the surrounding community, and the individual as actor or agent, had a direct impact on the unemployment experience of individuals. It was recommended that unemployed individuals be organised into community subgroups, constructed to participate in projects aimed at empowering the community to improve cohesion, equality among members, and a collaborative attitude. Social scientists ought to make an effort to advocate a marked improvement in society's tolerance for, and understanding of, the realities faced by the unemployed person. One such reality was that a well-paying job that would take an individual out of financial hardship could be well out of reach of some individuals, which would mean a life of surviving without any regular income. <![CDATA[<b>An evaluation of interest deduction limitations to counter base erosion in South Africa</b>]]> BACKGROUND: The Organisation for Economic Cooperation and Development (OECD) made a number of recommendations in relation to interest deduction limitations as part of the Base Erosion and Profit Shifting (BEPS) project. In 2016 the South African National Treasury indicated that the interest deduction limitations contained in the Income Tax Act would be reviewed in the light of these recommendations. AIM: This paper aimed to describe funding structures of companies in South Africa liable for tax and how this relates to other characteristics, including ownership, of the companies. SETTING: The research was performed using data from tax returns submitted by companies liable for income tax in South Africa. METHODS: This paper reports on descriptive analyses of the research conducted. RESULTS: The results showed that the mean interest-to-earnings before interest, taxes, depreciation, and amortisation (EBITDA) ratio for certain foreign-owned entities differed significantly from that of domestically owned entities. CONCLUSION: The results may present evidence of profit-shifting activities. They also highlight trends in interest-to-EBITDA ratios that may be of relevance for future legislative developments. Further related research is required if interest deduction limitations in the South African tax legislation are to be reviewed in light of the OECD proposals. <![CDATA[<b>The influence of a 360-degree performance appraisal on labour productivity in an automotive manufacturing organisation</b>]]> BACKGROUND: South Africa's (SAs) decline in labour productivity in the manufacturing sector is a cause for concern. The sector turns to employees for innovative productivity improvement initiatives. Employees need to know what activities they are currently performing that need to improve. This is where a 360-degree performance appraisal system plays a growing role. The 360-degree performance appraisal is a valuable tool that provides an opportunity for employees to work together to identify strengths and areas that need improvement. AIM: This study investigates the influence of a 360-degree performance appraisal system for the improvement of labour productivity in the automotive parts manufacturing sector in SA. SETTINGS: The study investigated the production and related experiences of an automotive parts manufacturing company that has adopted a 360-degree strategy. The company operates in the eThekwini district Municipality in KwaZulu-Natal. It assessed if 360-degree performance appraisal is responsible for the company's labour productivity improvements. METHODS: The investigation was achieved by collecting pre- and post-360-degree quarterly data for spoilage, absenteeism, capital investment and labour productivity. RESULTS: The 360-degree performance appraisal has no influence on labour productivity improvement. However, past capital investment plays a significant role in labour productivity increase. Results also showed a relationship between spoilage rate and labour productivity improvement. CONCLUSION: In order to maximise performance, a comprehensive performance policy must be developed, which aligns employee appraisal to performance. The study uncovered the strengths and weaknesses of a 360-degree performance appraisal system for labour productivity improvement in SA. <![CDATA[<b>Evaluating South Africa's utilisation of sustained export potential in sub-Saharan Africa</b>]]> BACKGROUND: Regional trade could be a powerful engine of economic growth and sustainable job creation. However, South Africa's exports to sub-Saharan Africa (SSA) are typically smaller and more short-lived than its exports to its traditional markets. This is despite South African policymakers considering trade with SSA to be a priority. AIM: The aim of the article is to evaluate South Africa's utilisation of sustained export potential in SSA with a view to providing practical insights that will inform future policymaking and planning SETTING: Despite the priority attention given to SSA in the country's trade policy, South Africa is yet to make meaningful inroads into SSA's largest and fastest-growing economies. METHOD: The research method applied comprised three steps. The first step involved the identification, over a five-year period from 2010 to 2014, of consistently large and/or growing import demand in SSA for all products at the Harmonised System (HS) six-digit level, as well as the identification of products South Africa consistently exported competitively (sustainable exports). The second step entailed matching SSA markets with consistently large and/or growing import demand to South Africa's sustainable exports. The third step involved evaluating South Africa's utilisation of sustained export potential in SSA. RESULTS: The results reveal that South Africa is utilising just over half (54%) of its sustained export potential in SSA. CONCLUSION: South Africa is, therefore, underutilising or not utilising close to 50% of its sustained export potential in .SSA. Most of the export potential that South Africa is utilising is in Eastern Africa while most of the export potential that the country is underutilising and not utilising at all is in Central and Western Africa <![CDATA[<b>A comparison of retirement saving using discretionary investment and Regulation 28</b>]]> BACKGROUND: There is growing uncertainty in global society with regard to how retirement savings should be approached. The primary reason for this is that most societies do not save enough and their citizens run out of money during retirement. AIM: This study investigates whether the limitations imposed by Regulation 28 of the Pension Funds Act of South Africa encourage optimal asset allocation and reduce investment risk for retirement savings when contrasted with discretionary investment. SETTING: The study looks at hypothetical individuals who are subject to tax and retirement consequences as administered by South African legislation. METHODS: A quantitative risk and return analysis was performed while considering two hypothetical investors who are identical in all aspects other than their choice of investments. RESULTS: The findings indicate that Regulation 28 is effective in reducing the investment risk of retirement savings; however, it may also force the investor to sacrifice wealth. CONCLUSION: Depending on the tax bracket in which the investor sits, discretionary investment may be preferential to investing in a retirement fund under the mandate of Regulation 28. <![CDATA[<b>An investigation into the ability of the reverse yield gap to forecast inflation and economic growth in South Africa</b>]]> BACKGROUND: Monetary policy in South Africa is carried out by the South African Reserve Bank (SARB) with the aim of keeping inflation within a target range of 3% - 6%. The SARB uses a variety of models to aid them, with the core model being the most significant. AIM: The primary aim of this research is to determine whether the reverse yield gap (RYG) contains information that could be useful to the SARB when making monetary policy decisions. SETTING: The authors found no evidence that similar studies on the RYG have previously been done in the South African context. Since the yield curve has been found to be significant in South Africa at forecasting economic growth, yet insignificant in Europe, the results for this research may too be different to the global experience. METHODS: The authors tested for linear relationships between the RYG and economic growth and inflation over the period 1960-2014. RESULTS: The results indicate that a slight linear relationship may exist in the case of economic growth, with the RYG based on earnings yields showing better out-of-sample forecasting abilities. Further investigation indicates that the linear relationship is stronger during times of economic upturn. The results for inflation forecasting, however, show no signs of a reasonable linear relationship. CONCLUSION: There is evidence for the SARB to consider whether the RYG can replace other economic variables in its core model without loss of predictive ability. Interestingly, this study found evidence to suggest that the RYG has an inverse relationship to future economic growth in South Africa, which is not what was expected. <![CDATA[<b>Using Taylorism to make work easier: A work procedure perspective</b>]]> BACKGROUND: Complexities generally are conundrums that inhibit efficiency and effectiveness in research and practice; one of the symptoms of this is nebulous obstruction to task completion in the workplace. Complexities in work procedures create complications in the application of procedures for completing tasks. Recent trends in the Auditor General's report have demonstrated the metastasising culture of non-compliance to work procedures in municipalities in South Africa. Research, as well as the audit outcomes for the Eastern Cape in particular, is a testament to this assertion. Therefore, there is no need to make work more complex. AIM: To ascertain whether the application of Taylorism in the workplace could improve performance and to access the utilisation of work procedure in municipalities in the Eastern Cape. SETTING: This study was carried out using quantitative data collected from a District Municipality and its five local municipalities at the Transkei area of the Eastern Cape, South Africa. METHOD: A survey completed by 593 municipality workers (junior workers) was collected and analysed using statistical methods and triangulation. RESULTS: Findings from the article reveals that work procedures in the organisation might be old and archaic. It may be relevant to workers who have little or no interference from externalities with regard to their job commitments. It recommends that those officials that perform routinised functions in municipalities should use a work procedure manual when completing their task. Based on the notion that work procedures engender compliance, increase outcome and output, increase productivity, save time, reduce stress and organisational friction or conflict in organisations. CONCLUSION: It concludes that procedures that are comprehensible (simple), accessible (organically inputted and communicated) and accurate (effectively designed) will improve the daily functionality of lower echelon staff in the municipalities, especially those requiring little or no external influence on the completion of a task. <![CDATA[<b>Exploring contingent convertible bond alternatives for African banks</b>]]> BACKGROUND: A variant of the contingent convertible bond, first proposed in 2011, is investigated: the Call Option Enhanced Reverse Convertible (COERC). Although issued as a bond, it converts to new shareholder's equity if a bank's market share of capital falls below a pre-specified trigger point. AIM: COERCs avoid the problems with market-based triggers (e.g. sell-offs and death spirals) due to panic and market manipulation. Banks that issue COERCs have less incentive to choose investments that may be subject to large losses and disincentive problems, associated with the replenishment of shareholder's equity after market declines (also known as debt overhang) are also avoided. SETTING: Proposed amendments to the COERC structure are suggested for the African market. METHODS: The data used were simulated, stylised values for a standard COERC. No market parameters are required, such as equity or debt levels or market volatility. Details of the stylised example are provided in Table 4 and Table 5 in the 'results and discussion' section Table 4: RESULTS: Both examples of floating coupons for COERCS would aid in the objective of issuing a security that is countercyclical in nature, as banks would avoid having to pay coupons in times of distress. CONCLUSION: In addition to the recommendations of the Basel frameworks, CoCos have been considered and proposed as an additional measure to promote counter cyclicality in terms of capital composition in banks. <![CDATA[<b>The association between corporate social responsibility reporting and firm value for South African firms</b>]]> BACKGROUND: Corporate social responsibility (CSR) disclosure is widespread among the largest companies in South Africa due to the listing requirements of the Johannesburg Stock Exchange (JSE). These companies have also increasingly pursued external assurance of their CSR disclosures in recent years. The increased regulation of CSR disclosure and the increased rate of obtaining assurance of these disclosures motivated us to perform our study. AIM: To examine the association between CSR reporting, including both CSR disclosure and CSR assurance, and firm value of large South African companies. SETTING: The JSE listing requirements place South Africa, the setting for our study, at the forefront of corporate governance and CSR reporting. METHOD: Tobin's Q is used as a measure of firm value. Three measures of CSR disclosure and three of CSR assurance are used in this study. The measures are based on data collected by Klynveld Peat Marwick Goerdeler (KPMG) International on the CSR reporting practices of large South African companies. The sample period for this study coincides with the sample period covered in the KPMG surveys conducted during 2008, 2011 and 2013. RESULTS: No significant association is found between CSR disclosure and firm value. However, a significant negative association is found between CSR assurance and firm value. Additional analysis found that the negative association between firm value and CSR assurance is more significant for companies that are not listed on the Socially Responsible Investment (SRI) index. CONCLUSION: The results found between CSR disclosure and firm value may suggest that firm value is unaffected by CSR disclosures. Taken together, the findings on CSR assurance and firm value and the additional analysis may suggest that in South Africa managers with negative CSR issues are more likely to obtain assurance on their CSR disclosure. The findings may be of interest to regulators when considering current and future disclosure and assurance requirements for CSR reporting in South Africa, as well as other parts of the world, shareholders when considering investment options, and managers when considering the benefit of certain CSR reporting practices. <![CDATA[<b>What do deviation cycles measure? An analysis of the informational content of filter-based business cycles</b>]]> BACKGROUND: Empirical business cycle research typically commences with the extraction of a so-called deviation cycle using a time-series smoothing filter. This methodology is appealing for its pragmatism; it is easy to implement, and the output it produces is conveniently interpreted as percentage deviations from the natural level of output. However, recent literature offers staunch criticism of deviation cycle analysis, especially with regards to the assumption implicitly underlying it - that business cycle fluctuations are restricted to distinct intervals on the frequency domain AIM: Despite its lack of a basis in theory, the analysis of deviation cycles over particular frequency ranges may still yield useful stylised business cycle facts. This, however, hinges on whether the information that a frequency filter captures consistently aligns with relevant theory-based business cycle concepts. Whether this is the case is an empirical matter, and herein lies the rationale for our research. SETTING: We investigate the informational content of South Africa's output deviation cycles METHODS: We extract deviation cycles at standard high- and medium-frequency ranges (denoted as short- and medium-term deviation cycles respectively) and analyse their informational overlap with the components of an alternative theory-based estimate of the business cycle, decomposed into demand, supply, domestic and foreign sources of business cycle dynamics. RESULTS: Our findings suggest that the contents of deviation cycles extracted over a high-frequency range do not neatly correspond to the transitory 'demand-driven' business cycle, while cycles extracted over a medium-frequency range correspond closely to the combined path of permanent output shocks. CONCLUSION: One should thus be cautious of drawing strong conclusions about the nature of business cycles from filter-based deviation cycle estimates, particularly if the objective of the study relies on assuming that high-frequency deviation cycles correspond to transitory demand shocks. <![CDATA[<b>The individual's perception of institutional environments and entrepreneurial motivation in developing economies: Evidence from Cape Verde</b>]]> BACKGROUND: International organisations and national governments have made great efforts to stimulate entrepreneurial activity in the less-advanced economies, but the results of their programmes have often been disappointing. This may be because a distinction between the institutional factors that generate an individual's desire to become an entrepreneur and those that generate a motivation that actually leads to entrepreneurial action has not been considered sufficiently. AIM: This work is an attempt to respond to the following question on the basis of the individual's perception of regulative, normative and cognitive institutions: In developing economies, what institutional factors generate an entrepreneurial motivation that makes individuals desire to become entrepreneurs and what factors cause an entrepreneurial motivation that actually leads them to entrepreneurial action? SETTING: We use empirical evidence from the African nation of Cape Verde for the analysis. The study was carried out on 6 of the 10 islands of the archipelago. METHOD: The sample of study comprises 237 people: 93 entrepreneurs and 144 individuals with different levels of desire to become an entrepreneur. We used multiple linear regression analysis to test the hypotheses. RESULTS: Our findings show that institutional factors which generate the entrepreneurial motivation that forges an individual's desire to become an entrepreneur, and those which generate the motivation that leads him or her to actually set up his or her own business are not the same. We also find differences in the institutional factors that influence the opportunity, necessity and social components of entrepreneurial motivation. CONCLUSION: Theoretical implications for better understanding the factors that condition entrepreneurship in developing economies and practical implications useful for improving the planning of growth in these countries are offered. <![CDATA[<b>Factor structure of South African financial stocks</b>]]> BACKGROUND: The financial sector within the locally listed equity market is an important component of the economy. Understanding the inherent risks of this sector is vital from a portfolio risk management perspective, as such insights can aid in protecting against capital loss in the event of exposure to risk factors in this sector. AIM: The study aims to identify and explain the principal risk factors over time inherent to the financial stock sector of the locally listed equity market, accompanied by explaining the volatility of such principal risk factors. SETTING: The study looks at financial sector stocks within the South African listed equity space from June 2007 to March 2017. METHODS: The methods used to perform such an investigation were twofold, namely, factor analysis to statistically identify risk factors latent in a basket of financial sector firms and generalised autoregressive conditional heteroscedasticity (GARCH) analysis to examine the volatility of the principal risk factors. RESULTS: The findings suggest that the heterogeneity of risk factors within the financial sector has burgeoned in the past five years, explaining a large proportion of risk during this period. However, over the long-term, banks appeared to have been the main factor driving risk within the financial sector, explaining around 55% of risk. The volatility of banks was most noticeable during business cycle falls that were underpinned by known economic or political instability. CONCLUSION: Banks have been the riskiest factor within financial sector firms over the past decade, explaining more than 50% of risk in recent years and notably susceptible to economic and political uncertainty. <![CDATA[<b>An analysis of competition, efficiency and soundness in the South African banking sector</b>]]> BACKGROUND: The banking sector plays an important role in economic activity: it mobilises savings and channels them to productive sectors thus encouraging the efficient allocation of resources. The competitive nature of the environment under which the banking sector operates is of paramount importance. AIM: The main aim of this study was to investigate the relationship between competition, efficiency and soundness in the South African banking sector. SETTING: The setting for this study was the South African banking sector. METHODS: We used a data set of 17 local and international banks for the period 2004-2015 and stochastic frontier models to analyse efficiency. RESULTS: Results show that the impact of competition on efficiency depended on the measure of competition used. When using the Lerner index there was a negative effect of competition on efficiency while the opposite was true when using the theoretically robust Boone indicator. CONCLUSION: In the case of bank soundness, competition using the Boone indicator is negatively related to the Z score, implying that competition enhances bank soundness and these results supported the prudent and efficient management hypothesis. <![CDATA[<b>Strategic implications of Fintech on South African retail banks</b>]]> BACKGROUND: Since the global financial crisis, banks have been exposed to new opportunities and threats unprecedented in history driven fundamentally by technology. So-called 'Fintech disruptors' are aggressively tapping into their service delivery chain to offer clients a better (cheaper, more convenient or efficient) value proposition. As banks have subsequently been forced to think more strategically about how to conduct themselves due to the imminent use of, for example, virtual reality, artificial intelligence, biometrics and big data, regulators have simultaneously had to ensure that the pervasiveness of technological disruption does not threaten the soundness of banks and the stability of economies. AIM: To identify the strategic implications of Fintech on South African retail banks. SETTING: The study is conducted in the South African retail banking industry. METHODS: A post-positivist paradigm approach that is qualitative in nature. RESULTS: There are several main findings: firstly, technology-based skills are becoming mandatory for staff and regulators alike; secondly, interaction policy is migrating clients towards a remote-based distribution strategy; thirdly, the bank of the future will not rely as heavily on brick-and-mortar branches as it has in the past; fourthly, new competitors are entering the fray and offer competitive digital-only solutions; finally, given the innovation and growth shown by these disruptors, financial sector regulators will have to find ways to hold them accountable. CONCLUSION: By adapting to the Fintech revolution, South African retail banks are hoping to become strategically pre-emptive rather than merely proactive. This will allow them not only to identify opportunities first, but also to offer solutions before competitors are able to do either of these. <![CDATA[<b>Financial innovations and bank performance in Kenya: Evidence from branchless banking models</b>]]> BACKGROUND: Kenya has become the epicentre of branchless banking financial innovations in the last decade, effectively attracting global research interest. AIM: This article examines the relationship between financial innovation and the financial performance of 42 commercial banks in Kenya. SETTING: The financial innovations covered are the branchless banking models, which represent a departure from the traditional branch-based banking. More specifically, the financial innovations covered are: mobile banking, agency banking, internet banking and automated teller machines. METHODS: We use the Koyck dynamic distributed lag model to estimate the relationship between financial innovations and bank financial performance. The model has been using dynamic panel estimation with system generalised method of moments. RESULTS: The results show that financial innovations significantly contribute to bank financial performance, and that firm-specific factors are more important in determining the firm's current financial performance than industry factors. CONCLUSION: We provide evidence that financial innovations generate good results for the shareholders, suggesting that shareholders are the primary beneficiaries of financial innovations used by commercial banks. <![CDATA[<b>Influence of foreign alliances on the performance of small-scale agricultural businesses in South Africa: A new institutional economics perspective</b>]]> BACKGROUND: Globalisation has accentuated the need for small-scale agricultural businesses (SSABs) to network horizontally and vertically into world markets. However, the capacity of SSABs to cement foreign alliances to capitalise on business opportunities that the expansion of global markets presents, while simultaneously mitigating against the negative forces of globalisation remains a grey area. AIM: The study sought to contribute to internationalisation literature by examining: (1) the extent to which SSABs' owner and/or managers in selected South African provinces establish foreign alliances, (2) whether there are any statistically significant differences in SSABs' performance based on their extent of establishment of foreign alliances. SETTING: The setting for this study was Vryburg-Pokwani in the North West and Northern Cape provinces of South Africa, respectively. METHOD: A survey was conducted on 151 SSAB owner and/or managers in the aforementioned study area. RESULTS: The results revealed that although a majority (51.7%) had some (i.e. few) foreign alliances, 48.3% of SSABs had no foreign alliances at all. The results also demonstrated that the establishment of foreign alliances was positively and statistically significantly related to the performance of SSABs in the Vryburg-Pokwani area. Post-hoc comparisons (Bonferroni) results showed that while SSABs with 1-2 foreign alliances perform better than those with no foreign alliances at all, those SSABs with 6-10 foreign alliances perform better than those with none, 1-2 and 3-5 foreign linkages respectively. CONCLUSION: Since SSABs with foreign alliances tended to outperform those that were dependent on domestic links, the extent to which the economic benefits derived from internationalisation are reinvested into the businesses for the continued sustenance of businesses needs more rigorous investigation. <![CDATA[<b>Income growth, population and savings in the Southern Africa Development Community region</b>]]> BACKGROUND: The Southern Africa Development Community (SADC) faces pervasive income stagnation, high inequality, increasing population growth rates and poverty. For example, despite that half of SADC countries are low middle income (as opposed to low income), high inequality implies that many people in the region still live in poverty. While literature is replete with theories linking low incomes to population growth and savings, empirical evidence is context specific and often mixed. AIM: There is a dearth of strong empirical evidence that shows empirical linkages between population growth rates, incomes and savings in the SADC and this article aims to investigate these linkages. Specifically, the aim is to empirically understand the impact of population growth, savings and investment in human capital, on incomes. SETTING: We focus our investigation on the Southern Africa Development Community (SADC), which comprises 16 countries namely, Angola, Botswana, Namibia, Lesotho, Swaziland, South Africa, Malawi, Mozambique, Zambia, Zimbabwe, Tanzania, Democratic Republic of Congo, Madagascar, Mauritius, Seychelles and Comoros. METHODS: To achieve the goals of this study, we analyse data from 1977 to 2014 obtained from the World Bank databases and use ordinary least squares, fixed effects, random effects and Arellano-Bond dynamic panel-data estimation techniques to investigate the relationships between incomes, population growth and savings. RESULTS: Our findings support the existence of a negative relationship between high population growth rates and income per capita, as well as a positive relationship between capital accumulation (human capital), savings and income per capita growth. Shares of savings in relation to gross domestic product (GDP) of countries in the SADC stand at under 16% of GDP (compared to shares of over 30% in developed countries) and are particularly worrisome. CONCLUSION: There is a case for a concerted effort by the SADC Member States to control population growth, encourage schooling and, further, encourage a 'savings culture' in order for the SADC region to achieve its aspirations of eradicating poverty and hunger as outlined in Agenda 2063 and even the Sustainable Development Goals. <![CDATA[<b>Corporate social responsibility and financial performance: Evidence from the Johannesburg Stock Exchange, South Africa</b>]]> BACKGROUND: Stakeholders are increasingly concerned whether the companies they are involved with act in a socially responsible way. However, stakeholders like employees and shareholders also have a direct financial interest in those companies and need to be assured that company actions bring forth some financial benefit. AIM: The research investigated one of the main questions surrounding the concept of corporate socially responsibility, namely whether a company's investment in and effort towards corporate social responsibility results in improved financial performance. The purpose of this study was to narrow the gap in the body of knowledge in relation to corporate social responsibility and its relationship to financial performance. SETTING: This research investigated whether there was a relationship between being listed on the Johannesburg Stock Exchange (JSE) Socially Responsible Investment (SRI) Index and financial performance. The unit of study comprises 885 company-years of companies listed on the JSE over the period 2009-2014. METHODS: Logistic regression was used to find evidence of a relationship between a listing on the JSE SRI Index and financial performance. RESULTS: It is evident that there was no real relationship between inclusion on the JSE SRI Index and financial performance, but there was a direct relationship between the size of a company and having a listing on the JSE SRI Index. CONCLUSION: A listing on the JSE SRI Index does not have a clear and direct impact on financial performance, but it appeared that larger companies are perhaps better able to invest in corporate social activities and are, as a result, more likely to be listed on the JSE SRI Index. <![CDATA[<b>An evaluation of the trade relationships between South Africa and China: An empirical review 1995-2014</b>]]> BACKGROUND: South Africa's (SA) largest trading partner is China. The bilateral trade flows between these two economies have been increasing since the end of the global financial crisis. There are several factors that determine the trade flows between these two economies. AIM: The research studies the impact of the real exchange rate, market size and economic size on the trade flows between SA and China, applying the gravity model of trade. Time series data for the period of 1995-2014 have been used and a multiple linear regression model was employed in the evaluation process. METHODS: To determine the impact of the three underlying variables on the bilateral trade flows of SA and China, the ordinary least squares method was used. The explanatory variables consist of the product of SA's gross domestic product (GDP) and China's GDP, which act as the proxy for economic size, the product of South Africa's population and China's population, which act as the proxy for market size, and the real exchange rate between SA and China. RESULTS: Results revealed that the economic size and the market size have a strong positive impact on trade flows between SA and China and this is consistent with economic theory. On the other hand the real exchange rate has a negative impact on trade flows between SA and China. CONCLUSION: If two countries each have a large economic and population size trade, this results in high trade flows between the countries as compared to trading with smaller economies. Trade volume is also reduced if the countries trading have a highly volatile exchange rate. Based on the findings of the research, the article recommends that the Department of Trade and Industry should target trade with countries of big economic and market size. The research also shows that the absolute and comparative advantages are not the only basis of trade but other factors should be considered, such as exchange rate, economic size and market size. The central bank should maintain a stable exchange rate between the SA rand and partner countries' currencies before trading. This enhances trade and leads to strong economic growth. <![CDATA[<b>Maturity mapping for continuous improvement: A case study of a revenue services institution</b>]]> BACKGROUND: Continuous improvement is a topic that organisations sometimes avoid since it identifies areas lacking business excellence. Continuous improvement is possible in organisations that take a holistic approach to managing knowledge, which gives them the ability to continue to innovate and sustain their value creation to their stakeholders. AIM: The levels of knowledge management maturity in the Tax Audit Business Unit of a revenue services institution had to be identified in order to provide guidance on how to improve and contribute to future information and communication technology (ICT) strategy planning. SETTING: The ICT strategy planning process at the revenue services institution identified a gap in how it managed information and knowledge. This indicated a discrepancy in knowledge management (KM) maturity. METHOD: A deductive approach was followed, motivated by analysis of tested and well-researched theories to create a theoretical framework. This was then tested against empirical research conducted in a specific business unit. Descriptive statistics in the form of frequencies, proportions, and means were obtained from the data, to describe the patterns and trends in the data set. RESULTS: The key findings confirm that generally the value of KM is well regarded. Barriers exist and levels of consensus generally drop as the levels progress towards the highest KM maturity level, mostly lacking in terms of continuous improvement. CONCLUSION: The conceptual KM framework developed from this study will give revenue services institutions insights on how to innovate and sustain their value creation to their stakeholders. The desired activities for adoption of the framework will help achieve continuous improvement of a revenue services institution. <![CDATA[<b>The experienced impact of systems psychodynamic leadership coaching amongst professionals in a financial services organisation</b>]]> BACKGROUND: Systems psychodynamic leadership coaching is a depth psychology perspective that provides opportunities for coachees to explore their leadership identity as it manifests in their conscious and unconscious role behaviour. AIM: The research aim was to explore the experienced impact of systems psychodynamic leadership coaching amongst professionals in a financial services organisation, and to report on how this impact can be understood in the context of the literature guidelines on coaching and leadership effectiveness. SETTING: The research was undertaken in a large South African financial services organisation where individual leadership coaching forms part of the leadership development programme (LDP). METHODS: The research was qualitative, explorative and descriptive in nature. A multi-case approach was used. Sampling was convenient and opportunistic and comprised of 15 charted accountants who attended six 90-min coaching sessions over 12 weeks. Data gathering comprised field notes and coachee essays during and after coaching. Hermeneutic phenomenology was used as the interpretive stance RESULTS: Anxiety, task, role, boundaries, authorisation and identity manifested as themes. Coachees explored how their leadership identity was informed by their anxiety and defence mechanisms, how they took up their leadership role, authorised themselves and their colleagues, and managed their boundaries effectively. Compared to the general guidelines for leadership coaching effectiveness and the general indicators for effective leadership, systems psychodynamic leadership coaching seems to add value to leadership effectiveness. CONCLUSION: Professionals in this financial services organisation experienced systems psychodynamic leadership coaching as demanding, challenging and yet fulfilling towards the exploration of their leadership identity. It seems that systems psychodynamics, as coaching stance, created a safe and good-enough container for these financial professionals to explore their own unconscious leadership behaviour and to gain a significant level of understanding and awareness of their own anxiety and defensive behaviours in their interaction with followers. <![CDATA[<b>How efficient is the Johannesburg Stock Exchange really?</b>]]> BACKGROUND: There are various studies that confirm the efficiency of the Johannesburg Stock Exchange (JSE), implying that there are no opportunities for active portfolio managers to earn excess returns over the long run. AIM: The aim of the research is to prove that the sub-indices on the JSE go through cycles of efficiency and inefficiency even though the JSE as a whole might be considered informationally efficient SETTING: Although the JSE as a whole can be considered to be weak-form efficient, portfolio managers are not bound to investing in large liquid stocks alone. Many aggressive funds allow managers to also allocate a portion of their portfolio to smaller stocks. This has implications when considering the efficiency of the stocks being selected. METHODS: Given the impact efficiency has on portfolio selection, we test for the adaptive market hypothesis using a representative sample of stock indices by means of the automatic variance ratio test, the Chow-Denning joint variance ratio and the joint sign test on the JSE. RESULTS: Our results confirm that some of the smaller, and in some instances younger, indices are not always as efficient as the all share index, thus allowing portfolio managers with an active management approach some opportunities to profit from informational inefficiencies in the market. CONCLUSION: The practice of active management by portfolio managers in the South African market seems to defy logic if one considers the fact that the JSE as a whole is at the very least weak-form efficient. By proving that some of the sub-indices that make up the all share index are inefficient most of the time, this article shows that the phenomenon of active portfolio managers is less of a surprise. <![CDATA[<b>Business rescue: Adapt or die</b>]]> BACKGROUND: The low success rate of business rescue has prompted debate relating to the effectiveness and continued suitability of business rescue as a mechanism to rehabilitate financially distressed companies. Although this legislation was implemented in May 2011, statistics indicate that the success rate for business rescues is only approximately 12%. A feature of the business rescue environment in South Africa is the lack of knowledge, necessitating more research in the field. AIM: This study focused on changes required to ensure the survival and increased success of the business rescue legislation. SETTING: This research was undertaken in South Africa between 2015 and 2017. METHODS: A mixed-methods research approach was utilised for the study. The approach entailed interviews with 7 of the top 10 business rescue practitioners to diagnose reasons for business rescue failure and establish factors that would contribute to successful business rescues. A survey was conducted with the membership of the Turnaround Management Association of Southern Africa RESULTS: The survey was mailed to 130 members and the response rate was 54%. This study found that the causes of business rescue failures are mainly attributable to the skills deficit of the business rescue practitioner or the practitioner's abuse of legislation. There is also a negative impact of appointing a liquidator as a business rescue practitioner. Other factors contributing to the failure of business rescues are management's delay in filing for business rescue, either due to the resistance of filing or their lack of awareness of their distressed status. This study also provided the ranking order for business rescue success factors with the accreditation of a business rescue practitioner being ranked as first. CONCLUSION: The study chiefly focused on diagnosing and understanding the reasons for business rescue failure. The original contribution of this study to knowledge is the ranking of an accreditation framework for practitioners as the most important factor that would contribute to a successful business rescue. This study not only explains the low success rate of business rescue but ways to improve and succeed in rescuing ailing businesses. <![CDATA[<b>The benefit of aligning South Africa's personal income tax thresholds and brackets with that of its peers using a micro-simulation tax model</b>]]> BACKGROUND: This article is based on a PhD study in which a microsimulation (MS) tax model was constructed to measure the revenue and tax efficiency effects of adjustments to marginal tax rates on individual income. AIM: The main aim with this analysis is to determine the advantages of adjustments to the thresholds and taxable income brackets in SA on revenue collected, tax efficiency, and progressivity as part of a broader tax reform effort. SETTING: Currently such changes mainly consist of adjustments to tax brackets and thresholds to account for inflation, although since the 2017/2018 budget, such adjustments have been minimised as a result of the widening in the budget deficit. METHODS: The tax brackets and thresholds for the 2005/2006 fiscal year are used as a base from which changes are implemented. Besides the base scenario, two other scenarios are simulated, based on that of South Africa's peers (lower levels). Simulations are done with the MS tax model. RESULTS: The research shows that instead of only allowing for inflation adjustments, the alignment of income brackets and thresholds to levels closer to those of South Africa's peers could be beneficial with an improvement in the efficiency of the income tax regime. More individuals could be included into the tax net, albeit at (on average) lower tax scales resulting in a marginal loss in revenue. Although such an adjustment could be interpreted as being more regressive and, therefore, negative from a 'tax fairness' perspective, the Personal Income Tax (PIT) burden expressed as the PIT and Gross Domestic Product (GDP) ratio would be slightly lower. CONCLUSION: The possible result would be an improvement in tax liability and economic growth which could in turn fuel personal income and, therefore, revenue collected from this important tax source. This would compensate for the initial loss in PIT. <![CDATA[<b>Corrigendum: Quantitative efficiency assessment based on the dynamic slack-based network data envelopment analysis for commercial banks in Ghana</b>]]> BACKGROUND: This article is based on a PhD study in which a microsimulation (MS) tax model was constructed to measure the revenue and tax efficiency effects of adjustments to marginal tax rates on individual income. AIM: The main aim with this analysis is to determine the advantages of adjustments to the thresholds and taxable income brackets in SA on revenue collected, tax efficiency, and progressivity as part of a broader tax reform effort. SETTING: Currently such changes mainly consist of adjustments to tax brackets and thresholds to account for inflation, although since the 2017/2018 budget, such adjustments have been minimised as a result of the widening in the budget deficit. METHODS: The tax brackets and thresholds for the 2005/2006 fiscal year are used as a base from which changes are implemented. Besides the base scenario, two other scenarios are simulated, based on that of South Africa's peers (lower levels). Simulations are done with the MS tax model. RESULTS: The research shows that instead of only allowing for inflation adjustments, the alignment of income brackets and thresholds to levels closer to those of South Africa's peers could be beneficial with an improvement in the efficiency of the income tax regime. More individuals could be included into the tax net, albeit at (on average) lower tax scales resulting in a marginal loss in revenue. Although such an adjustment could be interpreted as being more regressive and, therefore, negative from a 'tax fairness' perspective, the Personal Income Tax (PIT) burden expressed as the PIT and Gross Domestic Product (GDP) ratio would be slightly lower. CONCLUSION: The possible result would be an improvement in tax liability and economic growth which could in turn fuel personal income and, therefore, revenue collected from this important tax source. This would compensate for the initial loss in PIT.