Journal of Economic and Financial Sciences最新文献

{"title":"Financial inclusion, bank competition and economic growth in Africa","authors":"Tough Chinoda, T. Mashamba","doi":"10.4102/JEF.V14I1.649","DOIUrl":"https://doi.org/10.4102/JEF.V14I1.649","url":null,"abstract":"Orientation: The relevance of bank competition and economic growth for boosting financial inclusion is attracting unprecedented attention from academics and policymakers, mainly because of several persisting issues which, if addressed, can enhance the functionality of governments, businesses, individuals and the economy. Research purpose: The study aims to examine the interplay between financial inclusion, bank competition and economic growth in Africa. Motivation for the study: Previous literature focuses mainly on the nexus between financial inclusion and bank competition, financial inclusion and economic growth and bank competition and economic growth producing diverse results, with a dearth of literature on the trivariate link between the three variables. Research approach/design and method: This study employed the pooled mean group estimation-based panel autoregression distribution lag approach from 2004 to 2018. A panel data analysis for 20 African countries was used. Main findings: The study found a significant positive relationship between financial inclusion and economic growth in the long run. However, in the short run, economic growth significantly reduces financial inclusion. We also found that in the long-run bank competition reduces financial inclusion in line with the information hypothesis. However, in the short run the effect is significantly positive, consistent with the market power hypothesis. Practical/managerial implications: Policymakers and development agencies should implement measures that reckon incentives that can accelerate bank competition to bring on-board the unbanked. They should also take note of financial inclusion measurement in addressing financial inclusion challenges. Moreover, they should minimise barriers to financial inclusion to enhance bank competition and stability. Contribution/value-add: The study managed to discover how bank competition and economic growth influences financial inclusion.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48152181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Corporate life cycle and dividend payout: A panel data analysis of companies in an emerging market","authors":"Ntungufhadzeni F. Munzhelele, H. Wolmarans, J. Hall","doi":"10.4102/jef.v14i1.617","DOIUrl":"https://doi.org/10.4102/jef.v14i1.617","url":null,"abstract":"Background: The dividend payout policy remains one of the key functional areas of corporate finance because it is through receipt of dividends that shareholders can share in the profits of their investments. Amongst the dividend payout theories that have been developed over the decades, the life-cycle hypothesis has received little attention in research. Aim: The aim of this study was to test the dividend life-cycle hypothesis in the South African contex. Motivation for the study: Justification for this study in the context of South Africa is that there is minimal research in this regard in emerging economies. South Africa presents a good platform for this research because it is amongst the highly regarded emerging markets and this has been confirmed by its representation in Brazil, Russia, India, China and South Africa (BRICS) countries. Hence, results in this regard would shed some light in the form of a relative representation of overall emerging markets trend. Research approach/design and method: A panel data of 119 Johannesburg Stock Exchange (JSE) listed sample companies were used to test the hypothesis during the period 2006–2015. A combination of basic and dynamic panel data estimators was used to analyse the data. Main findings: The study finds that the dividend life-cycle hypothesis is prevalent amongst South African companies. Specifically, it was observed that the considered companies pursuing growth projects paid less dividends. Furthermore, the growth companies have shown to be more aggressive in their pursuit for growth and hence are able to create more value for shareholders than value for companies. Managerial implications: Financial managers will be afforded with enhanced decision alternatives in respect of their fiduciary duties towards the shareholders in respect of maximising value. Conclusion: These results provide a mirror image of those of the developed markets and a good context for future research in the same area in an emerging economy setting.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41606669","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Special purpose acquisition companies as a vehicle for providing venture capital to small and medium size enterprise","authors":"B. Marx, Ahmed Haji, I. Botha, B. Madikizela, T. Madiba","doi":"10.4102/jef.v14i1.629","DOIUrl":"https://doi.org/10.4102/jef.v14i1.629","url":null,"abstract":"Orientation: The South African economy is currently at one of its lowest points in several decades, with low economic growth, coronavirus challenges and unemployment being at an all-time high. This is further aggravated by the many challenges the economy faces, such as the lack of public sector programs to stimulate sustainable growth and a private sector mind-set that lacks business confidence and investment. Motivation of study: A SPAC is an innovative financial structure that aims to raise funds in capital markets with the purpose of acquiring an unknown exiting company, using the funds as finance, within a limited time period. Special purpose SPACs focusing on SMEs with additional criteria and incentives might prove to be a valuable vehicle that provides funding to stimulate economic growth, kick start the second economy and erode unemployment in South Africa. Research purpose: The objective of this article was to provide an overview of a special purpose acquisition company (SPAC) as a vehicle to fund future business operations and, further, to explore the opportunities that it may provide to the South African economy to stimulate growth in the second economy and small and medium-sized enterprise (SME) sector. Research approach/ design and method: This article follows a qualitative research design with an exploratory approach. Findings and contribution: Research on SPACs internationally and in South Africa is scarce and this article makes a significant contribution to the existing body of knowledge. The findings indicate that the financial measures show underperformance of SPACs relative to some traditional financial measures. Practical implications: Non-financial considerations are important in considering the value that SPACs can bring to the ailing South African economy. Special purpose acquisition companies also provide opportunities to those informal sectors, which would never be able to get access to funding and formal markets in other ways.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48858880","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Mobile money and regional financial integration: Evidence from sub-Saharan Africa","authors":"J. Tembo, C. Okoro","doi":"10.4102/jef.v14i1.655","DOIUrl":"https://doi.org/10.4102/jef.v14i1.655","url":null,"abstract":"Orientation: The article examines the impact of mobile money adoption and regional financial integration in sub-Saharan Africa. Research purpose: The study sought to uncover the relationship between mobile money adoption and cross-border remittances as a de facto measure of regional integration. Motivation for the study: The extent to which differences in mobile money penetration rates across sub-Saharan Africa influence cross-border remittances remains a grey area that necessitates empirical investigation. Research approach, design and method: A quantitative research method was adopted and the study examined aggregated quarterly data obtained from 41 countries making up the four regions of sub-Saharan Africa. The study applied the dynamic ordinary least squares and fully modified ordinary least squares approaches as the estimation techniques. Main findings: Mobile money adoption has positively impacted cross-border remittances and improved de facto regional financial links in sub-Saharan Africa. The study’s findings also support the view that better governance through control of corruption and political stability removes dependence on remittances. Practical/managerial implications: There is a need to integrate mobile money and other cross-border remittance platforms to improve access to financial services for migrants and harness their savings into the mainstream economy. Contributions/value-add: The study adds to the body of knowledge by showing that higher mobile money penetration rates have regional integration benefits.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42254147","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Firm’s value sustainability via accounting ratios: The case of Nigerian listed firms","authors":"K. B. Ajeigbe, Thys Swanepoel, H. J. V. Vuuren","doi":"10.4102/jef.v14i1.529","DOIUrl":"https://doi.org/10.4102/jef.v14i1.529","url":null,"abstract":"Orientation: The study highlights further use of accounting ratios by considering it as the main factor for value detecting, value enhancing and value sustainability tool. This is carried out by investigating the effect of accounting ratios on the performance of the listed firms in Nigeria. Research purpose: The study examining the relationship between accounting ratios and firm value sustainability. It further studied the effect of accounting ratios on firm’s value sustainability. Motivation for the study: The study provoked an insight that accounting ratios should not only be used to analyse and interpret company’s financial health but also be used as a tool that guides companies’ operation for value sustainability. Research approach/design and method: The study employed data retrieved from sampled listed firm’s annual reports and centered the study on agency and signaling theories. The data were evaluated using descriptive analysis, Pool ordinary least square (OLS), random effect and panel generalised method of moment (GMM). Thirty firms representing all sectors except the financial sector from 2008 to 2017 were sampled using a stratified sampling method. The dependent variable is Tobin’s q, whilst the explanatory variables are also proxy by accounting ratios. Main findings: The study revealed that accounting ratios do not only affect and influence firm value but also help to detect if value had been created or not, as well as if the value created has been sustained over years. It further revealed a significant and positive relationship between ratios used in the study (current ratio, ROA, asset turnover, debt-equity ratio and earnings per share) and firm’s value. Practical/managerial implications: The study therefore recommended that a comprehensive accounting ratio that comprises both conventional accounting ratios and sustainability accounting ratios should be published. This should be published alongside with the firm’s financial statement for ease of interpretation and determination of the yearly performance by any stakeholder who may want to interpret the report for an informed decision. Contribution/value-add: It then stated that a before tax sustainability rate law should be enacted for easy determination of sustainability ratio. The study contributed to decision makers, Accounting Profession, Corporate Organizations and Government.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46158235","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Understanding the drivers of financial inclusion in South Africa","authors":"David Mhlanga, S. Dunga, T. Moloi","doi":"10.4102/JEF.V14I1.594","DOIUrl":"https://doi.org/10.4102/JEF.V14I1.594","url":null,"abstract":"Orientation: Financial inclusion is becoming one of the attractive topics at the global level with policymakers, development partners, governments and financial institutions developing interest in understanding it more deeply.Research purpose: The study sought to establish the drivers of financial inclusion in South Africa with a focus on factors that influences ownership of an investment account.Motivation for the study: Motivated by the increase in the evidence of the importance of financial inclusion in fighting poverty and the fact that by merely having a bank account, financial inclusion cannot be guaranteed, the study interrogated the factors that influence households to have an investment account.Research approach/design and method: As the dependent variable of financial inclusion was binary, the logistic regression was used to estimate the drivers of financial inclusion. The variable assumed two values 0 and 1, where 1 represents access to an investment account and 0 otherwise.Main findings: Using the logit model, the study discovered that financial inclusion is driven by age, education level, the total salary proxy of income, race, and marital status.Practical/managerial implications: The differences in the probability of demand for financial products and services amongst the different races mean that products and services tailor-made to satisfy the needs of the different races, for coloured and black people these products and services should be designed to improve financial inclusion amongst them.Contribution/value-add: The study managed to discover the factors that influences households to have an investment account in South Africa.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48183517","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of employee remuneration inequalities on employee productivity in the South African workplace","authors":"Gerhard M Van Zyl","doi":"10.4102/JEF.V14I1.633","DOIUrl":"https://doi.org/10.4102/JEF.V14I1.633","url":null,"abstract":"Orientation: This article is part of an ongoing research project on various aspects of employee productivity in the South African workplace.Research purpose: The aim of this article is to determine firm-based employee productivity impacts as a result of employee remuneration inequalities (excess-remuneration and under-remuneration) in the South African workplace.Motivation for the study: The study focuses on understanding the impact and magnitude of employee remuneration inequalities on employee productivity in a unionised South African workplace.Research design: The article adopts two distinct estimation models. The aim of the additive multivariate linear estimation model is to determine the sign and the significance of the impact of both under- and excess-remuneration levels on employee productivity when employee characteristics such as levels of training, work experience and managerial involvement are considered. The second model is a fixed-effect panel data estimation where the full sample set of the relevant firm-based data is used. The aim of the panel data estimations is to estimate the robustness of the additive multivariate linear estimates. The manufacturing industry of Gauteng has been chosen as the case study, given the importance of this industry, in the gross geographical product of Gauteng province and the availability of firm-based data.Main findings: Estimation results indicate a strong and significant negative impact of under-remuneration on employee productivity levels. Excess-remuneration levels have a small positive impact on employee productivity levels.Practical/managerial implications: The estimations indicate the necessity to eliminate remuneration inequalities and opt for equalised remuneration structures for similar occupations in the market to enhance employee productivity levels.Contribution/value-added: The study contributes to our understanding of the impact of remuneration inequalities for similar occupations on employee productivity.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45804700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economic complexity to boost the selected sub-Saharan African economies","authors":"T. Ncanywa, I. Mongale, O. Ralarala, Thabiso E. Letsoalo, Brian S. Molele","doi":"10.4102/JEF.V14I1.567","DOIUrl":"https://doi.org/10.4102/JEF.V14I1.567","url":null,"abstract":"Orientation: Economic complexity is a measure of productive capabilities indirectly by looking at the mix of sophisticated products that countries export. The economic complexity index proposed a proxy for diversity and ubiquity of products in the export basket. Research purpose: This study seeks to determine if economic complexity can influence the inequality measured by the Gini index in some selected sub-Saharan African countries. Motivation for the study: The need for the study emanates from the notion that that economic complexity can reduce income inequality hence it is imperative to investigate this relationship in the sub-Saharan African region where most countries produce few sophisticated goods that are also labour-intensive. Inadequate literature within the African continent has also contributed to the formulation of this study. Research approach/design and method: This study employed the autoregressive distribution lag (ARDL) model to analyze a panel data set, which includes eight sub-Saharan African countries for the period 1994–2017. Main findings: We found that economic complexity can reduce income disparities. Practical/managerial implications: Sub-Saharan African countries should shift their productive capabilities and resources from primary to sophisticated products in the manufacturing and services sector to increase economic complexity and reduce inequality. Contribution/value-add: The study makes an important contribution to the debate about the relationship between economic complexity and income inequality in the sub-Saharan African context and it is envisaged that it will inform the actions of the decision-makers to drive future productivity and prosperity in the region.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47088008","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Determinants of foreign direct investment in the Zimbabwean mining sector","authors":"S. Abel, J. Mukarati, Courage Mutonhori, P. L. Roux","doi":"10.4102/JEF.V14I1.595","DOIUrl":"https://doi.org/10.4102/JEF.V14I1.595","url":null,"abstract":"Orientation: The mining industry being the main source of foreign currency for economy is the backbone of the Zimbabwean economy. The performance of the sector has been dwindling of late. The downturn has been attributed to outdated equipment, lack of foreign currency to import modern equipment, expensive new technology and general macroeconomic problems. Research Purpose: Given the problems being faced by the sector, this article investigated the determinants of foreign direct investment (FDI) into the mining sector (MS). Motivation for the study: Given the mining sector’s contribution to the economy, understanding what motivates corporates to invest into the sector is of interest to the policy makers. The decline in investment is a cause of concern. Research approach and method: The study employed the autoregressive distributed lag (ARDL) method to evaluate the determinants of FDI into the Zimbabwean MS. Main Findings: The results show that FDI in the MS is driven by gross domestic product (GDP), wage rates, inflation, interest rates and openness in the long term. In the short run, GDP, wage rates, inflation, interest rates and openness have a significant effect on FDI into the MS. Practical implications: This study recommends that government should put in place pro-growth policies in order to attract more foreign investors. The monetary policy should ensure interest rates are maintained very low to allow local resources to complement FDI. Contribution: The study contributes to the literature on determinants of FDI in the mining sector.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42100156","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An emperical study into the informal sector: The link between entrepreneurial activity and firm performance","authors":"T. Napwanya, W. Chinyamurindi","doi":"10.4102/JEF.V14I1.537","DOIUrl":"https://doi.org/10.4102/JEF.V14I1.537","url":null,"abstract":"Orientation: Within an emerging market context, the informal sector’s role was deemed critical towards achieving ideals of a developmental state. Given this perceived importance, there was a need to continually study informal sector entrepreneurial activity and its ramifications on firm performance. Research Purpose: This study aimed to understand the link between informal sector entrepreneurial activities and firm performance using a sample of firms operating in Durban, South Africa. Motivation of the study: Exploring those entrepreneurial activities that either enhanced or impeded the informal sector was deemed critical in the effectual and efficient operation of the sector. In driving the firm performance agenda ascertaining the role of factors such as (1) entrepreneurial culture, (2) entrepreneurial education and skills, (3) government and incubation support and finally, (4) access to finance can enhance the informal sector through the provision of evidence-based interventions. Research approach/design/method: A quantitative survey research approach was used to collect data from 152 informal sector businesses operating in the city of Durban in South Africa. A convenience sampling technique was used to access the respondents. Data were analysed using the Statistical Package for Social Sciences (SPSS) programme version 23 using correlation and regression tests. Main findings: The findings revealed the adoption of an entrepreneurship culture, including access to entrepreneurship education and skills to predict a firm’s financial and non-financial performance significantly. Furthermore, it was found that government and incubation support predicted a firm’s financial performance. However, it was also established that government and incubation support had no unique contribution to non-financial performance. Practical/managerial implications: Suggestions were made based on the findings that entrepreneurial activities have a bearing on informal sector business performance. These findings became a helpful intervention towards enhancing the performance of informal businesses. Contribution/value-add: This study contributed to understanding entrepreneurial activities that either enhanced or impeded informal businesses’ performance.","PeriodicalId":32935,"journal":{"name":"Journal of Economic and Financial Sciences","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43363321","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}