scholarly journals Drivers Creating Shareholder Value In South African Manufacturing Firms

2012 ◽  
Vol 28 (5) ◽  
pp. 1035 ◽  
Author(s):  
John H. Hall
Keyword(s):  
South Africa ◽  
Regression Analysis ◽  
South African ◽  
Value Creation ◽  
Capital Investment ◽  
Shareholder Value ◽  
Manufacturing Firms ◽  
Value Drivers ◽  
Value Based Management ◽  
The Cost

The objective of this study was to determine shareholder value drivers for South African manufacturing firms listed on the Johannesburg Securities Exchange (JSE) from 2006 to 2010. In order to optimise shareholder value creation, management must be able to recognise value drivers that it can control. A multiple regression analysis was used to identify the value drivers of manufacturing firms in South Africa. The value drivers found to be significant in explaining shareholder value are the cost of goods to sales percentage, the degree of manufacturing leverage, and the capital investment in plant and equipment. Value-based management incorporating these value drivers can guide manufacturing managers toward optimal shareholder value creation.

scholarly journals Secondary tax and its effect on the cost of capital and shareholder value of South African JSE listed companies

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
J. H.v.H De Wet ◽  
A. D. Das
Keyword(s):  
South African ◽  
Capital Investment ◽  
Cost Of Capital ◽  
Shareholder Value ◽  
Local Study ◽  
Tax Rate ◽  
Original Intention ◽  
Tax Changes ◽  
The Cost ◽  
The Impact

Background: The introduction of a secondary tax on companies (STC) and the lowering of the normal income tax rate in 1993 constituted a dramatic change in the tax structure of South African organisations. The original intention of these changes was to encourage organisations to re-invest profits to make use of capital investment opportunities. It was also anticipated that these tax changes would lower the cost of capital of organisations. Problem investigated: Announcements during the 2007 budget again raised questions about how the proposed changes in STC would affect the value of organisations. The impact of these tax changes has been the topic of some speculation in the absence of concrete research results to date. Purpose: The purpose of this study was to investigate the effect of these tax changes and all subsequent changes since 1993 on the cost of capital and shareholder value. Approach: A model of a hypothetical company, representing the 'average' listed South African organisation was used to determine the effect of the introduction of STC and the changes to the STC and company tax rate on the cost of capital and the value of the organisation. Findings: The study found that, contrary to expectations, the tax changes actually caused the cost of capital to go up. Overall, the combined effect of the higher cost of capital and the lower company tax rate caused the theoretical value of organisations to increase, constituting an improvement of shareholder value. Value of research: It is the first local study that endeavoured to analyse and quantify the impact of the introduction of STC and the lowering of the company tax rate on the cost of capital and the value of organisations. Conclusion: The introduction of STC in and the lowering of the company tax rate in 1993, as well as changes to these two forms of taxes since then, seem to have been justified in terms of shareholder value creation.

scholarly journals Increasing game prices may alter farmers’ behaviours towards leopards (Panthera pardus) and other carnivores in South Africa

PeerJ ◽  
2017 ◽  
Vol 5 ◽  
pp. e3369 ◽  
Author(s):  
Tara J. Pirie ◽  
Rebecca L. Thomas ◽  
Mark D.E. Fellowes
Keyword(s):  
South Africa ◽  
South African ◽  
Panthera Pardus ◽  
Farming Practices ◽  
Farming Community ◽  
Trophy Hunting ◽  
Questionnaire Surveys ◽  
The Cost ◽  
Financial Losses ◽  
Game Animals

Human-carnivore conflict occurs globally, particularly in regions where large carnivores predate livestock. Retaliatory killings do occur, and although predation of livestock by carnivores happens, losses from other factors such as disease or injury can be misattributed because of landowner perceptions. Game farming for both trophy hunting and eco-tourism is becoming increasingly common in South Africa, and there has been a rapid increase in the cost of game animals (in some species as much as five-fold) between 2010 and 2015. This could result in an increase in conflict between commercial game farmers and carnivores. We conducted two questionnaire surveys of farmers in 2010 and 2015 to investigate this. We asked if there had been changes in farming practices, perceived predator activity, perceived amount of livestock and commercial game losses, and actions taken towards carnivores in a South African farming community. We found no significant change in farming types in the area or losses of livestock between the years. However, there was a significant increase in perceived commercial game losses reported, even though protection of game had increased. Actions taken towards carnivores by livestock/game farmers were also significantly more negative in 2015 compared to farmers growing crops, but there was no such difference in 2010. We suggest that these changes could be a result of the increase in game prices over that period, leading to greater financial losses when an animal is predated, which in turn could increase the likelihood of retaliatory killings of carnivores.

Drivers of efficiency and their influence on airline performances in South Africa: a bootstrapped meta-frontier approach

2019 ◽  
Vol 14 (1) ◽  
pp. 121-135
Author(s):  
Oswald Mhlanga
Keyword(s):  
South Africa ◽  
South African ◽  
Airline Industry ◽  
Policy Implications ◽  
Niche Markets ◽  
African Government ◽  
Content Type ◽  
Political Interference ◽  
Run Up ◽  
The Cost

Purpose This paper aims to identify drivers of efficiency and their influence on airline performances in South Africa. Unfortunately, the methods currently used to measure airline efficiency fail to address the heterogeneity problem, which blurs inefficiency. Design/methodology/approach To remedy the heterogeneity problem, this paper adopts the meta-frontier framework to identify drivers of efficiency. The interesting feature of the model is that it ensures that heterogeneous airlines are compared based on one homogeneous technology. The model is tested using a panel data sample of nine South African airlines, which operated from 2015 to 2018. Findings The paper demonstrates that structural drivers, namely, “aircraft size”, and “airline ownership” and one executional driver, namely, “the cost structure” significantly influence (p < 0.05) airline efficiency thereby corroborating evidence from some prior studies. Research limitations/implications First, because of the small size of the industry, fewer airlines and a lack of detailed data, the study could not consider other important factors such as optimal routing and network structure. Second, a more rigorous analysis over a period of time would yield better understanding about the growth of the industry in South Africa and recognise the variation in the influence of drivers of efficiency on airline performances over time. Practical implications The results have potential policy implications. First, as the market in South Africa is too small to operate with a smaller aircraft probably, for airlines that operate with smaller aircraft to operate efficiently they should first identify niche markets where they can have a route monopoly. Second, while all state-owned airlines are perfect statehood symbols that define and represent countries, most state carriers in South Africa are highly inefficient. The researcher recommends policymakers to privatise state airlines or seek equity partners. Many nationalised airlines have turned losses to profits in the run-up to privatisation. British Airways, once a large burden on the British taxpayer, is now one of the world’s most efficient airlines. After the privatisation of Air France and Iberia, all two turned from loss-making concerns into profitable airlines. It, therefore, makes no sense for the South African government to expect state carriers to pursue a commercial mandate with such political interference. The very notion of efficiency itself is at risk. Originality/value This paper is a first attempt to identify drivers of operational efficiency using a bootstrapped meta-frontier approach in the airline industry in South Africa. By applying the meta-frontier approach the paper ensures that all heterogeneous airlines are assessed based on their distance from a common and identical frontier.

scholarly journals Value creation measures: an industry-based study

2018 ◽  
Vol 67 (2) ◽  
pp. 426-444
Author(s):  
John Henry Hall
Keyword(s):  
Stock Returns ◽  
Value Creation ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Value Added ◽  
Value Drivers ◽  
Content Type ◽  
Johannesburg Stock Exchange ◽  
Return On Capital ◽  
Market Value Added

Purpose The purpose of this paper is to identify the shareholder value creation measure best suited to express shareholder value creation for a particular industry. Design/methodology/approach The analysis was performed on 192 companies listed on the Johannesburg Stock Exchange, classified into nine different samples or industries. Five shareholder value creation measures were examined, namely market value added (MVA), a market-adjusted stock return, the market-to-book ratio, Tobin’s Q ratio, and the return on capital employed divided by the cost of equity. Findings An analysis of the nine categories of firms led to the identification of different measures that are suited to express value creation. Stock returns did not provide an appropriate value measure. Instead, depending on the specific industry, Tobin’s Q ratio, MVA, and the market-to-book ratio should be used to measure and express value creation. Practical implications For management, the value drivers identified for each industry present a clear indication of industry-specific variables upon which they can focus in operating activities to most efficiently increase shareholder value. Originality/value Unlike previous studies that use only one or two different shareholder value creation measures as dependent variables, this study uses five different value creation measures. Another contribution of this study is the compilation of a unique set of value drivers that explain shareholder value creation separately for each of the nine different categories of firms.

scholarly journals Soft Touch or Heavy Hand? Legislative Approaches for Preventing Invasions: Insights from Cacti in South Africa

2015 ◽  
Vol 8 (3) ◽  
pp. 307-316 ◽  
Author(s):  
Ana Novoa ◽  
Haylee Kaplan ◽  
Sabrina Kumschick ◽  
John R. U. Wilson ◽  
David M. Richardson
Keyword(s):  
South Africa ◽  
Invasive Species ◽  
South African ◽  
Economic Impacts ◽  
Legal Framework ◽  
Global Awareness ◽  
Significant Control ◽  
The World ◽  
History Of ◽  
The Cost

AbstractThe rate of transportation, introduction, dissemination, and spread of nonnative species is increasing despite growing global awareness of the extent and impact of biological invasions. Effective policies are needed to prevent an increase in the significant negative environmental and economic impacts caused by invasive species. Here we explore this issue in the context of the history of invasion and subsequent regulation of cacti introduced to South Africa. We consider seven approaches to restricting trade by banning the following: (1) species already invasive in the region, (2) species invasive anywhere in the world, (3) species invasive anywhere in the world with a climate similar to the target region, (4) genera containing invasive species, (5) growth forms associated with invasiveness, (6) cacti with seed characteristics associated with invasiveness, and (7) the whole family. We evaluate each approach on the basis of the availability and complexity of information required for implementation, including the cost of the research needed to acquire such information, the likely numbers of false positives and false negatives, the likely degree of public acceptance, and the costs of implementation. Following a consultative process, we provide recommendations for how to regulate nonnative cacti in South Africa. The simplest option would be to ban all cacti, but available evidence suggests that most species pose negligible risk of becoming invasive, making this option unreasonable. The other extreme—reactively regulating species once they are invasive—would incur significant control costs, likely result in significant environmental and economic impacts, and limit management goals (e.g., eradication might be unfeasible). We recommended an intermediate option—the banning of all genera containing invasive species. This recommendation has been partly incorporated in South African regulations. Our study emphasizes the importance of scientific research, a legal framework, and participation of stakeholders in assessments. This approach builds awareness, trust, and support, and ensures that all interests are reflected in final regulations, making them easier to implement and enforce.

scholarly journals The determinants of spending by biltong hunters

2013 ◽  
Vol 10 (2) ◽  
pp. 184-194 ◽  
Author(s):  
P Van der Merwe ◽  
Melville Saayman ◽  
Waldo Krugell
Keyword(s):  
South Africa ◽  
Regression Analysis ◽  
South African ◽  
National Survey ◽  
Sample Population ◽  
The South ◽  
Economic Contribution ◽  
Main Determinants

According to a national survey conducted in 2005, biltong hunters contribute significantly to conservation and the South African economy. This research indicated that the economic contribution of biltong hunting is just over R3 billion (US$ 500 million) per season. The aim of this article is to establish the determinants of biltong hunters’ spending in South Africa. This information could be used to increase spending by biltong hunters on tailor-made packages.The sample population included all members of the SA Hunters and Game Conservation Association. A regression analysis was undertaken to identify the determinants of spending by biltong hunters. The main findings of the research indicated that income, number of game items hunted, number of days spent hunting and distance travelled are the main determinants.

The use of tele-audiology in ototoxicity monitoring: A scoping review

2022 ◽  
pp. 1357633X2110682
Author(s):  
Nazeera Peerbhay ◽  
Danielle R Munsamy ◽  
Hombisa P Dlamini ◽  
Fisokuhle Langa ◽  
Jessica Paken
Keyword(s):  
South Africa ◽  
South African ◽  
Scoping Review ◽  
Network Connectivity ◽  
Cost Effective ◽  
Healthcare Facilities ◽  
Holistic Management ◽  
African Context ◽  
Meta Analyses ◽  
The Cost

Introduction Due to the growing burden of disease in South Africa, encompassing conditions such as tuberculosis, human immunodeficiency virus, and cancer, the holistic management of affected patients incorporating ototoxicity monitoring is a necessity. However, ototoxicity monitoring in developing countries may be limited due to a lack of resources and inadequate healthcare facilities. Subsequently, the use of tele-audiology may be a revolutionary technique with the potential to provide audiology services to under-served populations with limited access. Methods The study aimed to describe the use of tele-audiology services in ototoxicity monitoring through a scoping review of English peer-reviewed articles from June 2009 to June 2020. Seventeen articles were purposively selected from the following databases: PubMed, Science Direct, Taylor and Francis Online, WorldCat, and Google Scholar. Data was extracted as per the Preferred Reporting Items for Systematic Reviews and Meta-Analyses diagram and results were analyzed using deductive thematic analysis. Results and discussion While a minority of the studies indicated that the cost of implementation and network connectivity within a South African context pose as barriers, most researchers reported that tele-audiology provides a reliable, time-efficient, cost-effective, and easily accessible alternative for ototoxicity monitoring. Hardware including the WAHTS, KUDUwave, and OtoID, along with software such as the TabSINT, Otocalc, uHear, and the hearTest, have proven to be useful for ototoxicity monitoring. A need for further investigations regarding the feasibility of tele-audiology implementation in South Africa is evident. Despite this, it provides audiologists with an opportunity to offer contact-less services during COVID-19, thus, confirming its versatility as an augmentative method for ototoxicity monitoring.

scholarly journals The willingness to pay for dusky kob (Argyrosomus japonicus) restocking: using recreational linefishing licence fees to fund stock enhancement in South Africa

2009 ◽  
Vol 66 (5) ◽  
pp. 839-843 ◽  
Author(s):  
Ryan M. Palmer ◽  
Jen D. Snowball
Keyword(s):  
South Africa ◽  
Willingness To Pay ◽  
South African ◽  
Contingent Valuation Method ◽  
Stock Enhancement ◽  
Economic Feasibility ◽  
Recreational Fishing ◽  
Valuation Method ◽  
Set Up ◽  
The Cost

Abstract Palmer, R. M., and Snowball, J. D. 2009. The willingness to pay for dusky kob (Argyrosomus japonicus) restocking: using recreational linefishing licence fees to fund stock enhancement in South Africa. – ICES Journal of Marine Science, 66: 839–843. The economic feasibility of stock enhancement of Argyrosomus japonicus in South Africa was investigated using a willingness-to-pay (WTP) survey. The pilot study provides a unique example of the use of the contingent valuation method as a valuation tool for a proposed stock enhancement programme. An increase in the cost of a recreational fishing permit is used as a potential vehicle of payment. The median value of the maximum that fishers were willing to pay for a recreational fishing permit was R155 (South African Rand) for frequent fishers and R100 for non-frequent fishers. Analysis showed that a fee of more than R100 excluded up to 50% of anglers from the fishery, but that a fee of R100 excluded only 28% of recreational anglers and would generate an additional R12 million annually from the sale of recreational fishing permits. The estimated costs of set-up and running of a stock enhancement programme are substantially lower than this, suggesting that stock enhancement may be an economically feasible management option that deserves more investigation. The WTP method itself produces robust results and is likely to be an effective tool in the management of the marine environment.

THE COST OF ENVIRONMENTAL IMPACT ASSESSMENT (EIA) IN SOUTH AFRICA

2009 ◽  
Vol 11 (01) ◽  
pp. 51-68 ◽  
Author(s):  
FRANCOIS RETIEF ◽  
BENNETT CHABALALA
Keyword(s):  
South Africa ◽  
South African ◽  
Small Scale ◽  
South African Context ◽  
The South ◽  
Project Cost ◽  
North West ◽  
Northern Cape ◽  
African Context ◽  
The Cost

The wide adoption of EIA internationally is implicitly or explicitly based on the assumption that the benefits of EIA outweigh the costs. However, there has been surprisingly little empirical research conducted on the "cost" of EIA. The latter has been mostly because of the difficult methodological challenges it presents, which include the difficulties associated with clarifying terminology and disentangling what is meant by "cost". South Africa has been a leading developing country in terms of the introduction of EIA. However, almost a decade of mandatory EIA practice has raised serious questions about unjustified and unnecessary time delays and monetary costs and a desperate need for improved efficiency and effectiveness. In light of the latter the urgent need to gain a better understanding of the "cost" of EIA is evident. This paper presents preliminary results of an empirical study on the "direct EIA cost" in relation to "overall project cost" in South Africa. The data was obtained from a detailed survey of 148 EIAs conducted in the Free State, North West and the Northern Cape Provinces. The research suggests that the average direct cost of EIA within this region of South Africa is particularly low compared to international EIA systems. However, as a percentage of total project cost, EIA in South Africa compares with the higher spectrum of international practice. The latter suggests that within the South African context a large number of EIAs are being conducted for relatively small scale projects and that the main cost burden is placed on small and medium economic enterprise. In conclusion the overall profile of EIA cost in the South African context is described in relation to four broad project categories. To take the debate forward and to allow for regional comparative analysis, it is proposed that the research be expanded to include other provinces.

scholarly journals VALUE BASED MANAGEMENT AT SIEMENS – THE CLASSIC EXAMPLE REMAINS

2020 ◽  
Vol 10 (2) ◽  
pp. 32-50
Author(s):  
Diana Claudia Cozmiuc ◽  
◽  
Ioan Petrișor ◽  
Keyword(s):  
Value Creation ◽  
Economic Value ◽  
Large Body ◽  
Value Added ◽  
Theory And Practice ◽  
Economic Value Added ◽  
Value Drivers ◽  
Business Context ◽  
Value Based Management

The main objective of this paper is to check if value-based management in its classic design, 1980-2000, still works in the practice of one of its most prominent cases, Siemens. The paper also aims to describe value-based management in Siemens’ practice 1998-2020. This should enable a comparison between theory and practice the paper targets. The research methodology is case study: literature review, empirical data analysis, conclusions based on comparison. The case study is exploratory and descriptive. The article relies on secondary evidence about Siemens during 1998-2020, selects the evidence that pertains to value-based management and constructs the Siemens case example. The article is based on a large body of evidence, where the statements about value-based management are chosen based on their relationship to key words such as value, value drivers, value creation. The results may be the confirmation or denial of classic value-based management. The conclusion is that managing for Economic Value Added still works in the current business context. Other findings are Siemens’ driver tree during 1998-2020 in thorough description.

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