scholarly journals Government assistance to state-owned enterprises: a hindrance to financial performance

2020 ◽  
Vol 17 (2) ◽  
pp. 40-50
Author(s):  
Ferina Marimuthu
Keyword(s):  
South Africa ◽  
Financial Performance ◽  
Financial Management ◽  
Government Assistance ◽  
Return On Assets ◽  
The Public ◽  
Dummy Variable ◽  
Negative Effect ◽  
The Government ◽  
Government Bailouts

This study aimed to examine whether government financial assistance influences the financial performance of state-owned enterprises. Commercial state-owned enterprises in South Africa that are listed under the Public Financial Management Act during the post-apartheid era from 1995 to 2017 were sampled. Government guarantees were measured as a dummy variable, while financial performance was measured by accounting measure: return on assets (ROA). Endogeneity issues were addressed, and data analysis was performed on an unbalanced panel using the two-step system GMM. The empirical evidence indicated that support by the government in the form of guarantees and subsidies has a significant negative effect on the financial performance of state-owned enterprises. This is an indication that continued government bailouts to poor performing state-owned enterprises exacerbates their poor financial performance and encourages these enterprises to become too reliant on government assistance, burdening the national fiscus. AcknowledgmentsThe author gratefully acknowledges the National Research Foundation of South Africa for the research grant and Dr Farai Kwenda for his supervision during the study.

A benchmarking study of Indian seaports

2019 ◽  
Vol 13 (1) ◽  
pp. 88-102
Author(s):  
Sajeev Abraham George ◽  
Anurag C. Tumma
Keyword(s):  
Financial Performance ◽  
Future Research ◽  
Data Envelopment ◽  
Operational Parameters ◽  
Two Stage ◽  
Content Type ◽  
The Public ◽  
Port Authorities ◽  
Financial Performance Measures ◽  
The Government

Purpose The purpose of this paper is to benchmark the operational and financial performances of the major Indian seaports to help derive useful insights to improve their performance. Design/methodology/approach A two-stage data envelopment analysis (DEA) methodology has been used with the help of data collected on the 13 major seaports of India. The first stage of the DEA captured the operational efficiencies, while the second stage the financial performance. Findings A window analysis over a period of three years revealed that no port was able to score an overall average efficiency of 100 per cent. The study identified the better performing units among their peers in both the stages. The contrasting results of the study with the traditional operational and financial performance measures used by the ports helped to derive useful insights. Research limitations/implications The data used in the study were majorly limited to the available sources in the public domain. Also, the study was limited to the major seaports which are under the Government of India and no comparisons were carried out with other local or international ports. Practical implications There is a need to prioritize investments and improvement efforts where they are most needed, instead of following a generalized approach. Once the benchmark ports are identified, the port authorities and other relevant stakeholders should work in detail on the factors causing inefficiencies, for possible improvements in performance. Originality/value This paper carried out a two-stage DEA that helped to derive useful insights on operational efficiency and financial performance of the India seaports. A combination of the financial and operational parameters, along with a comparison of the DEA results with the traditional measures, provided a different perspective on the Indian seaport performance. Considering the scarcity of research papers reported in the literature on DEA-based benchmarking studies of seaports in the Indian context, it has the potential to attract future research in this field.

scholarly journals Fostering public accountability in South Africa: A reflection on challenges and successes

2016 ◽  
Vol 12 (1) ◽  
Author(s):  
Pandelani H. Munzhedzi
Keyword(s):  
South Africa ◽  
Public Service ◽  
Service Provision ◽  
Public Services ◽  
Public Accountability ◽  
The Public ◽  
Current State ◽  
Public Service Provision ◽  
The Republic ◽  
The Government

Accountability and oversight are constitutional requirements in all the spheres of government in the Republic of South Africa and their foundation is in the Constitution of the Republic of South Africa of 1996. All spheres of government are charged with the constitutional mandate of providing public services. The level of responsibility and public services provision also goes with the level of capacity of a particular sphere. However, most of the direct and visible services that the public receives are at the local sphere of government. As such, enormous resources are channelled towards this sphere of government so that the said public services could be provided. It is imperative that the three spheres of government account for the huge expenditures during the public service provision processes. The parliaments of national and provincial governments exercise oversight and accountability over their executives and administrations through the Public Accounts Committees, while the local sphere of government relies on the Municipal Public Accounts Committees. This article is theoretical in nature, and it seeks to explore the current state of public accountability in South Africa and to evaluate possible measures so as to enhance public accountability. The article argues that the current public accountability mechanisms are not efficient and effective. It is recommended that these mechanisms ought to be enhanced by inter alia capacitating the legislative bodies at national, provincial and local spheres of the government.

scholarly journals A Conceptual Paper on The Best Financial Management Model That Has Become The Practice of the Malay in Klang Valley

2019 ◽  
Vol 5 (2) ◽  
pp. 15
Author(s):  
Leylawati Joremi
Keyword(s):  
Financial Management ◽  
Best Practice ◽  
Practice Model ◽  
The Public ◽  
Body Of Knowledge ◽  
Quantitative Studies ◽  
Family Finances ◽  
Klang Valley ◽  
Conceptual Paper ◽  
The Government

This conceptual paper is presented with the intention to study the best practice model of financial management, which has become the practice of the Malay in Klang Valley.  It begins by reviewing the literature on household financial management and the behavior of households against finances and debt.  The theory of utility and the life-cycle hypothesis were used as the basis of the study.  This study is inspired by the concerns of the government and the public on the growing bankruptcy issue in Malaysia.  Many previous quantitative studies discussed the flaws in money management.  This study, however, slightly different.  Using a qualitative method, it intends to look at the best practices implemented by the household in managing family finances.  The findings can add value to today's body of knowledge.  Identified themes can be used to design financial modules which are more compatible to be used by all levels of society.

Companies convicted of economic crimes and their participation in government tender processes in South Africa: A comment on Namasthethu electrical (PTY) LTD v City of Cape Town and another (201/19) [2020] ZASCA 74 (29 JUNE 2020)

2021 ◽  
Vol 8 (1) ◽  
pp. 102-122
Author(s):  
Jamil Ddamulira Mujuzi
Keyword(s):  
South Africa ◽  
South African ◽  
Public Procurement ◽  
Cape Town ◽  
African Countries ◽  
The Public ◽  
South African Police Service ◽  
The Government ◽  
South African Police ◽  
Economic Crimes

In South Africa, persons or companies convicted of fraud or corruption or companies whose directors have been convicted are debarred from participating in bidding for government tenders. Although it is easy to establish whether or not a natural person has been convicted of an offence, because a certificate can be obtained from the South African Police Service to that effect, it is the opposite with juristic persons. This issue came up in the case of Namasthethu Electrical (Pty) Ltd v City of Cape Town and Another in which the appellant company was awarded a government tender although the company and its former director had been convicted of fraud and corruption. The purpose of this article is to analyse this judgment and show the challenges that the government is faced with when dealing with companies that have been convicted of offences that bid for government tenders. Because South Africa is in the process of enacting public procurement legislation, the Public Procurement Bill was published for comment in early 2020. One of the issues addressed in the Bill relates to debarring bidders who have been convicted of some offences from bidding for government tenders. Based on the facts of this case and legislation from other African countries, the author suggests ways in which the provisions of the Bill could be strengthened to address this issue.

scholarly journals Regulating Private Higher Education in South Africa

2015 ◽  
Author(s):  
Chika Sehoole
Keyword(s):  
Higher Education ◽  
South Africa ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Private Higher Education ◽  
Private Companies ◽  
The Public ◽  
The Government ◽  
Laws And Policies ◽  
The Global Financial Crisis

This article makes case of how South Africa has been able to use its laws and policies to achieve its objectives of regulating private higher education. This happened in the context of an ascendancy of neo-liberal policies which favoured deregulation and the rolling back of the state. Through these policies the government was able to protect the public even during the global financial crisis as it had registered credible and financially sound institutions which could weather off the financial crises which affected many private companies worldwide.

scholarly journals Impact of Perceived Uncertainty on Public Acceptability of Congestion Charging: An Empirical Study in China

2018 ◽  
Vol 11 (1) ◽  
pp. 129 ◽  
Author(s):  
Yacan Wang ◽  
Yu Wang ◽  
Luyao Xie ◽  
Huiyu Zhou
Keyword(s):  
Traffic Congestion ◽  
Latent Variables ◽  
Choice Model ◽  
Stated Preference ◽  
The Public ◽  
Public Acceptability ◽  
Revenue Allocation ◽  
Negative Effect ◽  
The Government ◽  
Congestion Charging

Severe traffic congestion is now a common problem in major cities worldwide, causing huge economic, environmental, and social losses to overall welfare. Governments are now considering congestion charging as an effective way to manage congestion. However, since congestion charging has not yet been implemented widely, the public remains uncertain about it. Few scholars have explored public uncertainty about congestion charging. This paper examined how the public perceived uncertainty toward fairness and efficiency affects willingness to accept congestion charging. Through an experimental study of stated preference, this paper analyzes the influence of observable variables and unobserved latent variables on public acceptability and compares the results with a traditional discrete choice model. The results indicated that the public’s perceived uncertainty about congestion charging will have significant negative effect on acceptability and that the perception of fairness has an even larger effect. As for uncertainty about the effectiveness of congestion charging on alleviating congestion, the implementation efficiency of the government is the most significant. For uncertainty about fairness, whether charge collection and revenue allocation are reasonable is the most significant. These findings provide an empirical basis for reducing public uncertainty and increasing public acceptance of congestion charging.

scholarly journals Informal rental housing in the South: dynamic but neglected

2020 ◽  
Vol 32 (1) ◽  
pp. 109-132 ◽  
Author(s):  
Andreas Scheba ◽  
Ivan Turok
Keyword(s):  
South Africa ◽  
Social Dynamics ◽  
Rental Housing ◽  
Rental Sector ◽  
Socioeconomic Conditions ◽  
Negative Externalities ◽  
Developmental Approach ◽  
The Public ◽  
Public Benefits ◽  
The Government

Informal rental housing is growing rapidly in cities of the global South. Changing needs and circumstances of diverse urban populations produce new forms of rental accommodation and landlord–tenant relations. Focusing on the case of backyard renting in South Africa, this paper illustrates how informal rental is undergoing a dynamic process of expansion and upgrading that both reflects and contributes to improved socioeconomic conditions. Commercialization is transforming the material quality and social dynamics of informal rental housing. While there are signs of formalization and professionalization, the government’s neglect of this sector has contributed to the strong persistence of informality, with its associated risks. This paper argues that the informal rental sector deserves more government attention to augment the public benefits and mitigate the costs. The paper ends with suggestions of how a developmental approach by the government could help to convert the negative externalities into a positive dynamic with more equitable and sustainable outcomes.

scholarly journals ANALISIS KINERJA KEUANGAN PEMERINTAH DAERAH KOTA SUKABUMI

2020 ◽  
Vol 3 (2) ◽  
pp. 204-2015
Author(s):  
Lala Novikasari ◽  
Zulkarnain Zulkarnain
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Capital Expenditure ◽  
City Government ◽  
Regional Government ◽  
Government Officials ◽  
Audit Opinion ◽  
The Public ◽  
Transfer Income ◽  
The Government

Performance measurement is very important in evaluating the performance of local government officials or organizations in their efforts to provide services to the public. This study soughts to provide an overview of the financial performance of the Sukabumi City Government as a region that has won the Unqualified Audit Opinion from the BPK-RI in five consecutive years. The research was conducted using a descriptive quantitative approach. Regional financial ratios were used to measure the financial performance in question. Based on the results of the analysis and discussion, it was found that the Sukabumi City Government was quite capable of financing development or operations in the government by self-financing; PAD has always increased from year to year; Others Legal PAD has the highest contribution in contributing to overall PAD revenue; the level of dependence of the Sukabumi City Government on the source of transfer income on average was in the "MEDIUM" category; the achievement of the annual target of the Sukabumi City Government's PAD has been very effective; and the capital expenditure ratio in the Sukabumi City Government was still low below the average capital expenditure ratio in the regional government.

scholarly journals The Effect of Corporate Governance on Financial Performance and Tax Avoidance on LQ45 Companies

2020 ◽  
Vol 2 (4) ◽  
pp. 10-25
Author(s):  
Rusni Syamsuddin ◽  
Muhammad Ali ◽  
Muhammad Sobarsyah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Return On Assets ◽  
Analysis Techniques ◽  
Independent Variables ◽  
Negative Effect ◽  
Positive Effect

Tax avoidance is a strategy applied by taxpayers to undertake legally burden taxes to decrease tax payment. Avoidance techniques by exploiting loopholes in tax laws. The purpose of this study is to examine the effect of corporate governance (institutional ownership, the board size, independent commissioners, audit boards) on tax avoidance (ETR) mediated by financial performance measured by Return on assets (ROA). The samples used were companies listed in the LQ45 index from the period of 2014 to 2018, with a total of 30 companies collected through purposive sampling. The study applied path analysis techniques using IBM SPSS 23 statistical software. These results indicate that corporate governance simultaneously influences financial performance and tax avoidance. Institutional ownership and audit committees have a positive and significant effect on financial performance. Interestingly, the size of the board of commissioners and independent commissioners were found insignificant to financial performance. To tax avoidance, the size of the board of commissioners, independent commissioners, and the audit board has a significant positive effect, but institutional ownership does not have a significant negative effect on tax avoidance, while financial performance negatively correlates to tax avoidance. Financial performance can mediate institutional ownership of tax avoidance. Differently, other independent variables did not show relationships.

scholarly journals Effect of Working Capital Management Decisions on Financial Performance

2021 ◽  
Vol 10 (4) ◽  
pp. 127-140
Author(s):  
Charles Kiprotich Yegon ◽  
Willy Muturi ◽  
Oluoch Oluoch
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Warning Signal ◽  
Financial Statements ◽  
Recent Past ◽  
Management Decisions ◽  
Return On Assets ◽  
Financing Policy ◽  
Cash Conversion Cycle ◽  
Conversion Period

Collapse of companies in Kenya has been on the rise in the recent past. Far reaching endeavors to resuscitate these liquidating and ailing firms have generally been attributed on their corporate financial management decisions.  Multinationals and KTDA managed tea firms in Kenya have been performing poorly in the recent past where audited financial statements and reports revealed a warning signal on its financial performance. Specific objectives of the study were to determine the effect of the accounts receivables period, accounts payables period, inventory conversion period, cash conversion cycle, financing policy, investing policy and moderating effect of ownership structure on financial performance. The study illustrated that accounts receivables collection period is negatively related to return on assets (? = -0.1299, p=0.0160),  accounts payables payment period is negatively related to return on assets (? = -0.0843, p = 0.0070), inventory conversion period is negatively related to return on assets (?= -0.0623, p=0.0180), cash conversion cycle is negatively related to return on assets (? = -0.1107, p = 0.0030), financing policy is positively related to return on assets (? = 0.1589, p = 0.0000), investing policy is positively related to return on assets (? = 0.0291, p = 0.0000).

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