jrge
Abstract - Financial Depth, Bank Competition and Economic Performance: A Cross-Country Analysis
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Abstract: Financial sector development has been receiving a great amount of attention in literature over the years. The finance-growth nexus has been revisited several times with the desire to understand the link between the two as available empirical evidence often fails to explain what is observed in practice. Financial development and sophistication have, in more instances than one, failed to propel growth of economies, with the focus now leaning towards the role of the financial sector structure and competition in this relationship. Making use of cross-country data by applying robust panel data analysis techniques, an analysis of the paradox – the nexus between financial depth, competition and economic performance – was undertaken in the study. The findings have implications for both policy and future research. Keywords: Developing economies, banking sector structure, financial depth, competition, financial inclusion. |
Abstract - The Effects of Expectation Inflation on Aggregate Demand: Examining the South African Inflation Expectation Channel of South African Monetary Policy
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Abstract: South Africa targeted inflation since February 2000 as its monetary policy framework to ensure long-run price stability and continues to pursue a target of 3-6% for headline CPI inflation. Monetary policy emphasises the importance of promoting economic growth that can be sustained and maintenance of low inflation in an economy. Therefore, the paper seeks to check whether a relationship between economic growth (GDP) and expectation inflation exists. The autoregressive distributive lag (ARDL) econometric methodology was employed to achieve the objectives. The ARDL bounds test found that there is a long-run cointegration between GDP and expectation inflation. Moreover, the ARDL results revealed that in the long run expected inflation had a negative significant effect on GDP. This implies that lower expectation inflation could stimulate economic growth. It is recommended that South Africa should continue to target inflation because its target band of 3% to 6% keep policy makers on the loop. Keywords: Monetary policy transmission mechanism, price stability, economic growth, expectation inflation, Autoregressive Distributive Lag. |
Abstract - Stakeholder Engagement and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)
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Abstract: Attaining sustainable development will remain an elusive agenda if there is no effective stakeholder engagement. All stakeholders need to come on board to share and collaborate on environmental sustainability initiatives. This study investigated the relationship between stakeholder engagement and financial performance. The study area of this study was all FTSE/JSE listed firms. The researcher opted for a quantitative research approach and used a case study research design. The longitudinal design was adopted where the researcher collected panel data from 2011-2018. The sample of this study was 32 firms listed on the FTSE/JSE Responsible Investment Index. This resulted in 256 observations for the period under consideration. This study utilised secondary data, which is annual financial statements of firms listed on the JSE. Stakeholder engagement was the independent variable while the financial performance as measured by the Tobin’s Q was the dependent variable. Quantitative content analysis was used to collect data related to stakeholder engagement. Data was analysed using Panel regression analysis model. The Fixed and Random effects models were used to analyse data. The Hausman test was used to evaluate the appropriate model. The findings showed a positive but insignificant relationship between stakeholder engagement and financial performance as measured by Tobin’s Q. This suggested that stakeholder engagement does not predict market valuation of the firm. It was deduced that probably the concerned firms are sending weak signals to key stakeholders regarding their genuine commitment towards environmental sustainability initiatives. Recommendations were made for firms to send strong signals to investors which clearly show that they are genuinely committed towards environmental sustainability initiatives. Keywords: Johannesburg Stock Exchange, Listed firms, Stakeholder engagement, South Africa, Sustainable development. |
Abstract - Strategic Orientation and Performance of Small Businesses in South Africa
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Abstract: Motivation: Most studies on strategic orientation have focused on financial performance while neglecting social and environmental performance. In this era of sustainable development, the performance of SMEs is better measured using the triple bottom line approach (financial, social and environmental). Studies that examine the effect of strategic orientation on the sustainable performance of SMEs are scarce. Keywords: Strategic orientation, sustainable performance, Resource-based theory Small and medium enterprises, South Africa. |
