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- Volume 5, Issue 3, 2002
South African Journal of Economic and Management Sciences - Volume 5, Issue 3, 2002
Volumes & issues
Volume 5, Issue 3, 2002
Source: South African Journal of Economic and Management Sciences 5, pp 499 –510 (2002)More Less
The forward rate unbiasedness hypothesis states that the current forward rate should be an unbiased forecaster of the future spot rate. Inference has always been done under the assumption that the forward premium is a stationary short memory series. Recent empirical results have indicated that this assumption is not valid. Standard unit root tests performed on the forward premium often indicate infinite long memory. However, in recent literature fractionally integrated models have been applied for the forward premium. Empirical analysis is usually performed on exchange rates of developed economies. In this article, the South African Rand-Dollar exchange rate is considered and the focus is therefore on a developing country. A bootstrap method for determining standard errors and confidence limits is described and implemented.
Author J.G. KotzeSource: South African Journal of Economic and Management Sciences 5, pp 511 –525 (2002)More Less
In attempting to achieve high performance levels within the enterprise, the manifestation of aligned commitment is a very desirable goal to aim for. It is instrumental in the realisation of the full potential of organisational members and in focusing their efforts and performance on the strategic vision of the enterprise. A model, which introduces, describes, and integrates the various processes, steps and actions required in the development of aligned commitment, is suggested. Guidelines, derived from research findings as well as experience gained in the actual implementation of the various constituent elements of the model, are supplied. These guidelines should assist in the successful establishment and maintenance of a value-driven, aligned commitment culture within any enterprise.
On the long-run interdependence of stock markets: a tale of correlations, auto-regressions and decompositionsSource: South African Journal of Economic and Management Sciences 5, pp 526 –548 (2002)More Less
It seems as if national stock markets within certain groups of countries, for example within Europe and Asia, are interdependent. But to what extent are stock markets between these groups interdependent? Is it still possible to diversity among these groups, or have globalization tied world markets together to such an extent that diversification is no longer feasible? In this study we use time series techniques to analyze the interdependence among four of the most important groups of economies, namely Europe, Latin America, Asia and the US. This will show whether it is still possible to diversify between the stock markets of these groups of economies, since stock markets within these groups seem to be interdependent to such an extent that diversification within these groups is no longer possible. On a methodological level, we compare the results of the OLS-V AR with an FM-V AR model, which is a more robust estimation procedure in the presence of non-stationary or cointegrated series.
Author L. Rousseau, G.G. & JansinghSource: South African Journal of Economic and Management Sciences 5, pp 549 –565 (2002)More Less
The main objective of this study was to investigate sales call anxiety (SCA) amongst insurance sales staff in Port Elizabeth. The study was based on past research and uses a modified questionnaire developed in previous research. The sample (N=112 sales persons) was drawn using a simple random sampling technique. Results confirm four dimensions of SCA identified by Verbeke and Bagozzi (2000), namely negative self-evaluation, negative evaluation from clients, physiological symptoms and protective actions. Significant differences in SCA between black and white salespeople were further observed. These findings have important implications for training of salespeople.
Source: South African Journal of Economic and Management Sciences 5, pp 566 –588 (2002)More Less
The many practical economic and political difficulties encountered in discretionary fiscal stabilisation policy highlight the potential benefits of allowing automatic fiscal stabilisers to operate over the cycle. This article investigates the relevance of tax revenue as an automatic fiscal stabiliser in the South African economy by an empirical analysis of its role and impact since the 1970s. The study finds that cyclical changes in tax revenue are relatively small and provide no significant evidence of automatic stabilisation; however, the potential of this tool as an effective automatic fiscal stabiliser in South Africa cannot be overlooked as results show a high correlation between the output gap and automatic stabiliser estimates. Automatic fiscal stabilisers were employed symmetrically over the cycle and results showed that automatic fiscal stabilisers became increasingly important towards the end of the sample period.
Author A.S. EngelbrechtSource: South African Journal of Economic and Management Sciences 5, pp 589 –606 (2002)More Less
The study explores the influence of transactional and transformational leadership on value congruence and leader effectiveness. Despite the relevance of a leadership-value congruence relationship, a good theoretical framework is lacking. After a review of literature on each of these areas, an integrated model of the relationships between leadership, value congruence and outcomes, is presented. Drawing on previous research, it is proposed that the relationship between leadership and effectiveness be mediated by the efficacy expectancies of followers. It is argued that leader-follower altruistic value congruence would moderate the relationship between transformational leadership and effectiveness. By contrast, leader-follower trading value congruence would moderate the relationship between transactional leadership and effectiveness. Based on the leadership-value congruence model, several research propositions are presented for future empirical verification.
Perceptions of sexual discrimination, sexual harassment and job satisfaction among female employees in the public sectorAuthor M.T. Brand, H.E. & SilbermanSource: South African Journal of Economic and Management Sciences 5, pp 607 –624 (2002)More Less
Discrimination against women is a phenomenon still present in today's society. While research concerning sexual discrimination has been done, very little has been written about it under South African conditions, and almost no research has been done concerning the perceptions of female employees regarding sexual discrimination and harassment towards them. This study investigated female employees' perception of sexual discrimination, sexual harassment and job satisfaction. A questionnaire was developed and used as a measuring instrument on a probability sample of female employees in a public sector department. Results show that the respondents do not experience sexual discrimination to a large extent, and that they believe that sexual harassment will have a negative effect on job satisfaction, absenteeism and negativity towards the work environment.
Author D. MahadeaSource: South African Journal of Economic and Management Sciences 5, pp 625 –643 (2002)More Less
Although South Africa consistently registered positive economic growth rates since the democratic government took office in 1994, this economic expansion has not been accompanied by a surge of new formal sector jobs. The public and private sectors have been shedding labour, partly in response to globalisation and domestic economic realities. Consequently, more and more individuals are taking to street vending to create jobs for themselves. This article examines the dynamics of street vending and investigates whether it is merely a survival mode of existence or a conduit to formal entrepreneurship. The results of the study indicate that only 15 per cent of the surveyed operators may graduate to formal entrepreneurship in the medium or long term. It seems highly unlikely that a substantial number of high profile entrepreneurs would emerge from this mass of survivalist traders. For most street traders, the informal economy is not a conduit to entrepreneurship, but a survival strategy. From a development perspective, the way forward for street vendors is to transform their ventures into more value-adding operations that can provide sustainable livelihoods for themselves, and in due course jobs for others.
Importance of external environmental labour-related risk factors for financial investment decision-makingSource: South African Journal of Economic and Management Sciences 5, pp 644 –662 (2002)More Less
External environmental labour-related risk factors influence the relationship between management and the work force of an enterprise. It is therefore of prime importance to consider these labour-related risk factors in order to be able to take a comprehensive financial investment decision. The risk factors concerned come from the political, economic, social and technological environments. The views of the participating investment practitioners (who are active in the long-term insurance industry) regarding these aspects are analysed against the background of relevant literature. The responses with reference to these labour-related risks in manual and knowledge worker enterprises are presented simultaneously and significant similarities and differences are highlighted.
Author S.N.** Madu, J.C.* & MaduSource: South African Journal of Economic and Management Sciences 5, pp 663 –682 (2002)More Less
This is an investigation into tourists' readiness to recommend Lagos State of Nigeria as a tourist destination and the destination attributes (factors) affecting their readiness. The investigation was conducted through a survey of 378 on-site business, recreational, international and domestic tourists sampled from different tourist attraction sites. Results show that the majority of the tourists were ready to recommend the destination. However, more recreational tourists are ready to recommend the destination than the business tourists. More domestic tourists are also ready to recommend the destination than the international tourists. The authors conclude that there is an urgent need for tourism encouraging measures aimed at maximisation of the potentials of hospitality, and minimisation of maintenance of tourist infrastructures and transportation problems; and increased measures to guarantee personal safety in the State.
Transfer pricing as strategic planning tool for multinational enterprises in a post- isolation South AfricaSource: South African Journal of Economic and Management Sciences 5, pp 683 –710 (2002)More Less
Political and trade liberalisation leads to irrevocable change, exposing South Africa to the demands of the dynamic global market, driven by a deluge of competitive forces, demanding world-class, global competitiveness. The challenge facing South African organisations is to successfully transform in an economy undergoing structural change, moving away from import substitution to global competitiveness. Historically, stringent exchange controls prevented profits to emigrate from South Africa. Trade liberalization necessitates the introduction of transfer pricing legislation to protect the national tax base. Application of transfer pricing in practice is complex, information constraints compel the use of foreign comparables in determining a reward consistent with the arm's length standard, challenging objectiveness and risk adjustment. Strategic opportunities exist if transfer pricing is not entrenched in national regulation compliance.
Author A.M. SmitSource: South African Journal of Economic and Management Sciences 5, pp 711 –721 (2002)More Less
The current high unemployment rate and the need to develop the SME sector in South Africa, has highlighted the franchise sector as a possible generator of employment and wealth. Certain problems in the SME sector, for example the lack of financing, were identified and investigated from the viewpoint of the franchisor. This study attempts to analyse the general problems that prospective franchisees are confronted with and then focuses on the more specific problems regarding financing as experienced by the prospective franchisees.