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Theses and dissertations (Accounting and Informatics)

Permanent URI for this collectionhttp://ir-dev.dut.ac.za/handle/10321/4

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Start date: 2020Subject: search.filters.subject.Business enterprises--Finance

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Now showing 1 - 7 of 7
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    The effect of late payments on suppliers' financial performance : a case study of a government department's supply chain in the Eastern Cape
    (2023-08-17) Madlavu, Phindiwe; Olarewaju, Odunayo Magret
    Using a case study of the government department supply chain in the Eastern Cape, the proposed study examines the effects of late payments on suppliers' financial performance. It does this by giving foundation information, such as the nearness of the issue to be investigated, the goals for performing the research, the research objectives, and the questions to be replied to through the research and the research methodology. The research goes into detail, discussing the appropriate framework, the conceptual framework of SCM within the public sector in South Africa, noteworthiness and inspiration to research, and the research's confinements. It wraps up by laying out the research's system. The research used conceptual and theoretical reviews to understand the nature of the problem. Qualitative and quantitative approaches were used to determine how a late payment affects a supplier's financial performance. The data were analyzed using the latest SPSS software package. Convenience sampling was used. The population is 362 staff and the target sample consisted of 120 finance management and supply chain management department members and 70 chosen suppliers in the Eastern Cape Province. The study targeted a sample size of 190. The findings show that SCM has been fully deployed in all government agencies and that the SCM approach has been used to develop technologies, but the lack of swift payment is hindering their effectiveness. The study concluded that redesigning and integrating departmental procurement and finance training courses across departments to ensure strong SCM principles are implemented should be enforced. Moreover, there should be proper monitoring and evaluation of all tendering contracts because it affects service delivery. A well monitored contract process will ensure that the service providers complete their contracts as and when due. Also, it was concluded that most concerns in facilitating invoices are delays in submitting invoices by suppliers and submitting incomplete banking details by suppliers. Likewise, it is concluded from the findings of the study that there were contradictions in the information provided by suppliers at other times. Thus, the study recommends innovative policies that will enhance swift payments through automated invoicing and painstaking monitoring of processes for the supply chain department.
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    The impact of power shortages on the financial performance of selected South African manufacturing firms listed on the JSE
    (2023-08-16) Zulu, Nokwanda; Maama, Haruna
    For the past 16 years, Eskom has been struggling to supply constant power to consumers, with frequent power disruptions in South Africa. Consumers, such as manufacturing firms, rely on a steady supply of energy in the form of electricity for their production processes, thus, they have been significantly affected by recurring power outages. Therefore, this study sought to determine the effect of power outages on the financial performance of South African manufacturing firms, particularly those listed on the Johannesburg Stock Exchange (JSE). A secondary quantitative research approach was employed in the study, looking at financial data from 107 JSE-listed manufacturing firms for ten years (2012 to 2021). Fixed and random effect regression approaches were used to analyse data. Return on Assets (ROA) and Tobin’s Q were selected as the dependent variables. In contrast, average electricity pricing (AEP), total load shedding hours (TLH), size, risk, retention rate (RR), and sales were selected as the independent variables. The AEP and TLH are external business factors, while the remaining four are internal business factors. The findings suggest that AEP has no impact on ROA and that external factors have no impact on the financial performance of South African listed manufacturing companies. These results contradict the resource-based view (RBV), which states that internal factors rather that external factors are the primary drivers of financial performance. Contrary to the primary declarations of the RBV, the coefficient of total load shedding hours (TLH) to Tobin’s Q demonstrates that the external factor in the form of TLH has a substantial impact on the financial performance of manufacturing enterprises in South Africa. This study is significant for two reasons: first, it advances knowledge on the impact of energy scarcity on the manufacturing sector, and second, it contributes to ongoing research on financial performance. It is recommended that the government and the policymakers make more investment and policies on alternative energy sources to enhance the energy mix. The manufacturing companies should consider more ways on how to convert their waste into energy source.
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    Investigating the effects of financial management practices on financial performance of a State-Owned Enterprise in Johannesburg
    (2022-08-11) Ntuli, Sizwe Perfect Ayanda; Nzuza, Zwelihle Wiseman
    The effectiveness of financial management practices in the state-owned enterprises (SOEs) is becoming extremely indispensable and frugal in South Africa. However, the dynamics of the effectiveness of financial management practices on the SOEs is not much reconnoitred or not in existence in the collected works of academics with previous studies largely paid attention to the private sector whereas there is also a monumental necessity for the SOEs to be financially viable. Therefore, this study insightfully examined the employees’ perceptions on the effects of financial management practices (independent variable) on improving financial performance (dependent variable) in a selected South African SOE. Quantitative research design was employed in the study, and it was cross-sectional in nature. The survey questionnaire was utilised as a primary data collection tool. The study adopted a convenience sampling method which resulted in a sample size of 69 respondents at the response rate of 74%. The statistical results were determined using Statistical Package for Social Sciences (SPSS) (version 27®). The study revealed a positive relationship when measuring the independent variables against the financial performance. The study recommended a resilient application of cash management practices in the form of determining target cash balances on a regular basis as a working capital management practice to realise enhanced financial performance. The study further recommends that as the firm considers expanding the investments to real estates, that practice should be aimed at firm value maximisation. It is further recommended that future similar studies consider broadening the research scope by including all the operational divisions of an SOE from different regions throughout South Africa.
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    Financial preparedness of heads of departments in the Faculty of health Sciences at the Durban University of Technology KwaZulu-Natal, South Africa
    (2021-12-31) Allison, Wendy; Olarewaju, Odunayo Magret
    This study investigated the financial knowledge and skill levels of the Heads of Departments in the Faculty of Health Sciences (FoHS) at the Durban University of Technology (DUT). These department heads in the FoHS receive no formal training in financial management, yet are required to manage budgets and ensure that their department is financially viable. The study established the financial management proficiency of the Heads of Departments with a view to offering ways in which the financial management of the department heads could be improved. The data generated used a combination of open-ended and closed-ended questions, comprising of both qualitative and quantitative methodology, which followed a pragmatist paradigm. A total of 22 participants, all of whom served as the Heads of Departments between 2013 and 2020 were included in the sample. The researcher used SPSS Version 26® to analyse the quantitative data, and NVIVO to analyse the qualitative data. The identities of all the Heads of Departments in this study are withheld to maintain anonymity. The findings indicated that the financial management skills of these department heads are severely lacking, resulting in departments with compromised financial management. Added to this, universities can no longer rely on 1st or 2nd stream income alone, but departments need to create and manage 3rd stream income. None of this, especially the management of 3rd stream income, is possible without the relevant financial management training. These Heads of Departments require training in the creation of their budgets, as well as in the implementation and control thereof. The department heads agreed that they do not have these skills, and expressed a desire for financial management training.
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    Critical success factors within an Enterprise Resource Planning System implementation designed to support financial functions of a public higher education institution
    (2021-09-02) Epizitone, Ayogeboh; Olugbara, Oludayo O.
    The Enterprise Resource Planning (ERP) system of an organization is a highly significant integrator of various processes of the organization that comes with many intrinsic merits. ERP systems will soon become intelligent enterprise systems as the world shift towards the fourth industrial revolution. This capability will make it significant to resolve the current snags plaguing the systems. Many of the snags that have been encountered and presented by the ERP systems have successfully been curbs with the concept of Critical Success Factors (CSFs). However, the nature and attributes of these factors have been inadequately dissected coupled with the lack of sound scientific methodology to validate the factors. Hence, turning them to be numerous without worth has prompted the quest to uncover CSFs in a sector that experience the most adverse impact is the Higher Education Institute (HEI) and the seldom researched area is the financial sector. The successful implementation of CSFs would significantly aid the efficacy of failing implementation of ERP systems. The study aims to pinpoint CSFs for ERP system enactment within the financial information system of a public HEI. Exploring four overarching objectives of identifying the minimal lot of CSFs for ERP enactment that would support financial function. To reconnoiter the magnitude of each of the CSFs in the financial sub-system arbitrated by a successful contrivance. To investigate an effective model that when adopted would support financial functions. To give wide-ranging reference to management for the efficient enactment of ERP systems that would sustain financial functions. To achieve these objectives, a mixed method methodology coupled with a pragmatism philosophy stance was employed that involved literature review, expert opinions, and application of advanced impact analysis technique. In this study, 205 CSFs were aggregated from the related literature and trimmed after a preliminary analysis to yield a minimal set of 20 CSFs that are applicable to the context of financial systems. Each factor was evaluated by a nadir sample size of nine experts through the deployment of an online data collection tool. The opinions of experts generated the Cross-Impact Matrix (CIM) that was evaluated using the advanced impact analysis (ADVIAN) technique. Application of ADVIAN explores the significance of the CSFs in a financial system. Presenting a resolution to the efficacious enactment of CSFs for ERP systems in HEIs determined by criticality, integration, and stability measurements. Additionally, ranking the CSFs utilizing the precarious, driving, and driven criteria to structure an effective model to assist financial functions. The outcomes can afford an eclectic practical blueprint as an allusion and bearing gage for planning, enacting and utilizing ERP systems to improve organizational performance.
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    Effects of inflation accounting on the financial performance of retail stores in KwaZulu-Natal, South Africa
    (2020-09-09) Mbambo, Mzwandile Atkins; Olarewaju, Odunayo Magret; Ngiba, Brian Thulane
    This thesis has been executed in South Africa. The research conductor intended to investigate the effects of inflation accounting on the performance of retail stores in Kwa-Zulu Natal, South Africa. The study used a mixture of openended and closed-ended questions on the questionnaire, combining quantitative and qualitative approaches in research. A total of 200 questionnaires were administered to 5 respondents per store in each of the two different branches of the 20 stores in Kwa-Zulu Natal listed on the Johannesburg Stock Exchange. The investigator used primary data to collect information and the Statistical Package for Social Sciences program to code and analyse data. The Explanatory Factor Analysis and Linear regressions were also employed in this study. The empirical study showed the impact of businesses preparing their financial statements on a historical cost basis and the different issues affecting the financial performance of the retail business. The outcome of the research highlighted positive relationships between the variables used. This study’s findings corroborated prior research findings. As the inflation rate increases, the more noticeable it becomes on the financial statements. Suggestions to resolve some of these concerns are mentioned in the study. If retailers consider these recommendations, hopefully more stores will increase their financial performance and the accuracy of the results.
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    The role of financial awareness for viable and sustainable small-medium enterprises in Kwa-Zulu Natal, Durban
    (2021-01) Msomi, Thabiso Sthembiso; Olarewaju, Odunayo Magret; Olarewaju, Odunayo
    The objective of this study is to examine financial awareness for viable and sustainable smallmedium-enterprises in Kwa-Zulu Natal, Durban. In this study, the researcher examined factors for SME sustainability and viability as they influence organisational survival. The specific objectives are outlined as follows: to examine the influence of financial awareness on SME viability and sustainability; to establish the relationship between financial accounting skills and sustainable SMEs; to establish the relationship between financial awareness and financial accounting skills; and to determine the Influences of budgeting and financial awareness on SME sustainability. The quantitative research method was adopted for this study and the purposive sampling technique was chosen to select the participants for this study. The study collected primary data from respondents who are owners of SMEs in the retail, construction, manufacturing sectors, etc. Data was analysed using SPSS. A total of 310 research questionnaires was administered and 304 research questionnaires were returned for analysis (giving a 98% response rate). A regression analysis and Pearson’s correlation analysis were conducted to address the specific objectives of the study. The study identified access to market, access to finance and financial accounting skills as the independent variables, while SME sustainability was the dependent variable of the regression model. The findings suggest that access to finance has the largest absolute value (0.425), which indicates that access to finance uniquely accounts for the larger proportion of the variance in the regression model. The outcome of Pearson’s correlation shows moderate correlation (r value is 0.531) between financial accounting skills and sustainable SMEs. Moreover, there was a weak correlation (r value is 0.457) between financial awareness and financial accounting skills. The outcome of the regression analysis suggests that budgeting has the largest absolute value (0.372), which indicates that budgeting uniquely accounts for the largest proportion of the variance in the regression analysis. The Exploratory Factor Analysis revealed nine factors that are significant to ensure sustainability and viability. The implication of the outcome is that access to finance and budgeting accounts for SME sustainability. Based on the findings from this research, it is recommended that SMEs owners should pay much attention to access to finance and budgeting in running their businesses. Again, employee performance reviews contribute to enhancing the financial accounting skills and knowledge of staff of SMEs as well. They should seek expert or professional advice before taking a loan and they should avoid loan sharks as the interest charged by loan sharks are very high which may lead to potential debt trap. It is suggested that Government agencies should help SMEs to market their products and keep their businesses viable.