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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: 2021Subject: search.filters.subject.Financial performance

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Now showing 1 - 4 of 4
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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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    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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    Evaluation of factors affecting financial performance of non-life insurance businesses in South Africa
    (2022-04-12) Abdulraheem-Saheed, Hassana; Olarewaju, Odunayo Magret
    Profitability enhancement through financial analysis remains a crucial tool in accessing the performance of the insurance sector. In the developing countries such as South Africa, there is dearth of information on the impact of explanatory factors on the financial performance of nonlife insurance businesses. This study examined the influence of selected firm-specific, macroeconomic and underwriting profit variables on the financial performance of the South African non-life insurance firms. Here, we considered 36 listed non-life insurers with measurable markets over the period 2008 – 2019. The study employed return on asset (ROA) as a function of financial performance as the dependent variables. While the firm size, leverage ratio, premium growth rate, liquidity ratio and tangibility of assets constituted the investigated firm-specific variables, the macroeconomic (income level, inflation rate, GDP growth rate, market structure and trade openness), and underwriting profit (underwriting profit, total investment, shareholder’s fund and earning asset ratio) were studied as independent variables using panel data regression approach. The regression results revealed that except leverage and liquidity ratios, other firmspecific variables do not have statistically significant effect on the financial performance of south African non-life insurance firms. On the other hand, only GDP rate and shareholder’s fund are the exclusive macroeconomic and underwriting variables, respectively, with statistically significant impact on the financial performance of the non-life insurance firms of South Africa. These results, indeed, gainsay with economic theories. Thus, the leverage and liquidity ratios along with GDP rate and shareholder’s fund can be identified as determinants of the financial performance of the South African nonlife insurance sector. While providing some noteworthy insights on rational decisions regarding selection of non-life insurance firms’ stocks and strategies that would guide their operations, the data presented in this study will also be beneficial to regulatory authorities in formulating sound and effective policies to ensure economic growth and stability of the republic of South Africa.
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    An assessment of environmental costs on financial performance : a case study of two plastic manufacturing companies in South Africa
    (2022-04-06) Aliamutu, Kansilembo Freddy; Bhana, Anrusha
    Environmental sustainability has become a somewhat, “trendy” expression for the corporate, public, private and government sectors. Different theoretical reviews and empirical research investigations have, in previous years, examined the relationship between environmental responsibility and financial performance, proving that further research is required. Subsequently, having better than average environmental costs and including financial performance is important for organisations to make sustainable progress in the long-term. Environmental cost activity is a high cost which usually affects a company's net profit. The study investigated two national plastic manufacturing companies in South Africa. The research objectives are to examine the relationship between environmental costs and financial performance, and to examine the effect of environmental costs on investors or stakeholders’ interest in the organisations. The research aims are to investigate the assessment of the environmental cost of plastic on financial performance at the two national plastics manufacturing companies in South Africa. The study utilised Stakeholder theory, which sees companies as a major aspect of a social system, while concentrating on different stakeholder groups in society. Additionally, the study focused on the two companies using their financial statements in the period between 2016 and 2019. Further statements were unavailable. The research used interpretative analysis because it includes precision and clearer comprehension of qualitative data. The unit of analysis are organisations of two plastic companies, the chosen criteria because they have an environmental cost, and their data is available on the public domain. A case study approach was utilised to get a more profound and extensive comprehension of the phenomena. The study found that an increase in environmental costs may influence financial performance and environmental costs. In addition, it contributed to research relating to the impact of plastic manufacturing companies’ environmental costs in South Africa. The study concluded that environmental costs have a positive and important effect on financial performance. The study recommends that the two companies should continue placing resources into environmental cost funds as much as practicable due to result in growth in financial performance.