Faculty of Accounting and Informatics

Permanent URI for this communityhttp://ir-dev.dut.ac.za/handle/10321/1

Browse

Now showing 1 - 11 of 11

Achieving financial sustainability in Ghana’s banking sector: is environmental, social and governance reporting contributive?
(SAGE Publications, 2021) Maama, Haruna
Despite banks not having any significant direct negative impacts on the environment and society, they adopt environmental, social and governance (ESG) accounting. Meanwhile, ESG reporting consumes additional resources and exposes firms’ strategies to competitors. The study employed a legitimacy theory to investigate the impact of ESG reporting on the financial sustainability of banks in Ghana. The study relied on 10 years of annual reports of all the banks in Ghana. The banks’ ESG reporting practices were assessed based on a content analysis method. The financial sustainability was measured based on return on assets (ROA) and net interest margin (NIM). Evidence showed that environmental reporting (ERI) impacted the banks’ NIM and ROA inversely and significantly, whilst governance reporting had a positive but insignificant relationship with NIM and ROA. The result further demonstrated that social reporting (SRI) impacted NIM and ROA positively and significantly. The overall ESG reporting had a negative and significant relationship with the banks’ financial sustainability. Hence, the ESG reporting did not improve the financial sustainability of banks, and banks in Ghana have less of an incentive to report on ESG as opposed to banks in other countries, where such reporting generally makes financial sense.
The adoption of an intelligent waste collection system in a smart city
(IEEE, 2023-03) Mthethwa, Simphiwe M.; Xulu, Thuthukani; Msani, Nonsikelelo N.; Mohlakoana, Thuso T.; Ndlovu, Experience E.; Aroba, Oluwasegun Julius
Solid waste management has become a significant concern in environmental issues. This can be a problem, especially in cities where the population is quickly developing, and the sum of waste produced is expanding like never before. Programs for innovative city waste can help raise proficiency, diminish costs, and improve the aesthetics of open places as cities endeavor to oversee waste in public regions effectively. This study enhances intelligent waste systems by developing innovative technologies and software as additional tools for collection. This research demonstrates how the SQERT model, a periodic trend analysis report specific to projects, will be used to assess the intelligent waste management system and the proposed software technology. Furthermore, A software prototype visualization was created to demonstrate and show how the software system will look and its functionalities to improve the waste collection system.
The application of environmental management accounting practices on plastic pollution control in food and beverages manufacturing firms in Durban, South Africa
(2021-07-21) Nzama, Smangele; Olarewaju, Odunayo Magret; Arise, O. A.
Businesses are confronted with pressure from several stakeholders to become more sustainable. Plastic waste is a global environmental issue that requires immediate attention. In South Africa, waste management is poor, and the adoption of Environmental Management Accounting (EMA) is low. The deterioration of plastic waste in the environment takes time and negatively impacts the environment, the ocean and its inhabitants. The essence of carrying out this study is to observe how EMA practices can be applied to plastic pollution control in food and beverage manufacturing companies in Durban, South Africa. The quantitative approach was used in the research work and primary data was collected using questionnaires. A non-probability sampling called convenience sampling was used. Questionnaires were sent to 32 food and beverage manufacturing firms with four respondents in each. The respondents were financial managers, management accountants, factory accountants, and chief accountants. A total of 128 questionnaires were distributed and completed, only 124 questionnaires were correctly completed and analysed. Data obtained from the questionnaires were analysed using Statistical Package for Social Science (SPSS). Inferential statistics like correlation coefficient and linear regression analysis were utilized to respond to the research questions. An adverse relationship was discovered between environmental management accounting and corporate environmental strategy. It was discovered that an improvement in plastic pollution control was directly related to disclosure of environmental information. Also, an improved corporate environmental strategy will result in improved measures to control plastic pollution. Additionally, the study discovered that addressing barriers to environmental sustainability will improve the implementation of EMA. Further findings revealed that food and beverage manufacturing companies which are engaged in environmental activities tend to build a good company image and not to reduce plastic waste.
An exploration of the views of manufacturing small medium enterprise owners with regards to green tax incentives in the eThekwini region of KwaZulu-Natal
(2017) Kalidin, Uveer; Bhagwan, Raisuyah; Reddy, D.
The study was to explore the awareness of owners of small medium enterprises with regards to green tax incentives; to identify their attitudes towards such green tax incentives and the possible impact it will have on small medium manufacturing enterprises going green.This study used a quantitative research design, specifically a descriptive survey approach. A census sample was drawn through a list provided by the Durban Chamber of Commerce. A survey questionnaire was the primary data collection tool used. At total of 152 questionnaires were distributed and a 104 were received yielding a response rate of 68 %. The data showed that small medium enterprises were concerned about the environment, and acknowledged that their business activities have a negative impact on the environment. The study also established that small medium enterprise owners are concerned with the impact that climate change will have on their business operations. A majority of the sample considered green taxation to be an important driver that would allow businesses to become eco-friendly. Owners were found to support the utilization of green taxation incentives and were considering using green taxation as part of future business decision making, thus ensuring that meet corporate social responsibility. It was concluded that there was a need for the government to put more focus into creating awareness of global warming and climate change. There was also a need to find more innovative ways of promoting eco-consciousness and green sustainable practices and the need to draft and identify new green taxation legislature that caters for public and small medium enterprises.
Impact of environmental disclosure on financial health of manufacturing firms
(Cosmos S.A., 2023) Marimuthu, Ferina; Mgilane, Nolwando; Maama, Haruna
Environmental reporting can help firms stay in compliance with environmental regulations and manage environmental risks. By proactively addressing and disclosing their environmental impact, manufacturing firms can mitigate potential legal and regulatory penalties, fines, and reputation damage, thereby safeguarding their financial performance. In addition to the latter perspective, cost savings and operational efficiency, enhanced reputation and stakeholder engagement, as well as access to capital and investment opportunities, are critical factors to ensure that firms disclose information about their environmental performance, including its impact on the environment, sustainability initiatives, and environmental risks and opportunities to ensure that they maximise their financial performance. Hence, the aim of this study is to explore the relationship between environmental reporting and financial performance of South African listed manufacturing firms. A multiple regression analysis was adopted to achieve the aim by testing the relationship between the variables amongst a sample of 50 manufacturing firms listed on the Johannesburg Stock Exchange (JSE). A content analysis was utilized to attain environmental reporting information themes from the integrated annual reports retrieved from the JSE for the period 2016 to 2020. The results indicate a negative association between environmental reporting responsibility and financial performance, measured by return on equity (ROE) when the components of environmental reporting are tested individually. However, when these components namely: environmental reporting, social reporting and environmental degradation are combined the findings reveal a positive and statistically significant relationship. These results imply that the adoption of environmental reporting, specifically an increase on the quality of environmental reporting results in an increase in the manufacturing firm performance.
The impact of environmental reporting on the value of listed manufacturing firms in South Africa
(2023-03-07) Mgilane, Nolwando L.; Maama, Haruna; Marimuthu, Ferina
Environmental reporting is a recent novelty in both corporate and academic fields around the globe. As a result, an increase in environmental pollution and degradation has raised many concerns from the stakeholders. Equally, the firms addressed these concerns through a proper disclosure in a form of annual integrated reporting which addressed how firm’s day-to-day operations and production activities affect the environment, especially the environment of the location where firms operate, this reporting included the measurements implemented to mitigate the impact. On the 1st of March 2010, the JSE has passed a listing requirement which compelled all the listed firms and companies to also report on non-compliance and compliance of environmental and social aspects. This JSE listing requirement was prompted by the assumption that the annual financial statements, also referred to as traditional reporting, only served the interest of investors with financial interest. However, the question of whether the disclosure of environmental reporting impacts firm value remains unanswered. Therefore, this study aims to investigate the impact of environmental reporting on the value of South African manufacturing firms listed on the Johannesburg Stock Exchange (JSE). A content analysis was utilized to attain the environmental reporting information from the integrated annual reports of listed manufacturing firms from 2016 to 2020. These reports were retrieved from the companies' websites. Both descriptive and Wilcoxon-signed ranked test was used to test the extent and the movement of environmental reporting practices of South African listed manufacturing. Furthermore, this study adopts regression techniques to test the association between environmental reporting and firms’ profitability. The findings of this study further indicated that the environmental reporting practices implemented by manufacturing firms increased gradually over time. The evidence further showed a significant negative relationship between environmental reporting and return on equity (ROE) and a positive but insignificant relationship with ROA. Lastly, this study documents that environmental reporting negatively affects firm value. The study further demonstrated that environmental reporting is mainly adopted to conform with JSE listing requirements and not for accountability purposes. As a result, it is recommended that South African listed manufacturing firms must develop a technique that will assist in knowing and understanding the desires of primary and prominent stakeholders to disclose relevant environmental reporting information to the relevant stakeholders, as this can increase the trust between stakeholders and manufacturing firms.
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.
Investigating energy harvesting technology to wirelessly change batteries of mobile devices
(2018) Ramsaroop, Neetu; Olugbara, Oludayo O.; Joubert, Esther D.
Mobile devices have recently become powerful computing tools for aiding daily tasks. However, their batteries discharge quickly, even if they are not being used mainly because of the heavy computation tasks required by the multimedia applications that run on them. The swift turnover time on the battery life span is challenging as frequent charging is required to keep the device functioning. This is a major bottleneck because of the current energy optimisation crisis, user inconvenience due to constant charging of a battery and erratic nature of the electricity supply in some areas. In the current research project, the primary aim was to explore the energy harvesting technology innovation of radio frequency to wirelessly recharge the batteries of mobile devices. This implied an alternative way of charging the batteries of mobile devices without the need for a physical charger to connect to an electrical outlet. Energy harvesting, which involves making use of free energy from the atmosphere is the most innovative energy efficient wireless charging technology because mobile devices are constantly transmitting radio signals. Radio signals are initially received from the atmosphere through an antenna. Thereafter, these signals are converted using a rectifier circuit, from alternating current into direct current which is then utilised to recharge the battery of a mobile device. This research study adopted a mathematical modelling and simulation research methods. The model involved building an RF energy harvesting prototype. This prototype model displayed the limitations to be considered. The LTSpice simulation software was used to test the feasibility of combining diodes, capacitors and antenna type based on the limitations of the prototype model. The result of this research project demonstrates the building of a radio frequency harvesting circuit that can store a minimum load of 5mV that is required to charge the battery of a mobile device. Moreover, it has explained an alternative storage of the acquired energy using a supercapacitor compared to a mobile device battery.
MFCA : an environmental management accounting technique for optimal resource efficiency in production processes
(World Academy of Science, Engineering and Technology, 2015) Tajelawi, Omolola Ayobamidele; Garbharran, Hari Lall
Revenue leakages are one of the major challenges manufacturers face in production processes, as most of the input materials that should emanate as products from the lines are lost as waste. Rather than generating income from material input which is meant to end-up as products, losses are further incurred as costs in order to manage waste generated. In addition, due to the lack of a clear view of the flow of resources on the lines from input to output stage, acquiring information on the true cost of waste generated have become a challenge. This has therefore given birth to the conceptualization and implementation of waste minimization strategies by several manufacturing industries. This paper reviews the principles and applications of three environmental management accounting tools namely Activity-based Costing (ABC), Life-Cycle Assessment (LCA) and Material Flow Cost Accounting (MFCA) in the manufacturing industry and their effectiveness in curbing revenue leakages. The paper unveils the strengths and limitations of each of the tools; beaming a searchlight on the tool that could allow for optimal resource utilization, transparency in production process as well as improved cost efficiency. Findings from this review reveal that MFCA may offer superior advantages with regards to the provision of more detailed information (both in physical and monetary terms) on the flow of material inputs throughout the production process compared to the other environmental accounting tools. This paper therefore makes a case for the adoption of MFCA as a viable technique for the identification and reduction of waste in production processes, and also for effective decision making by production managers, financial advisors and other relevant stakeholders.
Strategies employed for the sustainability of township tourism small medium and micro enterprises
(2022-09-23) Mokoena, Sinenhlanhla Lerato; Moyane, Smangele Pretty; Nkomo, N.
The Small, Micro, and Medium Enterprises (SMMEs) sector is perceived as an economic engine for many countries. SMMEs are viewed as the primary creators and drivers of new businesses in the South African economy. The township tourism SMMEs are critical to the upliftment of the rural and township economies, however, they remain marginalized, continue to struggle to be sustainable, and face a variety of challenges that have a negative impact on their contribution to economic growth. This study aimed to examine the strategies employed for the sustainability of township tourism SMMEs. The objectives were to identify SMMEs involved in tourism in the townships, establish factors influencing the sustainability of SMMEs in the township, and determine the competitive strategy for the sustainability of tourism SMMEs in the townships. To guide the present inquiry, Porter’s Five Force’s for Industry Analysis (1980) was employed. A positivist research paradigm was adopted, through a quantitative approach and a survey research design. The population targeted for this study were township tourism SMMEs operating in UMlazi Township in KwaZulu Natal. There being no reliab le available sampling frame, a non-probability sampling strategy was adopted. Within non-probability, snowball sampling was used. Through the sampling strategy, owners and/ or managers of township tourism SMMEs were purposively approached and they suggested other SMMEs to consider for inclusion. A questionnaire was used for gathering data. Data was analyzed using descriptive statistics, presented in tables, graphs, and percentages. The leading township tourism attractions in Umlazi were found to be in the lifestyle and entertainment category in particular food, beverage, and accommodation. In this regard, restaurants and BnBs dominated. Most SMMEs have been operating between 1-3 years and the majority were Micro enterprises. The number of registered and non-registered SMMEs was nearly equal, a larger number of SMMEs were located in fixed physical structures, with a smaller number offering mobile service/non-fixed services and/or operating online. A high number of businesses were located in residential areas, next to the taxi rank, and operated as sole proprietors and informal businesses.The most influential factors affecting the sustainability of township tourism SMMEs were the lack of funding, strong business competition, poor business location, lack of business skills, and high crime rate. It was revealed that only a few entrepreneurs applied a competitive strategy. Some of the used competitive strategies included registration of the businesses with the Department of Small Business Development, social media marketing, and bulk buying. The study recommends township tourism SMME diversification instead of the current focus which is food, beverage, and accommodation. SMMEs should consider operating their business remotely and/ or mobile non-fixed physical structures, as well as having a web presence and optimizing location to improve sustainability given that some of their sustainability are curtailed by their non-optimal location.
Using material flow cost accounting to determine the impacts of packaging waste costs in alcoholic beverage production in an alcoholic beverage company in Durban
(2016) Tajelawi, Omolola Ayobamidele; Garbharran, Hari Lall
A large number of manufacturing companies adopt the use of the traditional accounting method in their operations. This technique fails to reflect a detailed report of all material losses incurred in their production processes. Worthy of note, is that losses/waste are considered as inefficiencies in manufacturing operations and viewed as a costly venture to the sustainability of the company. This research, therefore, through a case study analysis, examined the efficient/inefficient flow of resources in the production process of an alcoholic beverage company in the Durban metropolis. The study was carried out in order to determine the impact of packaging waste cost in an alcoholic beverage company using the material flow cost accounting technique. Measurements included the input of packaging materials against its output, while giving consideration to waste incurred as losses. The Material Flow Cost Accounting (MFCA) technique, an environmental management accounting tool developed for measuring the flows and stocks of materials of a company and production process in both physical and monetary units, was used to measure the costs of waste on two production lines. MFCA was used to trace all material inputs and categorize them as product or non-product output. MFCA is used to classify the relevant material flows as cost collectors, thereby allocating the costs of the company’s production operations and flows. Different packaging materials that constitute waste on the lines were analyzed using the mixed method approach, which includes observation, questionnaire administration, and analysis of six months production report. Two production lines were considered for sampling, and recommendations were given based on the data analyzed using the SPSS package. The MFCA technique revealed that losses on both production lines were understated, and that, the bottling plant was losing a sizeable amount of monetary value of packaging materials to waste. The MFCA technique also revealed that the traditional costing technique is unable to provide adequate information managers require for strategic cost decision making. MFCA is therefore recommended to assist managers improve production line efficiency and cost savings via accurate waste costing and reduction for corporate sustainability.