Faculty of Accounting and Informatics
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Item Fraud mitigation practices and profitability of insurance companies in South Africa(2024-03-01) Msomi, Thabiso SthembisoThe objective of this study was to evaluate how measures taken to prevent fraud impact the profitability of insurance companies operating in South Africa. The study adopted a descriptive research approach and surveyed a sample of 70 licensed insurance companies in the country. Primary sources of data were obtained by engaging claims managers in each of the firms, and descriptive and inferential statistics were used to analyse the data. The results of the study revealed that fraud mitigation measures significantly affect the profitability of insurance companies in South Africa. The implementation of fraud prevention, detection, and response measures had a positive impact on the profitability of these firms. Based on the findings, the study recommends that the Insurance Regulatory Authority establish regulations that mandate all insurance providers to collect and report statistics on fraud. Insurance firms should provide their employees with comprehensive training on fraud management and implement strict penalties and disciplinary measures for employees involved in fraudulent activities, as they can undermine the effectiveness of the fraud mitigation process.Item Debtors’ management practices and resilience of small and medium enterprises in South Africa(International Journal of Social Science Research and Review, 2024-01-19) Msomi, Thabiso Sthembiso; Matemane, Reon; Zungu, Sphesihle Charles; Campbell, ThomasAim: This research aimed to assess the relationship between debtors’ management practices and the resilience of small and medium-sized enterprises in South Africa. Methods: Employing a quantitative research design, the study employed purposive sampling to select a cohort of 110 SME owners operating in Durban, South Africa. 94% response rate was achieved, yielding 103 valid responses. Results: The results of the analysis unveiled a statistically significant positive correlation between effective debt management and the resilience of SMEs. This empirical evidence signifies that proficient debtors' management plays a pivotal role in enhancing the resilience of SMEs operating in South Africa. Contribution: This study contributes to the growing body of knowledge by affirming the positive influence of debtors' management on the resilience of SMEs in South Africa. Drawing on the findings of this study, government agencies and industry associations should collaborate to develop supportive initiatives and policies that aid SMEs in optimizing their debt management strategies.Item The effect of interest rates on credit access for small and medium-sized enterprises : a South African perspective(LLC CPC Business Perspectives, 2023-11-15) Msomi, Thabiso SthembisoThis study investigates the effect of interest rates on credit access for small and medium-sized enterprises (SMEs) in South Africa. The study employs a quantitative research design, using data collected from 200 SMEs in South Africa. The data was analyzed using descriptive statistics, Pearson’s correlation coefficient analysis, and multiple regression analysis. An inverse relationship between interest rate and credit accessibility was found using the Pearson correlation coefficient (r = –.199, p < 0.05). The results show that interest rates have a significant negative effect on credit access for SMEs in South Africa. Moreover, the study finds that SMEs experience considerable obstacles in obtaining affordable credit, and that interest rates play a crucial role in this. The study recommends that policymakers in South Africa should consider reducing interest rates and relaxing collateral requirements to improve credit access in SMEs. Furthermore, the study suggests that SMEs should focus on building a good credit history to improve their creditworthiness and increase their chances of accessing credit. Overall, the findings of this study contribute to the existing literature on the effect of interest rates on credit access for SMEs and provide insights for policymakers and SME owners in South Africa.Item Do underwriting profit factors affect general insurance firms’ profitability in South Africa?(LLC CPC Business Perspectives, 2023-12-08) Msomi, Thabiso SthembisoThis research paper examines the correlation between underwriting profit factors and the overall profitability of publicly traded general insurance companies operating in South Africa. The study analyzed a sample of 36 insurers, considering their quantifiable markets and accessible financial data from 2008 to 2019. Employing signal correlation analysis, the investigation explored the associations between various financial indicators and Return on Assets (ROA). The results revealed negative correlations between ROA and the logarithms of total investment (TI), shareholder funds (SF), and underwriting profits (UWP), with correlation coefficients of –0.4500, –0.3365, and –0.4050, respectively. These findings indicate that as TI, SF, and UWP increase, there is a tendency for ROA to decrease for general insurance companies in South Africa. Furthermore, a positive relationship was observed between the earning-asset ratio and ROA. This suggests that as the earning-asset ratio rises, the ROA of general insurance firms in South Africa tends to improve, indicating a potentially favorable impact on profitability. The significant findings of this study emphasize the importance of prioritizing effective risk management practices within insurance firms. By implementing these measures, such as minimizing the likelihood of claims and ensuring accurate reflection of assumed risks in premium charges, insurance companies can maintain positive underwriting profit. This, in turn, has the potential to enhance their overall profitability.Item Evaluation of operational efficiency and financial health of non-life insurance companies in South Africa(2023) Ige-Gbadeyan, Omonike Ope; Swanepoel, Matthys JohannesFor some time, operational efficiency has been a great challenge confronting insurance companies; the pressure of low investment returns, pressure to change to the digital age to be relevant to modern technology, and lack of performance to standard and strategic vision are the primary challenges to future transformation efforts. This study examined the operational efficiency and financial health of nonlife insurance in South Africa. Since Operational efficiency is the primary medium to measure financial health, there is a need to identify and discuss the microeconomics and macroeconomics variables and understand the financial health of non-life insurance companies. A descriptive research design was adopted to achieve the objective of this study. In this study, panel data from 2008- 2019 was used. This panel data gives more informative data as it consists of both the cross-sectional information, which captures individual inconsistency, and the time-series information, which captures active modification. 2008 was chosen because insurance industries were distressed due to the 2008. This study used secondary data from S&P Capitall Q and Refinitiv Eikon, well-known databases with readily available data. They provide data reliability, in-depth financial information on companies, equities, fixed income, industry reports, SEC filings, interest rates, commodities, and screening for stocks and mutual funds. The study employed Profitability TLA as a function of financial health and other variables like the company's size, leverage ratio, premium growth rate, liquidity, inflation rate, and Gross domestic product (GDP) growth rate using a panel data regression approach. The result shows that of all the predictors, only LY and LV have a significant (positive) effect on the dependent variable financial health (TLA). The correlation analysis results show the relationships between some of the observed parameters. In particular, the result reveals that liquidity, size of the company, leverage, profit After Tax, operational efficiency, and Return on Asset all have a significant positive correlation with financial health. At the same time, Total Assets correlate negatively with TLA. The study contribute insight into the operational efficiency of non-life insurance companies and show profitability as an efficiency index. The study recommends improving premium growth. Insurance management should focus on reviewing their product prices since some common factors can affect insurance premiums, like gender, age, smoking status, lifestyle, occupation, and income, to improve the premium growth of non-life insurance companies, this study will also be helpful to monitoring authorities in articulating comprehensive and practical strategies to ensure financial development and steadiness of the non-life insurance In the Republic of South Africa.Item Factors contributing to the successful development and use of mobile digital libraries : a systematic literature review(Emerald, 2023-03-21) Khomo, Musawenkosi Phumelela; Naicker, Nalindren; Chisita, Collence Takaingenhamo; Rajkoomar, MogivenyThe purpose of this paper is to review the literature on factors that contribute to the successful development and use of the mobile digital library (DL). This aim will be achieved by reviewing selected journal articles on mobile DLs' successful development and use. This paper argues that the concept of DLs is evolving because of the dynamic nature of knowledge and technological developments in the infosphere. Design/methodology/approach A systematic literature search of journal article factors that contribute to the successful development and use of the mobile DL was accomplished by searching the following databases: Emerald insight, Science directory and Google Scholar. The systematic review was conducted following the preferred reporting items for systematic reviews and meta-analyses guidelines. This study applied Rogers's (1965) Diffusion of innovation theory to unpack the attributes of innovation to unpack contextual factors shaping African conceptions of mobile libraries (m-libraries). The studies reviewed were published from 2016 to 2021. This paper is based on a systematic literature review. This paper uses publicly available literature on the theme of DLs concerning m-libraries. Among the search terms used for the study were: “digital libraries”, “Africa and digital libraries”, “electronic libraries”, “information communication technologies”, “access to information” and “mobile digital libraries”. Findings Reviewed literature indicates that myriad factors can contribute positively or negatively to the successful development and use of the mobile DL. These factors include the degree of staff awareness and understanding of the potential of mobile technologies in enhancing the provision of library services, the availability of relevant digital content, library staff and users’ level of digital and information literacy competencies to navigate digital platforms, user friendliness of DL platforms, material and financial support to access m-libraries, power supply and access to internet connectivity. Practical implications The results from this study will generate knowledge and insight into the factors that affect the development and optimal use of mobile DLs to enhance and widen access to scholarly databases irrespective of time and space. This study will make recommendations that will enable South African policymakers to make informed decisions relating to the factors affecting the development and usage of mobile DLs for enhanced learning, teaching and education. Originality/value Given the growing number of scholarly publications on mobile DLs, this study seeks to discover how such technologies can help enhance learning, teaching and research in higher education. This study’s findings will provide a scientific basis for policymakers and researchers with evidence-based knowledge that raises the value of mobile DLs. It was discovered that if the identified factors are handled well, users can easily access tools, such as databases, electronic journals and online reference tools, and this could improve the quality of teaching and learning.