Faculty of Management Sciences
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Item Exploring the motives for operating in Ghana's informal slum sector(2019) Zogli, Luther-King Junior; Lawa, Emmanuel; Dlamini, Bongani Innocent; Kabange, Martin MulundaAbstract: In the developing world, slums house a sizeable amount of the urban population and most slum inhabitants are engaged in informal activities. In Sub Sahara African countries this sector has historically contributed above 50% to non-agricultural Gross Value Added. Informal sector activities in Ghanaian slums employ a substantial amount of people, who on average earn about $8 a day, a figure which is above the poverty threshold of $2 a day. Most of these slum activity operators reside in slums whereas a sizable amount reside in formal housing, a phenomenon which has led to the growth of Ghanaian urban slums. To assist these slum operators to grow and someday integrate into the formal sector, it is important to find out the factors that motivated them to engage in these activities in the first place. The study employed Exploratory Factor Analysis, on a sample of 344 drawn from the two biggest slums (Sodom & Gomorrah and Akwatia Line) in Ghana’s two major cities, Accra and Kumasi respectively. The results show a set of six clusters, explaining 61% of the variation in motives for slum activities. The avoidance of government regulation was found as the main motive for one’s involvement in slum activities. Other driving forces include the ‘luxury’ of working at one’s own time, making use of one’s talents and family relations, as well as the quest for earning a higher incomeItem Determinants of income in the informal sector : a case of selected slums in Ghana(2019-12-01) Zogli, Luther-King Junior; Lawa, Emmanuel; Dlamini, Bongani InnocentThis paper investigates the determinants of income earned in two informal slum economies in Ghana, using OLS regression analysis. Amongst factors, operator’s social networks, locus of control, type of economic activity, educational level, age of business and labour size, it was found that labour size was the main determinant of average daily income in slum activities in Ghana, with a 25% increase in average daily income for every extra person employed. Also, an extra year of experience in running the same business increases income by 10%. This reflects that, a slum operator’s continuous operation (learning and earning by doing) over the years, helps to augment income. An extra year of formal education on the other hand only increases daily income by 1%.Item Factors influencing entrepreneurial intention : a case of students in a South African University(2020-01-01) Nsahlai, Veritas Kiyven; Zogli, Luther-King Junior; Lawa, Emmanuel; Dlamini, Bongani InnocentEntrepreneurship has been globally adopted as a strategic approach in facilitating economic participation among youth. On an individual level, entrepreneurship affords young people their independence and autonomy to pursue their dreams. The main purpose of this study was to investigate the factors that motivate youth entrepreneurial intention amongst students in a South African university. Using a cross-sectional design with a quantitative structured questionnaire, a sample of 247 students was interviewed and the collected data was analysed with Principal component analysis. The results showed four major factors that influence students' entrepreneurial intentions. These factors include the quest to create sustainable employment, the need for independence and self-development, the quest to use one's knowledge and search for financial security and finally to take risks and challenge oneself.Item Investigating the deterring factors for youth entrepreneurial intention among students at a South African University(Lifescience Global, 2020-12-28) Nsahlai, Veritas Kiyven; Zogli, Luther-King Junior; Lawa, Emmanuel; Dlamini, Bongani InnocentYouth unemployment, which is a global phenomenon, is one of the main causes of poverty amongst the youth of South Africa. It has been observed that attaining a university qualification, no longer guarantees one an employment opportunity as the job market is highly saturated and cannot accommodate the thousands of young graduates churned out by universities each year. This leaves graduates with two options, either start a business or to remain unemployed and hope for an employment opportunity. This economic problem has led academics to inquire about what possible factors may influence young people to engage in entrepreneurship and what may turn them away from starting their own business. Although entrepreneurship has been purported globally as the springboard in facilitating economic participation among youth, they face many stumbling blocks during their entrepreneurial journey. The current study, therefore, sought to explore the factors that may deter youth entrepreneurial intention at a South African university. This is a quantitative research approach and data were collected using structured questionnaires from 247 participants and analysed using Factor analysis. It was discovered that lack of business management skills, risk and economic difficulties, financial challenges, lack of a support system, uncertain future and difficulty in finding partners, bureaucracy and crime as well as lack of relevant information were the factors deterring prospective young entrepreneurs from engaging in entrepreneurial activities.Item An analysis of the effect of managerial overconfidence through corporate investments on share price : evidence from some FTSE/JSE Top 40 index companies(2017) Lawa, Emmanuel; Kwenda, FaraiThe discipline of corporate finance has undergone numerous transformations over the past two-and-a-half decades. One such change has been in the area of corporate finance. Driven by certain behavioral biases, it has been observed that managers sometimes make subjective decisions that do not always follow the norms of traditional corporate finance. One such behavioral influence is overconfidence or optimism. There is a paucity of research on the impact that managerial overconfidence through corporate investments has on the general movement of a company’s share price. This study bridges that gap by investigating the effect of managerial overconfidence on the share price of 10 companies from the JSE/FTSE top 40 index. Its main objective was to inspect the relationship between managerial overconfidence and share price. The results show the presence of managerial overconfidence observed through the investment-cash flow sensitivity of firms. The fixed effects panel regression reveals that Tobin’s Q which is the proxy measure of the investment-cash flow sensitivity of a firm, does affect the share price. Holding every other explanatory variable constant, an increase in Tobin’s Q causes the share price to rise, which leads to the conclusion that managerial overconfidence does have an influences on the stock price. It is further observed that managerial overconfidence tends to increase with firm size. This is shown by the weak positive correlation between the Q ratio and LnTA, and Q ratio and sales. In order to avoid the possible loss in value of a firm caused by an overconfidence manager, it is recommended that shareholders or owners ensure that the manager clearly understands the company’s objectives and vision. Due to the resultant influence of managers’ on the value of a company’s stock, investors should not only look at a company’s past performance, as well as the price earnings ratio (PE ratio), dividend yield, DPS, or any other market value ratios. They should also consider the characteristics of the CEO before making their investment decisions.