Browsing by Author "Ayogu, Melvin"
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- ItemOpen AccessCapital structure and corporate strategy in South Africa an empirical analysis(2009) Chen, Haoyu; Ayogu, MelvinUsing South African data, this study tests three propositions about capital structure and product market strategy. The results support the hypotheses that oligopolists have relatively high debt-equity ratio; their debt tends to be long term; and firms that produce unique and / or durable goods tend to have less debt-equity ratio.
- ItemOpen AccessRegime change and weak form efficiency of South African foreign exchange markets(2005) Lai, Kar Wing Kelvin; Ayogu, MelvinThe paper examines the empirical evidence about how a change in monetary policy affects return predictability. Samples of daily Rand/dollar. Rand/euro and Rand/sterling exchange rates for 1995 to 2005 were used. February 2000 was the date for a regime-shift and the sample is divided into two sample periods. By using the likelihood ratio test proposed in Dickey Fuller, I find that the regime-shift does help the foreign exchange market in South Africa to be efficient in that past exchange rates cannot help in forecasting future exchange rate movements.
- ItemOpen AccessUsing foreign currencies to explain the nominal exchange rate of rand(2007) Wang, Ronghui; Ayogu, MelvinThe Rand-US Dollar exchange rate has been very volatile since the unification of the duo-exchange rate in 1995. Many researchers have successfully found some economic variables as the long-run determinants of Rand exchange rate. This paper tries to substitute those economic variables with some foreign currencies' exchange rates. In fact, it found that the Brazilian Real could well represent the investors' perception towards South Africa; the Australian Dollar could reflect the Terms of Trade's impact on Rand. After taking into account the structural break in the Rand exchange rate in 2002, the paper found the three currencies' exchange rates were actually cointegrated. In the final section, whether this cointegration relationship would sustain in the future is discussed.
- ItemOpen AccessUsing foreign currencies to explain the nominal exchange rate of Rand(2007) Ronghui, Wang; Ayogu, MelvinIncludes abstract. Includes bibliographical references.