Browsing by Author "Pamburai, Hamutyinei Harvey"

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    An Investigation of the Impact of the 2008 Financial Crisis and Stock Market Automation on Market Efficiency: A Case for the Botswana Stock Exchange
    (2018) Ambalal, Ritesh Girishkumar; Pamburai, Hamutyinei Harvey
    This study investigates the effects of the 2008 financial crisis and stock market automation on the efficiency of the Botswana Stock Exchange (BSE). It makes use of the BSE All Share Index (ALSI) logged returns covering the time period 2005 – 2017. In addition, four distinct tests are employed to test for the change in market efficiency over time: runs test, unit root test, serial correlations test and variance ratio test. The study found resounding evidence to conclude that the 2008 financial crisis and stock market automation had a significant positive effect on the efficiency of the BSE. In addition, the BSE went from being inefficient to weak-form efficient due to the policies implemented by the government of Botswana and financial regulators as a direct reaction to the 2008 financial crisis, plus the continuous improvement of the Automated Trading System (ATS). To the author’s knowledge, this study is the first of its kind to test the impact of the 2008 financial crisis and automation of the trading system on the weak-form market efficiency of the BSE. As a result, this study provides an original and unique testimony on the effects of the 2008 financial crisis and the ATS on the efficiency of the Botswana Stock Exchange. Moreover, it offers an updated position of the BSE’s efficiency status following the recent developments to ensure that relevant legislation and effective and efficient trading systems are in place.
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    Analysis of demographic, socio-economic and geographic factors affecting adoption and success of personal income tax e-filing in South Africa
    (2017) Mathaba, Jeffrey Themba; Pamburai, Hamutyinei Harvey
    E-filing of personal income tax returns is regarded as one of the South African Revenue Service (SARS)'s success stories based on its growth since its inception in 2006. Given the importance of tax revenue as a major source of revenue to government, this study explores the effects of personal income tax e-filling on tax compliance and tax revenues. The study was carried out with three objectives, namely; determining the relationship between personal e-filing growth and some demographic, socio-economic and geographic factors in South Africa; determining the relationship between personal income tax e-filing and personal income tax revenue; and determining the relationship between personal income tax e-filing and tax compliance. Descriptive statistics and the pooled ordinary least square were employed to analyse the data having found the absence of unit root at levels in the data. The study covered 6-year period prior to e-filing (2000-2005) and 10-year period of e-filing implementation from 2006 to 2015, with data collected from publicly available SARS database on registered taxpayers and revenues collected nationally and across South Africa's nine provinces and metropolitan areas. The results indicate that e-filing had a positive contribution to increase personal income tax revenue collection as well as tax compliance over the study period. The study concludes that the introduction of e-filling provided an opportunity for improved collection and compliance across the provinces of South Africa. We therefore recommend, among others, that investigations and investments in tax technology & e-filing in non-metropolitan areas be considered, and further research be done in identified areas of interest in South Africa and rest of the African continent.
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    Capital structure and determinants of capital structure, before, during and after the 2008 financial crisis: A South African study
    (2021) Ntshobane, Gcobisa; Chamisa, Edward; Pamburai, Hamutyinei Harvey
    This study examines the effects of 2007/8 financial crisis on capital structure determinants of Johannesburg Stock Exchange (JSE) listed companies in South Africa. Data extracted from INET BFA Expert database was analyzed using regression models on the correlation between the leverage and company size, growth, profitability, tangibility, liquidity, non-debt tax shield along with Ordinary Least Squares based on the sample of JSE listed companies for the period of 2004 to 2013. The study examined two industries namely, Real estate and Retail industry. The results show that size, tangibility, profitability and liquidity have significant impact on the capital structure before, during and after financial crisis. Growth results were inconsistent over the period under review, and non-debt tax shield was found to be statistically insignificant. The study also shows that the 2007/8 had statistical significance on the capital structure of the listed companies in South Africa.
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    Impact of the tax burden on long run economic growth: A BRICS perspective
    (2017) Mboji, Lulama; Pamburai, Hamutyinei Harvey
    The topic of taxation and its impact on economic growth remains a widely debated one. This study contributes to literature by assessing the impact of the tax burden on GDP growth on the BRICS countries for the period 2000-2012 by using panel data estimation techniques. The three panel data estimation techniques examined in this study are: the fixed effects model, random effects model and the pooled regression model. In evaluating the tax effect on GDP growth, the paper reviews both theoretical and empirical literature. In line with literature that seems to prefer the fixed effect modelling technique, the tests in this study show that the appropriate model for the empirical data is the fixed effects model. The tax burden is defined as the tax revenue-to-GDP ratio. The explanatory variables explored against GDP growth in the study are: the tax burden, government expenditure, government debt, fixed investment, labour, education and population. Findings of the study show that there is a positive tax effect on GDP growth for the BRICS countries for the period explored.
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    Investigating the macroeconomic determinants of RDP house prices in South Africa
    (2017) Avramis, Nicholas; Pamburai, Hamutyinei Harvey
    The main purpose of this study is to investigate the relationship between macroeconomic variables and South Africa's affordable housing market using basic multivariate regression analysis. This paper empirically examines whether increases in RDP house prices can be explained by or attributed to the movements in gross domestic product (GDP), prime lending rate (RATE), the stock market (JSE) and inflation (CPI). As an exploratory paper in nature, data of RDP resales prices from eight major metropolitan cities in South Africa was collected from the Centre of Affordable Housing Finance (CAHF) for the period 2007 to 2015. The findings from the regression analysis show that only JSE is a key determinant of RDP housing prices in South Africa. Since there was no a statistically significant relationship that could be found between affordable housing price movements and GDP, RATE and CPI, this study suggests that hedonic variables should be used in future studies, as well as accounting for regional differences. Notwithstanding, since the resale of RDP homes is a new dimension in the real estate market and whose introduction is also still at its infancy in South Africa, an examination of the RDP home prices is important to the financiers (financial institutions), investors, housing authorities, the government and other interested stakeholders who might want to have an understanding of the factors that drive the prices of these homes in South Africa. The results from this study, therefore, play a role in informing these parties as they allow them to make better decisions in terms of whether to make financing available (financial institutions), policy formulation or direction (government) and whether to invest or sale (other stakeholders).
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    The role of political business cycles (PBCs) and its influence on the credit rating action that countries receive: A BRICS perspective
    (2018) Kamande, Ian Edmond Kuria; Pamburai, Hamutyinei Harvey
    Existing empirical literature on political business cycles focused primarily on developed economies before it began considering a basket of both developed and developing economies. This study seeks to expand the existing literature by pursuing two objectives using Brazil, Russia, India, China and South Africa (BRICS) as locations of the study. The first objective is to examine the presence (lack thereof) of political business cycles in the BRICS trading block for the period 1994 to 2014. The second objective of this study is to examine the effect that political business cycles (if present) have on the sovereign credit ratings that the BRICS countries receive from credit rating agencies. Credit rating agencies make use of a combination of political, social and economic factors to determine the ratings assigned to various countries. The credit ratings assigned to countries by these agencies play an important role to international lenders as they use these ratings to make decisions on the interest rates they charge to different sovereigns. Based on the first objective, the findings from this study show that there is weak evidence of electorally timed interventions in BRICS economies over the period of 1994 to 2014. These findings are inconsistent with the predictions of political business cycle theory which suggests that incumbent politicians take advantage of the information gap between them and voters by implementing economic changes closer to an election year in order to exude competence and to increase their chances of reelection. However, further analysis based on the second objective shows that elections in BRICS countries are not viewed negatively by credit rating agencies. Hence, unlike in other developing countries, the BRICS countries are not likely to be downgraded during or after election years. Consequent to these findings, this study supports the notion that the government’s influence on the fiscal and monetary policy variables across BRICS is not concentrated nor overly exerted around election periods and that the BRICS countries’ institutions are regarded by rating agencies as independent and up to relevant international standards.