Browsing by Author "Uliana, Enrico"
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- ItemOpen AccessAccounting for employee stock options(2010) Van Zyl, Warrick Boyd; Uliana, EnricoThe use of ESOs as a form of employee remuneration has grown dramatically in recent years, fuelling a significant amount of research. The current accounting standards (IFRS 2 and IAS 33) do not reference this research and as a result the accounting records do not accurately reflect the economic nature of these transactions. This study will: 1. Evaluate the requirements of IFRS 2 and IAS 33 by developing an accounting model for each standard and comparing the current rules with this theoretical benchmark. 2. Further examine any identified differences by means of empirical tests. The objective is thus to establish a theoretically sound approach to ESO accounting that can be confirmed by empirical testing.
- ItemOpen AccessAgency costs of free cash flow : the South African experience(1997) Ankude, Edem Komla; Uliana, EnricoThe use of free cash flow has been a source of conflict between shareholders and managers. This conflict derives from the agency relationship between shareholders and managers in that decisions taken by managers (as agents) affect the shareholders (as principals). The decisions of managers may not always be in the interest of shareholders. The interests of shareholders will be served if actions of managers lead to the maximisation of the total value of the company. The free cash flow theory suggests that managers have the tendency to misuse surplus cash resources. Any use of free cash flow that is not value maximising could result in losses to shareholders. These are termed the agency costs of free cash flow. It is believed that managers will think and act as shareholders if they own significant proportions of the equity capital of companies. This dissertation examines the effects of the agency relationship on the utilisation of free cash flow.
- ItemOpen AccessAn analysis of changes in liquidity around share splits(1997) Smith, Brian Ashley; Uliana, EnricoSurveys of U.S. market participants reveal a belief that liquidity improves following a share split. Contrary to this, empirical studies on U.S. markets generally conclude that liquidity worsens. These contradictory views have as yet not been reconciled. Furthermore, there is little evidence as to the charge of liquidity on the Johannesburg Stock Exchange ("the JSE"). The primary objective of this study is to understand how liquidity, as measured by trading volumes, changes around a share split on the JSE. The study also seeks to gain a more precise understanding of the nature of any change in liquidity in order that it may be related to the effect that a split has on volatility and returns. Twenty-three share splits were selected from the period between December 1990 and June 1996. These splits were screened to ensure that no contemporaneous events were present which may have influenced the results. Five study periods were then defined around each split.
- ItemOpen AccessAn analysis of the causality effect of exchange rate and interest yields: a case study of Zambia(2017) Bwalya, Obed; Uliana, EnricoThis study analyses the relationship between the US Dollar/Zambian kwacha exchange rate and the interest rate yields on the 91-day and 182-day T-bills in Zambia. Using statistical analysis of regression analysis and co integration, the study found that a long-run relationship does not hold for both 91-day and 182-day T-bills taken for any corresponding set of interest rate and exchange rate respectively. Nonetheless, the three variables taken simultaneously demonstrated that a long-run correlation exist. Following a comprehensive analysis of the results from this study, it is concluded that the statistical relationship that exists is not very significant and investors looking forward to invest in Zambia's financial markets should include other factors in order to forecast the exchange rates with regard to the changes in interest rates.
- ItemOpen AccessAttitudes of stakeholders towards web-based disclosure: empirical evidence from an emerging economy(2018) Bekoe, Rita Amoah; Uliana, EnricoEmpirical studies on web-based reporting have usually been examined from a company’s perspective. However, this study provides some evidence on web-based reporting from users’ perspective. The study relied on the Technology Acceptance Model (TAM) and the Innovation Diffusion Theory (IDT) to examine the attitudes of users towards the use of online accounting information and investigate the dominant factors that influence such attitudes. A survey method of research was adopted and a set of questionnaires were designed and administered to different stakeholder groups on the Ghana Stock Exchange (GSE). Out of 435 questionnaires administered, 175 were returned of which 171 were used in the study. The data was analyzed using the Structural Equation Modeling technique (the partial least squares approach). Results of the study suggest that stakeholders generally have a positive attitude towards web-based reporting. Thus, the majority of the respondents consider web-based reporting to be a useful medium for the dissemination of accounting information. The study also demonstrates that attitude is an important determinant of stakeholders’ use of the web-based report. Moreover, stakeholders’ perceptions of the usefulness, ease of use, social network pressures and compatibility of the web-based reporting have a positive influence on attitude towards web-based report. This study makes some important contributions to the financial reporting literature. The study develops a framework that provides insight into users’ attitudes towards web-based reporting, the determinants of such attitudes and their influence on the use of web-based reports. The findings of this study also provide some insightful implications for stakeholders in the corporate web reporting environment by demonstrating amongst others that businesses providing online accounting information should place more emphasis on the quality of the information provided, by ensuring that it is timely, reliable and transparent.
- ItemOpen AccessThe balanced scorecard in the South African hotel industry(2001) Esekow, Jeremy; Uliana, EnricoThe hotel industry is one where success or failure largely depends on service quality. To control financial performance in such an environment, management must be aware of the need to closely monitor and control this non-financial aspect. This does not appear to have been the case to date. The Hotels and Leisure Sector of the Johannesburg Stock Exchange is one of the poorest performing, with the hotel groups having fared the worst. An oversupply of hotel rooms, the increasing availability of alternative forms of accommodation and a perceived decline in service standards are amongst the threats causing these unfortunate results. Management action is thus necessary to survive and prosper in the face of these current challenges. A case has already been made for the necessity of employing the use of non-financial indicators in the management of most organizations. The use of such indicators within a structured management system has proven to yield better information for decision-making and control than merely adding a selection of indicators to an existing financial reporting framework. Several structured management control systems exist. It is suggested that the balanced scorecard, where overall organizational strategy is linked to individual goal setting and action, is a highly effective management tool within a hotel environment. The measurement of performance relating to customer, service process and infrastructural goals within the standard key perspectives of a balanced scorecard enables a hotel manager to better control the intangible service process. Thus guest - staff interaction can be successfully controlled in line with the hotels strategy, while at the same time, environmental challenges will have been built into the goal setting equation. The balanced scorecard has been implemented successfully in several hotel groups internationally, proving its suitability to the industry. It is thus recommended as a solution to the ailing South African hotel industry.
- ItemMetadata onlyCollective ownership in the South African small-scale fishing sector: a framework for sustained economic growth(2018) Botha, Mark Jonathan; Uliana, Enrico; Wiiliams, J JThe thesis tested the notion of collective ownership in the small-scale fisheries sector, as advocated by the Department of Agriculture, Forestry and Fisheries, the South African government department responsible for fisheries administration. More specifically, it examined the conditions under which collective ownership would yield economic benefits to small-scale fishers. This was done according to three constructs, i.e. collective entrepreneurship, agency theory and value chain development. In testing the study’s presuppositions, a sequential qualitative-quantitative mixed methods research methodology was used. Data were gathered through focus group discussions, individual interviews and surveys with fishers from South Africa’s Western Cape and Northern Cape provinces. Qualitative data were analysed through the constant comparative approach preliminary outcomes thereof were used to devise the quantitative instruments, which were analysed with the SPSS statistical package. The outcomes of the quantitative data analysis were then discussed with key participants to validate the findings and to ensure overall congruency. In the current value chain dispensation, small-scale fishers realise approximately 38% of overall revenue accrual, whereas the remaining 62% is realised by fish-processing establishments and exporters. The value chain requires reconfiguration to progressively enable small-scale fishers to own and control all upstream and downstream catch, processing and marketing processes. In addition, greater value can be realised when all regulatory, catch, processing and marketing processes are efficiently aligned with local and export market requirements. The findings note that small-scale fishers require developmental support to exploit opportunities. The study suggests that the required support should be facilitated through a dedicated multi- and interdisciplinary fisheries institute located at a higher education institution. This institute needs to focus on training, advisory services and research, as well as on defined support for the fisheries co-operatives. Moreover, the impact of the envisaged institute provides for the establishment of localised fishing community information centres, located near coastal fishing communities, harbours and slipways. Such centres ought to improve communications, trust-building relations and shared expertise among all actors, namely small-scale fishers, their co-operatives, the various government departments, industrial associations, non-governmental organisations, agencies and all others implicated, to maximise benefit and effectively secure government’s infrastructural investment programme within the small-scale fisheries sector.
- ItemOpen AccessA comparative and critical analysis of the corporate governance structure of South Africa(2002) Louw, Hanneke; Uliana, EnricoThe King Reports, as well as legislative developments culminating from these reports, are aimed at enhancing corporate governance standards in South Africa and aligning them with international best practice. Notwithstanding these measures, a number of significant failures in corporate governance rocked South African business during this period, severely denting the perception of the quality and standard of corporate governance. Given the importance of international investors' confidence, a continuous review of the South African corporate governance structure is imperative. This dissertation aims at performing a comparative and critical analysis of the corporate governance structures in South Africa. The objective is to seek alternative or improved corporate governance mechanisms that will enhance the current dispensation. For this purpose, various international corporate governance models are analysed and their monitoring mechanisms identified. The possibility of utilising some of these mechanisms to enhance corporate governance in South Africa is examined. The institutional environment in South Africa (I.e. the controlled shareholder environment, inactive and illiquid markets) prevents the market model mechanisms of the US and UK from playing a greater monitoring role. Further market model mechanisms aimed at promoting the independent monitoring of management have to a large extent been incorporated into the South African corporate governance framework. However, the ongoing failures of large listed and unlisted companies, including smaller banks in South Africa, that appear to indicate poor levels of, or ineffective, corporate governance, calls for the enforcement and acceptance of the monitoring guidelines set out in the King Reports. The German and Japanese bank governance model has a limited application in South Africa. The level of bank debt financing is generally lower than equity financing, thereby restricting banks' ability to become monitors through their debt control rights.
- ItemOpen AccessA comparative study of the South African venture capital and private equity industry with special reference to the investment decision-making process(2001) Taylor, Mark J G; Uliana, EnricoThe efficiency of the private markets is important in ensuring a healthy economy. This study sets out to shed light on the decision-making process applied by South African venture capitalists when they allocate capital. Venture capital is defined in this study as including private equity. The study comprises an extensive survey by way of a detailed questionnaire which was mailed to 66 members and non-members of the South African Venture Capital and Private Equity Association (SA VCA) and achieved a 77% response rate. The questionnaire was based on previous work done in Western and Eastern Europe, and India. This ensured that quantitative South African results could be compared with international results. Quantitative statistical analyses were conducted and the results are presented. The study first identifies the criteria applied in the general evaluation of investments. Second, the required rates of return are established for each stage in the business cycle of the potential investment. Third, various risk factors which might affect the required rate of return are considered. Fourth, the study identifies the valuation methods employed at each stage in the business cycle of the potential investment. Fifth, the use of portfolio theory by South African venture capitalists and private equity investors is examined. In keeping with most similar studies around the world, South African VCs seek out quality entrepreneurial teams. They do this using an array of evaluation criteria which endeavour to flush out the risks inherent in the investments they are evaluating. In South Africa VCs seek strong management and overwhelmingly rate integrity as the most important management quality. Far less important are market issues, followed by product or service issues. This may reflect the perceived dearth of management talent in South Africa. This study analyses the required rates of return of different groupings of VCs by investment stage. It yields results consistent with financial theory as it applies to venture capital: the earlier the stage of investment, the higher the perceived risk profile of that investment. The study finds that more mature VC funds have lower required rates of return than less mature funds. Funds with a development or empowerment objective have lower required rates of return than those without. Independent funds require higher rates of return than captive and semi-captive funds. The required rates of return have only increased by about 2% since the more buoyant mid to late 1990s. The debt-equity ratio has an increasing effect on the required rates of return as the investment moves through the earlier stages of investment to the later stages. While the required rate of return of an investment is generally determined by the risk band in which it falls, the effect of the debt equity ratio is dependent upon an assessment of the individual risk characteristics of the investment. The general and specific factors which affect risk and required rate of return are ranked by South African VCs and the results are in keeping with international results. The general factors identify the lack of importance of the state of the general economy and long-term gilts to the VC's required rate of return, but the importance of the state of the actual sector in which the investee participates. Insofar as specific risks are concerned, management is of particular importance as an indicator of risk, both in respect of the quality of management and the predictability of management's behaviour. An analysis was done of the valuation methods which are used at the different stages of the investment cycle. South African VCs prefer to use the discounted cash flow method of valuation at all stages of the investment, although different techniques are also used in the earlier stages of the investment cycle. A final valuation is based on a preferred method while using the other methods as a check. Gut feeling is an important component of this process. This research also confirms that the newly adopted SAVCA (BVCA) Valuation Guidelines have not affected the valuation process when an investment is made. Most South African VCs apply reasonably sophisticated portfolio theory to their investment portfolios and the majority regard their portfolios as well-diversified. Implications for both South African entrepreneurs and South African VCs are also presented.
- ItemOpen AccessCorporate control and its effect on company performance(1998) Potash, Richard; Uliana, Enrico; Botha, Derrick; Wegner, TrevorThis study investigates the effects that various ownership structures have on company performance. It is assumed that the ownership structure of the firm dictates the manner in which the firm monitors its managers. It is further assumed that the objective of the firm is to maximise shareholder wealth. The study therefore analyses which ownership structure provides shareholders with the greatest returns. Such a system would add the most to an economy's efficiency. It was concluded that of the three systems identified, not one system provided shareholders with a return significantly different from the others. The study added to the current South African debate as to whether or not the concentration of economic power detracts from the country's economic efficiency. Statistical evidence proves that companies owned by any of the large South African groupings are no less productive than companies otherwise owned.
- ItemOpen AccessCSIR The motivational role of interactive control in the research sector: a case study(2222-3436, 2011) Sartorius, Kurt; Eitzen, Carolyn; Trollip, Neil; Uliana, EnricoThe motivation of professional personnel within the confines of formal management control systems is often problematic. The paper investigates how interactive management controls can augment a performance measurement framework (PMF) in order to motivate personnel in a state-controlled research organisation. A case study method, combined with a survey, was used to test the research questions. The results indicate that the PMF motivated its researchers, as well as facilitated the achievement of organisational objectives. The results also indicated the presence of a wide range of interactive management controls that were employed to design and implement the PMF. These interactive controls included leadership enthusiasm, ownership, open communication and other informal activities that acted as a lubricant to reduce the friction of the formal PMF. In effect, these informal controls motivated researchers because they provided a series of rewards, they improved the perception of formal controls and they increased the efficiency of the organisation structure.
- ItemOpen AccessDisclosure and the cost of capital(2004) Koopman, Anthony C; Uliana, Enrico[pg 11 is missing] In both academic literature and business practice there appears to be contradictory views concerning the existence, and nature, of the relationship between the quality of corporate disclosure and associated company cost of equity capital. Theory suggests that an informed investor would scale down the required rate of return as the level of uncertainty and risks associated with the firm's present and future performance is reduced. This study has attempted to empirically determine whether or not South African companies manage the level of information disparity between investors and themselves so as to influence the company's cost of capital. A literature study was undertaken to ascertain what data and empirical findings have been produced by previous studies on disclosure and the cost of capital. The literature review also highlighted the impact that information asymmetry, intra-industry information transfers, estimation risk and information filtering by management has on disclosure and the effect that this has on cost of capital. The firms beta coefficient, based on the last quarter of 1997, were used as a measurement of risk and as a surrogate for the cost of capital. The disclosure metric was based on the financial and non-financial information contained in the 1997 annual financial reports of the sample companies. The research method that was adopted builds on both local and international empirical research in this field, using a statistical correlation analysis to test the null hypothesis of no relationship between disclosure and beta for companies listed on the Johannesburg Stock exchange. The research results provided evidence of a positive, yet very weak correlation between disclosure and the cost of capital. As the variation in the sample data improved, a slightly stronger positive correlation between the research variables was observed.
- ItemOpen AccessDiversity in management accounting practice through the ABC paradox : testing an institutional perspective(2010) Cairney, Carol; Uliana, EnricoThis study investigates the ability of Burns and Scapens' (2000) Institutional Framework, drawn from Old Institutional Economics, to explain diversity in management accounting practice. The framework contends that management accounting practices can shape, and be shaped by, the taken for granted ways of thinking (institutions) that exist within an organisation, and is offered in response to the perceived inability of neo-classical economics to explain diversity in management accounting practices (Burns & Scapens, 2000; Soin, Seal & Cullen, 2002; Scapens, 2006). This inability contributes to uncertainty regarding the value or relevance of the management accounting technique studied. One area in which this is particularly apparent is that of Activity Based Costing (ABC) where a paradox has emerged: while ABC is reported as being a superiour costing technique, the lack of widespread use thereof implies otherwise (Gosselin, 1997). This study tests the ability of the Institutional Framework to explain the change in management accounting practices that occurred in a medium sized South African university during the seven year period from 2000 to 2006. The case presents a situation where ABC might seem indicated, but instead a uniquely tailored response was devised. This case demonstrates the constraining influence of institutions on management accounting change and shows how institutions standing in opposition to change were altered through management processes, which is of practical relevance to management wishing to effect change successfully. Further, the study shows that that the relationship between economic considerations and institutional influences are not as suggested by the theory, and that the link between economic rationality and the institutional framework can be readily articulated.
- ItemOpen AccessDoes funding huge capital outlay projects through project finance enhance shareholders' value?(2013) Mheyamwa, John; Uliana, EnricoDespite project finance advancing as a crucial tool in funding huge capital outlay projects that facilitate development little research has been conducted in assessing whether it is the most optimum way of funding big project especially when one looks at the value addition in respect of the shareholders. Consequently, this research attempts to examine whether Project Finance when compared to conventional funding done under Corporate Finance does contribute to shareholders value in funding huge capital outlay projects. The research was conducted in two phases. The first phase analysed the Mozal Project which was jointly funded by the IDC and other parties under project finance. In this phase the research assess how the IDC as a funder established measures to protect and enhance value for its shareholders in funding the project. The phase goes further by assessing the value created by the investment from an IDC shareholder point of view. The results are then compared to that of other high capital magnitude projects funded under on balance sheet finance. The second phase comprised of 5 interviews and 25 questionnaires with local Project Finance industry professionals with the aim of establishing the common view on which between on balance sheet and off balance sheet finance has a positive impact on shareholders' value. The first phase led to a general guide on funding projects via project finance does add to shareholder value or not whilst the second phase gave a factual conclusion on whether funding shareholder value through project finance creates value. Specific recommendations for further research work was also indicated where it was felt that there are certain areas that can help in advancing the research subject.
- ItemOpen AccessDysfunctional market or insufficient creditworthiness? : an exploration of financial constraint experienced by small, medium and micro enterprises in South Africa(2009) Von Blottnitz, Magali; Uliana, EnricoThe existence and prevalence of financial constraints has been extensively discussed in the international economic literature, and is implicit in debates on the performance and needs of South Africa’s Small, Medium and Micro Enterprises (SMMEs). However, there is little solid research measuring financial constraints among South African SMMEs. In addition, the reasons advanced for their financial constraints are often speculative and anecdotal rather than the result of sound research. The hypothesis of credit rationing, resulting from information asymmetries, is well established in theory but an additional explanatory hypothesis, the fragile financial structure of SMMEs, is often voiced by the South African finance community. With South African data being scarce and patchy, none of these hypotheses has been validated by empirical studies. The most likely reason for these gaps in literature is not a lack of interest, but the considerable difficulty of raising reliable data from SMMEs, a joint result of confidentiality, widespread informality in the sector, and the limitations of publicly available statistics in developing countries. Surveys of banks or SMMEs raise risks of partiality and limited ability of respondents to provide quantitative data, while accounting data are characterised by limited usability and reliability. This thesis attempts to address those challenges by exploring primary and secondary sources of data, combining the respective strengths of interview and financial data.
- ItemOpen AccessEffects of foreign exchange listing on the returns of South African companies(2005) Sibiya, Xolani; Uliana, EnricoThere are a number of companies that seek dual listing in foreign stock markets. The number of foreign companies that are listed in the United States alone are above 3000. Companies seek foreign exchange listing for a number of reasons including the access to foreign capital, visibility in the foreign markets and ability to effect foreign market acquisitions through use of stock listed in the foreign markets. There are also costs associated with listing in the foreign markets, including the costs of compliance (these would include stock exchange costs, accounting and auditing compliance costs) and the costs of management time. There are a lot of studies that have been conducted in this area of finance and they show varying results. The results vary from significantly positive returns in the period before and after the listing date, to significantly negative returns before and after the listing date. There are studies that found there to be no significantly positive or negative returns. There are some that found significantly positive returns in either the pre or post listing period with significantly opposite returns in the opposing period. During the years between 1997 and 2000, a number of South African companies followed a trend of listing in their shares in the foreign markets, especially taking their primary listings to the London Stock Exchange. This study examines the effects of a foreign exchange listing in the returns of the South African companies that are listed in the foreign markets.
- ItemOpen AccessEfficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa(2017) Nzibonera, Eric; Uliana, EnricoThe purpose of the study is to examine the relationship between corporate governance and disclosure of corporate information by listed companies in developing economies. A comparative study was carried out covering listed companies in South Africa, East Africa and Nigeria. The study is based on the agency theory which asserts that enhanced disclosure is one of the fundamental goals of a company's reporting system aimed at reducing agency costs and information asymmetries between shareholders and managers, hence a tenet of any effective governance system. Although corporate disclosure provides a channel through which shareholders obtain valuable information to make investment decisions, prior studies reported mixed empirical evidence on the role of corporate governance in enhancing corporate disclosure. Furthermore, empirical evidence from Sub Saharan Africa and developing economies in general remains scanty. Despite the fact that corporate governance systems have been widely used in strengthening the quality of financial reporting and disclosure, several corporate scandals and failures have continued to occur around the globe and the efficacy of corporate governance on disclosure activities in preventing managers from misappropriating corporate resources remains an empirical question. A comprehensive literature review revealed six corporate governance attributes (CEO non-duality, board size, board composition, composition of audit committees, block and director share ownership) and three control variables (Firm size, leverage, and profitability) that may have a significant influence on corporate disclosure. Corporate disclosure was categorized into disclosure of financial and non-financial information. Data was collected from annual reports of non-financial listed companies on selected securities exchanges in Sub Saharan Africa for the period 2010 to 2013. A comparative panel data analysis was then carried out using STATA MP Version 13, to obtain Random-Effects Regression models which were used to examine the relationship between corporate governance and corporate disclosure. Overall, the findings revealed that CEO non-duality, board size and board composition have a positive significant effect on corporate disclosure, while the effect of block and director share ownership is negative. The study concluded that for effective disclosure of information in developing economies, companies should minimize block and director share ownership, separate roles of chief executive officers and chairpersons of board of directors, increase board size and ensure that there is a higher proportion of non- executive directors on boards.
- ItemOpen AccessAn evaluation of the completeness of Ferreira and Otley's (2009) performance management framework, using a multi-disciplinary approach.(2012) Cilliers, Albert John; Uliana, EnricoThis study considers the completeness of Ferreira and Otley's (2009) evaluative framework, designed to identify the performance management and management control issues in organisations. There is growing criticism in the literature that Ferreira and Otley's (2009) framework is essentially technocratic in nature, ignores socio-ideological controls such as organisational culture and clans, and needs to be combined with a social science perspective. Consequently, this study reviews the literature pertaining to certain socioideological controls, using a multi-disciplinary approach which focuses particularly on the social sciences. Combining insights obtained from the literature, the study then applies Ferreira and Otley's (2009) framework in an empirical case study setting, assessing the extent to which the framework can identify the performance management and control issues in a small South African knowledge-intensive company. Findings from the study suggest that Ferreira and Otley's (2009) framework is indeed deficient in that it is not able to identify cultural controls, clan controls and personnel controls. The possible implications of the cultural paradigm for control system design, contingency theory, and the general management control framework are also discussed.
- ItemOpen AccessAn evaluation of the performance of black-influenced and black-owned companies on the Johannesburg Stock Exchange(2000) Botha, Mark Jonathan; Uliana, EnricoFrom 1995 to 1998 the popular business press regularly reported that black-influenced (BI) and black-owned (BO) companies outperformed the all-share index (ALSI) and the financial and industrial index (F&I). However, popular business press reports were not necessarily based on sound theoretical and/or empirical evidence. Indeed, the favourable publicity BI and BO companies enjoyed in the popular press could have influenced the demand for listed BI and BO companies' shares and, consequently, share price performance.
- ItemOpen AccessAn exploratory study of behavioural finance insights in the Small, Medium and Micro-Enterprise creditworthiness assessment process(2011) Esekow, Jeremy; Uliana, EnricoFinancial institutions are often reluctant to lend to smaller entrepreneurs due to perceived information asymmetry and lack of available collateral. At the nascent and new entrepreneurial levels, it is generally more difficult for loan applicants to provide the information required to secure the necessary funds. Inadequate financial information coupled with uninformative credit histories heighten the information opacity thus diminishing the entrepreneur's prospects of securing loan funding. Viable entrepreneurial projects may therefore remain unfunded largely due to uncertainty rather than riskiness. This study therefore highlights the creditworthiness assessment process and seeks to address the information opacity problem by looking to alternative sources of entrepreneurial information that may aid the loan officer.