Browsing by Subject "Banks"

Now showing 1 - 3 of 3
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    Open Access
    Evolution of Corporate Leverage on the JSE from 1994 to 2016
    (2022) Mokoko, Tseko; Holman, Glen
    In this paper, an attempt has been made to examine the evolution of corporate leverage of companies listed on the Johannesburg Stock Exchange (JSE) from 1994 to 2016. Analysis of the data set is organized around a sample of 126 listed companies across twelve sub-sector industries, namely, Banks, Financial Services, Life Insurance, Fixed Line Telecommunications, Nonlife Insurance, Health Care Equipment and Services, Pharmaceuticals and Biotechnology, Media, Technology Hardware and Equipment, Software and Computer Services, Electronic and Electrical Equipment and Support Services. 621 delisted companies were also briefly analysed to eliminate survivorship bias. Results of multiple regressions using two primary leverage measures and six commonly used determinants of capital structure were varied. Tangibility and growth were negatively related to debt while cost of debt was positively related to debt. Firm size, profitability and corporate tax rate yielded a varied relationship with corporate leverage. Only the growth capital structure determinant showed statistical significance. The overall findings indicate a rise in corporate leverage that coincides in tandem with major local and international economic events.
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    Open Access
    IFRS 17 and its effects on financial performance and the statement of financial position: a comparative analysis of the South African insurance companies including banks
    (2025) Myendeki, Sive; Modack, Goolam
    In the South African market, insurance plays an important role by enabling businesses to manage risks they could not manage individually, while also reinvesting some of the premiums in South Africa to drive economic growth and create jobs. For individuals, insurance provides important protection for valuable assets. The introduction of International Financial Reporting Standards (IFRS) 17 by the International Accounting Standards Board (IASB), effective from 1 January 2023, resulted in a change in the measurement requirements of insurance contracts compared to IFRS 4. This study investigated the impact of the transition from IFRS 4 to IFRS 17 on the financial performance and the statement of financial position of insurance service providers in South Africa. This study, grounded in the Rational Choice Theory, the Liquidity Preference Theory and the Pecking Order Theory, analysed twelve insurance service providers licensed by the FSCA and operating in South Africa. The results of the study revealed that IFRS 17 did not have a statistically significant impact on the financial performance of these insurance service providers. However, the statement of financial position experienced a statistically significant decrease in reported total assets and total liabilities, while the changes to the reported equity and insurance liabilities were not found to be statistically significant. The decrease in the reported total assets and liabilities was noted to be due to the change in the measurement requirements for insurance contracts accounting such as the treatment of acquisition costs. Under IFRS 4, insurers were allowed to capitalise and defer acquisition costs as deferred acquisition cost assets on the balance sheet. The DAC asset was then expensed to the income statement over the life of the insurance contract. However, under IFRS 17, this DAC is included as part of the insurance service liability resulting in a decrease in reported total assets and total liabilities. Furthermore, the reported total assets and liabilities are impacted by the requirement to discount these balances using the IFRS 17 risk-adjusted approaches as well as the changes to the underlying assumption used in the measurement calculations. This analysis and results may assist regulators, investors and other users of financial statements to better understand the impact IFRS 17 has had on the financial performance of insurance service providers in South Africa.
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    Open Access
    Understanding transitioning from traditional business analysis to agile business analysis: the case of South African Banks
    (2025) Iyamu, Augustine; Seymour, Lisa
    Customer needs are rapidly changing, and organisations strive to respond accordingly. Thus, many organisations explore innovative approaches to address their needs and challenges. Some innovations include developing new technologies, products, and service offerings. These innovative approaches need organisations to inspect, adapt and adopt new ways of working and moving (transitioning) from the traditional business analysis approach to the agile one. However, the transition has its challenges. Some challenges are either unknown or unclear to many organisations that intend to transition from a traditional business analysis approach to an agile one. Some of the challenges organisations faced are struggling to reduce uncertainty, and lack of quicker response time. This has been attributed to a lack of empirical evidence or limited terms of reference. This was the main motivation for this study. This study aimed to help gain a deeper understanding of transitioning from traditional business analysis to agile business analysis in the context of large South African organisations. Qualitative research methods were employed to achieve this aim. Two financial services (banking) organisations were selected as cases using the case study method. This allows activities to be understood in their natural settings and from two perspectives. The use of two cases helped with the generalisation of some of the findings. Participants were selected from both organisations based on the criteria. The semi-structured interview technique was used to gather data to a point where new information was not forthcoming. The moments of translation from the Actor Network Theory (ANT) were used to analyse the data collected. Primarily, this is because ANT focuses on relationships, interactions between actors, and how negotiations shift from one point to another. Thus, the theory was crucial in achieving the aim of the study. Using the theory for analysis helps reveal the benefits and challenges of transitioning from a traditional approach to agile business analysis. This includes the interactions between human and non-human actors, leading to transition. Furthermore, the findings were interpreted to understand better how the factors influence transitioning from a traditional business analysis approach to an agile business analysis in both organisations. The study provides insights into the challenges and benefits of transitioning from traditional business analysis to an agile approach. The challenges emanate from various factors. For example, change to resistance and lack of understanding of lean requirements documentation in organisations. This is attributed to business analysts still using traditional business analysis mindset, advancement of individual analysis approach within the teams, lack of buy-in and support from business stakeholders and senior management to ensure quicker delivery, and unclear roles and responsibilities within teams, etc. and also the study highlighted various benefits associated with transitioning to agile business analysis which include improved collaborations that encourage the team to function as a unit, improved visibility and transparency within teams, increase productivity and quicker time to market of the organisation's product and services. Despite the comprehensiveness of the study, there were limitations, which are highlighted. Additionally, based on the findings and interpretation, a conclusion was drawn that there is a need for further research. Thus, areas of further are proposed. The study made contributions from theoretical and practical standpoints. Theoretically, the study contributes by adding to the existing literature in the areas of business process and project methodological approach from both academic and business perspectives. Additionally, it advances the use of actor-network theory as a lens in information systems research. Practically, the findings from the study can be used to guide policy and strategy development on the implementation of agile business analysis in an organisation.