Browsing by Subject "debt"

Now showing 1 - 3 of 3
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    Open Access
    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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    Open Access
    Climate finance to transform energy infrastructure as part of a just transition in South Africa. Research report for SNAPFI project
    (University of Cape Town, 2020-08) Winkler, Harald; Keen, Samantha; Marquard, Andrew
    Prior to 2020, the South African economy was facing major socio-economic challenges, struggling to eliminate poverty and reduce persistent inequality. The COVID crisis has deepened the financial crisis, with the last major agency putting the country’s rating below investment grade, or ‘junk status’. The recovery plan starts with rescue. The climate crisis is longer-term but still needs as urgent action as ever. The country is preparing to enhance its nationally determined contribution in an unprecedented context. Decarbonisation of the electricity sector is a priority – but in the SA context requires careful attention to communities and workers dependent on coal. The just transition transaction (JTT) is being developed in technical detail since 2019 by Meridian Economics (2020) and making the financial deal is work in progress. In brief, the transaction mobilises blended finance to fund the accelerated phase out of coal, thereby accelerating a transition from coal to renewable energy, and a portion of the concessional funds flows into Just Transition fund. This case study reflects on the JTT, seeking to understand its architecture, the potential to catalyse changes in the complex set of challenges in the electricity sector, by funding accelerated phase-out of coal and a just transition in South Africa, with broader implications for international climate finance. The time-scale of developing the transaction is fluid, while implementation of decommissioning would take many years. The purpose of the study is to understand the potential of a just transition transaction to accelerate the phase out of coal-fired power and to fund development projects. The purpose requires a specific focus, and it is important to understand what is included in the scope of this case study, and what lies beyond that scope.
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    Savings, insurance and debt over the post-apartheid period: a review of recent research
    (2004) Cally, Ardington; David, Lam; Murray, Leibbrandt; James, Levinsohn
    Sustainable poverty reduction requires that poor households effectively manage risk. The absence of basic financial services is a major obstacle to poverty reduction in South Africa. This paper reviews available South African literature on utilisation of formal and informal risk management instruments. The centrality of income in accessing the complementary bundle of formal financial services excludes households in the lower deciles from formal financial services. Rural households and households without formally employed household members are also denied access. Strong complementarities with informal channels of finance mean that these same households have limited access to even informal financial services. Promoting the use of savings accounts in pension and social grant payouts and the growth of village banks have been suggested as means to increase formal access for the poor.