Treasury's role in promoting efficient cash management : evidence from South Africa

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dc.contributor.advisorAbedian, Irajen_ZA
dc.contributor.authorMaphiri, Donalden_ZA
dc.date.accessioned2016-01-12T11:20:04Z
dc.date.available2016-01-12T11:20:04Z
dc.date.issued1999en_ZA
dc.descriptionBibliography: pages 74-77.en_ZA
dc.description.abstractThis study examines the efficiency of cash management by the South African Treasury. Given the multitude of instruments used in cash management it is impossible to concentrate on all of them. This study, therefore, focuses on the cash balance and marketable securities as objects of analysis. This necessitates a thorough consideration of the operations and efficiency of the Treasury bill market. The study makes two major contributions. Firstly, it is shown that there exists a saddle point in the interactions between the Treasury and bidders in the auctions. This is Nash equilibrium, in which no party to the game has an incentive to change the strategy unilaterally, except at a loss. This is thus a Pareto efficient outcome, with both the Treasury and bidders' positions improved. It is, therefore, argued that there is scope for improving cash management and lowering costs of borrowing. It is noted, however, that there are significant improvements made in the management of the cash balance. Secondly, this paper argues against the view widely held by auction theorists that uniform-price auctions are more susceptible to manipulation and, as such, are revenue-inferior to discriminatory auctions. It demonstrates that uniform-price and discriminatory auctions are equally susceptible to manipulation and should that happen, uniform-price auctions are still revenue-superior. This result is the converse of what is generally believed and is compatible with the view held by Friedman (1960, 1991). It is also compatible with empirical evidence that has long been viewed as a puzzle. The study, however, concludes that the view held by Friedman is right, but for the wrong reasons.en_ZA
dc.identifier.apacitationMaphiri, D. (1999). <i>Treasury's role in promoting efficient cash management : evidence from South Africa</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/16350en_ZA
dc.identifier.chicagocitationMaphiri, Donald. <i>"Treasury's role in promoting efficient cash management : evidence from South Africa."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 1999. http://hdl.handle.net/11427/16350en_ZA
dc.identifier.citationMaphiri, D. 1999. Treasury's role in promoting efficient cash management : evidence from South Africa. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Maphiri, Donald AB - This study examines the efficiency of cash management by the South African Treasury. Given the multitude of instruments used in cash management it is impossible to concentrate on all of them. This study, therefore, focuses on the cash balance and marketable securities as objects of analysis. This necessitates a thorough consideration of the operations and efficiency of the Treasury bill market. The study makes two major contributions. Firstly, it is shown that there exists a saddle point in the interactions between the Treasury and bidders in the auctions. This is Nash equilibrium, in which no party to the game has an incentive to change the strategy unilaterally, except at a loss. This is thus a Pareto efficient outcome, with both the Treasury and bidders' positions improved. It is, therefore, argued that there is scope for improving cash management and lowering costs of borrowing. It is noted, however, that there are significant improvements made in the management of the cash balance. Secondly, this paper argues against the view widely held by auction theorists that uniform-price auctions are more susceptible to manipulation and, as such, are revenue-inferior to discriminatory auctions. It demonstrates that uniform-price and discriminatory auctions are equally susceptible to manipulation and should that happen, uniform-price auctions are still revenue-superior. This result is the converse of what is generally believed and is compatible with the view held by Friedman (1960, 1991). It is also compatible with empirical evidence that has long been viewed as a puzzle. The study, however, concludes that the view held by Friedman is right, but for the wrong reasons. DA - 1999 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 1999 T1 - Treasury's role in promoting efficient cash management : evidence from South Africa TI - Treasury's role in promoting efficient cash management : evidence from South Africa UR - http://hdl.handle.net/11427/16350 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/16350
dc.identifier.vancouvercitationMaphiri D. Treasury's role in promoting efficient cash management : evidence from South Africa. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 1999 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/16350en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherEconomicsen_ZA
dc.titleTreasury's role in promoting efficient cash management : evidence from South Africaen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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