Economic and Management Sciences

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Browsing Economic and Management Sciences by Author "Alsemgeest, Liezel"

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    ItemOpen Access
    Corporate governance structures: the performance of Zambian listed companies
    (University of the Free State, 2019) Banda, Zondwayo; Alsemgeest, Liezel; Crous, Cornelie
    Corporate governance, which hinges on integrity, transparency and accountability, has been globally recognised. Despite this recognition, corporate scandals, corporate failures and poor financial performance of companies have continued to affect the corporate and non-corporate world and thus corporate governance has become a topical issue. There has been limited research on the relationship between corporate governance structures and the financial performance of listed companies in Zambia. This research, therefore, investigated the relationship between corporate governance structures and the financial performance of the selected Lusaka Stock Exchange (LuSE) listed companies for the period 2009 to 2017. With the wide range of stakeholders of the LuSE listed companies in Zambia and the need to grow and develop Zambia’s economy, measuring the financial performance of the companies is vital. Additionally, the growth and development of the Zambian economy is at the heart of Zambia’s economic policies - aimed at eradicating poverty and gender- related inequalities in income. The aim of the research was to adjust the existing framework of corporate governance structures that would enhance the financial performance of the Lusaka Stock Exchange listed companies. This research study has adopted the stakeholder theory to corporate governance, as there are many stakeholders (shareholders, banks, suppliers, customers, government, and employees, amongst others) interested in corporate governance and financial performance for companies. The study employed a mixed research methods approach that involved the collection and analyses of secondary and primary, quantitative and qualitative data. A total of 19 Lusaka Stock Exchange listed companies was used in the descriptive and inferential statistics while 46 self-administered questionnaires were analysed. A total of 15 interviews were held with key role players comprising Chief Executive Officers of the selected key institutions. The random effects panel regression model was used to investigate the relationship between corporate governance structures (board of directors and managerial ownership) and financial performance (proxied by the Return on Capital Employed and Tobin’s Q). Self-administered questionnaires and interviews were conducted to provide insight into corporate governance structures, including the relationship between corporate governance structures and financial performance. All the self-administered questionnaires’ participants indicated that separation of the chief executive officer and board chairperson roles improved financial performance. The random effects panel regression tests using the Return On Capital Employed and Tobin’s Q showed that separation of chief executive officer and board chairperson roles showed had no statistically significant relationship with financial performance of selected the Lusaka Stock Exchange listed companies. Similarly, the study has revealed that the majority of non-executive directors and the number of board meetings do not have any statistically significant relationship with the financial performance of the selected Lusaka Stock Exchange listed companies. However, the insights from key role players have revealed that the majority non-executive directors and the holding of frequent (quarterly) board meetings positively relate with the financial performance of the selected Lusaka Stock Exchange listed companies. A small board of directors (averaging seven board members) has a statistically significant positive relationship with financial performance of the selected Lusaka Stock Exchange LuSE listed companies. Furthermore, insights from self- administered questionnaires revealed that large boards have a positive relationship with financial performance. The contrasting results mainly stem from the argument that insights from key role players could have been premised on the need to comply with LuSE Lusaka Stock Exchange Code of Corporate Governance and international corporate governance best practices. The major implications of the research results regarding the separation of the CEO and the chair of the board as well as having a majority NEDs are contradictory. The quantitative research revealed no relationship between financial performance, the division of the two roles and a majority NEDs, yet the opinions of key role players indicated the opposite. The contradiction in findings mainly stems from the fact that the application of corporate governance in Zambia as is fairly new and the stock market is not yet fully developed. The board processes such as the number of board committees, the establishment of audit and risk committees and internal and external audits relate with financial performance of the selected Lusaka Stock Exchange LuSE listed companies in different ways. The results of the random panel regression analysis, using Tobin’s Q, have revealed that the establishment of an audit committee has a statistically significant positive relationship with financial performance. The insights from key role players revealed that the establishment of an audit committee, internal and external audits as internal corporate governance structures have positive relationships with the financial performance of Lusaka Stock Exchange listed companies. Furthermore, the results of the random effects panel regression analysis showed that the establishment of a risk committee does not have any statistically significant relationship with the financial performance of the LuSE listed companies. Conversely, the insights from interviews revealed that the establishment of a risk committee has a positive relationship with financial performance. Finally, insights from the self-administered questionnaires and interviews revealed that managerial ownership positively relates with financial performance as managers align their interests with shareholders’ interests. The major implications are that a continued focus on the use of audit committees as well as internal and external audits can contribute positively to the financial performance of the LuSE listed companies. The author makes the following major recommendations for shareholders, board of directors, senior management, practitioners and academics: - It is recommended that the shareholders of the two Lusaka Stock Exchange Companies, that didn’t have the separation of the two roles, should approve the separation of the two roles while the 17 Lusaka Stock Exchange listed companies that had the two role separated should continue separating the two roles; - The board of directors should ensure that a greater proportion of non- executive directors form part of the boards in the Lusaka Stock Exchange listed companies; - Senior management should facilitate the holding of the recommended four annual board meetings; and - The Securities Exchange Commission should use the research report as one of the key documents that to revise of the Lusaka Stock Exchange Code on Corporate Governance in Zambia. This study’s limitations included limited financial data for the descriptive and inferential statistics, the young age of the Lusaka Stock Exchange, the limited number of listed companies and the developing nature of the country. In this regard, the study recommends that future research is required when the number of LuSE listed companies has increased; to include other companies (companies listed on both the main and alternative Lusaka Stock Exchange markets, private sector and state owned entities); as a comparative study for corporate governance in Zambia (Lusaka Stock Exchange listed companies) and South Africa (Johannesburg Stock Exchange listed companies). Given the contrasting results, future research is critical to investigate the relationship between board size and financial performance.
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    ItemOpen Access
    Customer's perceptions of business units within an agricultural business in South Africa
    (University of the Free State, 11-Nov) Alsemgeest, Liezel; Smit, A. v. A.
    Afrikaans: Die voordele van die bestuur van kliënteverhoudings bring kritieke faktore soos kliëntetevredenheid en loyaliteit na vore. Klantetevredenheid is ʼn goednagevorste bestuursaspek waarna al as “God, King and beyond” verwys is. Maatskappye se oorlewing word deur klantetevredenheid en/of positiewe klantepersepsie bepaal omdat die bestaan en groei van maatskappye van klante se herhaalde en toenemende aankope op grond van positiewe gevoelens jeens die maatskappy afhang. Verder kan klantetevredenheid die goeie reputasie van ʼn maatskappy uitbou en tot positiewe persoonlike reklame lei wat weer nuwe klante kan lok. Alhoewel die landbousakesektor ʼn belangrike middel tot landbouontwikkeling in Suid- Afrika is, is navorsing oor klantetevredenheid by landbouverwanteklante skaars. Landbouondernemings (voorheen bekend as koöperasies) is daarop geskoei dat hulle deur samewerking tussen verskeie boere beter dienste en produkte teen verlaagde pryse kan bekom wat waarde tot die boer op sy plaas kan toevoeg (boergesentreerd). Koöperasies was ʼn lewensvatbare ondernemingsvorm tot en met 1996 toe die Bemarkingsbeheerraad en gesubsidieerde rentekoerse afgeskaf is. Die meeste landboukoöperasies is in beleggersgeoriënteerde firmas (BOF’s) omskep met die hoofoogmerke winsgewendheid en die handhawing van waardeerbare aandeelpryse (maatskappygesentreerd). Landbouondernemings is kompleks omdat die klante van ʼn landbouonderneming ook in die meeste gevalle die aandeelhouers van die maatskappy is. Landboumaatskappye dien ook ‘n nismark (boere) en die verhouding tussen die onderneming en die klante verskil van diè van ander industrieë. Tradisionele klantetevredenheidsnavorsing fokus op die gebruik van die SERVQUALmetode, wat in der waarheid slegs dienskwaliteit toets. Hierdie studie stel dit ten doel om die meetinstrument te vereenvoudig en ook ander klantetevredenheidsaandrywers by te voeg, naamlik tevredenheid rakende prys, produk, personeel, diens en bestuur. ʼn Landbouonderneming bestaan uit verskeie sake-eenhede wat as kleiner ondernemings bestuur word en almal deel van die groter landbou “sambreel”-maatskappy uitmaak. Die hoofoogmerke van hierdie studie is dus om die verhouding tussen die klantetevredenheidsaandrywers (prys, produk, diens, personeel en bestuur) van die onderskeie sake-eenhede te bepaal en dit met die winsgewendheid van hierdie eenhede in verband te bring; en om die impak van hierdie veranderlikes op klantetevredenheid ten opsigte van die maatskappy te bepaal. Die sekondêre empiriese doelwitte van die studie behels om te bepaal watter van die klantetevredenheidsaandrywers die grootste impak op klantetevredenheid ten opsigte van die algehele maatskappy het; watter van die sake-eenhede die grootste impak op algehele tevredenheid het; of die gebruiksfrekwensie van die onderskeie sake-eenhede die algehele tevredenheid met die landbouonderneming beïnvloed; en, laastens, of klante se persepsie rakende die prestasie van die sake-eenhede ʼn invloed op winsgewendheid het. Die studie was kwantitatief van aard en het gebruik gemaak van vraelyste wat per gewone pos na die algehele populasie (bestaande uit die lede van ʼn groot landbouonderneming in Sentraal Suid-Afrika wat meer as R100 000 bydra tot die omset van die landbouonderneming) gestuur is. Altesaam 963 vraelyste is uitgestuur en 345 bruikbare vraelyste is teruggestuur. Die responskoers was dus 35,8%. Die vernaamste resultate toon ʼn statisties beduidende verband tussen tevredenheid ten opsigte van kleinhandelswinkels, versekering en meganisasie (werkswinkels) en algehele klantetevredenheid – wat daarop dui dat om algehele klantetevredenheid te verhoog, tevredenheid ten opsigte van hierdie drie sake-eenhede eerste aandag moet geniet. Produk, diens en tevredenheid met bestuur het as klantetevredenheidsaandrywers al drie ʼn statisties beduidende invloed op algehele klantetevredenheid. Verder, toe die onderskeie aandrywers inherent aan die onderskeie sake-eenhede teen algehele klantetevredenheid getoets is, het die resultate getoon dat daar twee beduidende aandrywers inherent aan ʼn sake-eenheid is, naamlik kleinhandelswinkelproduk en graanbemarkingsprys. Hierbenewens toon statisties beduidende resultate dat die gebruiksfrekwensie van ʼn sake-eenheid die mate van klantetevredenheid weerspieël (behalwe in die geval van kleinhandelswinkels). Elke sake-eenheid se gemiddelde bydrae tot netto wins is oor ʼn tydperk van vyf jaar bereken en met sy gemiddelde prestasie vergelyk. Die grafiek toon ʼn definitiewe korrelasie tussen wins en klantetevredenheid. Kleinhandelswinkels as ʼn sake-eenheid het interessante resultate opgelewer wat aandui dat kleinhandelswinkelpryse, kleinhandelsproduk, kleinhandelswinkelpersoneel en kleinhandelswinkeldiens die grootste impak op al die algehele klantetevredenheidsaandrywers het. Hiervolgens beskou klante kleinhandelswinkels as die “venster” van die landbouonderneming. Respondente is ook gevra om aan te dui wat hulle as die hoofdoelwitte van die landbouonderneming beskou teenoor wat hulle voel die doelwitte behoort te wees. Van groot belang was die beduidende resultate waarvolgens bepaal is dat respondente die doelwitte as synde maatskappygesentreerd waargeneem het, maar gevoel het dat die doelwitte boer-gesentreerd behoort te wees. Daar word spesifiek aanbeveel dat kleinhandelswinkels verbeter word en dat die beskikbaarheid en kwaliteit van kleinhandelswinkels verhoog word om klantetevredenheid te maksimeer.
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    The management of trade credit in small and medium-sized enterprises
    (University of the Free State, 2014) Otto, Werner Henk; Alsemgeest, Liezel
    Afrikaans: Ongeveer 24.5% van die ekonomies aktiewe bevolking in Suid-Afrika is werkloos (Statistiek Suid-Afrika 2009). Suid-Afrika ondervind geweldige inkomste-ongelykhede en hoë vlakke van armoede. Klein-en medium grootte ondernemings (KMOs) is veronderstel om ’n belangrike hulpmiddel te wees om die uitdagings van werkverskaffing en volhoubare ekonomiese groei aan te spreek. Volgens Von Broembsen, Wood en Herrington (2005) se opname is die kanse vir KMOs om te oorleef skraler in Suid-Afrika as in enige ander GEM land. Die wanbestuur van handelskrediet kan ’n moontlike oorsaak vir die KMOs se mislukkings in Suid-Afrika wees. Die hoofdoel van hierdie studie is om die bestuur van handelskredietpraktyke van KMOs vas te stel en sodoende te bepaal of handelskrediet deur KMOs in Suid-Afrika wanbestuur word. Om hierdie doel te bereik, was dit nodig om die (huidige) bestuur van handelskredietpraktyke te bepaal en te illustreer om sodoende vas te stel of KMOs dit moeilik vind om handelskrediet doeltreffend te bestuur en onsuksesvol is om handelskrediet effektief as ’n bron van finansiering aan te wend. Om te verduidelik hoekom KMOs as gevolg van wanbestuur van handelskrediet in hulle eie praktyke misluk, is dit belangrik om die moontlike redes vir die onsuksesvolle bestuur van handelskrediet te verstaan en te verduidelik. Ten einde hierdie doel te bereik, het hierdie studie van ’n e-pos opname gebruik gemaak en is ’n aanlynvraelys as die primêre data-insamelingsinstrument ontwerp. Hierdie aanlyn-vraelys is aan 352 KMO respondente gegee en is ontwerp deur ’n deeglike oorsig van literatuur oor die debiet- en kredietbeleid vir KMOs saam met die besigheidsomgewing en KMOs te volg. Empiriese navorsing is uitgevoer om die bestuur van handelskredietpraktyke van KMOs in Suid-Afrika te bepaal. Die statistiese analises sluit statistiese tegnieke soos beskrywende statistiek, frekwensies, kruistabulering en gemiddeldes in. Daarmee saam is die ooreenstemmende t-toets en die McNemar-toets gebruik om vergelykings tussen die twee verskillende klassifikasiewaardes, naamlik debiteure en krediteure, te tref. Aanbevelings is gemaak om die bestuur van handelskrediet onder KMOs te verbeter. Die bevindinge stel voor dat KMOs van ’n beproefde en gestruktureerde kredietbeleid gebruik maak alvorens handelskrediet aan ’n kliënt toegestaan word, sodat die bestuur van handelskrediet onder KMOs versterk en verbeter word. Verder moet kredietbeleid gestruktureer en opgeskerp word om die doeltreffendheid van KMOs se kredietbeleid te verhoog, veral deur op die relevante kredietkomponente, soos in die kredietbeleid van die KMO uiteengesit word, te fokus. Dit word ook aanbeveel dat KMOs, sover moontlik, moet probeer om nie die betalings uit te stel wat aan ander KMOs of kliënte gemaak moet word nie. Opleiding en kommunikasie kan ook KMO-eienaars help om die konsepte van doeltreffende bestuur van handelskrediet te verstaan. KMO-eienaars kan ook by netwerke inskakel deur seminare by te woon.
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    Small and medium size enterprises' access to external finance in Lesotho
    (University of the Free State, 2014-11) Mokoatleng, Mpho Armistice; Alsemgeest, Liezel
    The objective of this study is to identify the main obstacles to SMEs’ access to external finance in Lesotho. The research is conducted against a backdrop of access to external finance continuing to be a significant challenge for SMEs, resulting in their failure to continue operations, grow or maintain competitiveness. The lack of access to finance by SMEs is highly pertinent – especially for a least-developed country like Lesotho – as it not only constrains SMEs growth and success, but also hampers the economic growth and development of countries. An empirical research was conducted using a quantitative approach and nonprobability, convenience sampling technique. The sample size of 82 was drawn from a population of SME owners and managers in Lesotho and the research instrument used was a self-administered questionnaire. The study found that only 50% of the SMEs surveyed have tried to access credit, and personal savings of owners was the leading source of start-up capital. Working capital was the leading reason SMEs needed external finance. Retained earnings remain the leading source of current funding, followed by up to 63.4% of SMEs that still used personal savings of owners as source of current funding. Meanwhile, a majority of SMEs preferred banks as their main source of future funding over other sources. The main demand-side obstacles to access to external finance for SMEs in Lesotho, identified by this research and in order of significance, are; 1) SME owners/managers believe they do not need credit, 2) inadequate cash flow to cover monthly loan repayments, 3) high interest rates and other costs of getting a loan, 4) lack of collateral, 5) equity base that is too small, 6) not wanting to be told how to run their businesses by financiers, 7) lack of the required business plan, 8) lack of information required by financiers, 9) financing is not available at all and, 10) lack of time to understand and complete loan applications.