PurposeThe purpose of this paper is to assess the level of financial literacy and impact on youth entrepreneurship in South Africa.Design/methodology/approachThe paper used both desk research and questionnaire complemented by interview to assess the level of financial literacy among youth entrepreneurs in the Vhembe District of the Limpopo Province, South Africa.FindingsThe paper reveals that financial literacy among youth entrepreneurs in the Vhembe District appears to be above average and contributes meaningfully to their entrepreneurship skills.Research limitations/implicationsFurther research is needed to verify in specific and practical terms, the level and impact of financial literacy on youth entrepreneurs in the Vhembe District.Practical implicationsEducation and training at both high school and tertiary levels with emphasis on financial literacy and entrepreneurial skills may have significant implications for small‐, micro‐, and medium‐sized enterprise development and growth for the youth entrepreneur in general in South Africa.Originality/valueThe paper is the first to examine the level of financial literacy among youth entrepreneurs in the Vhembe District. The paper therefore sets an important benchmark for further research in this area.
Working capital plays a vital role in shareholders’ wealth creation, yet there is a dearth of empirical studies on the relationship between working capital management and firm value in the South African economic environment. This study attempts to fill this gap by using Richards and Laughlin’s (1980) Cash Conversion Cycle theory to investigate the impact of working capital management efficiency and its separate components on firm value of South African firms listed on the Johannesburg Stock Exchange (JSE). Panel data regression methodology was used to analyze accounting data obtained from I-Net Bridge/BFA McGregor for 75 firms for the 10 year period, 2003 to 2012, to determine the nexus between WCM and profitability (proxied by return on assets). The key findings of the study are as follows: 1) there exists a significant positive relationship between firm value and both inventory conversion period and receivables conversion period; 2) the relationship between the cash conversion cycle and firm value is positive but insignificant; 3) there is a significant positive relationship between accounts payable deferral period (PDP) and profitability; 4) firm size and firm value are significantly positively related, and 5) there is a significant negative relationship between leverage and firm value.
The purpose of the study was twofold: to examine the relationship between financial literacy and demographic and other socioeconomic factors of a sample of undergraduate students; and to evaluate how undergraduate students' financial knowledge correlate with their attitude and behavior towards personal finance issues. A structured questionnaire was used to collect data and logistic regression and Chi-Square statistical procedures were employed to analyse the data using the Statistical Package for Social Scientists (SPSS) software. Overall, this pilot study reveals that Bachelor of Commerce(Accounting) students at the University of Venda are not as financially literate as expected, confirming the findings of similar studies conducted on South African university students (Kotzè and Smidt, 2008). There is therefore the necessity to review the academic curriculum in the Bachelor of Commerce programme to include money management course. Furthermore, with more South African university students likely to depend on bank loans to finance their education, it is recommended that financial literacy be made a compulsory course in all undergraduate programmes in South African universities.
Abstract. The study investigated the socio-economic impact of religious tourism (UAAC gathering) on the local tourism industry and on surrounding rural communities in Vhembe District Municipality (VDM) of South Africa. Questionnaires were used to collect data on pilgrims (visitors), businesses, and residents during, and immediately after the event. Statistical techniques were used to analyse the data to gain insight into the data as basis for answering the research questions posed in this study. The results revealed that majority of the pilgrims to the UAAC gathering were from the host province of Limpopo. Also, most pilgrims travel to the pilgrimage site solely for religious reasons. Another significant finding is that the average spending per pilgrim by pilgrims from the rest of South Africa is larger than their Limpopo and foreign pilgrim counterparts. Furthermore, the results showed that while businesses were positive about the pilgrimage's contribution to increased sales from their businesses, they at the same time opined that the event does not generate any additional employment. This could be because out of every R100 of pilgrims spending only R2.16 remains in the local economy through leakages. Finally an important finding of the study is overall consensus among residents that the annual pilgrimage gathering promotes morality, improved socialization as well as a sense of feeling good and proud of their community.
The study used the Markov regime switching model to investigate the presence of regimes in the volatility dynamics of the returns of JSE All-Share Index (ALSI). Volatility regimes are as a result of sudden changes in the underlying economy generating the market returns. In all, twelve candidate models were fitted to the data. Estimates from the regime switching model were compared to the industry standard non-switching GARCH (1,1) using the Deviance Information Criteria (DIC). The results show that the two-regime switching EGARCH model with skewed Student t innovations describes better the return of the JSE Index. Additionally, we backtest the model results in order to confirm our findings that the two-regime switching EGARCH is the best of the models for the sample period.
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