Financial literacy has been identified in previous studies as an area that has not been researched extensively in South Africa. This is particularly true for the working class of black South Africans, who have been previously disadvantaged and were excluded from the mainstream economy and financial services under the apartheid regime. Lower savings and over-indebtedness in this group can be attributed to lower levels of financial literacy. The aim of this study is to examine financial literacy of black South Africans with a commerce tertiary qualification working in Pretoria and Johannesburg, based on descriptive research and structured questionnaires. In total, 171 participants who work in different sectors of the economy and who live in Gauteng were surveyed. The study found that although people with a commerce tertiary qualification are more financially literate than those with non-commerce tertiary qualification, black South Africans nevertheless are less financially literate than their coloured, Indian and white counterparts. Additionally, financial literacy is a significant predictor of individuals’ saving habits.
Background: Executive compensation has become a controversial topic globally. Recent and past incidents of labour unrest, including those that plagued the South African mining sector in 2012, highlighted the level of controversy on the subject. Purpose: The purpose of this study was to investigate the relationship between executive compensation and company performance in the mining sector of the Johannesburg Stock Exchange (JSE). Methodology: The study was quantitative in nature and used purposive sampling in selecting 28 mining companies listed on the JSE. Estimated generalised least squares (EGLS) and seemingly unrelated regression (SUR) were used to analyse unbalanced panel data spanning from 2007 to 2018. Findings: The results show that there is no relationship between executive compensation and market value added (MVA), revenue growth (RG), return on assets (ROA), and return on equity (ROE) both before and after the Marikana event. In the period before the Marikana event, 2007–2012, economic value added (EVA), share price (SP) and total assets (TA) were statistically significant in explaining variability in executive compensation. However, in the post-Marikana period, 2013–2018, only the TA and earnings per share (EPS) are statistically significant in explaining the variability in executive compensation. Value: This study offers a practical contribution to policy makers and practitioners on pertinent performance measures that can aid in minimising agency costs when designing executive compensation plans.
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