Theses and Dissertations (Financial Accounting)
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Item A conceptual framework for trust-based voluntary tax compliance in South Africa(2024-06-26) Mangisa, Lindiwe Wezizwe; Swart, Odette; Pretorius, MarethaSmall and medium-sized enterprises (SMEs) constitute the majority of businesses in emerging economies. However, tax authorities find it challenging to trace SMEs, which results in continuous tax non-compliance. Enforced tax compliance is not always viable because tax authorities are under-resourced versus many existing SMEs. Voluntary tax compliance of SMEs is therefore beneficial for tax authorities. According to the Slippery Slope Framework, voluntary tax compliance improves when there is trust in the tax authority. The purpose of this study was to identify and explore attributes related to trust-based voluntary tax compliance and recommend strategies that may enhance voluntary tax compliance. A qualitative study was undertaken through semi-structured interviews with eight SMEs from the Nelson Mandela Bay Municipality in South Africa. The study found that tax authority legitimacy, procedural and distributive fairness, tax awareness, transparency and communication are attributes of trust in the tax authority that lead to taxpayers trusting the tax authority. Trust in the tax authority positively impacts voluntary tax compliance. It is recommended that the tax authorities treat taxpayers fairly and strive to be seen as competent and transparent. The increased legitimacy of tax authorities influences and improves the tax awareness avenues offered to taxpayers. In addition, the tax authorities may benefit from developing collaborative relationships with various stakeholders to engage taxpayers, specifically SMEs, by providing tax awareness services.Item Moving towards a carbon pricing strategy to leverage the decarbonisation of mining operations in South Africa(2023-11) Makamela, Kgalalelo Constance; Ramfol, Roshelle; Moosa, RuyaidaThe aim of this study was to develop a carbon pricing strategy to accelerate decarbonisation in the mining sector. A qualitative study was conducted to draw policy lessons from comparative analysis of the carbon tax policy regimes of the European Union, Switzerland, Canada and the United Kingdom (UK) in order to establish the carbon pricing strategies that will induce South African miners to invest in renewable energy technologies. A review of South Africa’s carbon tax regime highlights that the policy shortcomings may be attributable to low carbon prices, excessive free emission allowances and continued subsidy support of fossil fuels. The comparative benchmarking exercise indicates that significant decarbonisation occurs when there is a cap of emissions for energy-intensive industries, followed by an emissions trade or a penalty system. Furthermore, the carbon price needs to exceed cost of abatement so as to encourage investment in decarbonisation measures. A net present value simulation determines that a carbon price of ZAR 668.62 per tonne of CO2 would need to be levied in order to incentivise mining entities to invest in solar PV. The current study advances knowledge on carbon pricing within the theoretical underpinnings of Pigou theory of corrective taxes. The study recommends that a fixed CO2 emissions cap that declines yearly ought to be integrated into the South African carbon pricing regime. The carbon emission cap should further be supported by higher carbon prices for emissions exceeding the threshold so as to ensure that the national emission reduction pledges are successfully achieved.Item The moderating role of the audit committee on internal governance and financial sustainability in local government in Ghana(2023-09) Agyemang, Joseph Kwasi; Modisane, Ph.D., Dr. CameronThe need to enhance the financial sustainability of municipalities cannot be overemphasised. Despite the presence of internal governance mechanisms and the mandate of the Metropolitan, Municipal and District Assemblies (MMDAs) to raise revenue internally, they are still not financially sustainable because their internal revenue collection has not increased from previous years. Therefore, the study aimed to develop and propose a framework that incorporates how audit committee attributes can strengthen the relationship between the board of directors and internal auditors' attributes for MMDAs to be financially sustainable. Arguing from the perspectives of agency and resource dependency theories, data covering the period 2016 - 2020 were collected from the Ghana Auditor-General's report of the 207 MMDAs purposively selected to measure the financial sustainability of MMDAs. The study used a census balanced panel data design and survey approach to administer 621 structured questionnaires to the chief audit executives, audit committee, and board of directors' chairpersons in the 207 MMDAs. Data collected were analysed using descriptive statistics and partial least-squares structural equation modeling (PLS-SEM). The findings indicated that all the internal governance variables (board size, board independence, board gender diversity, internal auditor independence, internal audit size, internal auditor competence, audit committee meetings, audit committee independence, and audit committee competence) have a direct significant relationship with financial sustainability. The findings also showed that audit committee meetings moderate the relationship between board size, internal auditor independence, internal auditor competence, and financial sustainability. The findings further showed that audit committee competence moderates the relationship between internal auditor competence and financial sustainability. However, audit committee meetings failed to moderate board independence, board gender diversity, internal audit size, internal audit competence, and financial sustainability significantly. Also, audit committee independence and competence failed to moderate the board of directors and internal audit attributes significantly. iv Based on the findings, the researcher concludes that as part of the processes of reforming the public financial management system and increasing decentralisation in Ghana, this study has proposed a feasible framework. If adopted and implemented, it can improve internal governance mechanisms, and internally generated revenues, which will enhance the financial sustainability of MMDAs.Item The value relevance of integrated reporting in South Africa and the United Kingdom(2022-10-19) Khatlisi, Mbalenhle; De Klerk, M. C.; Koppeschaar, Z. R.In 2013, the International Integrated Reporting Council (IIRC) had a long-term vision that firms across the world would adopt integrated reporting, which would ultimately become a corporate reporting norm. However, nine years later, integrated reporting is still voluntary in most countries, with South Africa being an exception. This study examined the value relevance of integrated reporting in a country which has been considered a leader in integrated reporting, South Africa, and a country that is the home base of IIRC, the United Kingdom. Integrated reporting would be value relevant if it has a predicted association with firm value. The study also investigated whether integrated reports with a high level of integrated reporting in line with the International Integrated Reporting Framework (International Framework) have a different association with firm value, compared to integrated reports with a low level of integrated reporting in each country. The study also tested whether the value relevance of integrated reporting in South Africa is statistically different compared to the value relevance of integrated reporting in the United Kingdom. Agency theory, signalling theory and voluntary disclosure theory formed the theoretical framework that served as a basis to develop testable hypotheses and guide the methodology which was adopted to achieve the research objectives of the study. In this study, a quantitative research method was applied. Ohlson’s (1995) valuation model and Tobin’s Q valuation model were used to test the value relevance of integrated reporting. The measures of firm value used in the study were the market value of equity and Tobin’s Q. The sample of the study consisted of two groups. The first group consisted of the Top 100 firms listed on the Johannesburg Stock Exchange (JSE). Financial and market data for these firms were collected from the JSE and IRESS Research Domain, and other disclosure information was hand-collected from the sources available. The second group consisted of Top 100 firms listed on the London Stock Exchange (LSE) – in other words, the Financial Times Stock Exchange (FTSE) 100 firms. Financial data for these firms were collected from the Refinitiv database; other disclosure information was hand-collected from the sources available. The sample period for both groups ran from 2011 to 2018. An integrated reporting disclosure index based on the guiding principles and content elements of the International Framework was developed in the study and was used to measure the level of integrated reporting. The overall findings for the South African sample showed that integrated reporting was not positively associated with firm value, except for the sample during the King III reporting periods, where a positive association between integrated reporting and firm value was obtained when firm value was proxied by Tobin’s Q. The findings also showed that capital markets in South Africa did not differentiate between integrated reports with a high level of integrated reporting and those with a low level of integrated reporting. For the United Kingdom, the main findings showed that integrated reporting was not positively associated with firm value when firm value was proxied by either the market value of equity or Tobin’s Q. The findings also showed that integrated reports with a low level of integrated reporting in the United Kingdom were negatively associated with firm value when Tobin’s Q was used as a proxy for firm value. The overall results also showed that the association between integrated reporting and firm value in South Africa was not statistically different from the association between integrated reporting and firm value in the United Kingdom. This study extended the literature by examining the value relevance of integrated reporting in the United Kingdom, which is the home base of the IIRC, but which still has voluntary integrated reporting, as well as in South Africa, which has been termed a leader in integrated reporting and has mandatory integrated reporting. In addition, this study also contributes to the body of knowledge by examining whether the regime change from King III to King IV in South Africa had any significant impact on the value relevance of integrated reporting.Item Enhancing services provided by small- and medium accounting practitioners in South Africa(2022-06) Hlakudi, Ramphelane Edward; Coetzee, PhilnaThis study responded to a worldwide call by the International Federation of Accountants (IFAC), a global advocacy body for the accountancy profession, for more research into small and medium practices (SMPs). SMPs, which employ a large number of professional accountants, represent the majority of accountancy practices in the world. South Africa’s National Development Plan indicates that new jobs are likely to be created by growing small and medium enterprises (SMEs). SMPs, as trusted advisors to SMEs, provide important professional services that assist SMEs to become sustainable businesses, and create the jobs required by the local economy. The business advisory needs of SMEs are mainly fulfilled by SMPs, which somehow appear not to understand the former’s needs. Developing an understanding of the relationship between SMPs and SMEs is crucial for the accounting profession, policy makers and the academic community. The study sought to propose a framework for SMPs, to enhance the services they provide to SMEs, viewed through the lens of the theory of the business. A pragmatist paradigm was employed to provide a philosophical foundation for the empirical study, which was mainly inductive and exploratory, as little information on this topic is available in the literature. A mixed methods methodology was used, comprising a literature review, an Interactive Qualitative Analysis (IQA) survey, and the analysis of secondary data. The challenges preventing SMPs from enhancing the services they provide to SMEs were identified via a literature study and explored by means of a survey which garnered the views of SMP owner-practitioners regarding the drivers of these obstacles, while the needs of SMEs were determined by analysing secondary data. The findings of the literature study, IQA survey and secondary analysis were triangulated to inform the development of a framework, with inputs being received from SMP owner-practitioners on the relevance and completeness of the 55 statements included in that framework. This work contributes to the scholarly body of knowledge, the practice of SMPs, and the theory of business, with the identified areas of concern for SMPs being 1) automation/artificial intelligence; 2) keeping up with new regulations and standards; and 3) competition from unqualified accountants/new entrants to the industry.