scholarly journals Corporate life cycle and dividend payout: A panel data analysis of companies in an emerging market

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Ntungufhadzeni F. Munzhelele ◽  
Hendrik Wolmarans ◽  
John Hall
Keyword(s):  
South Africa ◽  
Life Cycle ◽  
Panel Data ◽  
Emerging Markets ◽  
South African ◽  
Emerging Market ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Dividend Payout ◽  
Life Cycle Hypothesis

Background: The dividend payout policy remains one of the key functional areas of corporate finance because it is through receipt of dividends that shareholders can share in the profits of their investments. Amongst the dividend payout theories that have been developed over the decades, the life-cycle hypothesis has received little attention in research.Aim: The aim of this study was to test the dividend life-cycle hypothesis in the South African contex.Motivation for the study: Justification for this study in the context of South Africa is that there is minimal research in this regard in emerging economies. South Africa presents a good platform for this research because it is amongst the highly regarded emerging markets and this has been confirmed by its representation in Brazil, Russia, India, China and South Africa (BRICS) countries. Hence, results in this regard would shed some light in the form of a relative representation of overall emerging markets trend.Research approach/design and method: A panel data of 119 Johannesburg Stock Exchange (JSE) listed sample companies were used to test the hypothesis during the period 2006–2015. A combination of basic and dynamic panel data estimators was used to analyse the data.Main findings: The study finds that the dividend life-cycle hypothesis is prevalent amongst South African companies. Specifically, it was observed that the considered companies pursuing growth projects paid less dividends. Furthermore, the growth companies have shown to be more aggressive in their pursuit for growth and hence are able to create more value for shareholders than value for companies.Managerial implications: Financial managers will be afforded with enhanced decision alternatives in respect of their fiduciary duties towards the shareholders in respect of maximising value.Conclusion: These results provide a mirror image of those of the developed markets and a good context for future research in the same area in an emerging economy setting.

scholarly journals Financial crisis and capital structure: perspectives from an emerging market economy

2013 ◽  
Vol 11 (4) ◽  
pp. 789-799
Author(s):  
Annalien de Vries
Keyword(s):  
South Africa ◽  
Panel Data ◽  
Financial Crisis ◽  
Capital Structure ◽  
South African ◽  
Market Economy ◽  
Emerging Market ◽  
Negative Effects ◽  
Global Recession ◽  
The Capital Structure

World economies experienced one of the worst recessions in recorded history in 2008. South Africa, as an emerging economy, did not escape the negative effects of the global recession, and, as a result, experienced its first recession in almost two decades. During a recession, firms may need to adjust their capital structure in response to the adverse circumstances. The purpose of this study was to investigate the effect of the South African recession on the capital structure of firms listed on the Johannesburg Securities Exchange (JSE). Panel data methodology was used for this study. The results indicate that the 2008-2009 South African recession did have a significant impact on the capital structure of South African firms and that financial managers actively managed their capital structure to adapt to the new environment and circumstances they were exposed to

scholarly journals Exploring sustainability potentials in vineyards through LCA? Evidence from farming practices in South Africa

2021 ◽  
Author(s):  
V. Russo ◽  
A. E. Strever ◽  
H. J. Ponstein
Keyword(s):  
South Africa ◽  
Life Cycle Assessment ◽  
Life Cycle ◽  
Human Health ◽  
South African ◽  
Wine Grape ◽  
Impact Categories ◽  
Farming Practices ◽  
Manual Labour ◽  
The Impact

Abstract Purpose Following the urgency to curb environmental impacts across all sectors globally, this is the first life cycle assessment of different wine grape farming practices suitable for commercial conventional production in South Africa, aiming at better understanding the potentials to reduce adverse effects on the environment and on human health. Methods An attributional life cycle assessment was conducted on eight different scenarios that reduce the inputs of herbicides and insecticides compared against a business as usual (BAU) scenario. We assess several impact categories based on ReCiPe, namely global warming potential, terrestrial acidification, freshwater eutrophication, terrestrial toxicity, freshwater toxicity, marine toxicity, human carcinogenic toxicity and human non-carcinogenic toxicity, human health and ecosystems. A water footprint assessment based on the AWARE method accounts for potential impacts within the watershed. Results and discussion Results show that in our impact assessment, more sustainable farming practices do not always outperform the BAU scenario, which relies on synthetic fertiliser and agrochemicals. As a main trend, most of the impact categories were dominated by energy requirements of wine grape production in an irrigated vineyard, namely the usage of electricity for irrigation pumps and diesel for agricultural machinery. The most favourable scenario across the impact categories provided a low diesel usage, strongly reduced herbicides and the absence of insecticides as it applied cover crops and an integrated pest management. Pesticides and heavy metals contained in agrochemicals are the main contributors to emissions to soil that affected the toxicity categories and impose a risk on human health, which is particularly relevant for the manual labour-intensive South African wine sector. However, we suggest that impacts of agrochemicals on human health and the environment are undervalued in the assessment. The 70% reduction of toxic agrochemicals such as Glyphosate and Paraquat and the 100% reduction of Chlorpyriphos in vineyards hardly affected the model results for human and ecotoxicity. Our concerns are magnified by the fact that manual labour plays a substantial role in South African vineyards, increasing the exposure of humans to these toxic chemicals at their workplace. Conclusions A more sustainable wine grape production is possible when shifting to integrated grape production practices that reduce the inputs of agrochemicals. Further, improved water and related electricity management through drip irrigation, deficit irrigation and photovoltaic-powered irrigation is recommendable, relieving stress on local water bodies, enhancing drought-preparedness planning and curbing CO2 emissions embodied in products.

scholarly journals Tolerance, Cultural Diversity and Economic Growth: Evidence from Dynamic Panel Data Analysis

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 20
Author(s):  
Osama Alhendi ◽  
József Tóth ◽  
Péter Lengyel ◽  
Péter Balogh
Keyword(s):  
Panel Data ◽  
Cultural Diversity ◽  
English Language ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Social Tolerance ◽  
Solow Model ◽  
Related Equation ◽  
The Impact

This study aims to examine the impact of social tolerance of cultural diversity, and the ability to speak widely spoken languages, on economic performance. Based on the literature, the evidence is still controversial and unclear. Therefore, the study used panel data relating to (99) non-English speaking economies during the time period between 2009 and 2017. Following the augmented Solow model approach, the related equation was expanded, in this study, to include (besides human capital) social tolerance, the English language (as a lingua franca) and the level of openness. The model was estimated using the two-step system GMM approach. The results show that social tolerance of diversity and English language competence have a positive, but insignificant impact on the economy. Regarding policy implications, government and decision-makers can avoid the costs deriving from cultural diversity by adopting democratic and effective institutions that aim to achieve cultural justice and recognition, which, in turn, enhance the level of tolerance, innovation and productivity in the economy. Moreover, to ease intercultural communication within heterogeneous communities, it is necessary to invest in enhancing the quality of second language education which is necessary to make society more tolerant and the country more open to the global economy.

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