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Browsing Research Output by Author "Beneke, J. D."

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    An analysis of capital structures of listed industrial companies in South Africa
    (2016-08) Popoola, Babatunde Adedeji; Beneke, J. D.; Ziemerink, J. E. E.
    This study examines the capital structure theories, specifically the trade-off theory and the pecking order theory. It also analyses the influence of the capital structures choice among 72 listed industrial companies on the Johannesburg Stock Exchange ltd (JSE) in South Africa from 2005-2013 to determine whether these firms follow the trade-off theory or the peckingorder theory. The external database (INET BFA) was used to obtain the data needed for the statistical analysis. From the database, annual standardised financial statements, statement of comprehensive income, cash flow statements, financial ratios, statement of change in equity and the retained earnings to debt ratio of all the listed industrial companies in South Africa from 2005- 2013 were extracted in order to enable the conducted research. A multiple regression and correlation analysis were carried out the with leverage ratio (trade-off theory) and the retained earnings to debt ratio (pecking order theory) as the independent variables and share price as the dependent variable, in order to examine which of the two theories is closely related to share prices in South Africa. Furthermore, a multiple regression and correlation analysis was also done with common shares issued, retained earnings, long-term debt and weighted average cost of capital as the independent variables and share price as dependent variable, to determine if there is a relationship between the capital structure and share prices of the listed industrial company. The results indicated that there were little or no influence of capital structure theory on share prices, the financing practices and the performance of listed companies in South Africa. This indicated that industrial companies in South Africa rarely practice capital structure in accordance with the capital structure theories. Moreover, retained earnings and long-term debt have a positive influence on the performance of listed industrial companies in South Africa from 2005-2013.
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    A comparative analysis of the effective use of transfer pricing policies in multinational manufacturing corporations in Southern Gauteng
    (2016-04) Siewe, Constantain Lendeu; Ziemerink, J. E. E.; Beneke, J. D.
    This study was undertaken to assess the extent to which transfer pricing was effectively used by multinational manufacturing companies operating in the Southern Gauteng region of South Africa. The target participants of the study traded their products across international borders and as such made use of transfer pricing in one way or the other to achieve strategic objectives. Scant research has been undertaken to analyse the degree to which transfer pricing can be used to effectively influence managerial performance. On the other hand there is a wealth of knowledge on the relationship between transfer pricing and taxation. In-depth review of literature showed that even though multinationals formulated their transfer pricing policies to target financial and managerial objectives, self-interest and outside influences tended to hinder the equitable realization of both types of objectives. The study therefore set out to establish whether this is true of Multinational corporations (MNCs) in Southern Gauteng and in the process answer questions about the procedure for formulating transfer pricing policies by these MNCs, the relationship, if any, between transfer pricing and profitability and the use of transfer pricing for performance enhancement and assessment. The study made use of a mixed methods research methodology to collect and analyze data from 45 MNCs operating in the target geographical area. Of the 45 companies, 15 cooperated fully with the study. Data was collected via the use of questionnaires and follow-up face-to-face and/or telephonic interviews. Collected data was analysed using statistical methods including the Chi Square Test, standard deviation, frequency tables and the Kruskal-Wallis H test. The results from the questionnaire and interviews show that there is no universally appropriate Transfer Pricing Policies(TPP) which applies equally to all organizations in all circumstances. Firms are affected by different environmental factors while striving for tax-compliance and value creation. The fear of falling on the wrong side of tax laws is a major driving force behind transfer pricing policies of MNCs. As such other objectives that are managerial in nature become secondary and tend to be neglected if/when they conflict with the primary objective.