Search results

1 – 10 of over 18000
To view the access options for this content please click here
Book part
Publication date: 26 November 2014

Kimberly M. Ellis and Phyllis Y. Keys

To explain for doctoral students and new faculty, the appropriate techniques for using event study methods while identifying problems that make the method difficult for…

Abstract

Purpose

To explain for doctoral students and new faculty, the appropriate techniques for using event study methods while identifying problems that make the method difficult for use in the context of African markets.

Methodology/approach

We review the finance and strategy literature on event studies, provide an illustrative example of the technique, summarize the prior use of the method in research using African samples, and indicate remedies for problems encountered when using the technique in African markets.

Findings

We find limited use of the technique in African markets due to limited data availability which is attributable to problems of infrequent trading, thin markets, and inadequate access to free data.

Research limitations

Our review of the literature on event studies using African data is limited to English-language journals and sources accessible through our library research databases.

Practical implications

More often, researchers will need to use nonparametric techniques to evaluate market responses for companies in or events affecting the African markets.

Originality/value of the chapter

We make a contribution with this chapter by giving a more detailed description of event study methods and by identifying solutions to problems in using the technique in African markets.

Details

Advancing Research Methodology in the African Context: Techniques, Methods, and Designs
Type: Book
ISBN: 978-1-78441-489-4

Keywords

To view the access options for this content please click here
Article
Publication date: 5 November 2018

Henry Agyei-Boapeah and Michael Machokoto

The purpose of this paper is to examine how managers of African firms, operating in environments characterised by less developed capital markets and weak institutional…

Abstract

Purpose

The purpose of this paper is to examine how managers of African firms, operating in environments characterised by less developed capital markets and weak institutional structures, make use of their internally generated cash flows.

Design/methodology/approach

The authors use a panel data methodology which regresses a particular use of cash flow (e.g. capital expenditure) on the internally generated operating cash flow of a firm and a set of control variables. The estimation of the regression model is done by ordinary least squares regressions. For robustness, the authors also estimate the models using system generalised method of moments to control for endogeneity and measurement error problems.

Findings

The authors find that managers of African firms hold most of their internally generated cash flows, and when they decide to spend, they allocate a higher proportion towards dividend payments; followed by debt adjustments; then to investments; and lastly, to equity repurchases.

Research limitations/implications

The findings are consistent with the existence of a significant financial constraint in African markets, and the use of dividends to signal credit quality in relatively underdeveloped capital markets.

Originality/value

The authors provide a more extensive analysis of how a firm spends a unit of the incremental cash flow it generates. In particular, the analysis shows that beyond investments in capital expenditure, other cash flow uses (i.e. cash holdings, dividend payments, and adjustments in debt and equity capital) which have been largely overlooked in the literature are important to understanding the effects of financial constraints on corporate decisions. Also, the early empirical evidence on the cash flow allocations of African firms could be a step in the right direction in informing theory development in this area.

Details

Journal of Accounting in Emerging Economies, vol. 8 no. 4
Type: Research Article
ISSN: 2042-1168

Keywords

To view the access options for this content please click here
Article
Publication date: 4 December 2017

Weimu You, Asta Salmi and Katri Kauppi

This paper aims to analyze the roles that African suppliers play in global value chains and the strategies that foreign firms adopt to integrate African firms into their…

Abstract

Purpose

This paper aims to analyze the roles that African suppliers play in global value chains and the strategies that foreign firms adopt to integrate African firms into their supply chains.

Design/methodology/approach

The empirical research of this paper is based on a multiple case study and on interview data of foreign buyers and their entry into African supply markets: five Finnish companies and five Chinese companies were interviewed in 2014-2015.

Findings

The authors find that Finnish firms make relatively small investments and start sourcing operations on a small scale, whereas Chinese firms are running large infrastructural projects, relying on local sourcing. African firms typically only play modest roles with little value capture in the chain, supplying raw materials and simple products. The African infrastructural and cultural context makes it challenging for foreign firms to provide local suppliers with more strategic roles in their chains, thus hindering integration of local firms into global value chains.

Originality/value

This paper is one of the first to offer a comparison of Finnish (Western) and Chinese (other emerging economy) firms’ sourcing from Africa and provides understanding of the role of African suppliers in current value chains. The authors offer a qualitative exploration of why companies invest in African suppliers and of the scope of African presence in global value chains.

Details

critical perspectives on international business, vol. 14 no. 2/3
Type: Research Article
ISSN: 1742-2043

Keywords

To view the access options for this content please click here
Article
Publication date: 26 August 2014

Kaja Tvedten, Michael Wendelboe Hansen and Søren Jeppesen

In light of recent enthusiasm over African private sector development, the purpose of this paper is to review the business literature on African enterprise development…

Downloads
2732

Abstract

Purpose

In light of recent enthusiasm over African private sector development, the purpose of this paper is to review the business literature on African enterprise development with a view of identifying lacunas in the literature and of developing an analytical framework that may guide future research on this issue.

Design/methodology/approach

The paper provides a review of the extant literature on African enterprise development by juxtaposing the traditional pessimistic view of African business performance with more recent, optimistic accounts. Based on the literature review, lacunas in the literature are identified and an integrative framework for analysing African enterprise development is developed. The framework is used to provide an overview of the received literature on African enterprise development, to identify voids and lacunas and to identify new research agendas.

Findings

While a growing number of studies suggest profound improvements in the performance of African enterprises, data limitations, conceptual ambiguities and absence of comprehensive studies still cautions against sweeping generalizations. The paper reviews the literature on factors shaping the performance of African enterprises, observing that while much research is focusing on the role of the African business environments for enterprise development, much less attention has been devoted to the role of firm-specific capabilities, strategies and management. The paper concludes by advocating a contingency approach to research on African enterprise development that emphasizes the interplay between firm-specific factors and the specificities of the African business environment.

Originality/value

The paper provides a comprehensive literature review on African enterprise development and presents a novel framework for understanding African enterprise development from a business perspective.

Details

African Journal of Economic and Management Studies, vol. 5 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 2013

Delmonize A. Smith and Zhi Tang

The purpose of this paper is to gain an understanding of the growth performance of top African American‐owned employer firms when compared with their White counterparts.

Downloads
617

Abstract

Purpose

The purpose of this paper is to gain an understanding of the growth performance of top African American‐owned employer firms when compared with their White counterparts.

Design/methodology/approach

The paper uses longitudinal, revenue data from a sample of the largest African American‐owned employer firms in the USA with that of a comparable sample of White‐owned firms.

Findings

The paper finds that complex and volatile industry environments have a significantly greater negative impact on African American businesses than their White‐owned counterparts.

Social implications

The complexity and volatility associated with one of the most difficult US business environments since the 1940s may increase the performance disparity between established African American and White‐owned firms. On a macroeconomic level, such a performance disparity will have significant negative impact on US economy output and job creation, particularly as the number of new minority businesses continues to outpace the rate of all US business.

Originality/value

This is the only published research to date, which examines the growth of top African American businesses.

Details

Management Decision, vol. 51 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

To view the access options for this content please click here
Article
Publication date: 16 July 2021

Olayinka Adedayo Erin and Omololu Adex Bamigboye

The 2030 Agenda and the sustainable development goals (SDG) have gained considerable attention in research and public debate. This calls for accounting research on the…

Abstract

Purpose

The 2030 Agenda and the sustainable development goals (SDG) have gained considerable attention in research and public debate. This calls for accounting research on the subject of SDG disclosure. Based on this premise, this paper aims to evaluate and analyze the extent of SDG reporting by 80 listed firms from 8 selected African countries for the period of 2016 to 2018.

Design/methodology/approach

The study adopts a content analysis and survey method to evaluate the extent of SDG reporting by the selected African countries. This paper conducted content analysis through the use of the PricewaterhouseCoopers (PwC) framework and Global Reporting Initiative (GRI) framework to gauge the extent of firms’ compliance with SDG reporting. Also, this paper uses the business reporting indicators for each SDG developed by GRI to determine the compliance level of the selected firms regarding SDG reporting. The survey was targeted at the big four audit firms (PwC, KPMG, Ernst and Young and Deloitte and Touche).

Findings

The evaluation of SDG disclosure by the 80 listed firms in Africa is still at a very low level except for South African firms. Also, the findings of the business reporting indicators for each SDG target show that most of the firms show little or no concern to report on SDG activities. The result of the research survey indicates that voluntary disclosure, lack of management commitment, lack of regulatory enforcement and cost implications account for low SDG disclosure by the selected African firms.

Research limitations/implications

This study fails to consider the qualitative research approach in determining the extent of SDG disclosure in Africa, as the study did not allow respondents to freely express their opinion on SDG disclosure, as a large part of the survey used close-ended questionnaires.

Practical implications

This study’s findings call for clear responsibility and a strong drive for SDG performance from corporate institutions in Africa. While the overall responsibility rests on the government, the actualization of SDG cannot be achieved without support from corporate organizations. The empirical approach used in this study emphasizes the need for corporate organizations to embrace sustainable practices and to integrate SDG information into their reporting cycle.

Originality/value

This study contributes to growing literature in the area of corporate reporting, sustainability reporting and SDG research in Africa and other emerging economies. Also, this study provides original insight into the contribution of accounting research toward the achievement of SDG.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

To view the access options for this content please click here
Article
Publication date: 24 April 2020

Zara Hammerschlag, Geoff Bick and John Manuel Luiz

The purpose of this study is to explore how African fintech firms adapt their marketing strategies for successful market expansion into new African countries.

Abstract

Purpose

The purpose of this study is to explore how African fintech firms adapt their marketing strategies for successful market expansion into new African countries.

Design/methodology/approach

This exploratory study is qualitative in nature and utilizes semi-structured interviews at 14 African fintech firms.

Findings

The study reveals that, during intra-Africa expansion, firms adapt their marketing strategies by working with local people, prioritizing customer education, creating personal relationships with customers, adapting their communication strategies and pricing strategies and using social media. The strategies that have been most effective involve including the community in the marketing process, prioritizing relationships, segmenting customers geographically, educating customers about products, using local distribution partners and having a flexible approach to strategy adaptation.

Practical implications

It has been argued that technological innovation in Africa in areas such as financial services is a critical driver of its future development, because of the opportunity it presents to promote financial inclusion. Through an increase in venture capital investment on the continent, technological innovations in financial services have grown exponentially, and this study contributes to the understanding of the marketing strategies employed to gain market traction.

Originality/value

This study proposes that African fintech firms adopt a bottom-up, value proposition-driven marketing strategy to successfully navigate the environment. The proposed framework provides a lens through which to understand the components of successful strategy adaptation in Africa, against the backdrop of the unique market challenges inherent in this emerging market continent.

Details

International Marketing Review, vol. 37 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article
Publication date: 12 March 2018

Edson Vengesai and Farai Kwenda

The purpose of this paper is to explore the impact of leverage on firms’ discretionary investment in Africa.

Abstract

Purpose

The purpose of this paper is to explore the impact of leverage on firms’ discretionary investment in Africa.

Design/methodology/approach

The authors employ a dynamic panel data model estimated with generalised method of moments (GMM) estimation techniques on the panel data of listed African non-financial firms. A dynamic model and the generalised methods of moments estimations are handy in controlling for unobserved heterogeneity, endogeneity, autocorrelation, heteroscedasticity, etc.

Findings

In spite of different settings, markets, leverage levels and methodologies, the authors found evidence that leverage constrains investment in African firms. The negative impact is more pronounced in firms with low-growth opportunities than in firms with high-growth opportunities. The results are inclined to the theory that leverage plays a disciplinary role to avoid overinvestment.

Research limitations/implications

African firms’ investment policy does not solely depend on the neoclassical fundamentals determinants of profitability, net worth and cash flows. Financing strategy also has a considerable bearing on the investment policy. The results provide evidence that leverage is a negative externality to the firm’s discretional investment policy for both lowly levered and highly leveraged firms. African firms’ should consider maintaining their low debt levels and rely more on internally generated funds so as not to suppress any available cash flows to interest payments and loan covenants from debt holders.

Originality/value

The study contributes to the literature on investment and financial leverage by the authors providing evidence from Africa, a developing continent, that has not been explored. It shows how conservative leverage levels of African firms, which have been reported to be rising, are impacting on investments. Pertaining to empirical methodology, the authors employ a dynamic panel data model, the GMM estimation technique, which is robust in controlling endogeneity, and a possible bi-directional causality between leverage and investment which have not been used in literature. The study also enables a comparison of the effect of high leverage and low leverage on firm’s discretional investment.

Details

African Journal of Economic and Management Studies, vol. 9 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

To view the access options for this content please click here
Article
Publication date: 27 August 2019

Geoffrey Wood and Christine Bischoff

The central purpose of this paper is to explore how implicit knowledge capabilities and sharing helps secure organizational survival and success. This article explores the…

Abstract

Purpose

The central purpose of this paper is to explore how implicit knowledge capabilities and sharing helps secure organizational survival and success. This article explores the challenging in better management knowledge in the South African clothing and textile industry. In moving from a closed protected market supported by active industrial policy, South African manufacturing has faced intense competition from abroad. The ending of apartheid removed a major source of workplace tension, facilitating the adoption of higher value-added production paradigms. However, most South African clothing and textile firms have battled to cope, given cutthroat international competition. The authors focus on firms that have accorded particularly detailed attention to two instances characterized by innovative knowledge management. The authors highlight how circumstances may impose constraints and challenges and how they paradoxically also create opportunities, which may enable firms to survive and thrive through the recognition and utilization of informal knowledge, both individual and collective.

Design/methodology/approach

This study is based on in-depth interviews, primary company and industry association and secondary documents.

Findings

The study highlights how successful firms implemented systems, policies and practices for the better capturing and utilization of external and internal knowledge. In terms of the former, a move toward fast fashion required and drove far-reaching organizational restructuring and change. This made for a greater integration of knowledge through the value chain, ranging from design to retail. Successful firms also owed their survival to the recognition and usage of internal informal knowledge. At the same time this process was not without tensions and paradoxes, and the findings suggest that many of the solutions followed a process of experimentation. The latter is in sharp contrast to many South African manufacturers, who, with the global articulation of production networks, have lost valuable knowledge on suppliers and their practices. At the same time, both firms have to contend with an increasingly unpredictable international environment.

Research limitations/implications

At a theoretical level, the study points to the need to see informal knowledge not only in individualistic terms but also as a phenomenon that has collective, and indeed, communitarian features. Again, it highlights the challenges of nurturing and optimizing informal knowledge. It shows how contextual features both constrain and enable this process. It further highlights the extent to which the effective utilization of external knowledge, and rapid responses to external developments, may require a fundamental rethinking of organizational structures and hierarchies. This study focuses on a limited number of dimensions of this in a single national context but could be replicated and extended into other contexts.

Practical implications

The study highlights the relationship between survival, success and how knowledge is managed. This involved harnessing the informal knowledge and capabilities of workforce to enhance productivity, in conjunction with improvements in machinery and processes, and a much closer integration of design, supply, production and marketing, underpinned by a more effective usage of IT. Paradoxically, other clothing and textile firms have survived doing the exact opposite – reverting to low value-added cut-and-trim assembly operations. At a policy level, the study highlights how specific features of South African regulation (above all, in terms of job protection), which are often held up as barriers to competiveness, may help sustain the knowledge base of firms.

Social implications

The preservation and creation of jobs in a highly competitive sector was bound up with effective knowledge management. The study also highlighted the mutual interdependence of employers and employees in a context of very high unemployment and how the more effective usage of informal knowledge bound both sides closer.

Originality/value

There is a fairly diverse body of literature on manufacturing in South Africa, and, indeed across the continent; however, much of it has focused on challenges. This study explores relative success stories from a sector that has faced a structural crisis of competitiveness, and as such, has relevance to understanding how firms and industries may cope in highly adverse circumstances.

Details

Journal of Knowledge Management, vol. 24 no. 1
Type: Research Article
ISSN: 1367-3270

Keywords

To view the access options for this content please click here
Article
Publication date: 1 January 2012

Hakim Ben Othman

The purpose of this paper is to examine the impact of the board structure and process disclosure (henceforth BSPD) level on corporate performance, depending on the…

Downloads
1820

Abstract

Purpose

The purpose of this paper is to examine the impact of the board structure and process disclosure (henceforth BSPD) level on corporate performance, depending on the Anglophone vs Francophone business culture prevailing in African emerging markets.

Design/methodology/approach

The BSPD score is measured by searching 220 annual reports (year ended 2006) for information of 35 items provided by S&P's template in 11 emerging markets in Africa. The empirical model builds on multiple regressions and assumes interaction between the Anglophone/Francophone business culture and BSPD level to affect corporate performance.

Findings

African companies from countries having historical links with Great Britain exhibit substantially higher BSPD scores than those from countries having historical links with France. The influence of BSPD level on corporate performance is more pronounced for financial Anglophone African companies than non‐financial Anglophone African companies.

Practical implications

Providing BSPD levels for African emerging markets helps to a better understanding of the board of directors' activity and characteristics that prevail in both Anglophone and Francophone African companies. The implications are potentially useful for regulators, market authorities and standard setters in order to provide new requirements on corporate governance narrative reporting in African emerging markets. BSPD scores obtained for African emerging markets can also serve for comparison with other emerging markets in Asia, Latin America, Eastern Europe and the Middle East.

Originality/value

This paper is one of the first to examine the effect of BSPD level on corporate performance in African emerging markers. This study contributes to asserting the role of Anglophone vs Francophone business culture in shaping the level of disclosure on board structure and activity and its influence on corporate performance in Africa.

Details

Managerial Auditing Journal, vol. 27 no. 2
Type: Research Article
ISSN: 0268-6902

Keywords

1 – 10 of over 18000