Michael Fakoya

The study examines the influence of investment in hazardous solid waste reduction on companies' financial performance. The challenge is that investment in hazardous solid waste reduction is traditionally considered an unnecessary cost to companies, with investors critical of such an undertaking because they perceive it to have insignificant or no returns. The study sampled 64 mining and manufacturing companies listed on the Social Responsibility Investment Index of the Johannesburg Stock Exchange from 2008 to 2017. Using Panel Data analysis, the results indicate that any investment in hazardous solid waste of the sampled companies is too insignificant to explain the changes in return on assets. The results, however , show that the current ratio is sufficiently significant to influence the return on assets. The results indicate that hazardous solid waste disposal through targeted investment decreases the risk of future liabilities, for instance, environmental litigation, strikes and fines for environmental damage, and could significantly affect the return on assets. The results suggest that hazardous solid waste reduction requires a substantial long-term financial commitment for process change. An example of one such process change is the complete automation for improved efficiency. A short-term approach is ultimately detrimental to tackling long-term hazardous solid waste reduction issues.

We identified the deficiency in the conventional accounting system in capturing water-loss-related information and its effect on cost-saving decisions in a water utility in South Africa. We employed the material flow cost accounting (MFCA) model in the case of the Doorndraai Water Treatment Scheme to highlight inefficient phases of the water purification processes for the manager to identify opportunities for corrective action. Findings reveal that the inability of the conventional accounting system in accurately capturing water loss information limits the scheme manager's ability to recognize cost-saving opportunities. Consequently, we found that the implementation of the material flow cost accounting (MFCA) model identified the pumping process as a major contributor to the water scheme's daily operating loss because of the pumping machine's low capacitor. Besides, this pumping machine has been in operation for about five years, an indication that the water scheme had been operating at a loss daily for a number of years. Thus, we suggested that the water scheme should invest in procuring a more suitable pumping device to reduce the huge electricity cost incurred daily by the Doorndraai Water Treatment Scheme. Besides this, the paper extended the implementation of the MFCA by providing an example of how the managerial accounting system can support environmental and economic sustainability in water purification processes. Thus, we reiterate that one way of effectively managing water resources is to appropriately capture the volume of water loss and water-purification-related costs to improve its efficiency.

The challenge of water pricing by water treatment schemes is related to the inability of the
traditional cost accounting method to provide enough water purification-related cost information
to assist water scheme managers in making informed water management decisions.
We adopted the material flow cost accounting (MFCA) model to capture water purification-
related costs in highlighting inefficiencies in the water purification process and to adequately
align other systems’ cost to the cost of water loss for effective water management
decisions. We conducted a case study of the Politsi Water Treatment Scheme (PWTS) in
South Africa to assist the management in making informed water management decisions by
revealing inefficient processes, water loss volume and corresponding costs. Findings reveal
that the water scheme is operating at a loss because of high water purification overhead
costs. Furthermore, we found that the current input–output measurement approach used
at PWTS is substantially inefficient in capturing water loss and water-related costs during
purification. We recommend that the adoption of the MFCA model by Politsi should not
be intended as a one-off project but should be gradually integrated into the existing system
to realise consistent improvement in determining the volume of water loss and its related
costs information for effective decision-making.

This study investigates the causal effect of education policy on female’s decisionmaking
in Nigeria using the change in the length of the year of schooling
completed as the source of identification of the running variable, age. The
Nigerian government increased secondary schooling years from five to six as a
way of improving the quality of education under a policy transformation system.
The change in the Nigeria education system affected secondary school candidates’
especially those that were born from 1972 onward. Using the Nigerian
Demographic Health Survey (DHS) 2013 and a nonparametric regression discontinuity
(RD) design, we exploit the effect of education for females born before 1972 as the cutoff point and gender gap in the labor market. The study shows that
education policy improves female’s decision-making in Nigeria, on the average.
The elongated education policy seems to have increased the year of schooling,
which might explain a negative effect on the female labor market participation
because of school dropout. This paper contributes to the methodological application
and importance of female education in economic development of Africa
evidence from Nigeria.

There have been many corporate collapses and financial crises in recent years linked to a lack of effective corporate governance. The South African King IV Code of Corporate Governance recommends that corporate governing bodies should be comprised of an appropriate balance of knowledge, diversity, and independence for discharging their duties objectively and more efficiently. This study examines the effect of corporate governance structures on firm financial performance. The secondary data of selected Johannesburg Stock Exchange (JSE), Socially Responsible Investment (SRI) Index-listed mining firms' sustainability reports, and integrated annual financial statements are used. Using panel data analysis of the random effects model, we determined the relationship between board independence and board size and the return on equity (ROE) for the period 2010–2015. Results indicate a weak negative correlation between ROE and board size, and a weak, but positive, correlation between ROE and board independence. Additionally, there is a positive, but weak, correlation between ROE and sales growth, but a negative and weak relationship between ROE and firm size. The study suggests that effective corporate governance through a small effective board and monitoring by an independent board result in increased firm financial performance. We recommend that South African companies see compliance with the recommendations of the King IV Code on Corporate Governance not as a liability, but an ethical investment that may likely yield financial benefit in the long-term. Although complying with corporate governance principles does not necessarily translate into a significant economic benefit, firms should, however, continue to adopt corporate governance for ethical reasons to meet stakeholder's social and environmental needs for sustainable development.

This paper report findings from a pilot study in a micro-brewery that demonstrates the adoption of the MFCA model to capture adequate waste-cost information to support and improve waste-reduction decisions. While studies have shown that applying MFCA is a relevant tool in providing both financial and non-financial waste information for improving waste-reduction decisions in large- and medium-sized organizations, its adoption in a micro-brewery set-up is lacking. Findings reveal that the MFCA model can be adopted within different management systems to improve waste-reduction decision and cost savings. A significant implication for practice is the potential to adopt the MFCA model under different organizational circumstances that generally do not support systematically structured management approaches. A major significance of the findings in this study serves to focus the attention of owner–managers in micro-business circumstances on the management of product material and energy losses as well as the inclusion of certain production processes costs in product cost.

The implementation of a carbon-tax policy comes with the burden for manufacturers to invest in renewable energy initiatives to reduce carbon emissions. Conversely, the objective of creating adequate return on investment by organizations and carbon emissions reduction are in fundamental conflict, thus placing the expectation of a carbon tax policy to spur investments in renewable energy under threat. This paper seeks to discuss current carbon emissions reduction practices in South Africa through renewable energy-related lens to understand the motivation for organizations to invest in renewable energy technologies; and then goes on to illustrate the essence of the problem of a forced carbon emissions reduction through the reporting of a new analysis of data from secondary sources. The paper works from the premise that (a) the implementation of a carbon tax policy is typically based on the implicit assumptions that it will promote investments among industrial concerns in renewable energy; and (b) that the implementation of a carbon tax to reduce carbon emissions is in fundamental conflict with firms' objective of return on investment. The paper suggests that achieving low-carbon industrialization requires that the government establishes a secure long-term investment that will increase the scale of production and installation of low-carbon technologies and infrastructural developments. The paper concludes that, for investments in cleaner energy technologies to be successful, such emissions' reduction should contribute significantly to reducing total global emissions and, in relation to investing organizations, to generate adequate return to shareholders.

Over the years, the failure patterns of repeating students of Bachelor of Accounting among South African universities have become more noticeable and a concern to both academics and administrators alike. The paper identifies and determinesthe potential failure pattern that leads to the occurrence of failure of this group of students and suggests changes on curriculum design or teaching, learning and assessment methods so as to achieve best performance. Accordingly, using a deductive analysis approach that utilises the Failure Mode and Effects Analysis (FMEA) tool to analyse the results of an in-depth interview conducted among accounting academic staffs and studentsat a historically disadvantaged university in South Africa. Analysis showed that the failure patterns were significantly similar, significantly more reliable, and significantly more discernible on the risk of the repeated failures.

This study provides a conceptual thought on whether the proposed carbon tax in South Africa is appropriate at this time of economic recession and the likely implication for economic growth and unemployment. This study identifies and discusses three critical issues that are likely to impact on economic growth and unemployment when implementing a carbon tax policy. First, a carbon tax may worsen the apparent slow growth of the South African economy and unemployment. Second, a carbon tax is not likely to reduce global warming judging from the experience of other countries that have implemented a carbon tax. Third, proposed revenue neutrality and granting of carbon tax holidays to selected companies may become unrealistic. This study preferred a mix of qualitative and quantitative exploratory research method which involves relevant review of literature where themes relevant to current debate on the proposed carbon tax in South Africa are reviewed. The study recommends that policy makers should be fully aware of such issues in carbon tax policy that could threaten a host of businesses's bottom line.

While environmental regulations are designed to ensure that organizations comply with minimum environmental standards, organizations may be compelled to pay penalties if they exceed the set standard. This study provides explanations on the effectiveness of a forced internalization of external environmental cost in a brewery in South Africa. A review of relevant literature indicates the apathy of organizations to internalize environmental costs. To see whether this apathy still holds, this paper uses the contingency theory approach to management accounting to analyze a case study on the effectiveness of forced internalization of brewery wastewater treatment cost by a municipality in South Africa. Findings reveal that the policy forced brewery managers to develop a waste-reduction strategy to improve production efficiency while limiting the volume of brewery wastewater and chemical oxygen demand emissions discharged to municipal waste treatment plant. A significant implication of this study is the forced internalization of wastewater treatment cost and the use of resources more efficiently and sustainably in production by the brewery as a result of the municipality’s policy to demand extra fees when agreed minimum wastewater discharges are exceeded. The importance of this policy is that it brought about improvements to the environmental, social, and economic performances of the brewery. The study suggests that environmental regulators should look beyond mere regulatory and monitoring roles to formulate policies to ensure that organizations take responsibility for external environmental costs they have created.