Browsing by Author "Mhlanga, Richard"

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    An Event Study Of The Zimbabwe Stock Exchange (ZSE): Implications For Post-dollarisation Market Efficiency
    (MCSER Publishing, 2014-03) Chowa, Taonaziso; Nyanhete, Alois I.; Mhlanga, Richard
    This paper investigates the impact of earnings (full-year, half-year and dividend) announcements and cautionary statements on returns of ZSE listed companies post-dollarisation of the economy in 2009. A standard CMRM based event study methodology (EVM) is applied to weekly returns from January 2010 to December 2012. Findings suggest that earnings announcements and cautionary statements have no impact on returns of companies traded on the ZSE characterised by a very weak correlation of between ‘good/bad news’ and the direction of significant CARs. We conclude that alleged insider trading, high costs of trading and market undervaluation make it difficult for EVM to detect abnormal returns, thereby painting picture of compliance with the weak to semi-strong forms of the Efficient Market Hypothesis (EMH).
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    An Investigation of Corporate Financial Strategies Used by Banking Institutions during the Hyper-Inflationary Period in Zimbabwe
    (MCSER Publishing, 2013-11) Mhlanga, Richard; Sibanda, Mabutho
    The corporate investment and financing decision plays a pivotal role in the financial management of firms operating under any economic environment. This paper investigates and analyses corporate financial strategies employed by banking institutions during the hyperinflationary period in Zimbabwe. Descriptive statistics are employed and the results show that activity was high in the market for corporate control between 1997 and 2007. Despite economic meltdown and inflationary trends, evidence suggests that the banking industry in Zimbabwe recorded a phenomenal increase in public listings during the same period. Other capital raising activities like venture capital funding, rights issues and debt finance have also been extensively used by the banking industry. Dividend policy amongst most banking institutions showed a significant decline towards 2007 as banks sought to retain funds to sustain operations. These findings provide a view that firms follow a life cycle in the determination of the optimal investment and financing decisions even when operating in an uncertain environment. The paper concludes by suggesting several strategies to improve financial soundness of banks operating in an inflationary environment.
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    A Review of Foreign Investments Allowance for Pension Funds in Zimbabwe
    (Mediterranean Journal of Social Sciences MCSER Publishing, 2014-05) Chowa, Taonaziso; Mhlanga, Richard
    The hyperinflation era in Zimbabwe (2003-2008) eroded pensioners’ capital values and has seen pre-dollarisation retirees receiving paltry pension payouts from year 2009. We review global trends on foreign investments for pension funds in order to add input to the local debate pitting the Zimbabwe Association of Pension Funds (ZAPF) members against the Insurance and Pensions Commission (IPEC) on whether the Pension and Provident Fund Act [Chapter 24:6] of Zimbabwe should permit foreign/offshore investment. We interview ZAPF members & partners and carry out secondary analysis of data on pension payouts, asset management and life & pensions asset allocations and returns post-dollarisation. Findings reveal that meeting liquidity and diversification goals require allowances for foreign investments. ZAPF members and partners would welcome any level of foreign investments allowance, despite Zimbabwe offering weighted returns that are above those currently obtainable from foreign assets. We conclude that there is lack of confidence in the long-term sustainability of the capital values and returns given that the tenure of the prevailing Multi-Currency System (Dollarisation) is uncertain and hence the need to allow limited foreign investment by pension funds.