Influence of strike action on South Africa s credit rating by global rating agencies
dc.contributor.advisor | Gildenhuys, Annelie | en |
dc.contributor.email | ichelp@gibs.co.za | en |
dc.contributor.postgraduate | Cock, Craig | en |
dc.date.accessioned | 2016-05-04T13:46:01Z | |
dc.date.available | 2016-05-04T13:46:01Z | |
dc.date.created | 2016-03-30 | en |
dc.date.issued | 2015 | en |
dc.description | Mini Dissertation (MBA)--University of Pretoria, 2015. | en |
dc.description.abstract | The growing importance of Credit agency rating in the economic indicators for a country necessitates investigating the impact of various indicators on credit agency ratings. South Africa is a country which has experienced an increase in prolonged, violent and unprotected strike action. This study aimed to determine the impact of this labour relations action on the country s credit ratings over the last 15 years and the consequent related economic factors. Credit rating agencies do not specifically identify strike actions as a key indicator nor do they indicate which indicators dictate the outcome of the ratings granted. Twelve indicators were measured using a quantitative approve of hypothesis and statistical modeling. The study used the interrelated database of The Department of Labour, The PRS Group, Stats SA and studies by Hammer, Kogan, & Lejeune as well as the published indicators of Standard & Poor s, Moodys and Fitch. This study further used the scatter plots and t - tests to determine the relationship between the indicators and strike action. These were correlated using Pearson s correlation theory in order to substantiate the findings of the scatter plot and t test. Strike action was found to have an effect on the ratings granted. Eight of the twelve indicators correlated negatively with ratings of Standard & Poors indicating that if strike action increased ratings would downgrade. Strike action plays a fundament role in the outcome of ratings granted. This is due to the effect strike action has on the driving indicators. Wages lost during strike action has a 99% correlation with the fluctuation of ratings granted. Ratings determining interest rates and the amount of foreign direct investment into South Africa. With the results as indicated, South Africa s government needs to re-evaluate the significance of strike action as a legal for of resolution and the parameters dictating it. Alternative means need to be explored that supports the growth of South Africa for it to transition from a developing country into an advanced economy. | en |
dc.description.availability | Unrestricted | en |
dc.description.degree | MBA | en |
dc.description.department | Gordon Institute of Business Science (GIBS) | en |
dc.description.librarian | sn2016 | en |
dc.identifier.citation | Cock, C 2015, Influence of strike action on South Africa s credit rating by global rating agencies, MBA Mini-dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/52371> | en |
dc.identifier.other | GIBS | en |
dc.identifier.uri | http://hdl.handle.net/2263/52371 | |
dc.language.iso | en | en |
dc.publisher | University of Pretoria | en_ZA |
dc.rights | © 2016 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. | en |
dc.subject | UCTD | en |
dc.title | Influence of strike action on South Africa s credit rating by global rating agencies | en |
dc.type | Mini Dissertation | en |
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