Business Master Dissertation Proposal Example

THE INFLUENCE OF PRIVATE EQUITY ON THE PERFORMANCE OF MEDIUM AND LARGE ENTERPRISES IN THE EMERGING MARKET OF SOUTH AFRICA

Describe the topic(s) or issue(s) you wish to investigate for your Dissertation.

These must relate to the subjects that comprise your program of study and must indicate what your aims /objectives/research questions will be.

In this dissertation, the focus will be on the investigation of private equity funds and how they affect financial performance in the emerging market of South Africa through corporate governance. Despite the capital imbalance, which is predominant in most of the emerging markets, there is a need for additional PE investment for continual positive economic growth. Although there is a consistent decline in recent PE investment performance in South Africa, this market can be a good opportunity for the world economy (Mills et al. 2012). The incorporation of PE funding and its impact come up with a most obvious issue whether this investment provides much benefit to the recipient firms. On the other hand, the policymakers and government are usually concerned with a most common question; whether PE funding is necessary at all.

Though PE funding is a subject to allow recipients to gain higher performance, the same can be reduced with the presence of weak institutions in the market. As per the recent scenario in South Africa, the political, social, and economic structures are quite stable which means this is a suitable country for PE investment. Hence, effective performance through PE investment depends on institutional frameworks and stern regulations in the country. Fiske & Ladd (2004) also suggested that institutional framework and strong market regulation offer many opportunities for the company allowing superior performance in developing markets. Most of the studies in PE investigation are based on a review of the literature and not on empirical studies. Therefore, the numerical focus on PE and its financial impact in remaining studies in emerging markets remains unanswered.

However, inadequate protection of investors and legal and regulatory frameworks largely explained most of the problems that occurred in PE investment in most emerging markets (Jaspersen, Aylward, & Sumlinski, 1995). This is because the effect may be different from the experienced ones in developing economies and implications for emerging economies.

Research Aim:

The research aims to identify and investigate the opportunities growing through PE investment and the challenges faced by investors to manage profit.

Research Objectives

• To critically analyze the impact of PE investment on recipient firms in South Africa.
• To critically analyze the effect of corporate governance mechanisms on the financial performance of small and large-sized firms in South Africa.
• To understand the challenges faced by investors in terms of PE investment and profit margin generated.

Research Questions

• How does PE funding affect the financial performances of small and large firms in South Africa?
• How do institutional strength and regulatory law affect the financial performance of firms in South Africa?
• What are the challenges faced by investors in terms of generating profit through PE investment?

What facts or information will you need to gather? How will you access these?

To help with the dissertation will be based on agency theory, institutional theory, transaction cost theory, and corporate governance. Generally publicly traded companies are largely characterized by a lack of single ownership control and the subset of agency theory explains that this lack of control may lead to poor performance.

For the primary data collection process, we will employ cross-sectional data from 2017 from South Africa. Given the relatively unknown nature of the PE industry in South Africa, we will use purposive sampling. The study interviewed 5 fund managers and 25 investee firms. Read more at 'Assignment Help'.

To which subject area(s) is this proposal - in your view -most strongly related?

Name any tutor(s) you think might be appropriate to Supervise your Dissertation.

References

Mills, A., Ataguba, J. E., Akazili, J., Borghi, J., Garshong, B., Makawia, S., ... & McIntyre, D. (2012). Equity in financing and use of health care in Ghana, South Africa, and Tanzania: implications for paths to universal coverage. The Lancet, 380(9837), 126-133.

Fiske, E. B., & Ladd, H. F. (2004). Elusive equity: Education reform in post-apartheid South Africa. Brookings Institution Press.

Jaspersen, F. Z., Aylward, A. H., & Sumlinski, M. A. (1995). Trends in private investment in developing countries: Statistics for 1970-94. The World Bank.

Accounting, Return on Equity

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