Pub Date : 2023-02-23DOI: 10.1080/10291954.2023.2172229
F. Rezazade, S. Minutillo, Nirmal Patel
There is a gap in the literature related to understanding the relationship between outsourcing of accounting functions and financial performance (productivity and cost efficiency) of SMEs. This study examines the relationship between accounting outsourcing and financial performance in terms of cost efficiency and profitability in SMEs operating in Greater Sydney, Australia. An online survey of employees and managers (N = 80) of Australian SMEs using snowball sampling assessed the demographics, accounting outsourcing, organisational profitability, and cost-effectiveness of these SMEs. Data were analysed using linear regression and correlation analyses. The empirical analysis revealed that the outsourcing of tax services was related to a better financial performance of SMEs in terms of both cost efficiency and profitability. The outsourcing of management accounting functions was beneficial to the productivity of SMEs, whereas the outsourcing of general accounting was not related to higher productivity. Collectively, the findings of this study will assist SMEs in identifying resource gaps and the reasons for turning to external accountancy services to close the gaps and improve their financial performance.
{"title":"Accounting outsourcing and its relationship with financial performance of SMEs: Manager and employee perspectives","authors":"F. Rezazade, S. Minutillo, Nirmal Patel","doi":"10.1080/10291954.2023.2172229","DOIUrl":"https://doi.org/10.1080/10291954.2023.2172229","url":null,"abstract":"There is a gap in the literature related to understanding the relationship between outsourcing of accounting functions and financial performance (productivity and cost efficiency) of SMEs. This study examines the relationship between accounting outsourcing and financial performance in terms of cost efficiency and profitability in SMEs operating in Greater Sydney, Australia. An online survey of employees and managers (N = 80) of Australian SMEs using snowball sampling assessed the demographics, accounting outsourcing, organisational profitability, and cost-effectiveness of these SMEs. Data were analysed using linear regression and correlation analyses. The empirical analysis revealed that the outsourcing of tax services was related to a better financial performance of SMEs in terms of both cost efficiency and profitability. The outsourcing of management accounting functions was beneficial to the productivity of SMEs, whereas the outsourcing of general accounting was not related to higher productivity. Collectively, the findings of this study will assist SMEs in identifying resource gaps and the reasons for turning to external accountancy services to close the gaps and improve their financial performance.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"37 1","pages":"106 - 121"},"PeriodicalIF":1.1,"publicationDate":"2023-02-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47585252","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-04DOI: 10.1080/10291954.2022.2148925
E. Terblanche, C. Shuttleworth, A. van Rooyen, R. Masela
{"title":"Critical thinking: Stakeholder expectations and challenges for Accountancy educators","authors":"E. Terblanche, C. Shuttleworth, A. van Rooyen, R. Masela","doi":"10.1080/10291954.2022.2148925","DOIUrl":"https://doi.org/10.1080/10291954.2022.2148925","url":null,"abstract":"","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":" ","pages":""},"PeriodicalIF":1.1,"publicationDate":"2023-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43786287","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-13DOI: 10.1080/10291954.2022.2148887
Maher Jeriji, Ala Nasfi
Sustainability reporting assurance (SRA) ensures the credibility of sustainability information disclosed by companies. This practice has continued to evolve, particularly within regulatory frameworks. The SRA is widespread among the largest French and South African companies because of the requirements of GRENELLE II and KING III laws. The increased regulation of SRA and the increased rate of obtaining assurance motivated us to conduct our study. This study examines the impact of mandatory SRA on firm value. We run a fixed-effects ordinary least squares (OLS) panel model to test our hypothesis for the 2007–2018 period on a sample of 88 South African listed companies on the Johannesburg Stock Exchange (JSE) and 83 French listed companies on the SBF120 index. We use Tobin’s Q to measure firm value. Our results show a significant positive association between mandatory SRA and firm value. This finding implies that SRA regulations positively affect investors’ perceptions of firm performance, particularly firm value, for two reasons. First, mandatory SRA may strengthen firm legitimacy and establish a good reputation. Second, the adoption of SRA regulations plays an important role in reducing asymmetric information between various actors and solving agency problems between managers and shareholders. Regulators may be interested in the findings when considering current and future assurance requirements for sustainability reporting, and shareholders when considering SRA as an investment choice criterion.
{"title":"The value relevance of mandatory sustainability reporting assurance","authors":"Maher Jeriji, Ala Nasfi","doi":"10.1080/10291954.2022.2148887","DOIUrl":"https://doi.org/10.1080/10291954.2022.2148887","url":null,"abstract":"Sustainability reporting assurance (SRA) ensures the credibility of sustainability information disclosed by companies. This practice has continued to evolve, particularly within regulatory frameworks. The SRA is widespread among the largest French and South African companies because of the requirements of GRENELLE II and KING III laws. The increased regulation of SRA and the increased rate of obtaining assurance motivated us to conduct our study. This study examines the impact of mandatory SRA on firm value. We run a fixed-effects ordinary least squares (OLS) panel model to test our hypothesis for the 2007–2018 period on a sample of 88 South African listed companies on the Johannesburg Stock Exchange (JSE) and 83 French listed companies on the SBF120 index. We use Tobin’s Q to measure firm value. Our results show a significant positive association between mandatory SRA and firm value. This finding implies that SRA regulations positively affect investors’ perceptions of firm performance, particularly firm value, for two reasons. First, mandatory SRA may strengthen firm legitimacy and establish a good reputation. Second, the adoption of SRA regulations plays an important role in reducing asymmetric information between various actors and solving agency problems between managers and shareholders. Regulators may be interested in the findings when considering current and future assurance requirements for sustainability reporting, and shareholders when considering SRA as an investment choice criterion.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"37 1","pages":"122 - 138"},"PeriodicalIF":1.1,"publicationDate":"2022-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47657311","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-27DOI: 10.1080/10291954.2022.2143226
N. Rachmawati, S. Utama, Dwi Martani, R. Wardhani
Managers can take advantage of the flexibility of accounting choices to act opportunistically through financial aggressiveness and/or tax aggressiveness. The higher the complementary level of financial and tax aggressiveness, the higher the risk arising from the levels of error or fraudulent reporting carried out by such firms (fraud risk). This study aims to examine the impacts of the complementary level of financial and tax aggressiveness on the cost of debt. We estimate these relationships with a two-stage estimator method using 7 200 firm-year samples from East Asia and Europe for the period 2014 to 2016. In the first stage, a binary logistics model is used to examine the factors that influence the complementary level of financial and tax aggressiveness. Then in the second stage, we use a regression model to examine the effect of the complementary level of financial and tax aggressiveness on the cost of debt. We find that the complementary level of financial and tax aggressiveness has a positive and significant effect on the cost of debt, meaning that the higher the complementary level of financial and tax aggressiveness, the higher the cost of debt faced by firms. Creditors perceive the practice of financial and tax aggressiveness as a significant firm risk, thus tending to increase the cost of the debt they provide.
{"title":"Complementary level of financial and tax aggressiveness and the impact on cost of debt: A cross-country study","authors":"N. Rachmawati, S. Utama, Dwi Martani, R. Wardhani","doi":"10.1080/10291954.2022.2143226","DOIUrl":"https://doi.org/10.1080/10291954.2022.2143226","url":null,"abstract":"Managers can take advantage of the flexibility of accounting choices to act opportunistically through financial aggressiveness and/or tax aggressiveness. The higher the complementary level of financial and tax aggressiveness, the higher the risk arising from the levels of error or fraudulent reporting carried out by such firms (fraud risk). This study aims to examine the impacts of the complementary level of financial and tax aggressiveness on the cost of debt. We estimate these relationships with a two-stage estimator method using 7 200 firm-year samples from East Asia and Europe for the period 2014 to 2016. In the first stage, a binary logistics model is used to examine the factors that influence the complementary level of financial and tax aggressiveness. Then in the second stage, we use a regression model to examine the effect of the complementary level of financial and tax aggressiveness on the cost of debt. We find that the complementary level of financial and tax aggressiveness has a positive and significant effect on the cost of debt, meaning that the higher the complementary level of financial and tax aggressiveness, the higher the cost of debt faced by firms. Creditors perceive the practice of financial and tax aggressiveness as a significant firm risk, thus tending to increase the cost of the debt they provide.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"1 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46434529","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-17DOI: 10.1080/10291954.2022.2128556
Philna Coetzee, L. Erasmus, M. Pududu, S. Malan, Audrey Legodi
Audit committees are often implicated as accomplices in governance failures, or slow to react to findings. The power drivers of public sector audit committee effectiveness in developing countries is an under-researched area. With the progress of developing countries threatened by malfeasance, research on public sector audit committee organisational power, contributes to the conversation on power drivers of public sector audit committee effectiveness in developing countries. The paper identified power drivers, through exploratory induction, that should support South African public sector audit committee effectiveness. Focus group discussions were analysed applying Interactive Qualitative Analysis methodology. The drivers are linked to Kalbers and Fogarty’s study on the power typology of organisational power theory, which posits power as an antecedent to effectiveness. The study concludes that three central themes provide power to the South African public sector audit committees, namely political climate; individual and collective audit committee competence; and the independence of the audit committee. The paper also modestly extends the organisational power theory in respect of the elements of power.
{"title":"The power drivers of public sector audit committee effectiveness","authors":"Philna Coetzee, L. Erasmus, M. Pududu, S. Malan, Audrey Legodi","doi":"10.1080/10291954.2022.2128556","DOIUrl":"https://doi.org/10.1080/10291954.2022.2128556","url":null,"abstract":"Audit committees are often implicated as accomplices in governance failures, or slow to react to findings. The power drivers of public sector audit committee effectiveness in developing countries is an under-researched area. With the progress of developing countries threatened by malfeasance, research on public sector audit committee organisational power, contributes to the conversation on power drivers of public sector audit committee effectiveness in developing countries. The paper identified power drivers, through exploratory induction, that should support South African public sector audit committee effectiveness. Focus group discussions were analysed applying Interactive Qualitative Analysis methodology. The drivers are linked to Kalbers and Fogarty’s study on the power typology of organisational power theory, which posits power as an antecedent to effectiveness. The study concludes that three central themes provide power to the South African public sector audit committees, namely political climate; individual and collective audit committee competence; and the independence of the audit committee. The paper also modestly extends the organisational power theory in respect of the elements of power.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"37 1","pages":"62 - 84"},"PeriodicalIF":1.1,"publicationDate":"2022-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43803541","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-26DOI: 10.1080/10291954.2022.2119683
Christo Botha, Cecileen Greeff
A recent development in the financial service industry is the introduction of the fractional share right that allows a retail investor to invest in a fraction of a listed equity share. Fractional share right is not defined in the Income Tax Act No. 58 of 1962 (‘the Act’), nor has it been subject to scrutiny in South African courts. Uncertainty exists regarding the normal tax implications of fractional share rights in South Africa. This article investigated the possible normal tax implications of a fractional share right for a retail investor. The research followed a qualitative approach through the analysis of primary and secondary sources. The article established that a fractional share right is essentially a contract for difference, with a fraction of a listed equity share serving as the reference instrument. It was ascertained, based on a combination of the integration and bifurcation approaches, that a contract for difference in respect of a fractional share right constitutes a financial instrument for purposes of the Act. Due to the absence of specific provisions in the Act dealing with the normal taxation of financial instruments for retail investors, it was ascertained that the amounts stemming from the contract for difference in respect of a fractional share right may be taxed according to the general provisions of the Act – sections 1(1) and 11(a) of the Act.
{"title":"An investigation into the normal tax implications of fractional share rights in South Africa","authors":"Christo Botha, Cecileen Greeff","doi":"10.1080/10291954.2022.2119683","DOIUrl":"https://doi.org/10.1080/10291954.2022.2119683","url":null,"abstract":"A recent development in the financial service industry is the introduction of the fractional share right that allows a retail investor to invest in a fraction of a listed equity share. Fractional share right is not defined in the Income Tax Act No. 58 of 1962 (‘the Act’), nor has it been subject to scrutiny in South African courts. Uncertainty exists regarding the normal tax implications of fractional share rights in South Africa. This article investigated the possible normal tax implications of a fractional share right for a retail investor. The research followed a qualitative approach through the analysis of primary and secondary sources. The article established that a fractional share right is essentially a contract for difference, with a fraction of a listed equity share serving as the reference instrument. It was ascertained, based on a combination of the integration and bifurcation approaches, that a contract for difference in respect of a fractional share right constitutes a financial instrument for purposes of the Act. Due to the absence of specific provisions in the Act dealing with the normal taxation of financial instruments for retail investors, it was ascertained that the amounts stemming from the contract for difference in respect of a fractional share right may be taxed according to the general provisions of the Act – sections 1(1) and 11(a) of the Act.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"37 1","pages":"139 - 159"},"PeriodicalIF":1.1,"publicationDate":"2022-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48238331","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-09DOI: 10.1080/10291954.2022.2101328
W. Terblanche, I. Lubbe, E. Papageorgiou, Nico van der Merwe
Technology acceptance models have been used in the higher education context to understand students’ acceptance of various learning technologies. Not only was the use of e-learning technologies heightened during the COVID-19 pandemic, but the shift to predominantly online teaching and learning was abrupt. It has become clear that acceptance of e-learning technology will be crucial for higher education in a post-COVID-19 world. Thus, the purpose of this study was to determine the acceptance of e-learning applications by accounting students at residential universities in South Africa. The Unified Theory of Acceptance and Use of Technology (UTAUT2) was adapted for this study to examine the relevance of its constructs in understanding students’ intent to use e-learning applications. Accounting students registered at four South African universities completed an electronic questionnaire (n = 1 864). Structural Equation Modelling using the Partial Least Squares method was used to test the hypothesised relationships. The findings indicate that performance expectancy, social influence, facilitating conditions, and habit have a significant relationship with behavioural intention to use e-learning applications. However, gender, academic performance, and level of study do not have a significant moderating effect on these relationships. The study reported in this paper contributes to technology acceptance research by testing the UTAUT2 model in a cross-institutional context with a larger sample size than used in similar studies. Furthermore, it has practical value for higher education policymakers, institutions, and lecturers in their attempts to adapt to blended and online learning models.
{"title":"Acceptance of e-learning applications by accounting students in an online learning environment at residential universities","authors":"W. Terblanche, I. Lubbe, E. Papageorgiou, Nico van der Merwe","doi":"10.1080/10291954.2022.2101328","DOIUrl":"https://doi.org/10.1080/10291954.2022.2101328","url":null,"abstract":"Technology acceptance models have been used in the higher education context to understand students’ acceptance of various learning technologies. Not only was the use of e-learning technologies heightened during the COVID-19 pandemic, but the shift to predominantly online teaching and learning was abrupt. It has become clear that acceptance of e-learning technology will be crucial for higher education in a post-COVID-19 world. Thus, the purpose of this study was to determine the acceptance of e-learning applications by accounting students at residential universities in South Africa. The Unified Theory of Acceptance and Use of Technology (UTAUT2) was adapted for this study to examine the relevance of its constructs in understanding students’ intent to use e-learning applications. Accounting students registered at four South African universities completed an electronic questionnaire (n = 1 864). Structural Equation Modelling using the Partial Least Squares method was used to test the hypothesised relationships. The findings indicate that performance expectancy, social influence, facilitating conditions, and habit have a significant relationship with behavioural intention to use e-learning applications. However, gender, academic performance, and level of study do not have a significant moderating effect on these relationships. The study reported in this paper contributes to technology acceptance research by testing the UTAUT2 model in a cross-institutional context with a larger sample size than used in similar studies. Furthermore, it has practical value for higher education policymakers, institutions, and lecturers in their attempts to adapt to blended and online learning models.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"37 1","pages":"35 - 61"},"PeriodicalIF":1.1,"publicationDate":"2022-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42896391","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-02DOI: 10.1080/10291954.2022.2069388
Danielle Van Wyk, A. F. Van Der Merwe
To dispose of a residential property in terms of a lottery transaction is a change in the business manner how residential properties are usually being disposed of, namely either through an estate agent or a private sale. A number of these transactions have occurred in South Africa in the last six years. This article considers a scenario where the main parties who participate in the lottery transaction are: the seller of the property, the winner of the property (multiple persons can purchase a lottery ticket, but only one person wins the property) and the attorney who oversees the lottery and is a non-resident of South Africa for tax purposes. Since a lottery transaction is seen as a different way of how residential properties are normally being sold, the main objective of this article is to explore the possible value-added tax (VAT) consequences for the different parties, depending on whether the parties are registered for VAT in South Africa or not. To meet this objective, a doctrinal research approach was followed by analysing South African and international literature to determine the recommended VAT treatment of these property lottery transactions, as no clear guidance can be found on this. It is suggested that the South African Revenue Service should consider issuing clear guidelines in respect of the VAT consequences of property lottery transactions.
{"title":"An exploratory study on value-added tax consequences of a residential property lottery in South Africa","authors":"Danielle Van Wyk, A. F. Van Der Merwe","doi":"10.1080/10291954.2022.2069388","DOIUrl":"https://doi.org/10.1080/10291954.2022.2069388","url":null,"abstract":"To dispose of a residential property in terms of a lottery transaction is a change in the business manner how residential properties are usually being disposed of, namely either through an estate agent or a private sale. A number of these transactions have occurred in South Africa in the last six years. This article considers a scenario where the main parties who participate in the lottery transaction are: the seller of the property, the winner of the property (multiple persons can purchase a lottery ticket, but only one person wins the property) and the attorney who oversees the lottery and is a non-resident of South Africa for tax purposes. Since a lottery transaction is seen as a different way of how residential properties are normally being sold, the main objective of this article is to explore the possible value-added tax (VAT) consequences for the different parties, depending on whether the parties are registered for VAT in South Africa or not. To meet this objective, a doctrinal research approach was followed by analysing South African and international literature to determine the recommended VAT treatment of these property lottery transactions, as no clear guidance can be found on this. It is suggested that the South African Revenue Service should consider issuing clear guidelines in respect of the VAT consequences of property lottery transactions.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"37 1","pages":"19 - 34"},"PeriodicalIF":1.1,"publicationDate":"2022-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42724441","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-04DOI: 10.1080/10291954.2021.1917190
E. Swanepoel
AICPA MUS projection method The reader is alerted to the fact that that where reference is made to the “AICPAMUS projection method” in the article, it should be noted that this refers to a combined projection methodology where the estimated error amount is calculated using the MLE as per the IFAC guide as a starting point and then multiplying this MLE with an incremental factor as recommended in the AICPA guide (or, “combining the IFAC MLE with the AICPA incremental factor to calculate a UEL amount to be used as the estimated error”). Thus, the AICPA reference only pertains to the additional step of using an incremental factor to calculate a UEL to be used as the estimated error amount instead of only the MLE as calculated per the IFAC guide. Furthermore, regarding the wording of Section 6.4 (Substantive procedures: AICPA MUS sampling methodology), the reader is alerted to the fact that reference to the paragraphs in the AICPA guide should be “... paragraphs 6.44 to 6.48...” instead of “... paragraphs 6.35 to 6.48...”.
{"title":"Major Correction","authors":"E. Swanepoel","doi":"10.1080/10291954.2021.1917190","DOIUrl":"https://doi.org/10.1080/10291954.2021.1917190","url":null,"abstract":"AICPA MUS projection method The reader is alerted to the fact that that where reference is made to the “AICPAMUS projection method” in the article, it should be noted that this refers to a combined projection methodology where the estimated error amount is calculated using the MLE as per the IFAC guide as a starting point and then multiplying this MLE with an incremental factor as recommended in the AICPA guide (or, “combining the IFAC MLE with the AICPA incremental factor to calculate a UEL amount to be used as the estimated error”). Thus, the AICPA reference only pertains to the additional step of using an incremental factor to calculate a UEL to be used as the estimated error amount instead of only the MLE as calculated per the IFAC guide. Furthermore, regarding the wording of Section 6.4 (Substantive procedures: AICPA MUS sampling methodology), the reader is alerted to the fact that reference to the paragraphs in the AICPA guide should be “... paragraphs 6.44 to 6.48...” instead of “... paragraphs 6.35 to 6.48...”.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"36 1","pages":"170 - 170"},"PeriodicalIF":1.1,"publicationDate":"2022-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2021.1917190","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42654894","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-19DOI: 10.1080/10291954.2021.2008610
Ramishka Nardhamuni, Kayleigh Greenslade, W. van Zijl
Limited research has been conducted on companies’ use of share-based payments in a South African context. Where research has been performed, the focus has been predominantly on shared-based payments as part of executive remuneration packages. This paper extends this research by investigating all uses of share-based payments by the Johannesburg Stock Exchange’s (JSE) Top 100 companies. A content analysis was used to capture the details of each scheme disclosed by the JSE Top 100 companies. This included at whom the scheme was aimed, the purpose of the scheme, the settlement type, the vesting period and conditions, and whether there had been any modifications or cancellations. Descriptive and inferential statistics were used to analyse the data. Results reflected that 93 of the 100 companies investigated made use of share-based payments. Seventy-four per cent of all instruments were equity-settled. The few cash-settled schemes found were primarily used by the Basic Materials and Financials sectors. The average vesting period for all instruments was approximately 4 years, with Black Economic Empowerment-aimed schemes having the longest vesting period at 10 years. Non-market performance conditions were most prevalent at 87% while only 27% included market conditions. Overall, the findings are in line with Agency Theory and prior papers. In addition, this paper found a significant number of modifications and cancellations of instruments. This may be because of poor economic conditions, where reduced economic activity and lower share prices result in share-based payments becoming unfavourable to holders.
{"title":"An analysis of the use of share-based payments by the JSE Top 100 companies","authors":"Ramishka Nardhamuni, Kayleigh Greenslade, W. van Zijl","doi":"10.1080/10291954.2021.2008610","DOIUrl":"https://doi.org/10.1080/10291954.2021.2008610","url":null,"abstract":"Limited research has been conducted on companies’ use of share-based payments in a South African context. Where research has been performed, the focus has been predominantly on shared-based payments as part of executive remuneration packages. This paper extends this research by investigating all uses of share-based payments by the Johannesburg Stock Exchange’s (JSE) Top 100 companies. A content analysis was used to capture the details of each scheme disclosed by the JSE Top 100 companies. This included at whom the scheme was aimed, the purpose of the scheme, the settlement type, the vesting period and conditions, and whether there had been any modifications or cancellations. Descriptive and inferential statistics were used to analyse the data. Results reflected that 93 of the 100 companies investigated made use of share-based payments. Seventy-four per cent of all instruments were equity-settled. The few cash-settled schemes found were primarily used by the Basic Materials and Financials sectors. The average vesting period for all instruments was approximately 4 years, with Black Economic Empowerment-aimed schemes having the longest vesting period at 10 years. Non-market performance conditions were most prevalent at 87% while only 27% included market conditions. Overall, the findings are in line with Agency Theory and prior papers. In addition, this paper found a significant number of modifications and cancellations of instruments. This may be because of poor economic conditions, where reduced economic activity and lower share prices result in share-based payments becoming unfavourable to holders.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"37 1","pages":"85 - 105"},"PeriodicalIF":1.1,"publicationDate":"2022-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45919220","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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