Pub Date : 2022-08-23DOI: 10.4102/sajems.v25i1.4305
M. Mokabane, E. du Toit
listing requirements on 01 March 2010. The JSE, in a guidance letter dated 27 June 2013, clarified that, although the production of an integrated report was not a mandatory principle in terms of the JSE listing requirements, listed companies were advised to adopt integrated reporting on an ‘apply or explain’ basis. The introduction of King IV has further increased the requirement for integrated reporting by adopting an ‘apply and explain’ basis for the principles in the code (IoDSA 2016). Background: South Africa is currently the only country in the world where its largest stock exchange has adopted integrated reporting on an ‘apply and explain’ basis, through the implementation of the King Code for Corporate Governance (King IV). However, there exists significant uncertainty regarding the value of adopting integrated reporting. Aim: The objective of this study is to establish whether organisations, perceived to produce higher-quality integrated reports, achieve better financial performance or if the value of integrated reporting lies in improving organisational legitimacy and managing stakeholders’ impressions. Setting: The sample consists of the Ernst & Young (EY) ranked companies listed on the Johannesburg Stock Exchange (JSE) from 2011 to 2020. Method: The study examines whether the quality of integrated reporting is associated with various financial performance measures, namely liquidity, solvency, profitability, and market performance, using multinomial logistic regression. Results: The multinomial logistic regression model is weak and indicates no direct relationship between integrated reporting quality and financial performance. An investigation into specific variables in the model indicates that top-performing companies, in terms of integrated reporting quality, tend to have significantly lower price-to-book value ratios and higher return on equity values. Companies with the best quality integrated reports also appear to be larger in terms of market capitalisation than those companies who prepare integrated reports of lesser quality. Conclusion: The results of the study do not record a significant relationship between integrated reporting quality and financial performance. The results indicate that larger companies listed on the JSE produce better quality integrated reports. This may be an indication that companies produce integrated reports, not for their financial value-adding benefits but to maintain organisational legitimacy and to manage the impressions of stakeholders.
{"title":"The value of integrated reporting in South Africa","authors":"M. Mokabane, E. du Toit","doi":"10.4102/sajems.v25i1.4305","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4305","url":null,"abstract":"listing requirements on 01 March 2010. The JSE, in a guidance letter dated 27 June 2013, clarified that, although the production of an integrated report was not a mandatory principle in terms of the JSE listing requirements, listed companies were advised to adopt integrated reporting on an ‘apply or explain’ basis. The introduction of King IV has further increased the requirement for integrated reporting by adopting an ‘apply and explain’ basis for the principles in the code (IoDSA 2016). Background: South Africa is currently the only country in the world where its largest stock exchange has adopted integrated reporting on an ‘apply and explain’ basis, through the implementation of the King Code for Corporate Governance (King IV). However, there exists significant uncertainty regarding the value of adopting integrated reporting. Aim: The objective of this study is to establish whether organisations, perceived to produce higher-quality integrated reports, achieve better financial performance or if the value of integrated reporting lies in improving organisational legitimacy and managing stakeholders’ impressions. Setting: The sample consists of the Ernst & Young (EY) ranked companies listed on the Johannesburg Stock Exchange (JSE) from 2011 to 2020. Method: The study examines whether the quality of integrated reporting is associated with various financial performance measures, namely liquidity, solvency, profitability, and market performance, using multinomial logistic regression. Results: The multinomial logistic regression model is weak and indicates no direct relationship between integrated reporting quality and financial performance. An investigation into specific variables in the model indicates that top-performing companies, in terms of integrated reporting quality, tend to have significantly lower price-to-book value ratios and higher return on equity values. Companies with the best quality integrated reports also appear to be larger in terms of market capitalisation than those companies who prepare integrated reports of lesser quality. Conclusion: The results of the study do not record a significant relationship between integrated reporting quality and financial performance. The results indicate that larger companies listed on the JSE produce better quality integrated reports. This may be an indication that companies produce integrated reports, not for their financial value-adding benefits but to maintain organisational legitimacy and to manage the impressions of stakeholders.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"18 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81878239","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-22DOI: 10.4102/sajems.v25i1.4427
Liya Lakhani, Shelly Herbert
there were calls to combine sustainability disclosures and financial disclosures in a single report, leading to the emergence of integrated reporting (IR) (De Villiers et al. 2014). An integrated report communicates an organisation’s strategy, governance, performance and prospects concisely, relative to its external environment (including society and the natural environment), with the primary audience being the providers of financial capital (International Integrated Reporting Council [IIRC] 2021). Despite key differences in IR and SR objectives, the Global Reporting Initiative (GRI) considers SR an integral aspect of IR and the link between corporate reporting and SR (GRI 2013). In addition to the COVID-19 pandemic, 2020 saw moves in the global reporting arena towards increased reporting on non-financial matters, and the creation of bodies such as the Value Reporting Foundation (VRF), and then in 2021 the International Sustainability Standards Background: Over the last few decades, with the emergence of integrated reporting (IR) and sustainability reporting (SR) as new reporting methods, corporate reporting practices attracted substantial interest as a topic of research. Throughout the literature, many theories have been adopted to explain IR and SR practices and there is currently an increased focus on non-financial reporting. Aim: The purpose of this study is to identify and analyse the theories used in the growing body of IR and SR research, to gather insight into current trends in the use and dominance of these theories in the related literature. Setting: Research articles in the Scopus database for the period spanning from 2010 to 2019 were included in the study. Method: Using a systematic review methodology, 574 articles on IR and SR published in the Scopus database for the period spanning from 2010 to 2019, were systematically searched for the presence of theories that may be used to explain these practices. Results: The results show that the most dominant theories in the last decade are the legitimacy, stakeholder, institutional, agency and signalling theories. Conclusion: Supported by extensive numerical data, this research provides insights into the theoretical perspectives used in the study of IR and SR and contributes to the existing discourse surrounding applicable theoretical frameworks for studying corporate reporting practices. These insights can be used to study IR and SR as the world grapples with changes in the reporting and business environment.
有人呼吁在单一报告中结合可持续性披露和财务披露，从而出现了综合报告(IR) (De Villiers et al. 2014)。综合报告相对于其外部环境(包括社会和自然环境)简洁地传达了组织的战略，治理，绩效和前景，主要受众是金融资本的提供者(国际综合报告委员会[IIRC] 2021)。尽管IR和SR目标存在关键差异，但全球报告倡议组织(GRI)认为SR是IR的一个组成部分，也是企业报告和SR之间的联系(GRI 2013)。除了2019冠状病毒病大流行之外，2020年全球报告领域还采取了增加非财务事项报告的行动，并成立了价值报告基金会(VRF)等机构，然后在2021年成立了国际可持续性标准。在过去的几十年里，随着综合报告(IR)和可持续发展报告(SR)作为新的报告方法的出现，企业报告实践作为一个研究课题引起了极大的兴趣。在整个文献中，许多理论被用来解释IR和SR实践，目前人们越来越关注非财务报告。目的:本研究的目的是识别和分析越来越多的IR和SR研究中使用的理论，以深入了解这些理论在相关文献中的使用和主导地位的当前趋势。背景:本研究纳入了Scopus数据库中2010年至2019年期间的研究文章。方法:采用系统综述方法，系统检索Scopus数据库中2010年至2019年期间发表的574篇关于IR和SR的文章，寻找可能用于解释这些实践的理论。结果:研究结果表明，近十年来最主流的理论是合法性理论、利益相关者理论、制度理论、代理理论和信号理论。结论:在大量数值数据的支持下，本研究提供了对IR和SR研究中使用的理论视角的见解，并有助于围绕研究公司报告实践的适用理论框架的现有论述。这些见解可以用于研究IR和SR，因为世界正在努力应对报告和商业环境的变化。
{"title":"Theoretical frameworks applied in integrated reporting and sustainability reporting research","authors":"Liya Lakhani, Shelly Herbert","doi":"10.4102/sajems.v25i1.4427","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4427","url":null,"abstract":"there were calls to combine sustainability disclosures and financial disclosures in a single report, leading to the emergence of integrated reporting (IR) (De Villiers et al. 2014). An integrated report communicates an organisation’s strategy, governance, performance and prospects concisely, relative to its external environment (including society and the natural environment), with the primary audience being the providers of financial capital (International Integrated Reporting Council [IIRC] 2021). Despite key differences in IR and SR objectives, the Global Reporting Initiative (GRI) considers SR an integral aspect of IR and the link between corporate reporting and SR (GRI 2013). In addition to the COVID-19 pandemic, 2020 saw moves in the global reporting arena towards increased reporting on non-financial matters, and the creation of bodies such as the Value Reporting Foundation (VRF), and then in 2021 the International Sustainability Standards Background: Over the last few decades, with the emergence of integrated reporting (IR) and sustainability reporting (SR) as new reporting methods, corporate reporting practices attracted substantial interest as a topic of research. Throughout the literature, many theories have been adopted to explain IR and SR practices and there is currently an increased focus on non-financial reporting. Aim: The purpose of this study is to identify and analyse the theories used in the growing body of IR and SR research, to gather insight into current trends in the use and dominance of these theories in the related literature. Setting: Research articles in the Scopus database for the period spanning from 2010 to 2019 were included in the study. Method: Using a systematic review methodology, 574 articles on IR and SR published in the Scopus database for the period spanning from 2010 to 2019, were systematically searched for the presence of theories that may be used to explain these practices. Results: The results show that the most dominant theories in the last decade are the legitimacy, stakeholder, institutional, agency and signalling theories. Conclusion: Supported by extensive numerical data, this research provides insights into the theoretical perspectives used in the study of IR and SR and contributes to the existing discourse surrounding applicable theoretical frameworks for studying corporate reporting practices. These insights can be used to study IR and SR as the world grapples with changes in the reporting and business environment.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"07 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85977923","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-10DOI: 10.4102/sajems.v25i1.4460
Musimuni Dowelani, C. Okoro, A. Olaleye
In addition, when regulators need to formulate new regulations they will benefit from considering the POTIC framework.
此外，当监管机构需要制定新的法规时，他们将受益于考虑POTIC框架。
{"title":"Factors influencing blockchain adoption in the South African clearing and settlement industry","authors":"Musimuni Dowelani, C. Okoro, A. Olaleye","doi":"10.4102/sajems.v25i1.4460","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4460","url":null,"abstract":"In addition, when regulators need to formulate new regulations they will benefit from considering the POTIC framework.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"8 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82766822","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-07-25DOI: 10.4102/sajems.v25i1.3791
David Pooe, W. Munyanyi
is of the services provided by government and how they can best manage the effective delivery of such services is through the ‘public value’ lens. According to Meynhardt, Brieger and Andere (2017), the question of public value, which is far more difficult to measure than mere financial performance, preoccupies public sector managers. Grant et al. (2014) add that the role of public managers in public value creation is to steer networks of delivery and maintain the overall capacity of the system. That said, since government services are widely utilised, the notion of public value places the broader community at the centre as a collective beneficiary availing themselves of government’s collected provisions (OECD 2019). Yotawut (2018) defines public value theory as ‘an approach that explores how public organisations operationalize the principles of public value by focusing on the role of public engagement which Background: Over the years, the expectations of both the public and private sectors regarding value have changed significantly, thereby increasing the need for government departments to revisit their public-value creation model. Aim: This study sought to explore perceptions of senior managers in selected national government departments in South Africa with regard to the influence of information sharing, process innovation, stakeholder analysis and engagement in the relational governance and public value. Setting: The respondents were 230 senior managers from the five national government departments who, over time and in various groups, attended the Executive Development Programme hosted by the National School of Government. Methods: A quantitative research approach involving a cross-sectional survey design was followed in the study. Data were analysed by means of structural equation modelling (SEM). Results: In the study a strong, positive relationship was found between information sharing, process innovation, stakeholder analysis and relational governance. Further, a strong positive relationship between relational governance and public value was also established. Conclusion: Based on the perceptions of senior managers, government departments seeking to deliver superior public value need to focus primarily on managing their relational governance. To that end, it is vital that they develop their information-sharing and process innovation, as well as stakeholder analysis and engagement.
{"title":"Delivering public value by selected government departments in South Africa – Perceptions of senior managers","authors":"David Pooe, W. Munyanyi","doi":"10.4102/sajems.v25i1.3791","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.3791","url":null,"abstract":"is of the services provided by government and how they can best manage the effective delivery of such services is through the ‘public value’ lens. According to Meynhardt, Brieger and Andere (2017), the question of public value, which is far more difficult to measure than mere financial performance, preoccupies public sector managers. Grant et al. (2014) add that the role of public managers in public value creation is to steer networks of delivery and maintain the overall capacity of the system. That said, since government services are widely utilised, the notion of public value places the broader community at the centre as a collective beneficiary availing themselves of government’s collected provisions (OECD 2019). Yotawut (2018) defines public value theory as ‘an approach that explores how public organisations operationalize the principles of public value by focusing on the role of public engagement which Background: Over the years, the expectations of both the public and private sectors regarding value have changed significantly, thereby increasing the need for government departments to revisit their public-value creation model. Aim: This study sought to explore perceptions of senior managers in selected national government departments in South Africa with regard to the influence of information sharing, process innovation, stakeholder analysis and engagement in the relational governance and public value. Setting: The respondents were 230 senior managers from the five national government departments who, over time and in various groups, attended the Executive Development Programme hosted by the National School of Government. Methods: A quantitative research approach involving a cross-sectional survey design was followed in the study. Data were analysed by means of structural equation modelling (SEM). Results: In the study a strong, positive relationship was found between information sharing, process innovation, stakeholder analysis and relational governance. Further, a strong positive relationship between relational governance and public value was also established. Conclusion: Based on the perceptions of senior managers, government departments seeking to deliver superior public value need to focus primarily on managing their relational governance. To that end, it is vital that they develop their information-sharing and process innovation, as well as stakeholder analysis and engagement.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"84 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77278493","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-07-25DOI: 10.4102/sajems.v25i1.4515
P. B. Beri, Gabriel Mhonyera, G. Nubong
Background: In the last two decades, the world experienced two overlapping global shocks – that is, the 2008–2009 financial crisis and the COVID-19 lockdowns – with severe social and economic consequences on African economies that have, once again, brought to the fore the intricate role that globalisation plays in economic growth because of grave risks that often accompany it.Aim: We consider three research questions about globalisation: (i) does globalisation heighten economic growth? (ii) is there a statistically significant threshold level of globalisation above which globalisation affects growth differently than at lower levels? (iii) what factors moderate the globalisation-economic growth nexus?Setting: A panel of 47 selected countries from Africa from 2001 to 2018 is under scrutiny.Method: To begin, it applies an overlapping five-year moving average (MA) to smoothen the data. In addition, we employ the revised globalisation index and the two-step systems generalised method of the moment (GMM) in its empirical strategy.Results: We find a largely insignificant relationship between globalisation and economic growth. We attribute these results to Africa’s infinitesimal share – less than 5% – in foreign direct investment (FDI) and global trade, acute infrastructure deficit and the lack of relevant skills that lead to productivity losses and weak performance within the international business ecosystem. We also find, among others, that globalisation is more effective in countries with more gross capital formation, higher population and urban growth rates.Conclusion: For Africa to maximise its growth potential from globalisation, sound policies should be put in place to promote trade, FDI, domestic capital formation and urbanisation. We suggest that future studies investigate the long-run equilibrium relationship between globalisation and economic growth.
{"title":"Globalisation and economic growth in Africa: New evidence from the past two decades","authors":"P. B. Beri, Gabriel Mhonyera, G. Nubong","doi":"10.4102/sajems.v25i1.4515","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4515","url":null,"abstract":"Background: In the last two decades, the world experienced two overlapping global shocks – that is, the 2008–2009 financial crisis and the COVID-19 lockdowns – with severe social and economic consequences on African economies that have, once again, brought to the fore the intricate role that globalisation plays in economic growth because of grave risks that often accompany it.Aim: We consider three research questions about globalisation: (i) does globalisation heighten economic growth? (ii) is there a statistically significant threshold level of globalisation above which globalisation affects growth differently than at lower levels? (iii) what factors moderate the globalisation-economic growth nexus?Setting: A panel of 47 selected countries from Africa from 2001 to 2018 is under scrutiny.Method: To begin, it applies an overlapping five-year moving average (MA) to smoothen the data. In addition, we employ the revised globalisation index and the two-step systems generalised method of the moment (GMM) in its empirical strategy.Results: We find a largely insignificant relationship between globalisation and economic growth. We attribute these results to Africa’s infinitesimal share – less than 5% – in foreign direct investment (FDI) and global trade, acute infrastructure deficit and the lack of relevant skills that lead to productivity losses and weak performance within the international business ecosystem. We also find, among others, that globalisation is more effective in countries with more gross capital formation, higher population and urban growth rates.Conclusion: For Africa to maximise its growth potential from globalisation, sound policies should be put in place to promote trade, FDI, domestic capital formation and urbanisation. We suggest that future studies investigate the long-run equilibrium relationship between globalisation and economic growth.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"86 4 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83051589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-07-12DOI: 10.4102/sajems.v25i1.4412
M. Williamson, K. Perumal
Results: The results of the statistical analysis revealed a significant and positive association between procedural justice and employees’ perceived P–O fit. Organisational trust was found to partially mediate this relationship. Conclusion: The results make a significant contribution to P–O fit theory and the management of P–O fit in the workplace.
{"title":"The relationship between procedural justice and person–organisation fit: The mediating role of organisational trust","authors":"M. Williamson, K. Perumal","doi":"10.4102/sajems.v25i1.4412","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4412","url":null,"abstract":"Results: The results of the statistical analysis revealed a significant and positive association between procedural justice and employees’ perceived P–O fit. Organisational trust was found to partially mediate this relationship. Conclusion: The results make a significant contribution to P–O fit theory and the management of P–O fit in the workplace.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"7 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81979770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-07-08DOI: 10.4102/sajems.v25i1.4506
Felix Amoah, Marlé van Eyk, Mthi Yolokazi
security, privacy, professionalism of drivers) and efficiency in delivering services to passengers (e.g. reliability and punctuality).
安全(隐私、司机的专业性)和向乘客提供服务的效率(例如可靠性和准时性)。
{"title":"Predictors of passengers’ satisfaction with long-distance coach liners in South Africa","authors":"Felix Amoah, Marlé van Eyk, Mthi Yolokazi","doi":"10.4102/sajems.v25i1.4506","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4506","url":null,"abstract":"security, privacy, professionalism of drivers) and efficiency in delivering services to passengers (e.g. reliability and punctuality).","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"3 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91268205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.4102/sajems.v25i1.4419
Tapiwa Dube, L. Brummer, J. Hall, Mpinda F. Mvita
ownership structure and performance continues to attract the attention of scholars in the financial field (Aluchna & Kaminski 2017). Previously, studies focused on ownership distribution and relationships between principals and agents, as illustrated in the conflict between shareholders and managers (Aluchna & Kaminski 2017; Coles, Lemmon & Meschke 2012; Kumar & Zattoni 2014). Subsequently, apart from the effect of a controlling shareholder and multiple large shareholders (Jara-Bertin, López-Iturriaga & López-de-Foronda Background: The notion that a company’s ownership structure may affect performance and capital structure has been the attraction, but few studies have looked at the effect of black ownership (BO). Aim: This paper contributes to the literature by examining the possible interactions between BO, performance, and capital structure. Within an agency cost framework, the study indicated that the distribution of equity ownership among black shareholders might significantly influence the performance and leverage of companies listed on the Johannesburg Stock Exchange (JSE). Setting: Altogether 187 companies on the JSE were selected for the period of 2007 to 2014. Method: Data on the sampled companies were sourced from the Iress database, a prominent source of financial data in South Africa, as well as annual reports. The research used a pooled fixed-effects model, random effects model and two-step generalised method of moments in the analysis. Results: The findings of the research provided support for the agency cost theory. The empirical findings indicated that BO was negatively correlated with debt ratio (long-term debt) and performance (Tobin’s Q [TQ]). Surprisingly, BO was positively and significantly correlated with return on assets. Finally, the empirical findings indicated that the proportion of long-term debt and total debt based on market value was lower for BO than for total ownership, while TQ was higher for BO than for total ownership. The finding supports the prediction that companies with a relatively small proportion of black ownership cannot support high leverage and high performance Conclusion: Although the introduction of BO by way of government intervention has been partially successful, more can be done to improve the relationship between the proportion of BO, performance and capital structure in a developing economy.
{"title":"Relationship between black ownership, capital structure and company performance","authors":"Tapiwa Dube, L. Brummer, J. Hall, Mpinda F. Mvita","doi":"10.4102/sajems.v25i1.4419","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4419","url":null,"abstract":"ownership structure and performance continues to attract the attention of scholars in the financial field (Aluchna & Kaminski 2017). Previously, studies focused on ownership distribution and relationships between principals and agents, as illustrated in the conflict between shareholders and managers (Aluchna & Kaminski 2017; Coles, Lemmon & Meschke 2012; Kumar & Zattoni 2014). Subsequently, apart from the effect of a controlling shareholder and multiple large shareholders (Jara-Bertin, López-Iturriaga & López-de-Foronda Background: The notion that a company’s ownership structure may affect performance and capital structure has been the attraction, but few studies have looked at the effect of black ownership (BO). Aim: This paper contributes to the literature by examining the possible interactions between BO, performance, and capital structure. Within an agency cost framework, the study indicated that the distribution of equity ownership among black shareholders might significantly influence the performance and leverage of companies listed on the Johannesburg Stock Exchange (JSE). Setting: Altogether 187 companies on the JSE were selected for the period of 2007 to 2014. Method: Data on the sampled companies were sourced from the Iress database, a prominent source of financial data in South Africa, as well as annual reports. The research used a pooled fixed-effects model, random effects model and two-step generalised method of moments in the analysis. Results: The findings of the research provided support for the agency cost theory. The empirical findings indicated that BO was negatively correlated with debt ratio (long-term debt) and performance (Tobin’s Q [TQ]). Surprisingly, BO was positively and significantly correlated with return on assets. Finally, the empirical findings indicated that the proportion of long-term debt and total debt based on market value was lower for BO than for total ownership, while TQ was higher for BO than for total ownership. The finding supports the prediction that companies with a relatively small proportion of black ownership cannot support high leverage and high performance Conclusion: Although the introduction of BO by way of government intervention has been partially successful, more can be done to improve the relationship between the proportion of BO, performance and capital structure in a developing economy.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"195 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76293647","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-25DOI: 10.4102/sajems.v25i1.4302
Thembalethu M. Seti, O. D. Daw
Background: The African Continental Free Trade Area is currently a negotiated agreement that comprises 54 African countries and aims at eliminating trade barriers between its member states. Advocates of the Free Trade Area point to the numerous benefits of the agreement, though less has been said about the potential implications on economic strategic sectors such as the agricultural sector.Aim: The study explores the potential economic impact of a full tariff liberalisation as proposed under the African continental Free Trade Area on South African agricultural trade.Setting: A 100% tariff cut on agricultural commodities was simulated among all 54 members of the African Continental Free Trade Area.Methods: The study adopts the SMART partial equilibrium model to simulate the potential impact of a full tariff liberalisation as proposed under the African Continental Free Trade Area on South African agricultural trade.Results: The simulation revealed that South Africa will gain a total trade value of approximately US$199 million, and the total trade diversion from third parties will stand at US$42 million. South African agricultural commodities with the greatest export potential to the African market include sugar cane, maize, citrus fruit, cigarettes and sauces. Industries that are vulnerable to the free trade area include dairy, poultry, and vegetables. The full tariff liberalisation is projected to decrease South African’s export revenue.Conclusion: The study recommends that South African infant industries that are vulnerable to the agreement be listed in an exclusive list and that government should enhance the competitiveness of the affected industries.
{"title":"The implications of the African Continental Free Trade Area on South African agricultural trade: An application of the partial equilibrium mode","authors":"Thembalethu M. Seti, O. D. Daw","doi":"10.4102/sajems.v25i1.4302","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4302","url":null,"abstract":"Background: The African Continental Free Trade Area is currently a negotiated agreement that comprises 54 African countries and aims at eliminating trade barriers between its member states. Advocates of the Free Trade Area point to the numerous benefits of the agreement, though less has been said about the potential implications on economic strategic sectors such as the agricultural sector.Aim: The study explores the potential economic impact of a full tariff liberalisation as proposed under the African continental Free Trade Area on South African agricultural trade.Setting: A 100% tariff cut on agricultural commodities was simulated among all 54 members of the African Continental Free Trade Area.Methods: The study adopts the SMART partial equilibrium model to simulate the potential impact of a full tariff liberalisation as proposed under the African Continental Free Trade Area on South African agricultural trade.Results: The simulation revealed that South Africa will gain a total trade value of approximately US$199 million, and the total trade diversion from third parties will stand at US$42 million. South African agricultural commodities with the greatest export potential to the African market include sugar cane, maize, citrus fruit, cigarettes and sauces. Industries that are vulnerable to the free trade area include dairy, poultry, and vegetables. The full tariff liberalisation is projected to decrease South African’s export revenue.Conclusion: The study recommends that South African infant industries that are vulnerable to the agreement be listed in an exclusive list and that government should enhance the competitiveness of the affected industries.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"42 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80111266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-23DOI: 10.4102/sajems.v25i1.4192
Sa'diyah Ebrahim, W. Niemann, Theuns G. Kotzé
Background: Manufacturers of fast-moving consumer goods (FMCG) are facing new challenges that compel them to outperform their competitors economically, and to consider environmental and social impacts. Customer demands regarding sustainability are channelled upstream to these manufacturers through retailers. This resulted in manufacturers being very conscious of the sustainability of their production processes, as well as their packaging. To that extent, FMCG manufacturers are encouraged to integrate sustainability, with other supply chain partners, to improve sustainability performance across the supply chain.Aim: The purpose of this study is to explore the extent to which FMCG manufacturers in South Africa apply sustainability to their supply chain integration.Setting: The study was conducted among South African FMCG manufacturers.Method: The study applied a generic qualitative research design. Altogether 12 semi-structured interviews were conducted with middle to senior supply chain managers.Results: Having a clear sustainability focus, supported by leadership and embedded into the corporate culture, is key to integrating sustainability internally and thus improving the sustainability performance. The findings indicate that customers do not pressure firms to adhere to their sustainability expectations. Instead, sustainability expectations are driven internally. Firms find it difficult to align the three sustainability aspects equally, due to the local variables and context in which they operate. Therefore, economic sustainability is considered most important and firms act on environmental and social sustainability aspects within strict economic constraints.Conclusion: Academically, the study adds to the literature by creating an understanding of sustainable supply chain integration (SSCI) from a South African perspective. For practitioners, the study encourages firms to collaborate with supply chain partners on sustainability, as this opens up opportunities to create shared value through joint sustainability problem-solving.
{"title":"Sustainable supply chain integration: An exploration of South African fast-moving consumer goods manufacturers","authors":"Sa'diyah Ebrahim, W. Niemann, Theuns G. Kotzé","doi":"10.4102/sajems.v25i1.4192","DOIUrl":"https://doi.org/10.4102/sajems.v25i1.4192","url":null,"abstract":"Background: Manufacturers of fast-moving consumer goods (FMCG) are facing new challenges that compel them to outperform their competitors economically, and to consider environmental and social impacts. Customer demands regarding sustainability are channelled upstream to these manufacturers through retailers. This resulted in manufacturers being very conscious of the sustainability of their production processes, as well as their packaging. To that extent, FMCG manufacturers are encouraged to integrate sustainability, with other supply chain partners, to improve sustainability performance across the supply chain.Aim: The purpose of this study is to explore the extent to which FMCG manufacturers in South Africa apply sustainability to their supply chain integration.Setting: The study was conducted among South African FMCG manufacturers.Method: The study applied a generic qualitative research design. Altogether 12 semi-structured interviews were conducted with middle to senior supply chain managers.Results: Having a clear sustainability focus, supported by leadership and embedded into the corporate culture, is key to integrating sustainability internally and thus improving the sustainability performance. The findings indicate that customers do not pressure firms to adhere to their sustainability expectations. Instead, sustainability expectations are driven internally. Firms find it difficult to align the three sustainability aspects equally, due to the local variables and context in which they operate. Therefore, economic sustainability is considered most important and firms act on environmental and social sustainability aspects within strict economic constraints.Conclusion: Academically, the study adds to the literature by creating an understanding of sustainable supply chain integration (SSCI) from a South African perspective. For practitioners, the study encourages firms to collaborate with supply chain partners on sustainability, as this opens up opportunities to create shared value through joint sustainability problem-solving.","PeriodicalId":46244,"journal":{"name":"South African Journal of Economic and Management Sciences","volume":"4 1","pages":""},"PeriodicalIF":1.1,"publicationDate":"2022-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83755648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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