scholarly journals Estimating Scale Efficiency Of Platinum-Mining Companies Environmental Performance: A South African Perspective

2011 ◽  
Vol 10 (12) ◽  
pp. 11
Author(s):  
Pieter W Buys ◽  
Merwe Oberholzer ◽  
Toy Prinsloo
Keyword(s):  
South African ◽  
Environmental Performance ◽  
Economies Of Scale ◽  
Scale Efficiency ◽  
Return On Assets ◽  
Return On Equity ◽  
Dea Model ◽  
Mining Companies ◽  
Platinum Mining ◽  
Input Variables

The purpose of the study is to develop a data envelopment analysis (DEA) model to estimate the relative scale efficiency of platinum-mining companies environmental performance. South African platinum-mines were used to demonstrate the model, which uses environmental performance indicators as the input variables in order to generate mineral extraction and financial performances as the output variables. The input variables considered were greenhouse gas emissions, water usage and energy usage, while the output variables were platinum production, return on equity and return on assets. The contribution of the study is that a DEA model was developed that could identify relatively efficient companies that could act as benchmarks with regard to environmental issues in the mining sector. A further contribution is that the study concluded that platinum-mining companies tend not to achieve economies of scale, where the companies that are relatively larger in size tend to operate on a scale that is too large and companies that are physically relatively smaller in size tend to operate on a scale that is too small.

scholarly journals An empirical study of the performance of South African conglomerates

1989 ◽  
Vol 20 (1) ◽  
pp. 1-6
Author(s):  
J. F. Affleck-Graves ◽  
G. H. Burt ◽  
J. M. Cleasby
Keyword(s):  
Stock Market ◽  
Empirical Study ◽  
South African ◽  
Market Returns ◽  
Return On Assets ◽  
Return On Equity ◽  
Empirical Question ◽  
Advantages And Disadvantages ◽  
Stock Market Performance

Existant financial theory is unable to explain whether on aggregate conglomeration is beneficial to either individual shareholders or to the economy. Both advantages and disadvantages can be listed for the conglomeration process and it is thus an empirical question as to whether or not shareholders really do benefit from conglomeration. In this paper the long-term profitability of conglomerates is examined in an attempt to determine whether or not such shareholders earn superior returns on aggregate. This is done by contrasting the stock market performance of a sample of South African (SA) conglomerates over a six-year period with the performance of the overall market. In addition, their performance is contrasted with that of a random portfolio of non-conglomerate companies. Finally, a pseudo-conglomerate portfolio was constructed for each conglomerate in such a way that each portfolio had the same asset structure as its matched conglomerate. The performance of the conglomerates was then contrasted with that of the pseudo-conglomerate portfolio using market returns, return on assets, and return on equity. The results indicate that on aggregate, the conglomerates significantly underperform non-conglomerates. This is consistent with the view that conglomeration is in the interest of management rather than that of the shareholders.

scholarly journals A Model To Determine Capital Needs For Efficient Boer Goat Farming

2014 ◽  
Vol 30 (2) ◽  
pp. 575
Author(s):  
Merwe Oberholzer ◽  
Pieter W. Buys ◽  
Wilbrie Fourie
Keyword(s):  
Financial Performance ◽  
South African ◽  
Economies Of Scale ◽  
Practical Implication ◽  
Maximum Level ◽  
Data Envelopment Analysis Model ◽  
Analysis Model ◽  
Boer Goat ◽  
Goat Farm ◽  
Input Variables

<p>The purpose of this study is to determine the optimal capital needs to establish a Boer goat farm. A study was performed to simulate the financial performance of 55 scenarios, with varying farm sizes and varying levels of capital employed. These results formed the basis to create a data envelopment analysis model, where farm sizes and capital employed are used as input variables versus eight financial performance indicators as output variables. The study found that the scenarios are technically efficient, but only 23 of the 55 scenarios are fully scale efficient, with six scenarios operating on a scale that is too small and 26 operating on a scale that is too large, which implies that 32 of the scenarios did not achieve economies of scale. Furthermore, nine of the ten farm sizes used are not scale efficient when using 100% of their capital needs. The study therefore concludes that the financial success of starting a South African (SA) Boer goat farm is locked up in the natural growth of the herd, with the practical implication that aspirating SA Boer goat farmers will be most efficient when using a limited amount of capital and not immediately stock the farm at the maximum level of animals, but to stock it only partly and wait for the gain in the growth of the herd.</p>

scholarly journals The performance of conglomerate companies on the Johannesburg Stock Exchange: An empirical evaluation

1988 ◽  
Vol 19 (4) ◽  
pp. 127-132
Author(s):  
J. F. Affleck-Graves ◽  
G. H. Burt ◽  
S. J.M. Cleasby
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Empirical Evaluation ◽  
Market Returns ◽  
Return On Assets ◽  
Return On Equity ◽  
Advantages And Disadvantages ◽  
Johannesburg Stock Exchange ◽  
Stock Market Performance

Existent financial theory is unable to explain whether on aggregate conglomeration is beneficial to either individual shareholders or to the economy. Both advantages and disadvantages can be listed for the conglomeration process and it is thus an empirical question as to whether or not shareholders really benefit from conglomeration. In this paper the long-term profitability of conglomerates is examined in an attempt to determine whether or not such shareholders earn superior returns on aggregate. This is done by contrasting the stock market performance of a sample of South African (S.A.) conglomerates over a six-year period with the performance of the overall market. In addition, their performance is contrasted with that of a random portfolio of non-conglomerate companies. Finally, a pseudo-conglomerate portfolio was constructed for each conglomerate in such a way that each portfolio had the same asset structure as its matched conglomerate. The performance of the conglomerates was then contrasted with that of the pseudo-conglomerate portfolio using market returns, return on assets and return on equity. The results indicate that on aggregate, the conglomerates significantly underperform non-conglomerates. This is consistent with the view that conglomeration is in the interest of management rather than in the interest of the shareholders.

scholarly journals Asset liquidity and bank profitability in South Africa

2013 ◽  
Vol 11 (1) ◽  
pp. 745-753
Author(s):  
Godfrey Marozva
Keyword(s):  
South African ◽  
Ordinary Least Squares ◽  
Return On Assets ◽  
Bank Profitability ◽  
Return On Equity ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Asset Liquidity ◽  
Short Run

This paper empirically analyses the relationship between asset liquidity and bank profitability for South African banks for the period between 1994 and 2011. The study employs Ordinary Least Squares (OLS) and the Autoregressive Distributed Lag (ARDL)-bound testing approach to examine the linkage between return on assets (ROA) and liquidity, and the nexus between return on equity (ROE) and liquidity to capture the short-run and long-run dynamics. The study observes that there is neither a significant relationship between ROE and liquidity nor a relationship between ROE and liquidity. These observations hold for both the short-run and long-run. Banks are recommended to embrace the asset liability framework in their analysis and management of liquidity as the asset only approach is insufficient and misleading

scholarly journals Corporate social responsibility reporting by South African mining companies: Evidence of legitimacy theory

2017 ◽  
Vol 48 (1) ◽  
pp. 23-34 ◽  
Author(s):  
S. Dube ◽  
W. Maroun
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Legitimacy Theory ◽  
The South ◽  
Social Event ◽  
Environmental Disclosure ◽  
Mining Companies ◽  
Platinum Mining ◽  
Corporate Social

This paper offers evidence on the relevance of legitimacy theory for explaining changes in the frequency of corporate social responsibility (CSR) disclosures by South African platinum mining companies following violent strike action during 2012 at Marikana. The results show that all of the South African platinum mining companies provide additional information dealing specifically with the strike taking place at Marikana. This is more pronounced for the company directly involved in the incident. The research also finds evidence of a reaction to the social event by other companies in the South African Platinum Industry which alter the nature and extent of general CSR disclosures to maintain legitimacy. In this way, the study offers evidence in support of the relevance of legitimacy theory for explaining changes in CSR reporting. The findings of this study complement existing research which has ignored the South African market. Although there has been some work on legitimacy theory in the context of environmental disclosure by South African companies, the study is the first to examine a significant social event using legitimacy theory as the frame of reference.

PENGARUH KINERJA LINGKUNGAN DAN KEPEMILIKAN ASING TERHADAP KINERJA FINANSIAL PERUSAHAAN

2015 ◽  
Vol 9 (2) ◽  
pp. 31
Author(s):  
Tita Djuitaningsih ◽  
Erista Eka Ristiawati
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Least Square Method ◽  
Foreign Ownership ◽  
Partial Least Square ◽  
Least Square ◽  
Return On Assets ◽  
Return On Equity ◽  
One Year ◽  
Csr Disclosure

This research aims to examine the effect of environmental performance and foreign ownership refer to financial performance in PROPER’s companies participant ,in cases where CSR Disclosure as a intervening variable. This study uses 34 samples of firms that listed as participant of Program Peringkat Kinerja Perusahaan Dalam Pengelolaan Lingkungan Hidup (PROPER) for the period of 2005 and 2007. Applying a partial least square method – PLS, this study found that environment performance has no effect to CSR Disclosure. Foreign ownership has an effect to CSR Disclosure. In other side, environmental performance and foreign ownership has and effect to return on assets one year ahead and return on equity one year ahead (ROAt+1 and ROEt+1), but they had no effect to company return (Rt+1) in one year ahead.The results of this study indicate that the CSR Disclosure can not be an intervening in the relationship between foreign ownership and environmental performance with financial performance. Keywords: environmental performance, PROPER, foreign ownership, financial performance, CSR Disclosure

scholarly journals Bank Efficiency And Financial Ratios: Rating The Performance Of The Four Largest South African Banks

2013 ◽  
Vol 30 (1) ◽  
pp. 93 ◽  
Author(s):  
Gerhardus Van der Westhuizen
Keyword(s):  
South African ◽  
Financial Statements ◽  
Performance Measure ◽  
Financial Ratios ◽  
Data Envelopment ◽  
Return On Assets ◽  
Bank Efficiency ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Two Sides

Data Envelopment Analysis (DEA) in conjunction with financial ratios is used to estimate and compare the performance of the four largest South African banks over the period 2001 to 2011. DEA is used to estimate the relative technical, allocative, cost and scale efficiencies and compare these estimates to certain financial ratios published by the banks in their financial statements. These ratios include return on equity (ROE), return on assets (ROA), net interest margin (NIM), impairment losses, etc. The results obtained from the efficiency estimates and the financial ratios are used to rate the banks according to these performances. The rating differs depending on which performance measure is applied. A combination of these measures was necessary to determine the best and the worst performing bank. From the results obtained it appears that profitability and efficiency are two sides of the same coin.

scholarly journals Benchmarking Of Johannesburg Stock Exchange CEO Compensation

2012 ◽  
Vol 11 (9) ◽  
pp. 1061 ◽  
Author(s):  
Merwe Oberholzer ◽  
Marli Theunissen
Keyword(s):  
South African ◽  
Ceo Compensation ◽  
Empirical Investigation ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Data Envelopment ◽  
Small Companies ◽  
Return On Equity ◽  
Dea Model ◽  
Johannesburg Stock Exchange

The purpose of the study is to empirically compare CEO compensation benchmarks set by the frequently used Linear Regression Analysis (LRA), which is based on averages and Data Envelopment Analysis (DEA), which is based on best practices. To fulfill this purpose, an empirical investigation on South African listed companies was executed using a sample of 187 Johannesburg Stock Exchange (JSE) companies, grouped into three categories according to their sizes by using total assets, i.e. large, medium and small companies. For the LRA model, total CEO compensation is the dependent variable (y) with return on equity (as a measurement of performance) and total assets (as measurement of company size) as the independent variables (x). In the LRA model, the expected CEO compensation was calculated as a benchmark for each company and then compared to the actual value of the CEO compensation. In the DEA model, total CEO compensation is the input variable and return on equity and total assets the two output variables. The input-orientated technical efficiency estimate was calculated and the input targets (benchmarks for CEO compensation) set by the DEA model were compared to the actual CEO compensation. The study found that, using the LRA model, CEOs are on average actually underpaid in monetary terms by 36.8%, 33.2% and 17.8% for the large, medium and small companies, respectively. In contrast, the results for these three groups using DEA have shown that CEOs are on average actually overpaid in monetary terms by 47.6% 55.3% and 49.9%. This implies that LRA favors CEOs in comparison with the DEA model. Therefore, the study concludes that the frequently used LRA model is probably a reason that contributes to excessive CEO compensation.

scholarly journals Relationship between efficiency and profitability: The case of Czech swine sector

2021 ◽  
Vol 19 (1) ◽  
pp. e0102
Author(s):  
Veronika Hedija ◽  
Martina Kuncová
Keyword(s):  
Economic Efficiency ◽  
Economies Of Scale ◽  
High Efficiency ◽  
Pearson Correlation ◽  
Efficiency Score ◽  
Data Envelopment ◽  
Return On Assets ◽  
Return On Equity ◽  
Return On Sales ◽  
Analysis Models

Aim of study: The study aims to examine the link between economic efficiency and profitability of firms belonging to the swine sector.Area of study: This study is devoted to the Czech swine sector that forms the traditional and essential part of agriculture in the Czech Republic.Material and methods: Data from the Albertina CZ Gold Edition database for the period 2008-2017 were used. To evaluate the economic efficiency, the data envelopment analysis models are applied. Return on equity, return on assets and return on sales are used to measure profitability. To assess the relationship between economic efficiency and profitability, the Pearson correlation coefficient is used.Main results: The results demonstrate that there is no clear link between the economic efficiency of firms and their profitability in this industry. The correlation between all three profitability ratios and efficiency score were predominantly positive but not statistically significant in many cases. The economies of scale and scope and the construction of profitability indicators could be the main factors explaining the fact that companies achieving higher efficiency are not also more profitable.Research highlights: The study provides material useful to owners, managers, and customers of Czech agriculture firms. It identifies the relatively high efficiency of firms measured relatively to the best Czech company. In the European context, however, the efficiency of Czech firms belonging to the swine sector is low. It also reveals that the profitability of the firms is not a representative proxy for economic efficiency.

Sign in / Sign up

Export Citation Format

Share Document