scholarly journals Sustainability And Integrated Reporting In The South African Corporate Sector

2014 ◽  
Vol 1 (1) ◽  
pp. 19-42 ◽  
Author(s):  
Anria S. Van Zyl
Keyword(s):  
South Africa ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Implementation Challenges ◽  
Related Information ◽  
Johannesburg Stock Exchange ◽  
Two Stages ◽  
Evaluation Matrix

This article aims to determine if the adoption of Integrated Reporting by large private sector companies in South Africa has led to an improvement in the quality of sustainability-related information disclosed. This was done in two stages. The first stage comprised a literature review with the aim to develop an evaluation matrix that can be used to access the quality of the sustainability-related information being disclosed within Integrated Reports. During the second stage, empirical evidence was obtained by assessing the sustainability reporting disclosures made by the best performers according to the Johannesburg Stock Exchange (JSE) Sustainability Index. The Integrated Reporting process is still in the development phase with many companies only now developing methodologies to measure their various impacts. The study found that, although many companies are attempting or claiming to be creating Integrated Reports, the level of integration is still very low. Few companies have incorporated or understood the importance of environmental and social sustainability in achieving long-term success. It is hoped that this research will provide an evaluation matrix to assess the information disclosed within Integrated Reports as well as provide insights into the implementation challenges experienced by the early adopters in South Africa.

scholarly journals Sustainability And Integrated Reporting In The South African Corporate Sector

2013 ◽  
Vol 12 (8) ◽  
pp. 903 ◽  
Author(s):  
Anria S. Van Zyl
Keyword(s):  
South Africa ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Implementation Challenges ◽  
Related Information ◽  
Johannesburg Stock Exchange ◽  
Two Stages ◽  
Evaluation Matrix

This article aims to determine if the adoption of Integrated Reporting by large private sector companies in South Africa has led to an improvement in the quality of sustainability-related information disclosed. This was done in two stages. The first stage comprised a literature review with the aim to develop an evaluation matrix that can be used to access the quality of the sustainability-related information being disclosed within Integrated Reports. During the second stage, empirical evidence was obtained by assessing the sustainability reporting disclosures made by the best performers according to the Johannesburg Stock Exchange (JSE) Sustainability Index. The Integrated Reporting process is still in the development phase with many companies only now developing methodologies to measure their various impacts. The study found that, although many companies are attempting or claiming to be creating Integrated Reports, the level of integration is still very low. Few companies have incorporated or understood the importance of environmental and social sustainability in achieving long-term success. It is hoped that this research will provide an evaluation matrix to assess the information disclosed within Integrated Reports as well as provide insights into the implementation challenges experienced by the early adopters in South Africa.

scholarly journals Firm characteristics and excellence in integrated reporting

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Natasha Buitendag ◽  
Gail S. Fortuin ◽  
Amber De Laan
Keyword(s):  
Repeated Measures ◽  
Mixed Model ◽  
Stock Exchange ◽  
Categorical Variables ◽  
Firm Characteristics ◽  
Integrated Reporting ◽  
Johannesburg Stock Exchange ◽  
Annual Survey ◽  
The Board Of Directors

Background: Integrated reporting has attracted much attention in the past few years, and South Africa has taken the lead in its development worldwide. An annual survey is published by Ernst & Young regarding the quality of the integrated reports of the top 100 entities listed on the Johannesburg Stock Exchange (JSE).Aim: The study on which this article is based was aimed at determining whether the assessment of an entity’s characteristics can predetermine the quality of the integrated report generated by that entity. Setting: This article focuses on an analysis of the integrated reporting of the top 100 entities listed on JSE for the financial years ending in 2013, 2014 and 2015.Methods: Comparison of categorical variables, mixed-model repeated measures ANOVA and generalised estimating equations were applied to identify the best classificators to distinguish between excellent integrated reporting and those reports where progress could still be made. Results: The results show that the type of industry the entity finds itself in, the size and profitability of the entity, as well as the composition of the members of the board, have an effect on the quality of the integrated report.Conclusion: Our results indicated that the type of industry, size of an entity, the profitability and composition of the board of directors, all have an effect on the quality of the integrated reporting. Our evidence will assist current and prospective stakeholders in evaluating the expected quality of an entity’s integrated report, through the evaluation of certain firm characteristics.

scholarly journals Investigating the extent of sustainability reporting in the banking industry

2016 ◽  
Vol 11 (4) ◽  
pp. 71-81 ◽  
Author(s):  
Anet M. Smit ◽  
Johan van Zyl
Keyword(s):  
South Africa ◽  
Social Responsibility ◽  
Banking Industry ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Performance Criteria ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Total Compensation ◽  
Annual Total

This study investigated the extent to which banks in South Africa report on remuneration and incentives according to the Global Reporting Initiative (GRI) guidelines. The study was done by examining the annual integrated reports of eight commercial banks listed on the Johannesburg Stock Exchange. Content analysis was used as the research method in this empirical study. There was, on average, 75% compliance to G4-51 a, the standard concerning remuneration policies by the integrated reports studied and 69% compliance to G4-52 a, the standard concerning the process for determining remuneration. There was a very low degree of compliance to standard G-53 a and standard G4-55 a, which concern how stakeholders’ views are sought and taken into account regarding remuneration and the ratios regarding compensation, respectively. Two of the standards had no compliance at all. They are G4-51 b and G4-54 a that respectively, concerns how the performance criteria in the remuneration policy relate to the highest governance bodies’ and senior executives’ economic, environmental and social objectives and the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees. These are two of the most important standards in order to reach the objective of social responsibility reporting with regards to remuneration and that serious consideration must be given as to why there is no compliance. Based on the findings from this study, it is found that social reporting by the banks listed on the JSE with regards to remuneration, as indicated by the GRI G4, are relatively poor. Keywords: sustainability reporting, sustainable development, global reporting initiative, integrated reporting; remuneration and incentives, corporate social responsibility, banking industry, South Africa. JEL Classification: M14, N2, N27, M52

scholarly journals Integrated reporting vs. sustainability reporting for corporate responsibility in South Africa

2015 ◽  
Vol 29 (29) ◽  
pp. 7-17 ◽  
Author(s):  
Alexandra F. Clayton ◽  
Jayne M. Rogerson ◽  
Isaac Rampedi
Keyword(s):  
South Africa ◽  
South African ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
And Performance ◽  
The Impact ◽  
Responsible Manner

AbstractLarge corporates have come under increasing pressure to conduct their business in a more transparent and responsible manner. In order for business to fulfil its obligations under the ethic of accountability stakeholders must be given relevant, timely, and understandable information about their activities through corporate reports. The conventional company reports on annual financial performance, sustainability and governance disclosures often fail to make the connection between the organisation’s strategy, its financial results and performance on environmental, social and governance issues. Recognising the inherent shortcomings of existing reporting models, there is a growing trend to move towards integrated reporting. South Africa has been one of the most innovative countries in terms of integrated corporate reporting. Since 2010 companies primarily listed on the country’s major stock exchange have been required to produce an integrated report as opposed to the former sustainability report. The aim in this study is to review the development of integrated reporting by large corporates in South Africa and assess the impact of the required transition from sustainability reporting to integrated reporting on non-financial disclosure of eight South African corporates using content analysis of annual reports.

scholarly journals Effects of integrated reporting on the cost of capital and analysts’ forecasts errors: A study of Johannesburg Stock Exchange listed mining firms

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Bhekisisa N. Ngcobo ◽  
Mabutho Sibanda
Keyword(s):  
Stock Exchange ◽  
Equity Capital ◽  
The Body ◽  
Forecast Errors ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Integrated Reporting ◽  
Johannesburg Stock Exchange ◽  
The Cost

Orientation: Integrated reporting (IR) has gained traction over the last decade. Although IR became mandatory for all firms listed on Johannesburg Stock Exchange (JSE) in 2010, the International Integrated Reporting Council (IIRC) issued the IR framework in December 2013.Research Purpose: The study seeks to investigate the effects of IR on the cost of equity capital and analysts’ forecast errors for the mining firms listed on JSE.Motivation for the study: A large part of empirical evidence highlights benefits of IR; however, some studies still find no link between the quality of integrated reports and economic benefits for the reporting firm. It is against this backdrop that the study investigates effects of integrated reports on the cost of equity capital and analysts’ forecast errors.Research approach, design and method: We use a quantitative research design to test effects of IR on the cost of equity capital and analysts’ forecast errors. We study used a panel regression to analyse relationship amongst IR, cost of equity capital and analysts’ forecast errors.Main findings: The study found a significant negative relationship between IR scores and cost of equity and analysts’ forecast errors.Practical or managerial application: The findings of the study could incentivise managers in other jurisdictions where IR is not mandatory. Furthermore, findings may contribute to the existing discourse on firm-based benefits related to the quality of IR.Contribution or value addition: The study contributes to the body of knowledge with regard to possible benefits associated with compliance with the IR reporting framework.

Mandatory integrated reporting disclosure and corporate misreporting

2020 ◽  
Vol 21 (3) ◽  
pp. 363-382
Author(s):  
Thinh Gia Hoang ◽  
Trang Kieu Vu ◽  
Ha Tuyet Nguyen ◽  
Hiep Ngoc Luu
Keyword(s):  
South Africa ◽  
Stock Exchange ◽  
Integrated Reporting ◽  
Content Type ◽  
Listed Firms ◽  
Regulatory Authorities ◽  
Johannesburg Stock Exchange ◽  
Wide Range ◽  
Before And After ◽  
Mandatory Adoption

PurposeThis paper aims to enrich our understanding of whether mandatory IR adoption lures firm into misreporting or forces them to reduce it.Design/methodology/approachThe empirical analysis is carried out based on the sample containing all publicly listed firms in South Africa. Many different rigorous econometric techniques are adopted to thoroughly evaluate whether corporate misreporting practices increase or decrease following the mandatory adoption of IR.FindingsThe empirical results reveal that mandatory IR disclosure results in a decline in the misreporting practices of firms. The authors further find that as firms increasingly comply with the IR guidelines, especially with the “Content Elements” and “Guiding Principles,” their misreporting levels decrease.Research limitations/implicationsThis study has implications for a wide range of stakeholders, especially for regulatory authorities, international policymakers and regulators, as well as users of integrated reports of listed firms on the Johannesburg Stock Exchange (JSE).Practical implicationsRegulatory authorities should be aware of misreporting determinants to set adequate and fitting corporate reporting standards that restrict the opportunistic behaviour of managers and amend IR guidelines to make them more comprehensible for integrated report preparers, therefore improves the implementation of IR.Social implicationsThis study sheds light on the current state and consequences of IR adoption in South Africa before and after the mandatory IR disclosure requirement, thus, international policymakers and regulators can refer to the critical aspects in our findings when considering whether to support IR mandatory adoption in their markets.Originality/valueThis paper sheds light on the emerging debate over the usefulness of IR and the necessity of mandatorily adopting this new reporting framework. In addition, by showing that the mandatory adoption of IR significantly reduces corporate misreporting practices, we also contribute to the literature on corporate misreporting behaviour.

scholarly journals Social Media Policies Within the Financial Sector in South Africa

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402097503
Author(s):  
Amanda van den Berg ◽  
Miemie Struwig
Keyword(s):  
South Africa ◽  
Social Media ◽  
Financial Institutions ◽  
Brand Image ◽  
Stock Exchange ◽  
Document Analysis ◽  
Research Process ◽  
Relationship Building ◽  
Disciplinary Action ◽  
Johannesburg Stock Exchange

The main purpose of this article is to explore the social media policies of financial institutions in South Africa. Owing to the advances in technology, businesses are exposed to many opportunities but also risks in social media platforms. For the study, a thematic framework was considered to analyze social media policies, which included risk and relationship building, brand image and reputation, stakeholders and communities, disciplinary action and compliance as well as professional and personal guidelines. A qualitative document analysis of social media policies of select South African Johannesburg Stock Exchange (JSE) listed financial institutions was then conducted. For the data analysis, a thematic document analysis using a consensual qualitative research process was applied. The results showed that all the financial institutions appreciated the value and opportunities provided by social media and ensured strict compliance to their social media policies. However, there were some financial institutions that did not focus on relationship building, did not mention brand image and reputation, did not include all stakeholders, and did not suggest personal guidelines in their social media policies.

Investigating the low-risk anomaly in South Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yudhvir Seetharam
Keyword(s):  
South Africa ◽  
Kalman Filter ◽  
Stock Exchange ◽  
Low Risk ◽  
Momentum Effect ◽  
Content Type ◽  
Share Prices ◽  
Johannesburg Stock Exchange ◽  
High Volatility ◽  
Finance Theory

PurposeRecent studies have shown that low-volatility shares outperform high-volatility shares. Given the conventional finance theory that risk drives return, this study aims to investigate and attempt to explain the presence of the low-risk anomaly (LRA) in South Africa.Design/methodology/approachUsing share prices from 1990 to 2016, various buy-and-hold strategies are constructed to determine the return to an investor attempting to capitalise on such an anomaly. These strategies involve combinations relating to a price filter, the calculation of risk and volatility, value-weighting or equal-weighting of portfolios and the window period to construct said portfolios.FindingsIt was found that the LRA exists on the Johannesburg Stock Exchange (JSE_=) when using univariate sorts, without controlling for the size or value effect. When using multivariate portfolio sorts (size and volatility or value and volatility), it was found that the LRA does not exist on the JSE under the majority of risk proxies, but particularly prevalent when downside risk is used. This loosely points towards a potential “inverse momentum” effect where low-return portfolios outperform their counterparts.Originality/valueIn general, it is established that the risk–return relationship is non-linear and deterministic under traditional proxies, but improves to being somewhat, but not completely, linear under a Kalman filter. The Kalman filter, which can be considered a proxy for learning, does not remove the anomaly in its entirety, indicating that behavioural approaches are needed to explain such phenomena.

Evaluating the Adequacy of Water-Related Reporting and Disclosure by High-Impact users in South Africa

2016 ◽  
Vol 18 (01) ◽  
pp. 1650003 ◽  
Author(s):  
Marthinus Jacobus Botha ◽  
Sanlie. L. Middelberg
Keyword(s):  
South Africa ◽  
Theoretical Background ◽  
High Impact ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Reporting Practices ◽  
Disclosure Requirements

South Africa is facing a water crisis in terms of the scarcity and the quality of its water. Considering this water-constrained future, it is evident that companies in South Africa should pay attention to the pristine management and reporting of this scarce resource. The purpose of this paper is to evaluate the reporting and disclosure requirements of water of Socially Responsible Investment-indexed (SRI-indexed) JSE-listed companies. The disclosure requirements of integrated reporting, King III, the Global Reporting Initiative (GRI) and the Association of Chartered Certified Accountants (ACCA) provided the theoretical background. Content analysis was used as the research method to analyse the integrated reports of high-impact users. The findings of the study include that most of the companies illustrate commitment towards water stewardship by reporting on water-related aspects. A more comprehensive standardised set of guidelines to report on water per sector could add value to the reporting practices of companies.

scholarly journals Discretionary disclosures: reactivity and proactivity in the chairpersons’ statements of JSE-listed companies in South Africa

2016 ◽  
Vol 14 (3) ◽  
pp. 512-521
Author(s):  
Nthabeleng Mmako
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Environmental Factors ◽  
Stock Exchange ◽  
Jel Classification ◽  
Review Of The Literature ◽  
Corporate Reporting ◽  
Johannesburg Stock Exchange ◽  
Starting Point ◽  
Good Starting Point

A review of the literature on corporate governance and narrative disclosures highlights the need for assessment of the formulation of the chairperson’s statement. This research is justified as corporate reporting today is more integrated. The significance of the study may be that even though only the chairperson’s statement is investigated, it may be a good starting point for understanding how change is ushered into an organization and from what perspective this takes place. Findings of content analysis of 100 Johannesburg Stock Exchange (JSE)-listed chairperson’s statements suggest that as part of the communication intended mainly for investors and other stakeholders of the company, the chairperson’s statement is written as a reactive statement to environmental factors or as a proactive statement to counter environmental factors that may affect or have affected the company’s performance. This study will be useful in helping readers to improve their understanding of a company’s efforts to communicate with them, from the chairperson’s perspective. Keywords: chairperson’s statement, JSE, disclosures, reactivity, proactivity. JEL Classification: G3, G30

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