The Long-Term Share Price Reaction to Black Economic Empowerment Announcements on the Johannesburg Securities Exchange

2008 ◽  
Author(s):  
Mike Ward ◽  
Chris Muller
Keyword(s):  
Share Price ◽  
Economic Empowerment ◽  
Price Reaction ◽  
Black Economic ◽  
Black Economic Empowerment

South Africa’s PIC faces major overhaul

2019 ◽  
Keyword(s):  
Pension Fund ◽  
Economic Empowerment ◽  
Economic Policies ◽  
Government Employees ◽  
Major Overhaul ◽  
Content Type ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government

Significance The PIC oversees approximately 142 billion dollars, mostly on behalf of the Government Employees Pension Fund (GEPF). While the GEPF’s assets are still comfortably greater than its liabilities, its surplus has been falling in recent years, with several questionable investments coming to light. Impacts Inquiry revelations could weaken support for government economic policies, such as prescribed assets, from traditional allies. The GEPF’s push to invest more funds overseas could have major implications for how much money the PIC manages and its future investments. The Commission's major long-term impacts could include a serious rethink of the ANC's black economic empowerment (BEE) economic policies.

South Africa's opposition will struggle to regroup

2019 ◽  
Keyword(s):  
Black Population ◽  
Economic Empowerment ◽  
Political Movement ◽  
Content Type ◽  
Rightward Shift ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
Black Voters ◽  
Party Congress

Significance Both Maimane and Mashaba had decried a seeming rightward shift in the formerly white-dominated DA, which struggled to make significant inroads in the May 2019 general election with the country’s majority black population. Impacts A new, white leader might stave off further losses with core voters but at the expense of gains with black voters. Race-based redress, black economic empowerment and diversity will continue to dominate internal debates ahead of an early party congress. A mooted new Maimane-Mashaba political movement would likely struggle to gain traction over the long term.

scholarly journals Strategies, challenges and best practices in implementing black economic empowerment in selected South African companies

2019 ◽  
Author(s):  
◽  
Swastika Juggernath
Keyword(s):  
Best Practices ◽  
South African ◽  
Best Practice ◽  
Economic Empowerment ◽  
Implementation Framework ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government ◽  
Qualitative Methodologies

This study presents an exploration of the challenges, strategies, and best practices in implementing Black Economic Empowerment within selected organisations in South Africa. The practise of Broad Based Black Economic Empowerment (BBBEE) within industry aims to provide redress for the imbalances of the apartheid era with the support of businesses. The focus area for this study is centred around the organizational implementation of BEE, which has become an unavoidable imperative for many South African companies if they wish to maintain long term profitability (Business Map, 2005). The challenge that arises is that, BEE legislation is not mandatory for the private sector, and businesses have no legal obligation to comply with it should they wish not to. This allows room for organisations to decide whether BEE will be profitable for the business or not and therefore, some organisations are hesitant and/or too slow to implement BEE, and hence, the pace of BEE compliancy is further questioned. The priorities and responsibilities of management in driving BEE, as well as the challenges, strategies, and best practices in implementing it, were investigated through this study, using both quantitative and qualitative methodologies. To achieve the objectives of the study, a survey using questionnaires and interviews was adopted. Questionnaires were administered to organisations on the 2018 Empowerdex List of Top 100 Companies and twenty of the respondents were selected for interviews. The findings from the study showed that the government and BEE consultants can support organisations with BEE implementation. Various departments must be accountable for successful BEE implementation together with the sound guidance of managers and ethical leadership for genuine transformation. Whilst various challenges were noted, strategies and best practices area also noted for successful BEE implementation. Based on the findings, a BEE Implementation Framework based on best practice was developed to assist South African businesses with their BEE implementation. The study is of significance to South African organisations, particularly those engaged in BEE implementation, government and academics who are exploring development and transformation within South African organisations.

The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa

2016 ◽  
Vol 34 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Omokolade Akinsomi ◽  
Katlego Kola ◽  
Thembelihle Ndlovu ◽  
Millicent Motloung
Keyword(s):  
Stock Returns ◽  
Factor Model ◽  
Stock Exchange ◽  
Sharpe Ratio ◽  
Economic Empowerment ◽  
Content Type ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of Broad-Based Black Economic Empowerment (BBBEE) on the risk and returns of listed and delisted property firms on the Johannesburg Stock Exchange (JSE). The study was investigated to understand the impact of Black Economic Empowerment (BEE) property sector charter and effect of government intervention on property listed markets. Design/methodology/approach – The study examines the performance trends of the listed and delisted property firms on the JSE from January 2006 to January 2012. The data were obtained from McGregor BFA database to compute the risk and return measures of the listed and delisted property firms. The study employs a capital asset pricing model (CAPM) to derive the alpha (outperformance) and beta (risk) to examine the trend amongst the BEE and non-BEE firms, Sharpe ratio was also employed as a measurement of performance. A comparative study is employed to analyse the risks and returns between listed property firms that are BEE compliant and BEE non-compliant. Findings – Results show that there exists differences in returns and risk between BEE-compliant firms and non-BEE-compliant firms. The study shows that BEE-compliant firms have higher returns than non-BEE firms and are less risky than non-BEE firms. By establishing this relationship, this possibly affects the investor’s decision to invest in BEE firms rather than non-BBBEE firms. This study can also assist the government in strategically adjusting the policy. Research limitations/implications – This study employs a CAPM which is a single-factor model. Further study could employ a multi-factor model. Practical implications – The results of this investigation, with the effects of BEE on returns, using annualized returns, the Sharpe ratio and alpha (outperformance), results show that BEE firms perform better than non-BEE firms. These results pose several implications for investors particularly when structuring their portfolios, further study would need to examine the role of BEE on stock returns in line with other factors that affect stock returns. The results in this study have several implications for government agencies, there may be the need to monitor the effect of the BEE policies on firm returns and re-calibrate policies accordingly. Originality/value – This study investigates the performance of listed property firms on the JSE which are BEE compliant. This is the first study to investigate listed property firms which are BEE compliant.

Black Economic Empowerment, ICT, and Preferential Public Procurement in South Africa

2013 ◽  
pp. 1164-1185
Author(s):  
Karunanidhi Reddy ◽  
Renitha Rampersad
Keyword(s):  
South Africa ◽  
Black People ◽  
Public Procurement ◽  
Economic Transformation ◽  
Economic Empowerment ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
Constitutional Right ◽  
The Government ◽  
Procurement System

Broad-based black economic empowerment has been a central part of the South African government’s economic transformation strategy. The main purpose of BEE is to increase the number of black people that manage, own, and control the country’s economy, and as a result, to reduce income inequalities and to contribute to economic transformation in South Africa. During apartheid in South Africa, the government procurement system favoured large, established businesses and made it difficult for newly established businesses to participate in the procurement system. This chapter gives an overview of the Black Economic Empowerment policy as a means to achieve socio-economic transformation in South Africa by providing preferences for Historically Disadvantaged Individuals (HDIs) and small businesses, when making procurement decisions. It also examines how procurement is used as a policy tool by government while simultaneously ensuring that it does not contradict the constitutional right to equality. The chapter also explores the implications of the Preferential Public Procurement Framework Act (Act 5 of 2000) and the latest procurement regulations. Finally, it discusses the use of ICT and the vital role it plays in preferential procurement in South Africa.

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