scholarly journals Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies

2016 ◽  
Vol 14 (3) ◽  
pp. 216-231 ◽  
Author(s):  
Patient Rambe ◽  
Tonderayi B. Mangara
Keyword(s):  
South African ◽  
Business Models ◽  
Stock Exchange ◽  
Listed Companies ◽  
Share Price ◽  
Years Of Experience ◽  
Integrated Reporting ◽  
African Countries ◽  
Corporate Reporting ◽  
The Impact

Integrated corporate reporting (ICR), which entails the process of compiling, documenting and reporting on company’s resources, its ongoing relationships with key stakeholders; business models; products (services); and the impact of such products (or services) on stakeholders, society, as well as the environment to optimize company value, has generated considerable interest among top 100 Johannesburg Stock Exchange (JSE) listed companies in South Africa over the last decade. Despite the surging interest in ICR to leverage the social responsibility, transparency and public accountability of companies in the developing African countries, little is known about the combined influence of ICR and internal company resources and/ capabilities (e.g., age and experience of the Chief Executive Officer (CEO)) on the performance of South African listed companies. The main objective of this study, therefore, is to examine the impact of Integrated Reporting Ratings (IRR); the company CEO’s age; and his/her years as a CEO on the share price of the company within the South African context. The top-106 JSE listed companies for the period Year-end 2014 constitute the sample for this study. Multivariate non-parametric regression is used to model the relationship between the predictor (i.e., independent) variables and the response (i.e., dependent) variable using MATLAB. The model developed in this study is, then, used to evaluate the impact of IRR; the CEO’s age and years of experience as CEO on the share price of individual companies. The proposed methodology is illustrated step-by-step. The finding of the study reveal that the share price of a company tended to increase with an increase in IRR, age and years of experience of the CEO, demonstrating that a company’s established history in integrated reporting and corporate experience positively impact its performance (i.e., the share price). Keywords: integrated corporate reporting, corporate responsibility, JSE listed companies, MATLAB. JEL Classification: G17

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 Separation of ownership and control in South African-listed companies

2013 ◽  
Vol 16 (3) ◽  
pp. 316-345 ◽  
Author(s):  
Blanché Steyn ◽  
Lesley Stainbank
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Listed Companies ◽  
South African Context ◽  
Valuable Contribution ◽  
Self Interest ◽  
African Context ◽  
Using Data ◽  
And Control ◽  
The Impact

This article tests the separation of ownership and control in South African-listed companies that leads to the divergence of interest between shareholders and directors. Where listed companies are owned by so many shareholders that their diffused shareholding results in negligible control over the directors who manage the assets of the company, it is likely that the directors will manage and direct the company to maximise their self-interest to the detriment of the interest of the shareholders. The separation of ownership and control and the maximisation of self-interest are central themes in the agency theory. Researching their validity in a South African context where the market is less liquid and the stock exchange is significantly smaller can add a valuable contribution to the continuing debate on corporate governance in the country. The article analyses 186 listed South African companies using data extracted over four years to test whether there is separation of ownership and control and whether such separation leads to the maximisation of self-interest. Data were extracted for the years 2005 and 2006, using the shareholding in 2006 to determine control, and for the years 2009 and 2010, using the shareholding in 2010 to determine control. Directors’ remuneration as a percentage of assets was used as a proxy for the maximisation of directors’ interest, and profit attributable to shareholders as a percentage of assets was used as a proxy for the maximisation of shareholders’ interest. These proxies were used to test the impact of control during the two controlling periods, namely 2006 and 2010.The article finds that the majority of listed companies in South Africa are controlled by a dominant shareholder. However, there are still a significant number of companies where the directors have de facto control. Contrary to the expectation that companies controlled by directors will aim to maximise directors’ remuneration, or companies controlled by shareholders will aim to maximise profit attributable to shareholders, this article finds the opposite to be true. This is possibly an indication that the controlling parties might consider factors other than their direct financial self-interest, or that there is an inherent cost associated with control.

scholarly journals Conceptualising the contemporary corporate value creation process

2017 ◽  
Vol 30 (4) ◽  
pp. 906-931 ◽  
Author(s):  
Carol A. Adams
Keyword(s):  
Sustainable Development ◽  
Value Creation ◽  
Corporate Strategy ◽  
Stock Exchange ◽  
Social Contexts ◽  
Integrated Reporting ◽  
Content Type ◽  
The Sustainable Development ◽  
Corporate Reporting ◽  
The Impact

Purpose The purpose of this paper is to examine and explain the complex interrelationships which influence the ability of firms to create value for their providers of finance and other stakeholders (loosely referred to in practice as “integrated thinking”). In doing so it examines the interrelationships between: environmental, social and governance (ESG) risk; delivering on corporate strategy; non-financial corporate reporting; and, board oversight. Design/methodology/approach Interviews were conducted with board chairs and non-executive directors of large listed companies on the Johannesburg Stock Exchange (where Boards are required to have a social and ethics sub-committee and approve integrated reports which have been mandatory since 2010) and the Australian Stock Exchange (where Board directors’ liability legislation results in Boards being reluctant to adopt integrated reporting which is voluntary). Findings The research finds that contemporary reporting processes, and in particular those set out in the King III Code and the International Integrated Reporting Framework, influence cognitive frames enhancing board oversight and assisting organisations in managing complexity. This results in increased awareness of the impact of ESG issues together with a broader view of value creation despite investor disinterest. Research limitations/implications A number of avenues of research are suggested to further examine the interrelationships identified. Practical implications The research assists the development of practice and policy by articulating and enhancing the understanding of linkages, which loosely fall under the vague practitioner term “integrated thinking”. Social implications The conceptualisation can inform national and global discussions on the appropriateness of corporate reporting and governance models to achieve sustainable development and contribute to the Sustainable Development Goals. Originality/value The paper conceptualises emerging and complex interrelationships. The cross-country comparison allows an assessment of the extent to which different national social contexts with differing governance and reporting frameworks lead to different perspectives on, and approaches to, value creation.

scholarly journals ADOPTING SOUND CORPORATE GOVERNANCE PRINCIPLES – A PROSPECTIVE APPROACН TOWARDS TНE IMPACT ON STOCK PRICES OF ROMANIAN LISTED COMPANIES

2020 ◽  
pp. 33-41
Author(s):  
I. Pop (Anghel)
Keyword(s):  
Corporate Governance ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Risk Mitigation ◽  
Listed Companies ◽  
Share Price ◽  
Assessment Index ◽  
Stock Market Performance ◽  
The Impact

Sound economic developments and successful businesses are conditioned by embracing proper corporate governance principles furthered by their proper implementation. There is a strong body of research that encompasses finance and accounting tools to establish valid links between qualitative corporate governance fundamentals and stock market performance of listed companies, that stem from accountability, operational integrity, transparency, management and board efficiency improvements, risk mitigation and overall better decision-making endeavours. The aim of the present research is to assess the impact of adopting sound corporate governance principles on the stock price of companies traded on the Bucharest Stock Exchange. Following our empirical efforts, the results of our regression study reveal the clear connection between price to book ratio and to our corporate governance assessment index and to a lesser extent the connection between share price and our corporate governance assessment index.

scholarly journals Estimating the burden of cardiovascular risk in community dwellers over 40 years old in South Africa, Kenya, Burkina Faso and Ghana

2021 ◽  
Vol 6 (1) ◽  
pp. e003499
Author(s):  
Ryan G Wagner ◽  
Nigel J Crowther ◽  
Lisa K Micklesfield ◽  
Palwende Romauld Boua ◽  
Engelbert A Nonterah ◽  
...  
Keyword(s):  
Risk Factors ◽  
Risk Factor ◽  
South African ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Cvd Risk ◽  
Genomic Studies ◽  
Sub Saharan ◽  
Context Specific ◽  
The Impact

IntroductionCardiovascular disease (CVD) risk factors are increasing in sub-Saharan Africa. The impact of these risk factors on future CVD outcomes and burden is poorly understood. We examined the magnitude of modifiable risk factors, estimated future CVD risk and compared results between three commonly used 10-year CVD risk factor algorithms and their variants in four African countries.MethodsIn the Africa-Wits-INDEPTH partnership for Genomic studies (the AWI-Gen Study), 10 349 randomly sampled individuals aged 40–60 years from six sites participated in a survey, with blood pressure, blood glucose and lipid levels measured. Using these data, 10-year CVD risk estimates using Framingham, Globorisk and WHO-CVD and their office-based variants were generated. Differences in future CVD risk and results by algorithm are described using kappa and coefficients to examine agreement and correlations, respectively.ResultsThe 10-year CVD risk across all participants in all sites varied from 2.6% (95% CI: 1.6% to 4.1%) using the WHO-CVD lab algorithm to 6.5% (95% CI: 3.7% to 11.4%) using the Framingham office algorithm, with substantial differences in risk between sites. The highest risk was in South African settings (in urban Soweto: 8.9% (IQR: 5.3–15.3)). Agreement between algorithms was low to moderate (kappa from 0.03 to 0.55) and correlations ranged between 0.28 and 0.70. Depending on the algorithm used, those at high risk (defined as risk of 10-year CVD event >20%) who were under treatment for a modifiable risk factor ranged from 19.2% to 33.9%, with substantial variation by both sex and site.ConclusionThe African sites in this study are at different stages of an ongoing epidemiological transition as evidenced by both risk factor levels and estimated 10-year CVD risk. There is low correlation and disparate levels of population risk, predicted by different risk algorithms, within sites. Validating existing risk algorithms or designing context-specific 10-year CVD risk algorithms is essential for accurately defining population risk and targeting national policies and individual CVD treatment on the African continent.

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

تأثير رأس المال الاجنبي المودع في القيمة السوقة للشركة دراسة تطبيقية في عينة من الشركات المدرجة في سوق العراق للأوراق المالية للمدة (2012-2020)

2021 ◽  
Vol 2021 (71) ◽  
pp. 164-182
Author(s):  
م.د لميس محمد مطرود ◽  
أ.م.د سمير عبدالصاحب يارا ◽  
م.د اسيل موسى جاسم
Keyword(s):  
Foreign Capital ◽  
Stock Exchange ◽  
Market Value ◽  
Listed Companies ◽  
Statistical Test ◽  
The Impact

The research aims to measure the impact of the capital deposited for non-Iraqi investors and the investor in the shares of companies listed in the Iraqi Stock Exchange on the market value of those companies, as well as studying the impact of the total foreign capital deposited in the sectors listed in the market on the market value of those sectors, and analyzing the value of the capital deposited and the market value of the sample companies. To achieve the research objective, (15) listed companies were selected for the period (2012-2020). The research relied on four main hypotheses, the most important of which is “there is no significant effect of deposited foreign capital on the market value of companies.” The results of the (F) statistical test revealed the presence of the effect of deposited capital for non-Iraqis on the market value of companies.

The impact of the integrated reporting framework on corporate social responsibility (CSR) disclosures – the case of South African mining companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barry Ackers ◽  
Susanna Elizabeth Grobbelaar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Mining Industry ◽  
Integrated Reporting ◽  
Content Type ◽  
Stakeholder Orientation ◽  
Mining Companies ◽  
Corporate Social ◽  
The Impact

Purpose Despite initially being lauded as a revolutionary approach for companies to account to all stakeholders, the shareholder orientation of the international integrated reporting (<IR>) framework gave rise to questions about whether integrated reports would still sufficiently disclose pertinent corporate social responsibility (CSR) information. This paper aims to investigate the extent to which the <IR> framework has impacted the CSR disclosures contained in integrated reports of South African mining companies. Design/methodology/approach The study deployed a mixed methods research approach, involving thematic content analysis of the CSR disclosures contained in the integrated reports of mining companies with primary listings on the Johannesburg Stock Exchange. The resultant qualitative data were subsequently analysed using a T-test of difference. Findings The study observes that the release of the <IR> framework appears to have had a limited impact on the CSR disclosures in the integrated reports of most companies included in the study. However, where significant differences were identified, the CSR disclosures of some companies were positively impacted after the release of the <IR> framework, whilst others were negatively impacted. Research limitations/implications As South Africa is acknowledged as a leader in the global <IR> movement, the paper’s observations have global relevance and suggest that the fundamental principles of <IR> should be reconsidered to improve the alignment with stakeholders’ information needs, as originally conceived. Originality/value Despite the shareholder orientation of the <IR> framework, the global mining industry is acknowledged as being at the forefront of implementing CSR interventions to mitigate the adverse impacts of their operations on stakeholders, supporting a stakeholder orientation. As the adoption of <IR> continues to gain traction around the world, this paper’s contribution is that it represents one of the few papers to use the global reporting initiative G4 indicators to specifically examine the impact of <IR> framework on the CSR disclosures on the South African mining industry, where both <IR> and CSR reporting are quasi-mandatory disclosure requirements.

scholarly journals Integrated Reporting and Corporate Performance: Empirical Evidence of The IIRC Framework Adoption

2019 ◽  
Vol 16 (2) ◽  
pp. 181
Author(s):  
Muhammad Wildan Affan
Keyword(s):  
Chemical Industry ◽  
Corporate Performance ◽  
Stock Exchange ◽  
High Growth ◽  
Analysis Tool ◽  
Research Subject ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Industry Sector ◽  
Growth Industry

Sustainability and transparency issues are becoming trending in the nature of corporate reporting. Stakeholders are accused to bring together all financial and nonfinancial metrics into one integrated report. The purpose of this study is to determine the effect of integrated reporting toward corporate performance. Integrated reporting measurement uses the construct adopted from IIRC. The research sample in this study is basic and chemical industry sector that listed in the Indonesia Stock Exchange in 2017. The reason in choosing those industries as a research subject is because the basic and chemical industry sector is recorded as a high growth industry sector in 2017. This study uses a linear regression as an analysis tool. This study concluded that integrated reporting has significant effect toward corporate performance.

scholarly journals THE IMPACT OF OWNERSHIP STRUCTURE IN PROMOTING CONTINUITY - APPLIED STUDY OF A SAMPLE ON LISTED COMPANIES IN IRAQI STOCK EXCHANGE

2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Amer Mohamed Salman Al-Janabi ◽  
Hassnain Kadhem Ojah
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Research Problem ◽  
Listed Companies ◽  
Specific Class ◽  
Control Environment ◽  
Financial Reports ◽  
Applied Study ◽  
Corporate Governance Mechanisms ◽  
The Impact

The research aims to diagnose the property structure for a sample of listed companies shares in the Iraq Stock Exchange as well as determining the ability of the property structure in the continuity of the company, as the research problem is the effect of the structure of ownership of the corporate sample study in promoting continuity of companies? The research assumed a significant impact of the structure of ownership in enhancing the continuity of the sample of the research, the research reached that the diversity of the property structure is centralized through it is part of corporate governance mechanisms, as it is responsible for specific policies and decisions, which in turn has a solid control environment As well as the powers of the protection of shareholders, as well as the diversity of ownership structure leads to the protection of the interests of economic unity and the interests of all equity holders through that decisions do not have a specific class interests at the expense of the rest of the stock campaign, as well as non-continuity It is the results of many behaviors and non-right decisions and decisions of the ownership structure. The discovery of those factors and indicators contributes to avoiding non-continuation of the samples of the research sample. Those who have 5% stake through special statements are discriminated with financial reports to clearly identify the diversity of the property structure as well as account monitors should give an indication. The landmarks are clear in their reports and their views are clearly and impressed with regard to the imposition of continuity of economic units listed on the Iraq Stock Exchange.

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