scholarly journals DOES MANDATORY INTEGRATED REPORTING AFFECT STOCK PRICES AN EMPIRICAL STUDY ON THE JOHANNESBURG STOCK EXCHANGE

2018 ◽  
Vol 2 (3) ◽  
pp. 133-149
Author(s):  
A.R. Zafer Sayar ◽  
Metin Can Topdemir
Keyword(s):  
Empirical Study ◽  
Stock Prices ◽  
Stock Exchange ◽  
Integrated Reporting ◽  
Johannesburg Stock Exchange

The Nexus Between Johannesburg Stock Exchange and the United States Unemployment Rate Announcement: An Impulse Response Analysis

2018 ◽  
Vol 10 (3(J)) ◽  
pp. 160-168
Author(s):  
Misheck Mutize ◽  
Victor Virimai Mugobo
Keyword(s):  
United States ◽  
South African ◽  
Impulse Response ◽  
Unemployment Rate ◽  
Stock Prices ◽  
Stock Exchange ◽  
The United States ◽  
Response Analysis ◽  
Johannesburg Stock Exchange ◽  
The Us

The study explores the relationship between the unemployment rate in the United States and South Africa’s stock prices from the beginning of 2013 to the last day 2017. The objective of this paper is to examine the impact of the US unemployment rate announcement on the South African financial market. Results of Impulse Response analysis show that there is a very minimal impact from the US unemployment announcement to South Africa’s stock prices which disappears within two days of the announcement. In addition, the Johannesburg stock exchange index marginally responds to own shocks, which marginally fades away within two days. These findings imply that the changes in the US employment policies have a direct ripple effect on the South African macroeconomic environment, its investing public sentiments and corporate confidence on the future prospects of businesses.

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 The Relationships between Exchange Rates and Stock Prices: Empirical Investigation from Johannesburg Stock Exchange

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Gazi Salah Uddin ◽  
Khan Md. Raziuddin Taufique
Keyword(s):  
Exchange Rate ◽  
Market Efficiency ◽  
Stock Prices ◽  
Stock Exchange ◽  
Unit Root Test ◽  
Rate Sensitivity ◽  
Causality Test ◽  
Johannesburg Stock Exchange ◽  
Long Run ◽  
Adf Test

This study seeks evidence supporting the existence of market efficiency and exchange rate sensitivity on stock prices in the Johannesburg stock exchange (JSE). The sample includes the daily price indices of all securities listed on the JSE, and the exchange rate of the USD/Rand for the period since January 2000 to December 2004. The results from the unit root test, the ADF test and the causality test at the Granger sense provide evidence that the Johannesburg stock exchange (JSE) is informationally efficient. It has a long run comovement with exchange rate, and long run equilibrium or steady state. Hence, in JSE there is a strong possibility that foreign direct investors and forex market traders cannot influence and gain abnormal extra benefits by using exchange rate mechanism or by using exchange rate to forecast stock prices in the market. So, JSE is semi-strong form efficient. Through cointegration test, this paper gives more insight on the concept of market efficiency and the reliability of the results. These results are important to security analysts, investors, and security regulatory exchange bodies in policy making decision to improve the market conditions

scholarly journals The readability of integrated reports

2017 ◽  
Vol 25 (4) ◽  
pp. 629-653 ◽  
Author(s):  
Elda du Toit
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Value Added ◽  
Complex Nature ◽  
Integrated Reporting ◽  
Content Type ◽  
Johannesburg Stock Exchange ◽  
New Findings ◽  
African Context ◽  
Informed Reader

Purpose This is an exploratory study to investigate the readability of integrated reports. The aim of this paper is to assess whether integrated reports are accessible to their readership and add value to stakeholders. Design/methodology/approach Readability analyses are performed on the integrated reports of all companies listed on the Johannesburg Stock Exchange for 2015 and 2016. Readability results are compared by means of a correlation analysis to the results of the Ernst & Young Excellence in Integrated Reporting Awards for 2015. Findings The results show that the complex nature of the language used in integrated reports of listed companies impairs readability and, as an implication, affects the value stakeholders can derive from the information. The results from the correlation with the Ernst & Young Excellence in Integrated Reporting Awards indicate that an integrated report is considered of higher quality if it is written using complex language. Research limitations/implications The main limitation of the study lies in its exclusively South African setting, which is the only country where integrated reports are recommended as part of stock exchange listings requirements. Another limitation is the fact that integrated reports are mainly aimed at informed users and is thus compiled with the informed reader in mind, which impacts on general readability. Practical implications The results present new findings regarding integrated reporting practice, which is of interest to firms, investors, regulators, amongst others. The findings show how the value-added by integrated reports could be improved. Originality/value This study is the first to investigate the readability of integrated reports in a South African context. The results indicate that integrated reports are difficult to read and are only useful to a portion of the total intended population.

scholarly journals Balancing quantitative and qualitative value-creation reporting

2021 ◽  
Vol 24 (1) ◽  
Author(s):  
Cornelie Crous ◽  
Marike C. Van Wyk
Keyword(s):  
Cash Flow ◽  
Value Creation ◽  
Stock Exchange ◽  
Integrated Reporting ◽  
Reporting Practices ◽  
Johannesburg Stock Exchange

Method: The demand for a balanced disclosure of quantitative and qualitative value creation in an organisation and for its stakeholders has increased in recent years.Aim: Therefore, this study focused on the disclosure of 97 companies listed on the Johannesburg Stock Exchange over a period of five years (2015–2019).Method: A three-phased content anlaysis was followed.Results: The researchers found that value-creation disclosures are mostly concerned with quantitative value creation, and that they focus on value concepts, such as returns to investors, cash flow, increase in employee numbers, and benefits to employees. Some companies have progressed in their integrated reporting practices and now include a reference to value creation by balancing the different forms of capital. However, their reports still do not include concrete statements or definitions about what value creation is considered to be; neither do they disclose qualitative value-creation concepts.Conclusion: The authors thus conclude that imbalanced reporting skewed towards quantitative value concepts persists.

scholarly journals The Random Walk Theory And Stock Prices: Evidence From Johannesburg Stock Exchange

2014 ◽  
Vol 13 (6) ◽  
pp. 1241 ◽  
Author(s):  
Tafadzwa T. Chitenderu ◽  
Andrew Maredza ◽  
Kin Sibanda
Keyword(s):  
Random Walk ◽  
Stock Prices ◽  
Stock Exchange ◽  
Arima Model ◽  
Weak Form ◽  
Ratio Test ◽  
Random Walk Process ◽  
Random Walk Hypothesis ◽  
Johannesburg Stock Exchange ◽  
Random Walk Theory

In this paper, we test the Johannesburg Stock Exchange market for the existence of the random walk hypothesis using monthly time series of the All Share Index (ALSI) covering the period 2000 2011. Traditional methods, such as unit root tests and autocorrelation test, were employed first and they all confirmed that during the period under consideration, the JSE price index followed the random walk process. In addition, the ARIMA model was constructed and it was found that the ARIMA (1, 1, 1) was the model that most excellently fitted the data in question. Furthermore, residual tests were performed to determine whether the residuals of the estimated equation followed a random walk process in the series. The authors found that the ALSI resembles a series that follow random walk hypothesis with strong evidence of a wide variance between forecasted and actual values, indicating little or no forecasting strength in the series. To further validate the findings in this research, the variance ratio test was conducted under heteroscedasticity and resulted in non-rejection of the random walk hypothesis. It was concluded that since the returns follow the random walk hypothesis, it can be said that JSE, in terms of efficiency, is on the weak form level and therefore opportunities of making excess returns based on out-performing the market is ruled out and is merely a game of chance.

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.

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 Integrated Reporting Compliance With The Global Reporting Initiative Framework: An Analysis Of The South African Mining Industry

2012 ◽  
Vol 11 (11) ◽  
pp. 1249 ◽  
Author(s):  
Tertia Hindley ◽  
Pieter W Buys
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Mining Industry ◽  
Global Reporting Initiative ◽  
The South ◽  
Integrated Reporting ◽  
Johannesburg Stock Exchange ◽  
Statutory Requirement ◽  
Negative Impacts ◽  
Top 40

For all financial years ending on or after March 1st 2010, all companies listed on the Johannesburg Stock Exchange Ltd (JSE) have to provide an Integrated Report (as part of the JSEs listing requirements). This report is to supply sustainability information in addition to the conventional IFRS-based statements. Yet, no statutory requirement for adherence to reporting standards relating to sustainability exists. This creates the risk that sustainability reports will omit negative impacts or be otherwise misleading, yet the company is still seen as adhering to listing and thus statutory requirements. This article considers the quality of integrated reporting of the South African mining industry by evaluating compliance to the globally accepted Sustainability Framework of the Global Reporting Initiative, which includes Sector specific performance indicators, as well as GRI core indicators. Using a sample of the mining companies included in the JSE Top 40 companies, the results show that these companies used the GRI G3.1 version guidelines in producing their integrated reports and that adherence to the GRI guideline has improved over the two years under consideration.

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