scholarly journals Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

2020 ◽  
Vol 17 (20) ◽  
pp. 7504
Author(s):  
Obey Dzomonda ◽  
Olawale Fatoki
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Stock Exchange ◽  
Share Price ◽  
Environmental Compliance ◽  
Responsible Investment ◽  
Johannesburg Stock Exchange ◽  
Earnings Per Share

The importance of heeding the environmental sustainability commitment call cannot be underestimated. Laggards in terms of environmental sustainability commitment are likely to face fines and penalties as talks to tighten environmental legislation are now at an advanced stage globally. The current work assessed the link between environmental sustainability commitment and financial performance of firms listed on the Johannesburg Stock Exchange (JSE). The study was quantitative in nature with a case study research design. The longitudinal design was adopted where the researcher collected panel data from 2011–2018. The population of the study included all firms listed on the JSE Responsible Investment Index in South Africa. The sample constituted of 32 firms listed on the Financial Times Stock Exchange FTSE/JSE Responsible Investment Index in South Africa. The researchers employed the panel regression analysis model to analyze the data. Specifically, the Feasible Generalized Least Squares regression model was used in this study. Financial performance was treated as the dependent variable as measured by earnings per share and share price. The independent variables of the study included components of environmental sustainability such as carbon emission reduction and environmental compliance. Control variables such as firm size and liquidity were used in the study. The findings indicated that carbon emission reduction was positively and significantly related to earnings per share and share price. The findings further exhibited that environmental compliance was positively related to earnings per share and share price. It was concluded that firms can enhance their financial performance from environmental investment as all the hypotheses were supported. This study contributes practically towards shaping environmental policies and it also serves as motivation to listed companies that they can enhance both their profitability and market value from environmental investments.

scholarly journals ANALISIS PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM PADA PERUSAHAAN PERBANKAN

2019 ◽  
Vol 4 (2) ◽  
pp. 151-156
Author(s):  
Nailal Husna
Keyword(s):  
Financial Performance ◽  
Stock Price ◽  
Sampling Method ◽  
Stock Exchange ◽  
Share Price ◽  
Return On Assets ◽  
Earnings Per Share ◽  
Equity Ratio

The object of this study is a banking company whose shares are listed in Indonesia Stock Exchange 2011-2014 period, and the sampling method was census. The purpose of this study was to determine the effect of the financial performance of banking shares. And the research variables are Stock Price (Y), Return on Assets (X1), Debt to Equity Ratio (X2), Price Earning Ratio (X3), Earning Per Share (X4). Based on the analysis and discussion of the results of testing the hypothesis then the conclusion is Price Earning Ratio and Earning Per share, positive and significant impact on the share price, while Return on Assets, Dept To Equity Ratio, Earnings Per share no significant effect on stock price. Keywords : Stock Price, Return on Assets, Debt To Equity ratio, Price Earning Ratio, Earnings Per Share, Bank

scholarly journals Corporate social responsibility and financial performance: Evidence from the Johannesburg Stock Exchange, South Africa

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Elda Du Toit ◽  
Karabo Lekoloane
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Stock Exchange ◽  
The Body ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Johannesburg Stock Exchange ◽  
Body Of Knowledge ◽  
Corporate Social

Background: Stakeholders are increasingly concerned whether the companies they are involved with act in a socially responsible way. However, stakeholders like employees and shareholders also have a direct financial interest in those companies and need to be assured that company actions bring forth some financial benefit.Aim: The research investigated one of the main questions surrounding the concept of corporate socially responsibility, namely whether a company’s investment in and effort towards corporate social responsibility results in improved financial performance. The purpose of this study was to narrow the gap in the body of knowledge in relation to corporate social responsibility and its relationship to financial performance.Setting: This research investigated whether there was a relationship between being listed on the Johannesburg Stock Exchange (JSE) Socially Responsible Investment (SRI) Index and financial performance. The unit of study comprises 885 company-years of companies listed on the JSE over the period 2009–2014.Methods: Logistic regression was used to find evidence of a relationship between a listing on the JSE SRI Index and financial performance.Results: It is evident that there was no real relationship between inclusion on the JSE SRI Index and financial performance, but there was a direct relationship between the size of a company and having a listing on the JSE SRI Index.Conclusion: A listing on the JSE SRI Index does not have a clear and direct impact on financial performance, but it appeared that larger companies are perhaps better able to invest in corporate social activities and are, as a result, more likely to be listed on the JSE SRI Index.

scholarly journals The relationship between remuneration and financial performance for companies listed on the Johannesburg Stock Exchange

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Elize Kirsten ◽  
Elda Du Toit
Keyword(s):  
Financial Performance ◽  
South African ◽  
Executive Director ◽  
Stock Exchange ◽  
Share Price ◽  
Executive Directors ◽  
Best Interest ◽  
Goods And Services ◽  
Johannesburg Stock Exchange ◽  
The Relationship

Background: The executive directors of a company are the agents of the shareholders and should manage the company in the best interest of the shareholders, not only for personal gain. It is therefore important for companies to ensure that they implement remuneration policies which will result in motivated employees who will execute decisions and actions which are in the best interest of the shareholders. However, it is widely acknowledged that the relationship between company performance and executive remuneration is weak. This implies that executives are still rewarded excessive remuneration regardless of the performance of their companies. Aim: The purpose of this study was to determine whether a relationship exists between the performance-based remuneration of executive directors and the financial performance of South African companies. Setting: The study was conducted in South Africa, specifically on companies listed on the Johannesburg Stock Exchange. Methods: The study design was quantitative and made use of a Pearson correlation and generalised least squares regression with bootstrapping at a 95% confidence interval to analyse the relationship between executive director remuneration and the financial performance of 42 companies in the consumer goods and services industry of the Johannesburg Stock Exchange (JSE) from 2006 to 2015. Results: The study established that the remuneration policies in place for South African executive directors within the consumer goods and services industry seem to be affected by the share price of the company. Conclusion: In the South African environment, executive director remuneration is thus not directly related to profitability or company size, as was the case in some earlier studies. The link between executive director remuneration and share performance may be an indication that remuneration policies are based on the share price and are thus directly connected to the principle of shareholder wealth maximisation.

scholarly journals Sustainability Reporting as Mediation of Factors Affecting Financial Performance: Case in the Mining Sector in Indonesia

2020 ◽  
pp. 30-37
Author(s):  
Septiana Jumita ◽  
◽  
Taufiq Taufiq ◽  
Yusnaini Yusnaini ◽  
◽  
...  
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Stock Exchange ◽  
Social Performance ◽  
Sustainability Reporting ◽  
Mining Sector ◽  
Report Generation ◽  
Factors Affecting ◽  
Management Personnel ◽  
Study Results

The problem of global warming due to environmental pollution has made it necessary for companies to be widely accountable to society about their performance. Therefore, today companies must not only report on the financial performance, but also report on all non-financial aspects of their activities, such as social and environmental. Sustainability reporting enables companies to report on environmental and social performance. It is not just report generation from collected data; instead it is a method to internalize and improve an company’s commitment to sustainable development in a way that can be demonstrated to both internal and external stakeholders. The study examines the factors influencing the company's financial performance through sustainability reporting in mining sector companies in Indonesia. The object of the study is a sample of 6 mining companies listed on the Indonesia Stock Exchange in 2014-2018. In this study, the authors use the Path Analysis – a form of multiple regression statistical analysis that is used to evaluate causal models by examining the relationships between a dependent variable and two or more independent variables. The study results show that sustainability reporting has a positive and significant impact on the financial performance of mining companies.In particular, the results of the analysis show that the company size and its liquidity have a positive and significant effect on the sustainability reporting. Leverage has a negative and significant effect on sustainability reporting. At the same time, the factors disclosed in the sustainability reporting have a significant impact on the financial performance of the companies. The results of this study can be useful for management personnel in the process of preparing a sustainability report by companies that want to attract the attention of investors.

scholarly journals PENGARUH EARNING PER SHARE (EPS) DAN PERTUMBUHAN PENJUALAN TERHADAP HARGA SAHAM PADA PERUSAHAAN FARMASI YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Desi Nurul Hikmati Ilahiyah
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Share Price ◽  
Pharmaceutical Companies ◽  
Sales Growth ◽  
Earnings Per Share

On investing in the capital market one thing that must be considered is the stock price. The price of shares offered on a stock exchange is related to the achievements of the company. The share price can be purchased by earnings per share (EPS) and sales growth. The purpose of this study was to study the effect of earnings per share (EPS) and sales growth on the stock prices of pharmaceutical companies listed on the Indonesian stock exchange (IDX). The population in this study were 11 pharmaceutical companies that were accepted on the Stock Exchange and sampled through purposive sampling techniques as many as 9 companies in the 2015-2019 period. This study uses multiple linear regression analysis. EPS partial research results positive and significant EPS on EPS stock prices EPS has tcount (54,435)> ttable (2,02439), on the other hand, partial sales growth, positive and significant effect on stock prices, economic growth, thitung sales value ( -3,525) table (-2.02439). Simultaneous EPS and positive and significant growth in stock prices due to the results obtained Fcount (1560,773)> Ftable (3.25).

scholarly journals Fundamental factors influencing returns of shares listed on the Johannesburg Stock Exchange in South Africa

2017 ◽  
Vol 9 (2) ◽  
pp. 426-435
Author(s):  
Marise Vermeulen
Keyword(s):  
Stock Exchange ◽  
Dividend Payout ◽  
Return On Equity ◽  
Explanatory Variables ◽  
Johannesburg Stock Exchange ◽  
Earnings Per Share ◽  
Asset Growth ◽  
Book To Market Ratio ◽  
The Impact ◽  
The Relationship

This study investigated the relationship between share returns and nine variables that had been proven to influence returns in previous research, using a multiple regression analysis. These variables are size, leverage, book-to-market ratio, earnings yield, dividend payout, earnings growth, return on equity, earnings per share and asset growth. The impact of some of the variables on share returns proved to be insignificant, and some collinearity was identified between some of the variables. However, three significant variables were identified and the final regression model included the book-to-market ratio, dividend payout and leverage as the explanatory variables.

CEO Narcissism and Accounting: A Picture of Profits

2013 ◽  
Vol 26 (2) ◽  
pp. 243-267 ◽  
Author(s):  
Kari Joseph Olsen ◽  
Kelsey Kay Dworkis ◽  
S. Mark Young
Keyword(s):  
Financial Performance ◽  
Performance Measures ◽  
Data Availability ◽  
Personality Characteristics ◽  
Share Price ◽  
Earnings Per Share ◽  
Narcissistic Personality ◽  
Financial Performance Measures ◽  
Operational Activities ◽  
Ceo Narcissism

ABSTRACT This study investigates the relationship between narcissistic personality characteristics in CEOs of Fortune 500 companies and financial performance measures of earnings-per-share (EPS) and stock valuation. Using panel data from 1992 through 2009, we show that firms with narcissistic CEOs have higher earnings-per-share and share price than those with non-narcissistic CEOs. We examine the mechanism driving the observed results and find that narcissistic CEOs are more likely to increase reported EPS through real and operational activities rather than accrual-based manipulations. The findings suggest that narcissistic personality characteristics of top executives affect financial performance measures through the executive's decisions and influence over the firm's operational activities rather than through accrual and accounting decisions. Data Availability: Data available upon request.

scholarly journals The performance of secondary share recommendations published in the news media and the effects on the efficiency of the Johannesburg Stock Exchange

1990 ◽  
Vol 21 (4) ◽  
pp. 129-134
Author(s):  
Narendra Bhana
Keyword(s):  
Small Group ◽  
Empirical Evidence ◽  
News Media ◽  
Stock Exchange ◽  
Market Price ◽  
Share Price ◽  
Efficient Market ◽  
Johannesburg Stock Exchange ◽  
New Information ◽  
Subsequent Publication

The objective of this study is to determine if the buy and sell recommendations published in newspapers are able to outperform the market. The empirical evidence supports the hypothesis that buy and sell recommendations released to a small group of investors is not immediately and fully reflected in the share price. Instead, it appears that subsequent publication of these recommendations in newspapers has a significant impact on the market price. The findings of this investigation are not at variance with the notion of an efficient market. The publication of analysts' recommendations in newspapers makes the market more efficient by passing on new information to a large group of investors.

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