scholarly journals An analysis of the demand for business aircraft among the corporate sector in South Africa

2019 ◽  
Vol 13 ◽  
Author(s):  
Mpho J. Mabotja ◽  
Ngoasheng J. Mampana ◽  
Bernard Tavengwa ◽  
Jacobus Walters ◽  
Martie A. Mearns ◽  
...  
Keyword(s):  
South Africa ◽  
Mixed Methods Research ◽  
Stock Exchange ◽  
Commercial Aircraft ◽  
African Countries ◽  
Face To Face ◽  
Johannesburg Stock Exchange ◽  
Business Aviation ◽  
Sequential Mixed Methods ◽  
To Come

Background: Business aircraft fulfil a major need in providing access and mobility solutions not generally offered by scheduled commercial aircraft. These aircraft often make use of secondary airports in outlying areas thus encouraging economic development. Business aviation is, in general, growing throughout the world and also in some African countries, but appears to be subdued in South Africa. The purpose of this research project was to determine the demand characteristics for business aviation aircraft in South Africa.Objectives: The primary research objective was to determine the demand for business aircraft in South Africa, as well as the nature and characteristics of the users and non-users of business aircraft among the top 100 companies listed on the Johannesburg Stock Exchange (JSE).Method: A pragmatic research philosophy guided an exploratory sequential mixed methods research design. Findings from face-to-face interviews with aviation experts were utilised to develop the research questionnaire distributed to the top 100 JSE-listed companies.Results: The potential future growth for the business aircraft market is most likely to come from existing users, with marginal growth from new entrants in the market. Perceived costs are major deterrents to the utilisation of business aircraft.Conclusion: The research provides market intelligence necessary to guide business aviation companies to efficiently service or expand the market for business aircraft in South Africa, contributing to the existing knowledge in air transport.

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.

scholarly journals Attitudinal and Behavioural Loyalty: Zimbabwe Tourism Brand Performance Ascendancy

2016 ◽  
Vol 3 (2) ◽  
pp. 52
Author(s):  
Farai Chigora ◽  
Promise Zvavahera
Keyword(s):  
Brand Loyalty ◽  
Personal Experience ◽  
Mixed Methods Research ◽  
Word Of Mouth ◽  
Tourism Industry ◽  
Brand Performance ◽  
Sequential Mixed Methods ◽  
Attitudinal Effects ◽  
Accommodation Sector ◽  
To Come

The study investigated the most common sources of brand loyalty in Zimbabwe’s tourism destination. This was based on two dominant sources of brand loyalty which are attitudinal and behavioural loyalty. The main reason for the study was that Zimbabwe’s tourism brand is underperforming due to various socio-economic and political factors such that authorities should know on the most prevailing source of brand loyalty. This helps in formulating strategies that turn either attitudinal or behavioural loyalty to better Zimbabwe tourism brand performance. The study used a sequential mixed methods research design which is a combination of both qualitative and quantitative approaches. In-depth interviews were carried out with various experts from the tourism industry in order to come up with the common sources of tourist loyalty in Zimbabwe. The identified variables were personal experience, general perception, media propaganda, word of mouth reference and speculations. These variables were then investigated as sources of brand loyalty through survey questionnaires that were distributed in the Zimbabwe tourism accommodation sector and resorts. The results showed that the most effective source of brand loyalty is media propaganda followed by word of mouth reference then speculation, personal experience and general perception. The most common sources have been classified as attitudinal effects and that study recommended effective media publicity management, sponsored familarisation tours and tourism brand showcasing partnerships at both regional and international levels.

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

scholarly journals Against the Herd: Contrarian Investment Strategies on the Johannesburg Stock Exchange

2014 ◽  
Vol 6 (2) ◽  
pp. 120-129
Author(s):  
Prince K. Sarpong
Keyword(s):  
South Africa ◽  
Stock Market ◽  
Mutual Funds ◽  
Opposite Direction ◽  
Mutual Fund ◽  
Stock Exchange ◽  
Superior Performance ◽  
Johannesburg Stock Exchange ◽  
Herd Behaviour ◽  
Over Time

This study seeks to investigate herd behaviour among equity mutual fund managers and the performance of mutual funds that trade against the herd in South Africa. The behaviour of mutual funds has an effect on the stability and volatility of stock markets, the ultimate returns to the investors. The study builds upon the efficient market hypothesis, portfolio theory and behavioural finance to provide evidence of the behaviour of mutual funds in an emerging market context using the Johannesburg Stock Exchange. The Lakonishok, Shleifer and Vishney (1991) measure of herding is used to ascertain the behaviour of mutual funds over the period 2006 to 2012. Institutional investors in South Africa are susceptible to the behavioural bias of herding and this phenomenon influences the performance of their funds. Funds that trade in the opposite direction of herd funds are able to put up a superior performance over time. Superior performance, however, does not entice mutual fund investors to invest less in under-performing funds and more in funds that recently show superior performance. These findings imply that following investment waves does not culminate in superior returns in the stock market. Consequently, mutual funds that take an opposite direction to herd funds help stabilize the stock market and lessen the severity of bear markets. This study categorizes mutual funds into ‘herding’ and ‘contrarian’ and provides an insight into the performance of each category. Investors who oppose herd behaviour realize greater returns over time while stabilizing the markets at the same time.

scholarly journals Factors Influencing the Extent of Corporate Compliance with International Financial Reporting Standards in South Africa

2021 ◽  
Vol 11 (12) ◽  
pp. 965-984
Author(s):  
Unity Maqeda Putsai ◽  
Msizi Mkhize
Keyword(s):  
South Africa ◽  
Financial Reporting ◽  
Stock Exchange ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reports ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Johannesburg Stock Exchange ◽  
Compliance Level

The main objective of this study is to investigate the effects of company attributes on compliance with International Financial Reporting Standards (IFRS). The study used a sample of 46 listed companies on the Johannesburg Stock Exchange (JSE) covering the period from 1993 to 2017. With an average compliance level of 88.21304, it is concluded that South Africa’s listed firms have significantly complied with IFRS 1. Using panel data to analyze the effects of company attributes, size and leverage have a significant positive effect on IFRS 1 compliance. On the other hand, the coefficients of Earnings Per Share (EPS) and Return on Total Assets (ROTA) are negative and significant. This similarly implies that ROTA and EPS are important factors driving the compliance level of the companies in South Africa with the IFRS 1 disclosure. EPS and ROTA also exhibit an inverse relationship with the compliance level. Carrying out a longitudinal study helps to produce more recent evidence on the quality of IFRS financial reports in South Africa. The outcome of the study is beneficial to international literature as it provides enough evidence on the benefits of adopting IFRS adoption.

scholarly journals Take-over announcements and insider trading activity on the Johannesburg Stock Exchange

1987 ◽  
Vol 18 (4) ◽  
pp. 198-208 ◽  
Author(s):  
N. Bhana
Keyword(s):  
South Africa ◽  
Insider Trading ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Third Parties ◽  
Inside Information ◽  
The Public ◽  
Public Announcement ◽  
Johannesburg Stock Exchange ◽  
Announcement Date

The objective of this study was to carry out an investigation into the abnormal return behaviour of a sample of 50 acquired companies on the Johannesburg Stock Exchange during the period 1976-1985. Insiders appear to take market positions on prospective take-overs approximately 40 trading days before the announcement, and there appears to be uncontrolled abuse of insider trading rules in the 15 days immediately prior to the take-over announcement date. Legally defined insiders were not responsible for the abuse of inside information relating to the proposed take-overs. It would seem that substantial insider trading is carried out through third parties in order to escape detection of the authorities. The JSE appears to be inefficient in reacting to the public announcement of a planned take-over, and Section 233 of the Companies Act which regulates insider trading in South Africa is clearly ineffective. Various deficiencies and loopholes in the existing legislation are identified and recommendations for amendments are suggested.

scholarly journals Hostile take-overs: A review of defensive techniques currently used by target companies

1984 ◽  
Vol 15 (1) ◽  
pp. 53-56
Author(s):  
N. Bhana
Keyword(s):  
South Africa ◽  
Stock Exchange ◽  
The United States ◽  
Policy Implications ◽  
Business Managers ◽  
New Techniques ◽  
Golden Parachute ◽  
Johannesburg Stock Exchange ◽  
Business Concentration ◽  
New Strategies

Take-overs of companies are being increasingly used as a means of business growth. Take-over candidates are decreasing and acquiring companies are becoming more aggressive in pursuing take-overs. The target companies have retaliated by using several new techniques to avoid hostile take-overs. Anti-take-over amendments to the company's Memorandum and Articles of association, 'golden parachute' arrangements, and the simultaneous bid for the acquiring company are being extensively used to defend hostile take-overs. The controversial nature of these new strategies has provoked heated academic debate as well as emotional arguments between business managers and shareholders. The high cost of implementing the new strategies to defend take-overs has generated much adverse publicity in the United States. By contrast these new techniques have not found widespread use in South Africa. It can be expected that at some stage in the future these techniques will be implemented by the target companies in South Africa. The public policy implications of using these techniques are discussed in this article. The need to provide guide-lines on the use of new strategies to defend hostile take-overs is recommended. The listed companies in South Africa are instrumental in undertaking major take-overs resulting in increased business concentration. It is recommended that the Johannesburg Stock Exchange should provide guidelines on acceptable methods to defend hostile take-overs.

scholarly journals An exploratory study of the effect of country-by-country reporting ambiguities on Johannesburg Stock Exchange-listed companies

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Cara Thiart ◽  
George F. Nel
Keyword(s):  
South Africa ◽  
Financial Reporting ◽  
Multinational Enterprises ◽  
Stock Exchange ◽  
Listed Companies ◽  
Annual Reports ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Johannesburg Stock Exchange ◽  
Group Structures

Background: South Africa issued regulations implementing country-by-country (CbC) reporting standards for multinational enterprises (MNEs) on 23 December 2016. Country-by-country reporting will be applicable to all MNEs with a group revenue in excess of R10 billion. Aim: The aim of the study was twofold: to identify ambiguities that might influence the filing obligation and subsequent scope of CbC reporting in South Africa and to quantitatively measure the potential impact of any identified ambiguities. Setting: This study used data from Johannesburg Stock Exchange-listed companies. Methods: The study commences with a review of the relevant regulations and other applicable literature and continues with a quantitative analysis exploring alternative interpretations deduced from this review. Results: The review identified conflicting interpretations of how companies can be categorised as an MNE Group or not, as well as in measuring the revenue threshold. An analysis of the group structures and annual reports of a selected sample of 78 companies showed that the scope of CbC reporting will depend on the definitions applied to an MNE Group and revenue. Conclusion: Further guidance is needed to determine whether non-controlling entities must be considered as Constituent Entities, as well as how to measure revenue (i.e. whether only the International Financial Reporting Standards [IFRS] 15 revenue line item should be used or whether other income should also be included).

scholarly journals The levels of disclosure relating to mine closure obligations by platinum mining companies

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Joline Sturdy ◽  
Christo J. Cronje
Keyword(s):  
South Africa ◽  
Mine Drainage ◽  
Stock Exchange ◽  
Mineral Resources ◽  
Abandoned Mines ◽  
Annual Reports ◽  
Mine Closure ◽  
Mining Companies ◽  
Johannesburg Stock Exchange ◽  
Platinum Mining

Background: Mine closure obligations are economically significant, and the consequences of insufficient mine closure obligations are of public interest. The incidence of acid mine drainage and the high number of ownerless and abandoned mines in South Africa have brought the consequences of insufficient mine closure obligations in the mining sector into the spotlight.Aim: The aim of this study is to establish the extent to which platinum mines listed on the Johannesburg Stock Exchange (JSE) comply with a recommended disclosure framework.Setting: South Africa is the largest producer of platinum in the world. The study covers all platinum mines listed on the JSE.Methods: Using a framework, a census of the annual financial statements, integrated annual reports and sustainability reports or websites was conducted to determine the level of compliance of disclosure relating to mine closure obligations to the recommended disclosure framework.Results: The results show disclosure relating to mine closure obligations of platinum mines listed on the JSE is inconsistent and not sufficient for stakeholders to understand the scope, key assumptions, parameters or reliability of the assessment and calculation of mine closure obligations.Conclusion: The assumptions used to determine mine closure obligations are specialised and multi-disciplinary. The accuracy and reliability of mine closure obligations will improve dramatically through greater transparency and access to information. It is recommended that the JSE listings for mining companies should require a competent person’s report to provide disclosure on assumptions, key values and processes applied to determine the mine closure obligations. Furthermore, it is recommended that the Department of Mineral Resources implements a mechanism of independent assessment of mine closure obligations by experts on an ongoing basis.

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