scholarly journals Veranderinge in aandelekapitaal

1981 ◽  
Vol 12 (1/2) ◽  
pp. 1-4
Author(s):  
F. J. Mostert
Keyword(s):  
Stock Exchange ◽  
Market Prices ◽  
Share Capital ◽  
Empirical Survey ◽  
Johannesburg Stock Exchange ◽  
Rights Issues ◽  
Ordinary Share

Changes in share capital. A company's ordinary share capital can be altered by changing the amount of issued share capital or the number of issued shares or a combination of the two. Such changes can be effected through rights issues, capitalization issues, the subdivision of shares, the reduction of share capital and the consolidation of shares. Each of these avenues is dealt with in this article, which embodies selected results of an empirical survey of companies listed on the Johannesburg Stock Exchange. The discussion of rights issues includes the reasons for such issues, the discounts allowed on prevailing market prices, the factors which influence the success of an issue, and the effects of rights issues on the market prices of existing shares and letters of allotment. The reasons for and benefits of sub-divisions of shares and capitalization issues are considered, as are the reasons for and financial implications of a reduction in a company's issued share capital.'n Maatskappy se gewone aandelekapitaal kan gewysig word deur die bedrag van uitgereikte aandelekapitaal of die aantal uitgereikte aandele te verander of 'n kombinasie van die twee. Sodanige veranderings kan teweeggebring word deur regteuitgiftes, kapitalisasie-uitgiftes, die onderverdeling van aandele, die vermindering van aandelekapitaal en die konsolidasie van aandele. Elk van hierdie metodes word in die artikel bespreek wat geselekteerde resultate van 'n empiriese oorsig van maatskappye, wat op die Johannesburgse Effektebeurs genoteer is, bevat. Die bespreking van regteuitgiftes bevat die redes vir sodanige uitgiftes, die diskonto's wat op heersende markpryse toegelaat word, die faktore wat die sukses van 'n uitgifte beinvloed, en die uitwerking van regte-uitgiftes op die markpryse van bestaande aandele en toekenningsbriewe. Die redes vir en voordele van die onderverdeling van aandele en kapitalisasie-uitgiftes word bespreek sowel as die redes vir en finansiele implikasies van 'n vermindering in die maatskappy se uitgereikte aandelekapitaal.

scholarly journals The timing of rights issues on the Johannesburg Stock Exchange

1988 ◽  
Vol 19 (3) ◽  
pp. 90-95
Author(s):  
N. Bhana
Keyword(s):  
Empirical Evidence ◽  
Stock Exchange ◽  
Market Price ◽  
Trading Strategy ◽  
Stock Exchanges ◽  
Johannesburg Stock Exchange ◽  
Maximum Price ◽  
Trading Period ◽  
Highly Correlated ◽  
Rights Issues

Although a great deal of trading in rights transactions takes place on the various stock exchanges of the world there is a dearth of empirical evidence which might determine an observable trading strategy related to such transactions. The traditional view is that subscription rights to additional issues of securities will reach their maximum price shortly after the start of trading and then decrease until the end of the subscription period. The results of this investigation into rights issues of companies listed on the JSE clearly rejects the 'sell the rights early' trading strategy. It is observed that there is a considerable number of rights which reach their peak price in the middle and in the final trading period. Empirical evidence presented in this paper reveals three factors that could be used to predict the market price of rights listed on the JSE. All three factors are highly correlated with the market price of rights. Therefore, an evaluation of an observable trend in these factors could be used to advantage by investors engaged in rights transactions.

scholarly journals The cost of capital, the dividend decision and aspects of South African practice

1992 ◽  
Vol 23 (1) ◽  
pp. 27-32
Author(s):  
S. Paulo ◽  
J. K. Bosch
Keyword(s):  
South African ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Wide Spectrum ◽  
Empirical Survey ◽  
Johannesburg Stock Exchange ◽  
The Subject ◽  
And Function ◽  
The Cost ◽  
Role And Function

The objective in this article is to report on the role of the cost of capital when financial managers perform valuations in order to take a dividend decision. The dividend decision has been the subject of considerable debate with numerous models, theories, and considerations covering a wide spectrum being proposed and criticized as academicians argue the merits, relevance, and irrelevance of the dividend decision. Despite the lack of agreement as to the relevance of the dividend decision, the relevance of the cost of capital is not, per se, the subject of the dividend debate - it is central to the debate. In an attempt to establish the role and function of the cost of capital with regard to the dividend decision in South Africa, an empirical survey of all firms listed on the Johannesburg Stock Exchange was conducted. From this survey it is apparent that for the majority of the respondents the cost of capital does not have a formal or explicit impact on the dividend decision.

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 Price adjustments on the Johannesburg Stock Exchange for unexpected and dramatic news events: An empirical analysis

1989 ◽  
Vol 20 (3) ◽  
pp. 119-128 ◽  
Author(s):  
N. Bhana
Keyword(s):  
Empirical Analysis ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Short Term ◽  
Johannesburg Stock Exchange ◽  
Price Adjustments ◽  
Weak Evidence ◽  
News Events ◽  
One Year

The objective of this study is to determine whether companies listed on the Johannesburg Stock Exchange overreacted to unexpected favourable and unfavourable company-specific news events during the period 1970 - 1984. The JSE appears to be inefficient in reacting to the announcement of unfavourable news; economically significant abnormal returns up to one year following the event are observed. The JSE does not appear to overreact to news of a favourable nature, there is only weak evidence of short-term overreaction. The selling pressure caused by panic selling could depress prices well below levels justified by the unfavourable news. The magnitude of the overreaction to unfavourable news is sufficient to enable astute investors to outperform the market by taking positions in these securities. Knowledge of the pattern of market overreaction can also be of value to investors for transactions that are to take place anyway.

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.

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