scholarly journals The relationship between corporate turnover and degree of diversification in South African listed industrial companies

1982 ◽  
Vol 13 (3) ◽  
pp. 118-120
Author(s):  
Rob Mackintosh
Keyword(s):  
South African ◽  
Market Share ◽  
Listed Companies ◽  
Financial Resources ◽  
Diversification Strategy ◽  
Business Policy ◽  
Industrial Companies ◽  
Small Market ◽  
Diversification Strategies ◽  
The Relationship

The view is widely held in the literature on business policy that not only does structure follow strategy, but that size (measured in terms of turnover) and diversification strategy are closely correlated. This paper examines the relationship between degree of diversification and sales turnover of several South African listed companies which undertook diversification strategies between 1970 and 1976. The results show that there is no significant correlation between turnover and degree of diversification among these companies. Both small and large firms are seen to have similar degrees of diversification. The findings suggest that firms should avoid diversifying into several different markets while having a relatively small market share in each, as both managerial and financial resources then become too thinly spread. Such companies are likely takeover candidates in recessionary periods.Daar is 'n algemene siening in die literatuur oor bestuursbeleid ('business policy'), naamlik dat struktuur nie slegs op strategie volg nie, maar dat grootte (gemeet in terme van omset) en diversifiseringstrategie sterk korreleer. Hierdie artikel ondersoek die verhouding tussen graad van diversifisering en verkoopomset van verskeie Suid-Afrikaanse gelyste maatskappye wat tussen 1970 en 1976 diversifiseringstrategiee beoefen het. Die resultate dui aan dat daar geen betekenisvolle korrelasie tussen omset en graad van diversifisering in hierdie maatskappye was nie. Klein sowel as goot maatskappye toon volgens die navorsing soortgelyke vlakke van diversifisering. Die bevindings dui aan dat maatskappye diversifisering in verskeie markte behoort te vermy as hulle slegs 'n klein markaandeel in elk sou he, omdat bestuurs- sowel as finansiele hulpbronne dan te yl versprei word. Sulke maatskappye is waarskynlike kandidate vir oornames in tye van regressie.

scholarly journals The effect of industry nuances on the relationship between corporate governance and financial performance: Evidence from South African listed companies

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Jonty Tshipa ◽  
Leon M. Brummer ◽  
Hendrik Wolmarans ◽  
Elda Du Toit
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
South African ◽  
Resource Dependence ◽  
Stock Exchange ◽  
Listed Companies ◽  
Company Performance ◽  
Johannesburg Stock Exchange ◽  
Good Corporate Governance ◽  
The Relationship

Background: Premised on agency, resource dependence and stewardship theories, the study investigates empirically the existence of industry nuances in the relationship between corporate governance and financial performance of companies listed in the Johannesburg Stock Exchange. Aims: The main objective of the study is to understand the relationship between internal corporate governance and company performance from the perspective of three distinct economic periods, as well as industry nuances, cognisant of endogeneity issues. Setting: South Africa, as an emerging African market, offers an interesting research context in which the corporate governance and financial performance nexus can be examined empirically. Method: A sample of 90 companies from the five largest South African industries, covering a 13-year period from 2002 to 2014 (1170 firm-year observations) was examined with three estimation approaches. Results: Two key trends emerged from this study. First, the relationship between corporate governance and company performance differed from industry to industry. Second, the association between corporate governance and company performance also changes during steady and non-steady periods, which is an indication that the nexus is driven by the state of the global economy and the type of the industry. Conclusion: Evidence from the study suggests that companies should be allowed to optimise rather than maximise their corporate governance options. This finding questioned the approach of the recently published King IV Code of Good Corporate Governance, which requires Johannesburg Stock Exchange-listed companies to ‘apply and explain’ as opposed to ‘apply or explain’ as pronounced by King III Code of Good Corporate Governance.

scholarly journals Diversification Strategy and Sustainable Development of Mining Companies in the Eurasian Mining Region

2019 ◽  
Vol 134 ◽  
pp. 03012
Author(s):  
Dmytro Voronets ◽  
Olga Garafonova ◽  
Irina Verezomska ◽  
Oksana Oliinyk
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Investment Portfolio ◽  
Diversification Strategy ◽  
Mining Companies ◽  
Mining Region ◽  
Diversification Strategies ◽  
Development Goals ◽  
The Relationship ◽  
Dot Com

The aim of this study is to examine the relationship between diversification strategies implementation and sustainable development goals of mining companies of Eurasian mining region in modern conditions. Today Eurasia is very rich region with minerals-driven sustainable development goals and challenges. In this case it is important to improve strategies of mining companies of Eurasia and to listen to the biggest companies` experience. Diversification strategy is one of the most progressive way to develop mining companies wherein Global Sustainable Development Goals must be considered. Diversification of the enterprise could be realized in such ways: as the extension of its business activities to new areas or as the capital diversification — diversification of assets in company’s investment portfolio. Over the past two years, from 2017 to the beginning of 2019, the number of diversified companies in the TOP 30 Mining companies of the world, according to the PWC consulting company and the Mining[dot]com resource, increased from 8 to 13. Thus, it is important to study the possibilities and features of implementing diversification strategies for mining enterprises of Eurasian mining region. In research it is presented the algorithm of the model, compiled on the basis of the development as applied to solving the problem of diversification of a mining enterprise.

scholarly journals Structure and profitability in the banking sector

2018 ◽  
Vol 13 (1) ◽  
pp. 49-59 ◽  
Author(s):  
Munacinga Simatele ◽  
Syden Mishi ◽  
Nomasomi Ngonyama
Keyword(s):  
Market Structure ◽  
South African ◽  
Market Share ◽  
Positive Relationship ◽  
Banking Sector ◽  
The South ◽  
Policy Makers ◽  
Structure Relationship ◽  
Bank Market Structure ◽  
The Relationship

The relationship between profit and bank market structure continues to raise questions amongst both policy makers and researchers. While some evidence supports a positive relationship between market structure, competition and profitability, other evidence seems to support the fact that profitability and related market share result from efficiency. Moreover, extant literature on South Africa is conflicting and seems to contradict anecdotal evidence. While some studies point to a competitive environment despite concentration, others suggest that concentration in the banking sector is harmful. Prosecution of banks for uncompetitive behavior also casts doubt on the conclusion that the South African banking sector is competitive. This paper examines the relationship between structure and conduct in the South African banking sector. Using the Berger (1995) discriminating tests, the effect of industry concentration, market share and efficiency on three measures of profitability is estimated on a panel of 11 South African banks for data between 1994 and 2016. The results show that concentration affects conduct. The profit-structure relationship is dominantly explained by the structure conduct hypothesis and partly by the efficient scale hypothesis. These results suggest that policy which discourages concentration and promotes competition in the banking sector is socially beneficial.

scholarly journals PENGARUH STRUKTUR MODAL, PROFITABILITAS TERHADAP DETERMINASI MANAJEMEN LABA DAN STRATEGI DIVERSIFIKASI

2020 ◽  
Vol 9 (1) ◽  
pp. 47-57
Author(s):  
Dayani Okvi Yanto ◽  
Lela Nurlaela Wati
Keyword(s):  
Capital Structure ◽  
Earnings Management ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Diversification Strategy ◽  
Management Actions ◽  
Diversification Strategies ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

This study aims to examine the effect of capital structure on earnings management, profitability on earnings management and diversification strategies to moderate the effect of capital structure on earnings management. This study uses data from 93 manufacturing companies listed on the Stock Exchange Index (IDX) during the period 2014 to 2018 using Moderating Regression Analysis (MRA). The results showed that capital structure had no effect on earnings management. Profitability with the ROA proxy has a significant positive effect on earnings management, but the diversification strategy is not able to moderate the relationship of capital structure to earnings management. Profitability can build earnings management actions by way of income minimizaation and income maximization, because with good performance through the level of profitability, investors will be interested in investing the capital.

scholarly journals The relationship between return on investment and the market share of certain listed companies in selected market sectors: 1975 - 1985

1988 ◽  
Vol 19 (3) ◽  
pp. 85-89
Author(s):  
P. W.C. De Wit ◽  
N. J.R. Steyn
Keyword(s):  
Empirical Study ◽  
South African ◽  
Market Share ◽  
Return On Investment ◽  
Positive Relationship ◽  
Theoretical Study ◽  
Future Research ◽  
Meaningful Relationship ◽  
The Relationship ◽  
A Company

During a theoretical study of company objectives it was found that it is generally assumed that a positive relationship exists between return on investment and the market share of a company. Examination of the formula for calculating return on investment shows, however, that this may not necessarily be the case. As existing studies regarding this relationship could not give any clarity, the need arose for a South African based study. An empirical study was accordingly executed on listed retail stores and companies involved in the manufacturing and distribution of furniture. The period involved was 1975-1985. No meaningful relationship between return on investment and market share could be found. Various recommendations that may lead to more conclusive results during future research were made. The need for accurate findings exists to establish whether the marketing objective is in line with the company objective.

scholarly journals The relationship between debt levels and total shareholder return of JSE-listed platinum companies

2016 ◽  
Vol 6 (1) ◽  
pp. 7-13 ◽  
Author(s):  
Sandra Jooste ◽  
Susanna Levina (Sanlie L.) Middelberg ◽  
Merwe Oberholzer
Keyword(s):  
Capital Structure ◽  
South African ◽  
Significant Positive Correlation ◽  
Precious Metals ◽  
Listed Companies ◽  
The Body ◽  
Positive Correlation ◽  
The Core ◽  
The Relationship ◽  
Debt Levels

The purpose of this study is to investigate empirically whether there is a positive correlation between debt levels and total shareholder return (TSR) of platinum JSE-listed companies. The study field comprised annual analyses for 12 companies listed under the Platinum and Precious Metals sector on the JSE Ltd for the 14-year period 2000 to 2013. The results of the study were inconclusive as a statistically significant positive correlation between changes in debt levels and changes in TSR could only be found in two of these years. The core audience of the study will be the management of South African platinum companies considering changes in their capital structure, and investors considering investment in a listed platinum company. The contribution of the study is therefore to add to the body of literature on capital structure decisions from a South African platinum mine context.

scholarly journals The Effect Of Earnings Per Share Categories On Share Price Behavior: Some South African Evidence

2016 ◽  
Vol 33 (1) ◽  
pp. 141-152
Author(s):  
Natasha Robbetze ◽  
Rikus De Villiers ◽  
Lana Harmse
Keyword(s):  
South African ◽  
Correlation Coefficients ◽  
Listed Companies ◽  
Share Price ◽  
Potential Growth ◽  
Share Prices ◽  
Earnings Per Share ◽  
Top 40 ◽  
The Relationship ◽  
Lower Correlation

Earnings per share (EPS) is considered as an important accounting indicator of risk, entity performance and corporate success. It is used to forecast potential growth in future share prices, because changes in EPS are often reflected in share price behaviour. Companies listed on the Johannesburg Share Exchange (JSE) are required to publish three different categories of EPS: basic, diluted and headline EPS. It has become apparent that there is no indication as to which category explains share price behaviour best. The study therefore aimed to determine which category of EPS is best associated with share prices of the top 40 JSE listed companies in South Africa. No South African studies have previously attempted to answer this question. The top 40 JSE listed companies were selected as the research sample and the relationship between different categories of EPS and share prices was analysed empirically for the period 2005 to 2013. This study demonstrated that basic EPS correlated best with the changing behaviour of share prices. Furthermore, the study established that headline EPS proved to deliver lower correlation coefficients than other EPS categories. Based on the findings of this study some useful recommendations and areas for further research were also identified.

The moderating effect of board size on the relationship between diversification and tourism firm performance

2019 ◽  
Vol 25 (7) ◽  
pp. 1084-1104 ◽  
Author(s):  
Chen Zheng ◽  
Henry Tsai
Keyword(s):  
Firm Performance ◽  
Tourism Industry ◽  
Moderating Effect ◽  
Diversification Strategy ◽  
Board Size ◽  
Unrelated Diversification ◽  
Diversification Strategies ◽  
Related Diversification ◽  
The Relationship

This study examines the effects of diversification strategy and board size on firm performance as well as the moderating effect of board size on the relationship between diversification strategy and firm performance in the Chinese tourism industry from 2008 to 2015. The results show that related diversification positively influenced Chinese tourism firm performance, and unrelated diversification negatively influenced it. Board size was found to negatively moderate the relationship between related diversification and firm performance and to positively moderate the relationship between unrelated diversification and firm performance. In addition, the results imply that small boards are beneficial to Chinese tourism firms when both related and unrelated diversification strategies are implemented.

Co-creating the Psychological “White Picket Fence”: Three Gay Couples’ Relationship Reconfiguration

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Prevan Moodley ◽  
Francois Rabie
Keyword(s):  
Grounded Theory ◽  
South African ◽  
Gay Couples ◽  
Core Category ◽  
Picket Fence ◽  
Open Relationship ◽  
The Individual ◽  
The Relationship ◽  
Porous Boundaries

Many gay couples engage in nonmonogamous relationships. Ideas about nonmonogamy have historically been theorised as individual pathology and indicating relational distress. Unlike mixed-sex couples, boundaries for gay couples are often not determined by sexual exclusivity. These relationships are built along a continuum of open and closed, and sexual exclusivity agreements are not restricted to binaries, thus requiring innovation and re-evaluation. Three white South African gay couples were each jointly interviewed about their open relationship, specifically about how this is negotiated. In contrast to research that uses the individual to investigate this topic, this study recruited dyads. The couples recalled the initial endorsement of heteronormative romantic constructions, after which they shifted to psychological restructuring. The dyad, domesticated through the stock image of a white picket fence, moved to a renewed arrangement, protected by “rules” and imperatives. Abbreviated grounded theory strategies led to a core category, “co-creating porous boundaries”, and two themes. First, the couple jointly made heteronormative ideals porous and, second, they reconfigured the relationship through dyadic protection. The overall relationship ideology associated with the white picket fence remained intact despite the micro-innovations through which the original heteronormative patterning was reconfigured.

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