scholarly journals Who benefits from share splits?

1986 ◽  
Vol 17 (2) ◽  
pp. 87-92
Author(s):  
T. A. Cross ◽  
C. Firer
Keyword(s):  
Event Study ◽  
Stock Exchange ◽  
Excess Return ◽  
Share Price ◽  
Excess Returns ◽  
Johannesburg Stock Exchange

The objective of this study was to carry out an investigation into the excess return behaviour of companies on the Johannesburg Stock Exchange which split their shares in the period 1972 - 1984. The concept of an event study was used in the analysis. Positive average residuals were observed in the months leading up to the split. In the month of the split large average excess returns were displayed. However, no long-term favourable effects on share price were found. Splits appeared to be a reaction to a sustained period of above-average returns rather than the cause of such returns. The splitting of a company's shares does not appear to influence the share's rand value traded.

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.

scholarly journals The relationship between excess returns, firm size and earnings on the Johannesburg Stock Exchange

1991 ◽  
Vol 22 (3) ◽  
pp. 63-73 ◽  
Author(s):  
Michael J. Page ◽  
Francis Palmer
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Model Misspecification ◽  
Empirical Work ◽  
The United States ◽  
Excess Returns ◽  
Market Inefficiencies ◽  
Johannesburg Stock Exchange ◽  
The Relationship

While considerable empirical work has been conducted in the United States concerning excess returns and the relationship of these returns to firm size and E/P ratio, thus far, there have been few similar empirical studies conducted using Johannesburg Stock Exchange (JSE) data. Evidence of firm size or E/P ratio effects has been ascribed by various authors to either model misspecification or market inefficiencies. In this article the evidence is examined for the South African market using 1370 company years of data over the period 1978 to 1988, and a significant earnings effect is found, but no size effect. In the analysis the problem of data bias is considered with particular emphasis on thin trading issues, and a methodology for future empirical work is described. Finally, it is suggested that the evidence can be better explained by market inefficiencies than model misspecification.

Robust Statistical Analysis of Long-Term Performance For Sharia-Compliant Companies in Malaysia Stock Exchange

2017 ◽  
Vol 3 (3) ◽  
pp. 49-66
Author(s):  
Nashirah Abu Bakar ◽  
Sofian Rosbi
Keyword(s):  
Stock Exchange ◽  
Share Price ◽  
Rate Of Return ◽  
Economic Sectors ◽  
Normality Test ◽  
Challenging Situation ◽  
The Right ◽  
Long Term Performance ◽  
Term Performance

In the year of 2016, Malaysia faced with the challenge in instability of economic condition. This situation weakens Malaysian currency that gives direct impact to all economic sectors in Malaysia. Consequently, this situation gives significant impact on the performance of the sharia-compliant companies listed on the Malaysia Stock Exchange. Therefore, this research validates the long-term performance of share price using market adjusted buy and hold return (MABHR). Then, this study performed normality test to check the distribution of data for return and volatility. Next, correlation analysis performed to validate the relationship between return and volatility. The results show that the Solid Automotive Berhad gives the highest rate of return with respect to the market. While UMW Oil & Gas Corporation Berhad shows the lowest rate of return with respect to the market. The finding of this research helps economists to understand the market trend in empirical thinking. In addition, it also helps the investors to understand the market and make the right decision in investing during this challenging situation.

South African corporate governance faces key reckoning

2019 ◽  
Keyword(s):  
Corporate Governance ◽  
South African ◽  
Stock Exchange ◽  
White Collar Crime ◽  
Share Price ◽  
Content Type ◽  
Johannesburg Stock Exchange ◽  
Regulatory Changes ◽  
State Capture ◽  
Criminal Charges

Subject South African corporate governance. Significance Johannesburg Stock Exchange (JSE)-listed IT company EOH, which has seen its share price decline by over half in 2019, announced on October 11 it would press criminal charges against employees implicated in corruption. As South Africa’s institutions begin to grapple with the spectre of ‘state capture’, public pressure is growing to tackle more sophisticated ‘white-collar’ crime. Impacts Large institutional investors will increasingly refine their approach to evaluating firms, including how they determine governance quality. A major UK-based report on auditing due later this year will likely result in similar regulatory changes elsewhere, including South Africa. The Financial Sector Conduct Authority enforcement head has vowed firmer action against transgressors of financial market regulations.

scholarly journals Strategy and performance of South African listed family companies

1980 ◽  
Vol 11 (1) ◽  
pp. 5-8
Author(s):  
Rob Mackintosh
Keyword(s):  
Organizational Development ◽  
South African ◽  
Stock Exchange ◽  
Share Price ◽  
Business Policy ◽  
Johannesburg Stock Exchange ◽  
Professional Management ◽  
Small Base ◽  
And Performance ◽  
Business Family

An impressive body of theory on organizational development, performance, strategy and structure has developed over the last two decades. Much of what we know stems from direct observation (usually in the form of case-studies), first-hand experience, and common sense. Yet surprisingly little attempt has been made to test the theories and provide an empirical base with which to confirm or reject the theories. This study suggests that the traditional theories of organizational development are vindicated - that firms develop from entrepreneurial, family companies in the first stage to professional management in later stages. Furthermore, an analysis of share-price movements suggests that single business family companies on the Johannesburg Stock Exchange do not perform as well as those which adopt more diversified strategies. This study builds on the small base of previous research, and hopefully makes a contribution to our knowledge both in the academic/teaching sphere of business policy, and in the area of organizational change.'n Indrukwekkende versameling van teorie oor organisasieontwikkeling, en die prestasie, strategie en struktuur van ondernemings is oor die afgelope twee dekades ontwikkel. Ons kennis het ontstaan uit direkte waarneming (gewoonlik in die vorm van gevallestudies), eie ervaring, en gesonde verstand. Tog is min pogings aangewend om die teoriee te toets en 'n empiriese basis te skep waarvolgens die teoriee bevestig of verwerp kan word. Hierdie studie stel voor dat die tradisionele teoriee van organisasie-ontwikkeling geregverdig is - dat firmas van entrepreneuriele familie-ondernemings in die eerste stadium, tot professionele bestuur in latere stadia ontwikkel. Verder dui 'n ontleding van aandeleprys-bewegings aan dat enkelbedryf familiemaatskappye op die Johannesburgse Aandelebeurs nie so goed vertoon as die wat meer gediversifiseerde strategiee aanvaar het nie. Hierdie studie bou voort op die klein basis van vorige navorsing, en maak hopelik 'n bydrae tot kennis sowel in die akademiese/onderrigsfeer van bestuursbeleid, as op die gebied van organisasieverandering.

scholarly journals A note on the timing of dividend receipts in share returns

1997 ◽  
Vol 28 (4) ◽  
pp. 169-173 ◽  
Author(s):  
Paul Van Rensburg ◽  
Kevin Slaney ◽  
Phillipe Hardy
Keyword(s):  
Financial Economics ◽  
Measurement Errors ◽  
Empirical Investigation ◽  
Stock Exchange ◽  
Share Price ◽  
Theoretical Discussion ◽  
Shareholder Returns ◽  
Price Data ◽  
Johannesburg Stock Exchange

Researchers in financial economics conventionally include dividend receipts as returns received on their date of payment. This article argues that this procedure misrepresents the economic timing of shareholder returns. A theoretical discussion of the ex-dividend effect and an empirical investigation of this phenomenon on the Johannesburg Stock Exchange are used to motivate the contention that researchers would be more correct to incorporate dividend receipts in share returns on their 'ex dividend' rather than payment dates. This argument has particular relevance for those financial researchers employing monthly share price data. A failure to make this adjustment generally results in four out of twelve observations of share returns being characterized by measurement errors (the payment date generally being in the month following the ex-dividend date).

scholarly journals The performance of conglomerate companies on the Johannesburg Stock Exchange: An empirical evaluation

1988 ◽  
Vol 19 (4) ◽  
pp. 127-132
Author(s):  
J. F. Affleck-Graves ◽  
G. H. Burt ◽  
S. J.M. Cleasby
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Empirical Evaluation ◽  
Market Returns ◽  
Return On Assets ◽  
Return On Equity ◽  
Advantages And Disadvantages ◽  
Johannesburg Stock Exchange ◽  
Stock Market Performance

Existent financial theory is unable to explain whether on aggregate conglomeration is beneficial to either individual shareholders or to the economy. Both advantages and disadvantages can be listed for the conglomeration process and it is thus an empirical question as to whether or not shareholders really benefit from conglomeration. In this paper the long-term profitability of conglomerates is examined in an attempt to determine whether or not such shareholders earn superior returns on aggregate. This is done by contrasting the stock market performance of a sample of South African (S.A.) conglomerates over a six-year period with the performance of the overall market. In addition, their performance is contrasted with that of a random portfolio of non-conglomerate companies. Finally, a pseudo-conglomerate portfolio was constructed for each conglomerate in such a way that each portfolio had the same asset structure as its matched conglomerate. The performance of the conglomerates was then contrasted with that of the pseudo-conglomerate portfolio using market returns, return on assets and return on equity. The results indicate that on aggregate, the conglomerates significantly underperform non-conglomerates. This is consistent with the view that conglomeration is in the interest of management rather than in the interest of the shareholders.

scholarly journals An investigation into the small firm effect on the Johannesburg Stock Exchange

1986 ◽  
Vol 17 (4) ◽  
pp. 191-195 ◽  
Author(s):  
P. De Villiers ◽  
A. J. Lowings ◽  
T. Pettit ◽  
J. Affleck-Graves
Keyword(s):  
New York ◽  
Small Firm ◽  
Small Firms ◽  
Stock Exchange ◽  
Share Price ◽  
Large Firms ◽  
Investment Performance ◽  
Market Capitalization ◽  
Johannesburg Stock Exchange ◽  
Firm Effect

Recent studies on the New York Stock Exchange have provided empirical evidence which suggests that small market capitalization firms outperform large market capitalization firms in terms of share price performance. This appears valid even after adjusting for the additional risk borne by the small firms. This has become known as the 'small firm effect' and questions the validity of many traditional pricing models such as the Capital Asset Pricing Model. In this paper, the small firm effect is examined on the Johannesburg Stock Exchange. The risk-adjusted performance of portfolios comprising large firms is contrasted with that of small firms. Three measures of size are used, namely market capitalization, asset base and traded volume. In all three cases, no evidence of a small firm effect is apparent. Indeed, if anything, the large firms appear to provide superior investment performance on the JSE.

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