scholarly journals Separation of ownership and control in South African-listed companies

2013 ◽  
Vol 16 (3) ◽  
pp. 316-345 ◽  
Author(s):  
Blanché Steyn ◽  
Lesley Stainbank
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Listed Companies ◽  
South African Context ◽  
Valuable Contribution ◽  
Self Interest ◽  
African Context ◽  
Using Data ◽  
And Control ◽  
The Impact

This article tests the separation of ownership and control in South African-listed companies that leads to the divergence of interest between shareholders and directors. Where listed companies are owned by so many shareholders that their diffused shareholding results in negligible control over the directors who manage the assets of the company, it is likely that the directors will manage and direct the company to maximise their self-interest to the detriment of the interest of the shareholders. The separation of ownership and control and the maximisation of self-interest are central themes in the agency theory. Researching their validity in a South African context where the market is less liquid and the stock exchange is significantly smaller can add a valuable contribution to the continuing debate on corporate governance in the country. The article analyses 186 listed South African companies using data extracted over four years to test whether there is separation of ownership and control and whether such separation leads to the maximisation of self-interest. Data were extracted for the years 2005 and 2006, using the shareholding in 2006 to determine control, and for the years 2009 and 2010, using the shareholding in 2010 to determine control. Directors’ remuneration as a percentage of assets was used as a proxy for the maximisation of directors’ interest, and profit attributable to shareholders as a percentage of assets was used as a proxy for the maximisation of shareholders’ interest. These proxies were used to test the impact of control during the two controlling periods, namely 2006 and 2010.The article finds that the majority of listed companies in South Africa are controlled by a dominant shareholder. However, there are still a significant number of companies where the directors have de facto control. Contrary to the expectation that companies controlled by directors will aim to maximise directors’ remuneration, or companies controlled by shareholders will aim to maximise profit attributable to shareholders, this article finds the opposite to be true. This is possibly an indication that the controlling parties might consider factors other than their direct financial self-interest, or that there is an inherent cost associated with control.

Promoting career awareness among IT students in a South African context

2020 ◽  
Vol 10 (3) ◽  
pp. 541-565
Author(s):  
J.T. Janse van Rensburg ◽  
Roelien Goede
Keyword(s):  
Higher Education ◽  
South African ◽  
Intervention Strategy ◽  
South African Context ◽  
Career Awareness ◽  
Content Type ◽  
African Context ◽  
Capstone Projects ◽  
Theory Practice Gap ◽  
The Impact

PurposeThe purpose of this paper is to present an intervention strategy for promoting career awareness among IT students in a South African context, followed by a reflection thereof based on qualitative data collected from students. Career awareness during study has shown to be a factor in the work-readiness of IT graduates.Design/methodology/approachThe paper suggests an intervention strategy aimed at promoting IT students' career awareness. It provides context of the exit-level higher education (HE) module used to implement the intervention. Career awareness is achieved by industry talks, projects and events. Interpretive data collection and content analysis are used to understand the impact of the intervention from the students' perspective.FindingsRecommendations are made towards productive interventions for raising career awareness among IT students using industry participation in higher education. The proposed intervention comprises of a combination of industry talks, capstone projects and specific events. Students had largely positive reactions and made suggestions for additional interventions they would find beneficial. A hackathon attended proved the most influential where seven out of eight involved students received job offers from one company. Other students became aware of their own employability, limitations and preferred career paths.Originality/valueFindings provide confirmation on existing feasible approaches and also introduces new interventions that may be generalised to other fields of study. The paper not only provides an instructional design for a module to raise career awareness but also reflects on the feedback of the students. The reflection provided by students acts as a point of reference to ensure that the process followed for the intervention is practical within a South African context. The paper highlights the perceived benefits of involving industry in higher education to raise career awareness, factors that may prevent career awareness among IT students and valuable suggestions made by students to further enhance the intervention strategy. An implication of the research is a set of guidelines identified towards bridging the IT theory–practice gap. These guidelines can be used by many educators in similar environments to justify their interventions.

scholarly journals Managing employee well-being: A qualitative study exploring job and personal resources of at-risk employees

2017 ◽  
Vol 1 (2) ◽  
Author(s):  
Cecile Gauche ◽  
Leon T. De Beer ◽  
Lizelle Brink
Keyword(s):  
At Risk ◽  
South African ◽  
Financial Services ◽  
Well Being ◽  
Job Resources ◽  
Personal Resources ◽  
South African Context ◽  
The South ◽  
African Context ◽  
The Impact

Orientation: Job and personal resources influence the well-being of employees. Currently, limited information exists in literature surrounding the experience of these resources in employees identified as at-risk of burnout.Research purpose: To investigate the experience of job and personal resources from the perspectives of employees identified as at-risk of burnout.Motivation for the study: Empirical evidence on the integrative role and influence of job and personal resources on the well-being of employees in the South African context is currently limited. Attaining a better understanding of the manner in which at-risk employees experience resources can empower organisations to actively work towards creating an environment that allows for optimal employee well-being.Research design, approach and method: A phenomenological approach was taken to conduct the study in a South African-based financial services organisation. A combination of purposive and convenience sampling was used, and 26 employees agreed to participate. Semi-structured interviews were used to collect data, and data analysis was performed through the use of thematic analysis.Main findings: Employees identified as at-risk of burnout acknowledged both job and personal resources as factors influencing their well-being. Participants in this study elaborated on received job resources as well as lacking job resources. Information was also shared by participants on personal resources through describing used personal resources as well as lacking personal resources.Practical/managerial implications: Knowledge gained from the study will contribute to empower organisations to better understand the impact of resources on the well-being of employees, and allow organisations to adapt workplace resources to ensure adequate and appropriate resources to facilitate optimal employee well-being.Contribution: This study contributes to the limited research available in the South African context regarding the experience of job and personal resources from the perspective of at-risk employees. The study may also enable organisations to create a workplace that is more supportive and empowering with appropriate resources to deliver on expected demands.

scholarly journals Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies

2016 ◽  
Vol 14 (3) ◽  
pp. 216-231 ◽  
Author(s):  
Patient Rambe ◽  
Tonderayi B. Mangara
Keyword(s):  
South African ◽  
Business Models ◽  
Stock Exchange ◽  
Listed Companies ◽  
Share Price ◽  
Years Of Experience ◽  
Integrated Reporting ◽  
African Countries ◽  
Corporate Reporting ◽  
The Impact

Integrated corporate reporting (ICR), which entails the process of compiling, documenting and reporting on company’s resources, its ongoing relationships with key stakeholders; business models; products (services); and the impact of such products (or services) on stakeholders, society, as well as the environment to optimize company value, has generated considerable interest among top 100 Johannesburg Stock Exchange (JSE) listed companies in South Africa over the last decade. Despite the surging interest in ICR to leverage the social responsibility, transparency and public accountability of companies in the developing African countries, little is known about the combined influence of ICR and internal company resources and/ capabilities (e.g., age and experience of the Chief Executive Officer (CEO)) on the performance of South African listed companies. The main objective of this study, therefore, is to examine the impact of Integrated Reporting Ratings (IRR); the company CEO’s age; and his/her years as a CEO on the share price of the company within the South African context. The top-106 JSE listed companies for the period Year-end 2014 constitute the sample for this study. Multivariate non-parametric regression is used to model the relationship between the predictor (i.e., independent) variables and the response (i.e., dependent) variable using MATLAB. The model developed in this study is, then, used to evaluate the impact of IRR; the CEO’s age and years of experience as CEO on the share price of individual companies. The proposed methodology is illustrated step-by-step. The finding of the study reveal that the share price of a company tended to increase with an increase in IRR, age and years of experience of the CEO, demonstrating that a company’s established history in integrated reporting and corporate experience positively impact its performance (i.e., the share price). Keywords: integrated corporate reporting, corporate responsibility, JSE listed companies, MATLAB. JEL Classification: G17

From Conception to Demise

2009 ◽  
pp. 832-862
Author(s):  
Sam Lubbe ◽  
Shawren Singh
Keyword(s):  
South African ◽  
Local Governments ◽  
Educational Institution ◽  
Social Aspects ◽  
South African Context ◽  
Social Communities ◽  
Design And Implementation ◽  
The Social ◽  
African Context ◽  
The Impact

This chapter explores the issues of the interface between Information Systems (IS) and society. We investigate IS and users of these systems at a local parastatal educational institution in South Africa. Local governments have had many IS developed and implemented for the use of customers. The problem is that the impact of IS on social communities have not been taken into account, especially in e-governance in the South African context, when systems are being designed or implemented; as a result may lead to IS failures. Details regarding certain social aspects of IS are discussed. This chapter finally proposes a set of guidelines to help ensure that the social aspects of local government IS are taken into account in the design and implementation of these systems, thereby increasing the chance of success of those systems.

scholarly journals Indicators of corporate financial success: Similar studies in South Africa and the USA, different results

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
JHvH De Wet ◽  
Y. Erasmus
Keyword(s):  
South Africa ◽  
South African ◽  
Listed Companies ◽  
South African Context ◽  
Financial Success ◽  
Linear Relationships ◽  
The Us ◽  
The Usa ◽  
African Context ◽  
Local Companies

Purpose: The aim of this study was to test whether findings by Johnson and Soenen (2003) regarding indicators of successful companies in the USA also apply to South African JSE-listed companies. Problem investigated: To date, no South African study has tried to determine the indicators of the financial success of local companies specifically along the lines of Johnson and Soenen's (2003) study. Determining whether the indicators found to be most highly significant in the US study also apply in South Africa would constitute valuable information in the South African context. Approach: The study tested the significance of the linear relationships between possible indicators of financial success and three measures of financial success for South African companies and compared them to the results of the US study. Findings: The findings revealed that the relationships are far less significant for South African companies. Value of research: The study highlighted the fact that indicators of financial success for US companies are not necessarily contributors to the success of South African listed companies and that models developed in different environments should therefore be used with caution when applied in South Africa. Conclusion: Further studies need to be undertaken in order to identify the most significant South African indicators of corporate financial success.

scholarly journals Navigating on the precursors of work readiness amongst students in Johannesburg, South Africa

2020 ◽  
Vol 46 ◽  
Author(s):  
Khensani Magagula ◽  
Eugine T. Maziriri ◽  
Musawenkosi D. Saurombe
Keyword(s):  
South African ◽  
Structural Equation ◽  
Primary Objective ◽  
Work Readiness ◽  
South African Context ◽  
The South ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
African Context ◽  
The Impact

Orientation: Research has been conducted regarding work readiness in a various contexts. However, there are deficiencies in studies that have focused on the precursors of work readiness in an African context.Research purpose: The primary objective of this study was to determine the impact of career self-efficacy (CSE), career exploration (CE) and self-perceived employability (SPE) on work readiness (WR) of students in the South African context, particularly in the Gauteng Province.Motivation for the study: There is an unequivocal gap between what educational institutions teach as well as what the South African labour market requires, highlighting a misalignment and one of many reasons graduates struggle to find work.Research approach/design and method: To close the research gap, the current study used a quantitative approach using the cross-sectional survey research design. A structured questionnaire was administered to 254 randomly selected students. The collected data were analysed using structural equation modelling.Main findings: The hypotheses testing results revealed that the WR was influenced significantly and positively by CSE, CE and SPE.Practical/managerial implications: The present research provides implications from which managers of institutions of higher learning can benefit. For instance, ensuring that experiential learning is involved in all the programmes. This will be more advantageous to students who would like to evaluate themselves to determine if they are work ready.Contribution/value-add: This study adds fresh understanding regarding the precursors that stimulate work readiness among students in a South African context.

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