THE IMPACT OF CORPORATISATION ON THE ECONOMIC VALUE ADDED OF SOUTH AFRICAN STATE-OWNED ENTERPRISES
Date
2012-01-19
Authors
Taole, Tšepo Ntšoane
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The purpose of this research was to determine what economic value was created
following the corporatisation of South African state-owned enterprises into public
companies with the stated aim of maximising shareholder value.
The research was conducted amongst a convenience sample of thirty state-owned
enterprises listed as major public entities or national business enterprises in
schedules 2 and 3b to the Public Finance Management Act of No 1 1999. After the
year of corporatisation was identified, the annual financial statements of the stateowned
enterprises were reviewed. This enabled a comparison to be made between
the economic value added, return on equity and return on assets calculated for
each SOE before and after corporatisation.
The results show that the mean EVA was negative both before and after
corporatisation while improvements in mean return on equity and mean return on
assets were observed post corporatisation.
Description
MBA thesis - WBS
Keywords
Corporatisation, State-owned enterprises