Electronic Theses and Dissertations (Masters)

Permanent URI for this collectionhttps://hdl.handle.net/10539/37781

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Investigating the relationship between integrated reporting quality and its effect on risk of the top 100 JSE listed companies in South Africa
(University of the Witwatersrand, Johannesburg, 2023-12-13) Jhavary, Musnaa; Cerbone, Dannielle
This thesis investigates the relationship between the quality of an organization’s integrated report, as defined by the EY Integrated Reporting Awards, and the risk of the organisation. To achieve this the relationship between an entity’s financial ratios and the quality of the integrated report it produces are calculated and explored. A quantitative research approach is used and risk is proxied using debt and equity ratios collected from the IRESS database, as well as integrated reports found on the websites of the top 100 JSE-listed companies over five years from 2017 to 2021. A regression is performed using the Statistical Package for the Social Sciences (SPSS) software. The results suggest a significant relationship between the costs of debt and integrated reporting quality, when compared to the cost of equity and the weighted average cost of capital. In addition, other variables hold a stronger relationship with integrated reporting quality, such as the ability of a firm to produce a standalone CSR report, as well as the firm’s equity market-to-book ratio and a firm’s size
Renewable energy disclosure in South African listed companies’ corporate reports: An impression management analysis
(University of the Witwatersrand, Johannesburg, 2023) Schaller, Jessica; Varachia, Zakiyyah; Cerbone, Dannielle
The emphasis on renewable energy is especially relevant in a South African context. The poor electricity stability has resulted in many businesses incorporating renewable energy into their business model and subsequent disclosures. The disclosures provided by companies are intended to address stakeholders’ information needs regarding the sustainability of a company. The disclosure may, however, contain elements of impression management to reduce agency costs. The report investigates the informativeness of renewable energy disclosures, questioning whether companies adopt impression management strategies by manipulating the disclosures provided in their reports. A content analysis was performed on the disclosures by 60 listed companies. Analysis was performed using descriptive and multivariate statistical analysis to assess the extent of impression management depending on the type of industry, market capitalisation and corporate report used. It was found that companies engage in impression management when disclosing the transition. The findings support that there were mainly similarities noted across industries and market capitalisation in terms of the techniques used, with some differences in terms of the impression management methods used. There were, however, significant differences noted in the overall level of impression management within different industries, market capitalisations and corporate reports. This evidence has relevant implications for both accounting scholars and practitioners since it questions the role of voluntary disclosures and the intended purpose of the disclosures in different reporting media
Sustainability assurance: Insights into assured sustainability-related information of the Top 100 companies listed on the ASX and JPX
(University of the Witwatersrand, Johannesburg, 2024) Nkosi, Nompumelelo Lizette; Cerbone, Dannielle
There is a lack of consensus and ambiguity on the currently adopted standards on sustainability and the assurance thereof which has led to variations in the subject matter assured, criteria used, and the type of assurance provided. This study aims to broaden the extant body of literature related to the assurance of sustainability-related information and provide new insights that can guide future research. The study aims to investigate the sustainability-related assurance practices and reports for the top 100 companies listed on the Australian Stock Exchange (ASX) and the Japan Stock Exchange (JPX). Data was collected for 113 companies (52 companies for ASX and 61 companies for JPX). A content analysis of the audit report and the sustainability-related information reports was used to collect data based on a disclosure checklist. The data was analysed and reported on using descriptive statistics and inferential statistics. Based on the results from the statistics performed, it was noted that there is a difference in the number of subject matter items assured in a category however there is congruence in the subject matter items. This provides evidence of mimetic isomorphism and highlights how companies are using specific subject matter items as an important signal to the market to indicate the credibility of the sustainability reports. Albeit the majority of the assurance provided are limited assurance engagements, some subject matter characteristics should preclude assurance. This finding supports prior research that non- financial assurance engagements do not provide sufficient value to the stakeholders. In addition, it was found that there is variability in the assurance providers based on jurisdiction with financial auditors (traditional auditors) found to be dominate in the ASX and sustainability auditors gaining ground in the JPX. Sustainability auditors could add to the complexity and confusion of the assurance process due to being less likely to have professional training on assurance which allows the engagement of financial auditors by companies to be a signal for stakeholders.
Sustainability Reporting: Examining the Proposed Changes Included in Stakeholder Commentary Letters Submitted to the ISSB Regarding IFRS S1
(University of the Witwatersrand, Johannesburg, 2024) Joala, Hlatsi; Cerbone, Dannielle
This research report examines whether various stakeholders participating in the standard- setting process of IFRS S1, exert influence on the ISSB’s decision of which proposed changes to accept and discuss. The research employs quantitative content analysis to examine a sample of 120 IFRS S1 comment letters, categorizing stakeholder amendments by type (outcome-related vs theory-related) and degree (minor, moderate, or major) to assess their impact on the final publication (see, for example, Bamber & McMeeking, 2016; De Freitas et al., 2023). The comment letters were spread across each of the eight stakeholder groups identified by the ISSB. The findings suggest that the ISSB responded to minor and moderate proposals at significantly different rates than it did for major proposals. Evidence indicates that there is a proclivity towards specific stakeholder groups for themes encompassed within sustainability reporting, however, this only applies at a thematic level and not at the overall- level analysis. This could be because the processes that the ISSB follows are based on IFRS standard-setting protocols which also preserve credibility, where major changes are addressed on a more stringent yet consistent basis than the other degrees. While the research focuses entirely on IFRS S1, it contributes to research focused on stakeholder management and standard setting, particularly in sustainability reporting.
The Tax Residency of a Legal Person During the World Health Pandemic
(University of the Witwatersrand, Johannesburg, 2022-06-30) Mhlongo, Nomsa Patience; Zijl, Wayne van; Cerbone, Dannielle
It is common for directors to travel from their home jurisdiction to another jurisdiction to attend board meetings. At these Board meetings, the company’s tactical and operational decisions are made, resulting in the latter jurisdiction being the Place of Effective Management. Due to the Covid-19 pandemic, there is a lack of certainty t regarding the possible changes in the Place of Effective Management of a company due to the incapacity of the board members or senior executives to travel abroad given stringent travel restrictions. Numerous countries around the world have reacted to the Covid-19 pandemic with exceptional lockdowns, extremely limiting economic activity and the personal movement of their citizens. The concern may affect the company’s residence under domestic laws and influence the company’s tax jurisdictions. It is not out of the ordinary for foreign companies to have one or more board members who reside in South Africa, particularly if the foreign companies are subsidiaries of a group headquartered in South Africa. In case SARS were to require the eye that managerial decisions taken in South Africa during the lockdown by a CEO or other Board members of a foreign company have caused the foreign company to become a South African tax resident, at that point it be at risk of being taxed here as well as in the country where it is normally tax resident.