3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Harmonisation of organisational human capital disclosure as a facilitator of foreign investment into a developing country(2017) Chazuza, TendaiThis thesis examines how the harmonisation of human capital information disclosure in the corporate annual reports of stock exchange listed organisations may facilitate foreign investments into a developing country. Harmonisation is a process for developing a set of standards, practices and frameworks for reporting that are aligned with the aim of increasing compatibility of such disclosure frameworks, whilst maintaining some form of flexibility. The need to undertake this study has been motivated by the minimal and fragmented disclosure of human capital information in corporate annual reports. Such limited and uneven reporting creates asymmetric information problems with foreign investors. As such, this thesis seeks to understand how the harmonised disclosure of human capital information could assist in reducing information asymmetry problems faced by foreign investors as they make investment decisions into a developing country. Influenced by the interpretive paradigm, the study followed the qualitative approach to research where the basic interpretive qualitative research design has been employed. Data was collected in two phases. The first phase of the study made a comparison of the human capital information voluntarily disclosed in the corporate annual reports of selected Zimbabwean Stock Exchange listed organisations in the service sector, and the information required by foreign investors investing into that sector. This was done to understand if there were any information gaps between the providers and users of corporate information. Document analysis of 14 corporate annual reports drawn from organisations in the service sector of Zimbabwe’s banking, insurance, tourism and hospitality and telecommunications industries was done using a pre-defined human capital disclosure checklist. Document analysis was done to understand the disclosure practices of the organisations. The same human capital disclosure checklist used on document analysis was also sent to 15 foreign investors into these sectors, to infer their human capital information requirements. Comparisons of findings from the two sources were made to establish whether there were information disparities. The findings from this first phase of the study informed some of the questions posed in the second phase of the study. The second phase of the thesis reports the results of a qualitative study from interviews. This phase was aimed at understanding if the harmonised disclosure of human capital information in corporate annual reports could facilitate foreign investments through the reduction of information asymmetry problems. Specifically, the interviews were meant to ascertain if the harmonisation of human capital information disclosure could facilitate signalling and screening as a way to reduce information asymmetry problems with foreign investors. The perceptions of both preparers and users of corporate information were sought from the participating organisations and foreign investors in the selected service industry sectors. A total of thirty-five interviews were conducted with human resources managers, finance directors and foreign investors. The evidence from the study revealed that the harmonisation of organisational human capital information disclosure in corporate annual reports assists in the reduction of information asymmetry problems. Such reduction in information asymmetry problems facilitates effective decision-making by foreign investors, who are one group of the corporate information users. The major conclusions from the study are that first, there is human capital information asymmetry between preparers of corporate annual reports and foreign investors as users of corporate annual reports. Second, the asymmetric information related to human capital information causes moral hazard and adverse selection problems. Third, harmonised human capital information disclosure facilitates signalling by enhancing signal fit, signal diffusion and reducing signal erosion. Fourth, harmonisation of human capital information disclosure facilitates screening by creating a separating mechanism between good and bad organisations. Fifth, the adequate and harmonised disclosure of relevant human capital information reduces information asymmetry problems. Sixth, the signalling environment affects the signal strength of human capital information. Finally, the reduction of human capital information asymmetry problems leads to improved investment decisionmaking by foreign investors, prompting them to invest into the country. The main contribution of this study lies in providing a systematic, theoretically informed proposal for the harmonisation of human capital information disclosure in corporate annual reports though the development of a theoretical model. The model explores how the harmonised disclosure of human capital information support signalling and screening as ways to enhance foreign investment by reducing information asymmetry problems. The study also makes methodological, empirical and practical contributions. Further research is recommended to empirically test the theoretical model and move the model towards the development of normative theory.Item An initial study of disclosures related to broad-based black economic empowerment in the integrated reports of South African mining companies(2016) Nkhi, NalediThis research takes a snap-shot look at Broad-based Black Economic Empowerment disclosures in the integrated reports of South African mining companies listed on the Johannesburg Stock Exchange. A Broad-based Black Economic Empowerment disclosure checklist, based on relevant literature, was developed by the researcher in order to analyse the basic or inherent features, characteristics or qualities - and the extent of the disclosures in the 2014/2015 integrated reports. The results reveal that listed mining companies include an adequate coverage of Broad-based Black Economic Empowerment-related disclosures in their integrated reports. The sufficient frequency of the disclosures is clouded by a lack of integration between the relevant themes. The reports also noted a considerable amount of repetition of the themes and a scarcity of disclosures linking the risks of mining operations to Broad-based Black Economic Empowerment.Item An understanding of materiality in an integrated reporting context: an application of logics(2015) Cerbone, DannielleThis study is concerned with the adoption of materiality as a key reporting principle in the integrated report. This study investigates how preparers are determining which information is material and ought to be included in their integrated reports. The influence of logics is observed through an investigation of the different conceptualisations of the materiality concept by the preparers of integrated reports. Qualitative data was gathered from interviews with preparers of integrated reports in South Africa. The data was analysed using a grounded theory approach and the interplay between old and new logics that are shaping materiality in integrated reporting was identified. The findings of this research indicate that there are three groups of preparers each embodying different logics. The compliance preparers view integrated reporting as a compliance exercise. The stakeholder-aware preparers are aware that the integrated report should communicate with a wide variety of stakeholders and the interpretive preparer uses the integrated report not only to communicate to stakeholders but to identify weaknesses with in the entity. The findings also indicate that there are variations in practices and understandings of materiality and reveal differing organisational priorities which highlight the extent to which materiality is a social and behavioural phenomenon. The research adds to the limited body of corporate governance research drawing on an interpretive epistemology to explore recent reporting developments in a South African context the findings of this study will be relevant for the current debate about materiality in the integrated report, especially given the emergence of integrated corporate report. Keywords: King 3, GRI, Sustainable reporting, South Africa, Materiality, Institutional Logics, Integrated report.Item A comparative study on strategy disclosure between emerging markets and developed markets(2016) Phala, Morungwa LumkaThe focus of this study is to provide a view of the extent of strategy disclosures made by companies in both the developed market and the emerging market. The study also provides empirical evidence on the differences in the extent of strategy disclosures between developed and emerging markets. From the results of the study, it can be concluded that the emerging market companies have better strategy disclosures in their annual reports than companies in the developed market. [Abbreviated abstract. Open document to view full version]