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 Strategic environmental risk management in South African companies(2018) Kitsikopoulos, ClaudiaABSTRACT Past and current corporate sustainability management approaches to natural resource use have been characterised by a short-term financial focus, while natural systems have been viewed as stable, linear and predictable. This approach disregards the multidimensional characteristics of social-ecological systems, of which humanity forms an integral part. Such systems are dynamic, complex and non-linear in space and time and can change in unpredictable ways. Human activities have led to a significant increase in the pressure on ecosystem services, resulting in severe degradation of most ecosystems and causing the global ecological system to become increasingly unstable and unpredictable and weakening the planet’s ecological resilience. To account for these dynamics, the sustainability concept has evolved from conceptualising the Triple Bottom Line (TBL) model, still giving preference to the financial aspects of business conduct, to applying risk and resilience theory. To manage natural resources more sustainably, reduce risk exposure resulting from natural resource degradation and ensure sustained human wellbeing, more strategic approaches are required by integrating environmental risks into corporate sustainability management practices to establish whether these are aligned with risk and resilience thinking as part of sustainable development. It will also identify whether businesses are starting to reconsider their position as part of a complex social-ecological system, and not as separate entities disconnected from it. A reassessment of corporate sustainability practices is necessary to enable sustainable management of natural resource use and enhance resilience during times of increasing uncertainty and unpredictability. The aim of my PhD thesis was to advance our understanding of whether businesses address social-ecological system complexity as part of their business strategy and the risks associated with ecosystem degradation to strengthen resilience. Annual, integrated and sustainability reports of 30 of the Top 100 Johannesburg Stock Exchange (JSE)-listed companies were assessed on the quality of environmental iv impact disclosures between 2008 and 2013 as well as on the extent of environmental risk reporting between 2008 and 2015. To identify whether company reports address system complexity indicating a paradigm shift in business practices, annual, integrated and sustainability reports were compared to two risk maps that were created from existing literature. Interviews with sustainability managers were conducted to identify factors affecting environmental reporting and management as well as strategic environmental risk management approaches. The environmental impact disclosure quality was found to be average to poor and environmental risks were rarely addressed. The most frequently reported environmental risk was related to water and climate change with 20-25% in 239 reports. These were connected to other sustainability and business risks or strategic objectives in only few cases. Interviews suggest that JSE listing requirements, King III and other legal obligations appeared to be a driving force in moving businesses towards sustainable practices but that reporting fatigue, as well as resource and time constraints were found to negatively affect the advancement of corporate sustainability. Further, understanding of complexity and acknowledgement of business’ dependence on natural capital and strategic management of environmental risks were rarely evident. The findings indicate that, while the sustainable development concept has shifted towards multi-level, multi-system complexity of social-ecological systems of which businesses are a part, corporate sustainability still displays a disconnection from the system as well as short-term, linear and retrospective views and management approaches. The ability to sustain economic, social and environmental wellbeing during and after the planet’s transition from a stable state to a new, unpredictable one is thus compromised. Some companies were found to practice strategic environmental risk management, thus creating a resilient business and providing long-term value to all parties involved and affected by their business operations. A number of recommendations are made that could advance corporate sustainability.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]