School of Accountancy (ETDs)

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    Exploratory study on NGO reporting requirements
    (University of the Witwatersrand, Johannesburg, 2024) Stagman,Madelein; van Zijl , Wayne; Burnham, Kayleigh
    Non-Government Organisations or Charitable Organisations (COs) are playing increasingly important roles in supporting positive social and environmental change where governments are lacking. Despite this importance, the area is under-researched, and, unlike for-profit companies, there is no standardised reporting framework to guide COs’ external reporting. To begin to address this gap, this study employs an interpretive qualitative approach inspired by grounded theory, utilizing semi-structured, open-ended interviews to gain an understanding of the reporting environment of COs, the users of CO reports, what reporting challenges COs experience and what constitutes useful information for CO users. In doing so, the thesis makes important contributions to both literature and practice. The study finds that there is a need for a standardised reporting framework, emphasising the importance of meeting the diverse information needs of stakeholders, particularly large donors. There is a need for key financial and non-financial information to be reported. For example, interviewees highlighted the need for COs to report on information that speaks to their credibility; their outputs, outcomes and impacts; and what Corporate Social Responsibility initiatives their organisation is well aligned to. These information requirements are not satisfied by traditional financial statements, driving the need for the creation of a tailor- made reporting framework. While not the objective of this study, the thesis makes an additional contribution by providing an example of what such a standardised reporting framework could look like to inspire and accelerate future research in this area.
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    An Evaluation of the Relationship between Banks’ Regulatory Capital Adequacy Ratios and Profitability in the South African Banking Sector
    (University of the Witwatersrand, Johannesburg, 2025) Lutchman, Shaina; Sebastian, Avani
    Background and Purpose: Banks are required to hold minimum capital amounts due to in- country regulation, which reflects the ability of the Bank to absorb unexpected losses and demonstrate resilience. This is driven by a function of risk-weighted assets and the Bank’s risk profile and appetite. Method: A quantitative research approach, utilising descriptive statistics and panel regression analysis was run on data over a twenty-year period (2002 – 2022), for 14 locally controlled Banks in South Africa. In addition to the afore-mentioned evaluation, the following relationships with profitability were also assessed: size, liquidity, management efficiency, implicit costs, cost efficiency, inflation and business cycle. Results: The analysis revealed a statistically significant positive relationships between capital adequacy ratios and profitability in South Africa; specifically, a statistically significant positive relationship between Tier 1 and Total Regulatory Capital ratios with ROA. Implications: The significant positive relationship mentioned above is attributed to strong resilience in the South Africa Banking sector, with high capital buffers over regulatory minimums and the ability to earn revenue during uncertain times. Continued oversight by Regulators on capital adequacy and macroeconomic indicators and risks is encouraged and Bank management is urged to continue to maintain healthy capital ratios and metrics, and effectively stress test and manage risks. Significance: This study contributes to the limited research on capital holdings and profitability of South African banks. The insights on capital holdings make a practical contribution to decision-making by bank management, investors and regulators regard capital holdings.
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    Domestic tax relief for South African taxpayers on technical service income received from foreign jurisdictions
    (University of the Witwatersrand, Johannesburg, 2025) Kotze, Santie
    South African tax legislation provides for domestic tax relief measures in s 6quat of the Income Tax Act 58 of 19621 which cater for scenarios where taxpayers have suffered double taxation on certain income received. This is typically seen in instances where income is earned from a foreign jurisdiction, has been subject to tax in that foreign jurisdiction and is subsequently taxed in South Africa as well. The intricate application of the provisions of s 6quat provides for significantly different relief to taxpayers insofar as the s 6quat deduction is available versus the s 6quat rebate. This research will evaluate different scenarios where certain international tax aspects, such as double tax agreements and permanent establishments, impact the relief available to South African taxpayers, specifically focusing on technical service income earned from foreign jurisdictions. With an imperative focus on the ‘source’ of technical service income earned from a foreign jurisdiction, the analysis will highlight the role a permanent establishment and double tax agreement respectively play in the relief afforded to taxpayers domestically, by quantifying the effective relief afforded in different scenarios. The research suggests that the absence of a permanent establishment results in lesser relief available to South African taxpayers insofar as the s 6quat rebate would not be available but rather the s 6quat deduction.
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    Evidence of integrated thinking in performance evaluation metrics: A review of listed entities in the United Kingdom
    (University of the Witwatersrand, Johannesburg, 2025) Emdin, Danit
    This research investigates the extent to which performance evaluation metrics incorporate elements of an integrated thinking logic. To measure the alignment of these metrics with integrated thinking principles, a “performance evaluation integrated thinking index” (the Index) is developed. The index is based on fourteen indicators of integrated thinking drawn from academic and professional literature, which evaluate the alignment of performance evaluation metrics with integrated thinking. The application of the Index is demonstrated using a sample of annual reports from organisations listed in the United Kingdom in 2014, 2018, and 2022. A content analysis is performed to identify disclosures related to performance evaluation metrics which are then assessed using the Index. The results are calibrated using well-established integrated thinking proxies to confirm the robustness of the index for assessing integrated thinking in performance evaluation metrics. The findings reveal that, from 2014 to 2022, there was an increase in the application of integrated thinking in performance evaluation metric disclosures. The increase in integrated thinking principles was a result of the increased use of materiality and integrated tools to monitor performance evaluation metrics, a move away from predominantly financially focused metrics, and the incorporation of the Sustainable Development Goals (SDGs) and multi-capital outcomes in performance evaluation metrics. The Index offers practitioners, standard-setters, and academics a simple method for assessing the extent of integrated thinking, with the potential for application to other publicly available information and across different jurisdictions. In addition, the Index can guide stakeholders in evaluating whether management is effectively implementing long-term value creation and sustainability initiatives.
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    Exploring environmental and social KPIs linked to directors’ incentives of alternate exchanges
    (University of the Witwatersrand, Johannesburg, 2025) Netsianda, Uafhulufhededzea; Van Zijl , Wayne
    Limited research has been performed on the use of environmental and social (ES) key performance indicators (KPIs) linked to executive remuneration. This is particularly the case for smaller listed companies. This study investigates the integration of ES KPIs in executive compensation structures within small and medium-sized entities (SMEs) listed on alternative stock exchanges in developed and developing markets. Companies listed on the Alternative Investment Market (AIM) stock exchange of the London Stock Exchange (LSE), the Johannesburg Stock Exchange’s (JSE) Alternative Exchange (AltX) in South Africa, and the Bovespa Mais Exchange in Brazil are studied. The study employs a qualitative research approach using content analysis to gather data from publicly available reports on the adoption of ES KPIs linked to executive remuneration. The findings reveal a disparity in the adoption of ES KPIs linked to remuneration amongst the three stock exchanges. AIM-listed companies show a greater integration of ES KPIs in remuneration frameworks compared to AltX and Bovespa Mais-listed companies, where there is little to no disclosure of ES KPIs in remuneration policies. Factors such as the regulatory environment, level of market scrutiny, resource availability, and stakeholder pressures appear to affect the level of ES-based remuneration adoption of companies listed on alternative stock exchanges. The findings highlight the growing recognition and practice of aligning executive remuneration with sustainability goals. This study contributes to existing literature on sustainability practices and offers insights into the use of ES KPIs in remuneration frameworks for SMEs on alternative stock exchanges. The results of the study may aid regulatory bodies and policymakers in developing regulatory frameworks that include practices that encourage linking ES KPIs to remuneration and disclosing these policies to assist in holding management accountable for the sustainability of the business.
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    Distilling the core tactics of impression management in an extra-financial reporting context
    (University of the Witwatersrand, Johannesburg, 2025) Ribeiro, Laura Alexandra Almeida; Ecim Dusan; Maroun, Warren
    This paper investigates the core impression management tactics organisations employ in extra-financial reporting. As scrutiny of extra-financial disclosure intensifies, stakeholders are increasingly demanding enhanced transparency and accountability. Organisations, in response may strategically present non-financial information to shape stakeholder perceptions, resulting in a gap between stakeholders' expectations and the content presented in extra-financial reports. The study uses content and bibliometric analyses to identify the primary impression management tactics per prior academic literature. These tactics are then applied to the extra-financial reports of a listed organisation which was implicated in an ESG concern to illustrate the application of the tactics. The tactics include (1) perception management, (2) self-promotion, (3) reputation enhancement, (4) building stakeholder rapport, (5) intimidation, (6) exaggerating qualitative disclosures, (7) distorting graphical disclosures, (8) selective disclosures, (9) obfuscation techniques, (10) social media strategies, (11) deflecting criticism, (12) re-using information, (13) tick-box compliance, (14) superficial board compositions, and (15) image-driven philanthropy. This paper extends the existing literature on impression management by offering detailed examples of how these tactics are employed in organisational contexts. The research provides a framework for practitioners and academics to identify and evaluate impression management tactics within extra-financial reporting disclosures. The study contributes to developing robust regulatory frameworks and reporting standards, guiding assurance providers toward more rigorous assurance procedures. It offers policymakers valuable insights for formulating policies which deter deceptive reporting practices. These contributions are crucial for promoting greater transparency, accountability, and ethical conduct in organisational reporting.
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    Senior management characteristics and firm performance: An application of upper echelons theory to firms listed on the JSE
    (University of the Witwatersrand, Johannesburg, 2021) Winslow, Tyron; Sebastian, A.
    Upper echelons theory states that the background and characteristics of an firm’s senior management has an impact on its operations and performance. This study applies the upper echelons theory to the largest 100 JSE listed firms by market capitalisation. For these firms, the study explored the relationships between performance and senior management characteristics using panel data from 2015 to 2019 in a regression. The performance of the firms as indicated by share price, return on assets and Tobin’s Q were regressed on characteristics of qualifications, age, tenure and professional accreditation. The findings indicate that the performance of firms has no significant relationship with the above senior management characteristics. There was a negative relationship identified between the qualifications of the senior management and the financial performance of the firm suggesting a slight better performance by those less qualified. Further there appears to be a negative relationship between the financial performance of the firm and whether the senior management are accredited to a professional body. This suggests that firms whose senior management are found not to be affiliated to a professional body are outperforming those that are affiliated with a professional body. These findings have potential implications for the investment community whose investment criteria may include management characteristics.
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    A multi-country comparison of sustainability disclosures: Evidence from France, Japan and South Africa
    (University of the Witwatersrand, Johannesburg, 2025) Lepuru, Puseletso; Van Zijl , Wayne; Maroun, Warren
    Background: Integrated reporting (IR), specifically environmental, social and governance (ESG) reporting research, has grown rapidly over the past two decades. ESG disclosure has received attention from researchers and industries on a global scale. Different motives drive the voluntary element in non-financial disclosures, and although the legal systems may shape the way of doing things, the difference in integrated report quality (IRQ) between common and civil law countries remains an underdeveloped topic. Bringing law and finance together, this study uncovers differences in the quality of IR between countries operating under different legal systems, specifically focusing on ESG disclosures. Purpose: The study investigated whether there are differences in the quality of IR among common and civil law countries using the model developed by Malola and Maroun (2019). France and Japan represent civil law countries, while South Africa represents a common law country. Methodology: The study follows Malola and Maroun's (2019) methodology to measure the IRQ of the top 20 entities in France, Japan and South Africa that operate in the Basic Materials, Oil and Gas and Financial Services industries. Descriptive statistics were used to highlight the variations in IRQ scores and IRQ elements’ scores across the countries and industries. Inferential statistics were used to determine whether the differences in IRQ and IRQ elements between countries and industries are statistically different. Findings: Overall, the study’s findings suggest that the quality of ESG information disclosed in the integrated reports is not statistically different based on the jurisdiction’s legal system. The quality only differs when the comparison is done on an industry level. Implications: Standard setters and regulators must consider what contributes to the quality of integrated reports, taking into account each of the indicators and how they can be factored into new standards they are developing.
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    Analysis of Mining Taxation in South Africa
    (University of the Witwatersrand, Johannesburg, 2011-05) Shikwambana, Callous
    Mining is one of the principal industries in the South African economy, and thus fulfils an important role from the perspective of the fiscus. Mining is a high-level risk investment which involves massive capital expenditure as well as prolonged periods of non-production of mining income. It is because of this that mining taxation receives special treatment. The term ‘mineral’ is central to determining whether or not a taxpayer can be regarded as being carrying on mining operations in South Africa. A mining process usually involves different stages before minerals are obtained, being prospecting and pre-production stages, followed by the production and post-production stages. Income is earned and expenditure is incurred in all the different stages in the life of a mine. The research report will critically evaluate what is meant by ‘mining and mining operations’ as defined in the Income Tax Act 58 of 1962 (‘the Act’). The research report concludes with an analysis and evaluation of how income earned and expenditure incurred in the different stages in the life of a mine are treated in determining the taxable income in respect of a mining taxpayer.
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    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.