School of Accountancy (ETDs)

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Subject: search.filters.subject.Johannesburg Stock Exchange

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    Evaluation of the extent of disclosure of the UN Sustainable Development Goals (SDGs) in integrated reports by 40 South African companies listed on the Johannesburg Stock Exchange (JSE)
    (University of the Witwatersrand, Johannesburg, 2023) Manack, Ilhaam; Maroun, Warren; Lange, Yvette
    In a world where resources are finite, sustainable development is of utmost importance to ensure the survival of the world as we know it. Many of the crises faced by the world such as poverty, a lack of clean water, deforestation and pollution can be reduced and, potentially, resolved through contributions from public and private organisations. In actual fact, many of these organisations contribute to the problems at hand as a result of a lack of regulatory guidance on sustainable development. This report provides insight into the integrated reports of 40 JSE-listed companies using the process of content analysis to ascertain each company’s contribution to sustainable development, through aligning its corporate practices with achieving the UN Sustainable Development Goals (SDG). No guideline currently exists for preparing SDG-related disclosures to be presented in integrated reports. As a result, a disclosure checklist was created for this purpose. It was found that SDG-related disclosures are predominantly vague and minimal, ifthey were given at all. Additionally, companies tend to provide more SDG-relateddisclosures over time. This research contributes to a small body of existing research in the field of SDG disclosures in integrated reports. This study is the first study to analyse the extent of SDG-related disclosures in South Africa
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    Corporate performance as reported by entities listed on the Johannesburg Stock Exchange
    (2021) Weyer, Tamzin
    The purpose of this study is to examine corporate performance as disclosed in the integrated reports of entities listed on the Johannesburg Stock Exchange. The research is exploratory in nature and makes use of content analysis of integrated reports for the period 2015-2018, to which non-parametric statistical analysis was applied. The study, highlights trends and drivers of corporate performance of South African listed companies from 2015 to 2018. Secondly, the study provides a proposed definition for corporate performance from a reporting perspective. The research contributes to the body of literature on integrated reporting and considers integrated thinking at the core of corporate performance disclosure. The study further includes integrated reporting following the introduction of King IV, providing a more recent perspective on integrated reporting than prior literature
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    Market reactions to financial and resources BEE deals on the JSE
    (2019) Hertz, Jenna
    In South Africa, Black Economic Empowerment (BEE) has been instrumental in the transformation of the country post-Apartheid. The involvement of key sectors in transformation is dependent on specific Industry Charters and the impact of these charters on the implementation of BEE by companies has been largely ignored by prior literature. This research examines the short-run impact of BEE equity/ownership deals on the share price performance of JSE-listed stock by calculating abnormal returns (ARs) and cumulative abnormal returns (CARs) subsequent to announcements in the resource and financial sectors. The objective of the study is to determine whether announcements of BEE deals resulted in the creation of shareholder wealth in these specific sectors. The study further explores whether size of the issuing company was a factor in how the markets received BEE deal announcements. The research employed a standard event study methodology which is widely used in finance literature to examine the impact of corporate events on shareholder wealth. The sample included 111 BEE deal announcements by resource sector companies during the period January 2003 until October 2018 and 75 BEE deal announcements by financial companies during the period January 2004 until October 2018. ARs and CARs were analysed over an 11 day event window. The results of the study found that qualifying announcements had a significant positive impact on the CARs of financial sector companies and an insignificant negative impact on the CARs of resource companies over the 11 day event window. This demonstrated that BEE deals were perceived to destroy value in the resource sector and create value in the financial sector for shareholders. The difference in reaction between the two sectors was found to be significant. Furthermore, the research findings indicated that the market reacted more favourably to BEE deal announcements made by ‘small’ companies regardless of the sector. However, while these findings were significant for the financial sector, they were proven to be insignificant for the resource sector.
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    Market reaction to the FTSE/JSE responsible investment index series
    (2019) Usher, Hayden Philip
    Responsible investment has seen considerable growth since the turn of the millennium, and this has spurred the creation and continuous development of responsible investment indexes across the globe. The purpose of this paper is to investigate whether the release of the RI index series contains price sensitive information content and therefore has value relevance for the market. Using event study methodology applied to the six releases of the FTSE/JSE Responsible Investment Index series from October 2015 to June 2018, this paper investigates the impact on the share prices of constituent, included and excluded firms from this index series. The study finds that the release of the constituents of the RI index does not contain new information content while constituents of the RI top 30 experience positive and statistically significant abnormal returns as a result of their constituency. The inclusion of firms on the RI index is not a release of new price-sensitive information, while firms included on the RI top 30 experience a sustained increase in share price throughout the event window. Firms excluded from the RI index and RI top 30 experience negative and statistically significant share returns and the market applies a greater discount toward firms excluded from the RI top 30. Finally, there are statistically significant differences between firms that were included and firms that were excluded from the RI index and the RI top 30 post-announcement date, and this is caused by the market applying a value discount toward firms with deteriorating ESG performance and disclosure. From an investors perspective, investors are able to generate significant arbitrage returns by shorting (longing) shares of firms expected to be to be excluded (included) from the RI index series. Consequently, firms should strive to be included or remain on the RI index series in order to signal the market that there has not been a deterioration in their ESG performance and disclosure, which would have a negative impact on their share price.