Impact of Gearing on the Performance of top 20 JSE listed Companies
| dc.contributor.author | Makwerela, Moyahabo Olive | |
| dc.contributor.supervisor | Oro, Oro Ufuo | |
| dc.date.accessioned | 2024-09-04T07:18:36Z | |
| dc.date.available | 2024-09-04T07:18:36Z | |
| dc.date.issued | 2023 | |
| dc.description | A research report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2023 | |
| dc.description.abstract | Firm managers in South Africa are regularly confronted with the conundrum of employing optimal capital structure to enhance shareholders’ returns. This problem is sparingly addressed in empirical literature using South African data. This study aims to fill this gap by studying the influence of gearing (capital structure) on company performance. This research examines (i) the influence of short-term debt-to-equity ratio, (ii) long-term debt-to-equity ratio and (iii) total debt-to-equity ratio on economic value added (EVA) as a proxy for company performance using Panel regression analysis on top 20 Johannesburg Stock Exchange (JSE) listed non-financial companies for a period between 2010 and 2019. Firm size, turnover growth, and company age were control variables. Short-term debt and total debt were found to have an insignificant influence on company performance. In contrast, long-term debt was found to have a negative and significant influence on EVA at a 10% confidence level. Consequently, we made recommendations for managers to consider | |
| dc.description.sponsorship | ABSA bank | |
| dc.description.submitter | MM2024 | |
| dc.faculty | Faculty of Commerce, Law and Management | |
| dc.identifier.citation | Makwerela, Moyahabo Olive. (2023). Impact of Gearing on the Performance of top 20 JSE listed Companies [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/40486 | |
| dc.identifier.uri | https://hdl.handle.net/10539/40486 | |
| dc.language.iso | en | |
| dc.publisher | University of the Witwatersrand, Johannesburg | |
| dc.rights | © 2023 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg. | |
| dc.rights.holder | University of the Witwatersrand, Johannesburg | |
| dc.school | WITS Business School | |
| dc.subject | Short-term | |
| dc.subject | Long-term | |
| dc.subject | Total debt | |
| dc.subject | Company performance | |
| dc.subject | Economic Value Added | |
| dc.subject | Non-financial companies | |
| dc.subject | UCTD | |
| dc.subject.other | SDG-8: Decent work and economic growth | |
| dc.title | Impact of Gearing on the Performance of top 20 JSE listed Companies | |
| dc.type | Dissertation |