The impact of foreign ownership on the performance of Johannesburg Stock Exchange‐listed firms: A blessing or a curse?

2021 ◽  
Author(s):  
Delane Naidu ◽  
Ailie Charteris ◽  
Peter Moores‐Pitt
Keyword(s):  
Stock Exchange ◽  
Foreign Ownership ◽  
Listed Firms ◽  
Johannesburg Stock Exchange ◽  
The Impact

scholarly journals The Impact Of Forced Financial Restatements On The Share Prices Of JSE Listed Firms

2012 ◽  
Vol 11 (12) ◽  
pp. 1383
Author(s):  
Shaun Watson ◽  
Johan Coetzee
Keyword(s):  
Stock Exchange ◽  
Abnormal Returns ◽  
Share Price ◽  
Share Prices ◽  
Listed Firms ◽  
Price Reaction ◽  
Johannesburg Stock Exchange ◽  
Financial Restatements ◽  
Panel Review ◽  
The Impact

This study investigates the effect of forced financial restatements on the share prices listed on the Johannesburg Stock Exchange (JSE). An event study methodology is used to examine the share price reaction of 34 firms that forcefully restated their results following a GAAP Monitoring Panel review. The results indicate that the equity of 79.1 per cent of the firms decreased as a result of the restatement. The average standardised abnormal returns for 55.9 per cent of these firms were also found to be negative. The study further finds that the volume of shares traded directly following the announcement increased substantially, especially five days following the announcement. The study makes a contribution to the existing literature in that is the first of its kind to focus on the share price reaction of forced financial restatements on share prices in the South African context.

scholarly journals The impact of firms’ and CEOs’ social media usage on corporate performance

2021 ◽  
Vol 18 (4) ◽  
pp. 21-35
Author(s):  
Wafa Ghardallou
Keyword(s):  
Social Media ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Estimation Method ◽  
Annual Reports ◽  
Short Term ◽  
Listed Firms ◽  
Media Usage ◽  
Funding Program ◽  
The Impact

The impact of social media usage on corporate performance has not been examined in the Saudi context. This paper aims to investigate the influence of social media, namely companies’ and CEOs’ involvement in Twitter and LinkedIn, on the profitability of Saudi Arabia listed firms. A dynamic panel estimation method is used to empirically assess this relationship. The study employs 120 firms listed on the Saudi Stock Exchange Tadawul from 2014 to 2017. Data are obtained from the companies’ annual reports. Statements of financial status as well as income statements are used to collect data on the dependent variable and control variables. The results show that having a LinkedIn official account by both the CEO and the company does not improve the enterprise performance. In contrast, companies that are active on Twitter will contribute to an increase in their short-term performance. CEOs who engage in Twitter via a high number of followers help to boost the performance of their companies in the long and short term. Hence, this paper recommends that Saudi firms should be aware that their performance could be increased by monitoring their presence on social networks and by having a strong intention to use these tools. AcknowledgmentsThis study was funded by the Deanship of Scientific Research at Princess Nourah bint Abdulrahman University through the Fast-track Research Funding Program.

scholarly journals The Impact of Dividend Policy on the Shareholders Value of Listed Firms in the Nigerian Petroleum Marketing Industry

2019 ◽  
Vol 8 (2S9) ◽  
pp. 902-905
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Market Price ◽  
Study Data ◽  
Annual Reports ◽  
Current Income ◽  
Listed Firms ◽  
Secondary Sources ◽  
Marketing Firms ◽  
The Impact

Dividend policy is directed towards establishing the proportion of current income that should be retained in the firm and the proportion that should be distributed among its shareholders. This study, therefore, assessed the impact of dividend policy on the value of listed firms in the Nigerian petroleum marketing industry. six firms, out of eight that are quoted on the Nigerian Stock Exchange (NSE) were selected as sample for the study. Data were collected from secondary sources. Annual reports and accounts of the selected firms, daily official lists and facts books of the NSE for the period of 2008-2017 form the source of the data. egression was used in analyzing the data. The findings revealed that payment of dividend by petroleum marketing firms in Nigeria positively influence the market price of their shares. Based on these findings, the study concluded that dividend policy of petroleum marketing firms in Nigeria affects the value of the firms. Based on this conclusion, the study recommends that management need to identify the shareholder’s interest in setting up a dividend policy that would balance their needs and retention for recapitalization to maximize value of the firms.

scholarly journals Determinants of dividend pay-out policy: a case of the South African gold mining industry

2014 ◽  
Vol 11 (3) ◽  
pp. 83-94
Author(s):  
Busisiwe Carol Ringane ◽  
Patricia Lindelwa Makoni
Keyword(s):  
South African ◽  
Gold Mining ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Mining Industry ◽  
Foreign Ownership ◽  
Study Data ◽  
Managerial Ownership ◽  
Johannesburg Stock Exchange ◽  
Shed Light

This paper sought to shed light on dividend policy within the gold mining industry in South Africa. Several cause-and-effect variables of dividend policy are discussed, in order to lay down the theoretical framework for the research. These are size, managerial ownership and foreign ownership. To meet the objectives of the study, data from seven mining companies listed on the Johannesburg Stock Exchange (JSE) was analysed for a 5 year (2008-2012) period. As found in earlier studies, there is a positive correlation (r = 0.59) between the dividend policy and the size of the organisation. This was expected as no cashflow is available for distribution during the early stages of exploration, hence no dividends are paid. As the organisation grows and profit increases, there is free cashflow which can be distributed to shareholders. Managerial ownership negatively correlates with dividend pay-out (r = -0.53). Contrary, a weak correlation was observed between foreign ownership and dividend pay-out.

scholarly journals Fundamental factors influencing returns of shares listed on the Johannesburg Stock Exchange in South Africa

2017 ◽  
Vol 9 (2) ◽  
pp. 426-435
Author(s):  
Marise Vermeulen
Keyword(s):  
Stock Exchange ◽  
Dividend Payout ◽  
Return On Equity ◽  
Explanatory Variables ◽  
Johannesburg Stock Exchange ◽  
Earnings Per Share ◽  
Asset Growth ◽  
Book To Market Ratio ◽  
The Impact ◽  
The Relationship

This study investigated the relationship between share returns and nine variables that had been proven to influence returns in previous research, using a multiple regression analysis. These variables are size, leverage, book-to-market ratio, earnings yield, dividend payout, earnings growth, return on equity, earnings per share and asset growth. The impact of some of the variables on share returns proved to be insignificant, and some collinearity was identified between some of the variables. However, three significant variables were identified and the final regression model included the book-to-market ratio, dividend payout and leverage as the explanatory variables.

scholarly journals The impact of operating leverage on the capital structure of Johannesburg Stock Exchange-listed firms before and after the 2008 global financial crisis

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Matabane T. Mohohlo ◽  
Johan H. Hall
Keyword(s):  
Financial Crisis ◽  
Capital Structure ◽  
South African ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Johannesburg Stock Exchange ◽  
The Global Financial Crisis ◽  
Operating Leverage ◽  
The Impact ◽  
The Capital Structure

The financial leverage-operating leverage trade-off hypothesis states that as financial leverage increases, management of firms will seek to reduce the exposure to operating leverage in an attempt to balance the overall risk profile of a firm. It is the objective of this study to test this hypothesis and ascertain whether operating leverage can indeed be added to the list of factors that determine the capital structure of South African firms. Forty-six firms listed on the Johannesburg Stock Exchange between 1994 and 2015 are analysed and the impact of operating leverage is determined. The results are split into two periods, that is, the period before the global financial crisis (1994–2007) and after the global financial crisis (2008–2015). The impact of operating leverage during these two periods is then compared to determine whether a change in the impact of operating leverage on the capital structure can be observed especially following the crisis. The results show that the conservative nature of South African firms leading up to 2008 persisted even after the global financial crisis. At an industry level, the results reveal that operating leverage does not have a noticeable impact on capital structure with the exception of firms in the industrials sector of the South African economy.

INTERNAL FINANCIAL CONSTRAINTS, EXTERNAL FINANCIAL CONSTRAINTS AND INVESTMENT CHOICE: EVIDENCE FROM PAKISTANI FIRMS

2012 ◽  
Vol 01 (08) ◽  
pp. 18-22
Author(s):  
Muhammad AZAM ◽  
Syed Anum SHAH
Keyword(s):  
Financial Constraints ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Dividend Payout ◽  
Listed Firms ◽  
Investment Choice ◽  
Time Period ◽  
Fixed Line ◽  
The Impact

The purpose of this study is to analyze the impact of internal and external financial constraints on investment choice. The data have been taken from 9 major sectors (52 listed firms in the Karachi Stock Exchange) namely; Pharmaceutical & Bio Technology, Textile, Sugar, Tobacco, Chemicals, Oil and Gas, Fixed line Telecommunication, Industrial metal and Mining, and Cement sectors for the time period 2004 to 2010 on annual basis. Multiple regression analysis has been done to examine the relationship among firm’s size, dividend payout ratio, firm’s age, and investment. The empirical findings show that there is positive relationship between the firms’ size and investment while a negative relationship exists between firms’ age and investment. It also reports that there is negative relationship between dividend payout ratio and the investment. This shows that if a firm grows old or high dividend payout ratio then it will tend to spend less for expansion as compared to the young firms.

Do corporate attributes drive integrated reporting amongst listed companies in Nigeria?

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Michael O. Adelowotan ◽  
Ini E. Udofia
Keyword(s):  
Stock Exchange ◽  
Least Square ◽  
Annual Reports ◽  
Primary Data ◽  
Integrated Reporting ◽  
Listed Firms ◽  
Reporting Framework ◽  
Primary Data Analysis ◽  
High Level ◽  
The Impact

Research purpose: The purpose of this paper was to investigate the association between corporate attributes and the implementation of Integrated Reporting (IR) among quoted companies on the Nigerian Stock Exchange which currently operates a voluntary based disclosure environment.Design and method: Using content analysis to derive the disclosure scores for integrated reporting and corporate attributes, the authors investigated the impact of corporate attributes on the implementation of the integrated reporting of a sample of 90 listed firms. The annual reports covering 2013–2017 were analysed using the disclosure methodologies developed by prior researchers in IR. The hypotheses were tested using panel least square regressions.Main findings: The authors found that corporate attributes have a statistically positive and significant impact on the implementation of integrated reporting framework, that share ownership structure and firm age have an insignificant influence over corporate implementation of the integrated reporting framework. The research findings extend integrated reporting research in Nigeria from mere primary data analysis to quantitative data analysis.Practical implications: The empirical findings provide regulators with evidence on the current level of integrated reporting disclosures and the influence of corporate attributes in driving integrated reporting.Originality and value: The study makes significant contributions to integrated reporting literature from a developing country’s perspective. It also provided empirical evidence of a high level of disclosure compliance with the IR framework among quoted companies in Nigeria.

scholarly journals How efficient is the Johannesburg Stock Exchange really?

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
André Heymans ◽  
Leonard Santana
Keyword(s):  
Stock Exchange ◽  
Weak Form ◽  
Active Management ◽  
Sign Test ◽  
Management Approach ◽  
Ratio Test ◽  
Variance Ratio ◽  
Johannesburg Stock Exchange ◽  
Portfolio Managers ◽  
The Impact

Background: There are various studies that confirm the efficiency of the Johannesburg Stock Exchange (JSE), implying that there are no opportunities for active portfolio managers to earn excess returns over the long run.Aim: The aim of the research is to prove that the sub-indices on the JSE go through cycles of efficiency and inefficiency even though the JSE as a whole might be considered informationally efficient.Setting: Although the JSE as a whole can be considered to be weak-form efficient, portfolio managers are not bound to investing in large liquid stocks alone. Many aggressive funds allow managers to also allocate a portion of their portfolio to smaller stocks. This has implications when considering the efficiency of the stocks being selected.Methods: Given the impact efficiency has on portfolio selection, we test for the adaptive market hypothesis using a representative sample of stock indices by means of the automatic variance ratio test, the Chow–Denning joint variance ratio and the joint sign test on the JSE.Results: Our results confirm that some of the smaller, and in some instances younger, indices are not always as efficient as the all share index, thus allowing portfolio managers with an active management approach some opportunities to profit from informational inefficiencies in the market.Conclusion: The practice of active management by portfolio managers in the South African market seems to defy logic if one considers the fact that the JSE as a whole is at the very least weak-form efficient. By proving that some of the sub-indices that make up the all share index are inefficient most of the time, this article shows that the phenomenon of active portfolio managers is less of a surprise.

The long run performance of secondary equity offerings on the Johannesburg Stock Exchange

2018 ◽  
Vol 13 (5) ◽  
pp. 1211-1232
Author(s):  
Jesse Alves da Cunha ◽  
Yudhvir Seetharam
Keyword(s):  
Stock Exchange ◽  
Operating Performance ◽  
Investor Sentiment ◽  
Seasoned Equity Offerings ◽  
Equity Offerings ◽  
Content Type ◽  
Market Participants ◽  
Johannesburg Stock Exchange ◽  
Long Run ◽  
The Impact

Purpose Opinions have been divided on whether there is a rational explanation to the reason behind seasoned equity offerings (SEOs) or whether the explanation lies within the behavioural intricacies attributed to stock market participants. The paper aims to discuss these issues. Design/methodology/approach This study investigates the long-run performance of firms conducting SEOs on the Johannesburg Stock Exchange (JSE) over the period of 1998–2015, by examining the return performance and operating performance of firms, along with the impact of investor sentiment on these variables. Findings The results of this study are inconsistent with the existing literature, which argues that the long-run performance of issuing firms signalled an initial underreaction to SEOs buoyed by over-optimistic investors. Research limitations/implications Instead, the long-run performance of issuing firms is adequately explained by the rational models centred on the risk-return framework, implying that investors are reacting swiftly to SEOs in an unbiased fashion. Originality/value Investor sentiment does not materially influence the long-run share performance or operating performance of issuing firms, casting doubt on the ability of the market timing theory to explain the long-run performance of SEOs. The authors thus find that SEO performance cannot be explained by behavioural-based reasoning, in contrast to some asset pricing studies on the JSE which indicate the role of sentiment in explaining returns.

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