The Relationship Between Spot and Futures Index Contracts after the Introduction of Electronic Trading on the Johannesburg Stock Exchange

2002 ◽  
Author(s):  
Owen Beelders
Keyword(s):  
Stock Exchange ◽  
Electronic Trading ◽  
Johannesburg Stock Exchange ◽  
The Relationship

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 Community structure and centrality effects in the South African company network

2013 ◽  
Vol 44 (2) ◽  
pp. 35-43 ◽  
Author(s):  
I. Durbach ◽  
D Katshunga ◽  
H. Parker
Keyword(s):  
Community Structure ◽  
Social Network ◽  
South African ◽  
Stock Exchange ◽  
The South ◽  
Market Capitalization ◽  
Johannesburg Stock Exchange ◽  
The Relationship

This paper conducts a search for community structure in the South African company network, a social network whose elements are South African companies listed on the Johannesburg Stock Exchange. Companies are connected in this network if they share one or more directors on their respective boards. Discovered clusters, called communities, can be considered to be compartments of the network working relatively independently of one another, making their distribution and composition of some interest. We test whether the discovered communities of companies are (a) statistically significant, and (b) related to other attributes such as sector membership or market capitalization. We also investigate the relationship between the centrality of a company’s position in the network and its market capitalization.

scholarly journals The relationship between excess returns, firm size and earnings on the Johannesburg Stock Exchange

1991 ◽  
Vol 22 (3) ◽  
pp. 63-73 ◽  
Author(s):  
Michael J. Page ◽  
Francis Palmer
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Model Misspecification ◽  
Empirical Work ◽  
The United States ◽  
Excess Returns ◽  
Market Inefficiencies ◽  
Johannesburg Stock Exchange ◽  
The Relationship

While considerable empirical work has been conducted in the United States concerning excess returns and the relationship of these returns to firm size and E/P ratio, thus far, there have been few similar empirical studies conducted using Johannesburg Stock Exchange (JSE) data. Evidence of firm size or E/P ratio effects has been ascribed by various authors to either model misspecification or market inefficiencies. In this article the evidence is examined for the South African market using 1370 company years of data over the period 1978 to 1988, and a significant earnings effect is found, but no size effect. In the analysis the problem of data bias is considered with particular emphasis on thin trading issues, and a methodology for future empirical work is described. Finally, it is suggested that the evidence can be better explained by market inefficiencies than model misspecification.

scholarly journals The relationship between changes in money supply and changes in share prices: The semi-strong form efficiency of the Johannesburg Stock Exchange revisited

1995 ◽  
Vol 26 (1) ◽  
pp. 19-27 ◽  
Author(s):  
R. D. Glass ◽  
E. V.D.M. Smit
Keyword(s):  
Market Efficiency ◽  
Money Supply ◽  
Stock Exchange ◽  
Efficient Market Hypothesis ◽  
Strong Form ◽  
Share Prices ◽  
Johannesburg Stock Exchange ◽  
Ex Post ◽  
Rigorous Test ◽  
The Relationship

In this article the semi-strong form of share market efficiency over the period 1978 to 1992 is considered, particularly with regard to information about changes in the money supply. To ensure a rigorous test of market efficiency, monetary growth has been decomposed, into anticipated and unanticipated elements. The All Share Index of the Johannesburg Stock Exchange is regressed against the monetary variables. The test results indicate that lagged changes in anticipated monetary growth are significant in explaining changes in share prices, a finding contrary to the efficient market hypothesis. However, the low coefficients of determination indicate that only a small percentage of the variation in share prices is explained by ex post changes in money supply and consequently the potential for a trading rule to earn superior returns to the market is limited.

scholarly journals The effect of industry nuances on the relationship between corporate governance and financial performance: Evidence from South African listed companies

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Jonty Tshipa ◽  
Leon M. Brummer ◽  
Hendrik Wolmarans ◽  
Elda Du Toit
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
South African ◽  
Resource Dependence ◽  
Stock Exchange ◽  
Listed Companies ◽  
Company Performance ◽  
Johannesburg Stock Exchange ◽  
Good Corporate Governance ◽  
The Relationship

Background: Premised on agency, resource dependence and stewardship theories, the study investigates empirically the existence of industry nuances in the relationship between corporate governance and financial performance of companies listed in the Johannesburg Stock Exchange. Aims: The main objective of the study is to understand the relationship between internal corporate governance and company performance from the perspective of three distinct economic periods, as well as industry nuances, cognisant of endogeneity issues. Setting: South Africa, as an emerging African market, offers an interesting research context in which the corporate governance and financial performance nexus can be examined empirically. Method: A sample of 90 companies from the five largest South African industries, covering a 13-year period from 2002 to 2014 (1170 firm-year observations) was examined with three estimation approaches. Results: Two key trends emerged from this study. First, the relationship between corporate governance and company performance differed from industry to industry. Second, the association between corporate governance and company performance also changes during steady and non-steady periods, which is an indication that the nexus is driven by the state of the global economy and the type of the industry. Conclusion: Evidence from the study suggests that companies should be allowed to optimise rather than maximise their corporate governance options. This finding questioned the approach of the recently published King IV Code of Good Corporate Governance, which requires Johannesburg Stock Exchange-listed companies to ‘apply and explain’ as opposed to ‘apply or explain’ as pronounced by King III Code of Good Corporate Governance.

scholarly journals Investigating board diversity in South Africa

2015 ◽  
Vol 8 (2) ◽  
pp. 392-414 ◽  
Author(s):  
Nadia Mans-Kemp ◽  
Suzette Viviers
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Business Case ◽  
Board Diversity ◽  
Johannesburg Stock Exchange ◽  
Earnings Per Share ◽  
Significant Negative Relationship ◽  
The Relationship ◽  
Research Period

The issue of board diversity has been widely debated. Given the lack of conclusive empirical evidence, this study investigated the relationship between gender and race board diversity and the financial performance of South African companies. The sample covered 1 542 annual observations over the period 2002 to 2012. The percentage of female and black directors of companies listed on the Johannesburg Stock Exchange increased significantly over the research period. Board diversity differed considerably across industries. A statistically significant positive relationship existed between the percentage of both female and black directors and earnings per share. In contrast, a statistically significant negative relationship was found between the percentage of both female and black directors and total shareholder return. Given the lack of a clear business case, the question arises as to how board diversity on the JSE can be encouraged. The researchers recommend that more attention should be given to the development and mentoring of diverse board candidates.

scholarly journals The Relationship between Corporate Sustainability Disclosure and Firm Financial Performance in Johannesburg Stock Exchange (JSE) Listed Mining Companies

2019 ◽  
Vol 11 (16) ◽  
pp. 4496 ◽  
Author(s):  
Tafadzwa Mark Wasara ◽  
Fortune Ganda
Keyword(s):  
Return On Investment ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Environmental Disclosure ◽  
Corporate Social Disclosure ◽  
Johannesburg Stock Exchange ◽  
Sustainability Disclosure ◽  
Corporate Social ◽  
The Relationship ◽  
Social Disclosure

Whether corporate sustainability disclosure (CSD) affects profitability remains indistinct to many firms. This paper examines the relationship between corporate sustainability disclosure and return on investment. The sample of this study consisted of ten Johannesburg Stock Exchange (JSE)-listed mining companies, and the data was extracted from sustainability reports for a period of five years from 2010 to 2014. In this regard, data collection was undertaken by the adoption of a content analysis approach. A multi-regression analysis was used to analyze the relationship between environmental disclosure and return on investment. The same statistical mechanism was employed to determine the association involving social disclosure and return on investment. Results show that there is a negative relationship between environmental disclosure and return on investment. On the other hand, the research reveals that there is also a positive association between social disclosure and return on investment. This implies that an increase in corporate reporting of social issues results in heightened financial performance through an increase in return on investment. This study recommends the adoption of corporate social disclosure as it will encourage firms to be socially responsible, while also generating financial benefits. Further studies can be conducted about the change from voluntary corporate social disclosure to mandatory disclosure.

scholarly journals Environmental consciousness as a factor which promotes firm green investment practices in Johannesburg stock exchange (JSE) listed firms

2015 ◽  
Vol 12 (4) ◽  
pp. 440-450
Author(s):  
Fortune Ganda ◽  
Collins C Ngwakwe ◽  
Cosmas M Ambe
Keyword(s):  
South African ◽  
Stock Exchange ◽  
Environmental Issues ◽  
Environmental Consciousness ◽  
Chi Square ◽  
Listed Firms ◽  
Johannesburg Stock Exchange ◽  
Green Investment ◽  
Positive Direct ◽  
The Relationship

Heightening consciousness concerning natural environmental issues has also resulted in high pressure on firms to introduce green friendly programs. This study explored the relationship between environmental consciousness and green investment practices in 100 South African CDP firms on the JSE over a period of 5 years (that is, 2010 to 2014). The paper analysed the data using Chi-square tests and the results demonstrates that environmental consciousness influences green investment activities in JSE listed companies. Furthermore, a positive direct relationship involving environmental consciousness and green investment activities was ascertained. The paper also produced common and major indicators of environmental consciousness for the firms under study. A brief discussion on corporate views from selected JSE listed firms in relation with environmental consciousness was also implemented.

scholarly journals The determinants of CSR disclosure of firms listed on the JSE: A focus on firms meeting the SRI index criteria

2015 ◽  
Vol 12 (2) ◽  
pp. 135-148 ◽  
Author(s):  
Gciniwe Khumalo ◽  
Lucian J. Pitt
Keyword(s):  
Social Responsibility ◽  
Best Practice ◽  
Stock Exchange ◽  
Media Exposure ◽  
Legitimacy Theory ◽  
Johannesburg Stock Exchange ◽  
Drivers Of Csr ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship

This paper tests the relationship between the firms’ corporate social responsibility (CSR) disclosures, the extent of media exposure it enjoys and its size, profitability and leverage. The study is confined to firms who meet the Johannesburg Stock Exchange (JSE) criteria for inclusion in its Social Responsibility Index (SRI) and as such the focus is on those firms who are perceived to display best practice with regard to social responsibility. The objective of the study is to determine which factors act as drivers for CSR disclosure. The study uncovered statistically significant positive relationships between CSR disclosures and industry environmental impact as well as media exposure. Legitimacy theory was found to best explain the drivers of CSR disclosure among listed companies in South Africa

scholarly journals The relationship between company size and CEO remuneration: A scaling perspective

2014 ◽  
Vol 11 (4) ◽  
pp. 412-423 ◽  
Author(s):  
Merwe Oberholzer
Keyword(s):  
Economies Of Scale ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Size Ratio ◽  
Company Size ◽  
Data Envelopment ◽  
Johannesburg Stock Exchange ◽  
Simple Regression Analysis ◽  
Market Capitalisation ◽  
The Relationship

The first objective of the study is to empirically test a number of company size determinants’ significance as size proxies in benchmarking CEO remuneration for different sectors of Johannesburg Stock Exchange (JSE)-listed companies. The second objective is to investigate an issue that has not been examined in previous studies, namely the extent to which companies are able to linearly scale their CEO remuneration and company size without changing the remuneration-to-size ratio. To fulfil the first objective, data extracted from the McGregor BFA database were obtained for 2013, where 244 companies in four sectors, i.e. financial, manufacturing, minerals and services, are analysed using descriptive statistics and simple regression analysis. From the results obtained, to fulfil the second objective, a data envelopment analysis (DEA) model is built to estimate the technical and scale efficiencies of 231 companies. A hypothesis test was helpful to find that the following determinants can be used as proxies for company size: total assets (including intangible assets); market value of assets; total equity; market capitalisation; revenue; and total cost. The confidence level to which the null-hypothesis is rejected leads to the conclusion that those determinants are on their own suitable proxies that make further investigations into joint determinants unnecessary. Furthermore, the study concluded that the majority of companies are not able to linearly scale their CEO remuneration and company size without changing the remuneration-to-size ratio. Therefore, the conceptual theory of scaling is to a great extent rejected, since only nine of 231 companies in the sample investigated could achieve economies of scale. The paper is organised as follows: Section I provides the gap of missing knowledge in the literature as well as the conceptual framework of the study. The data and methodology are described in Section II, after which the results and a discussion thereof are provided in Section III. The study is finally concluded in Section IV.

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