M. Tech. (Department of Cost and Management Accounting, Faculty of Management Sciences), Vaal University of Technology. / Working capital management is an important aspect in the business in order to meet its daily activities. Permanent working capital, temporary working capital, gross working capital and net working capital are four types of working capital. The construction industry, as compared to any other industry, plays an important role in the economic growth of the country. The construction industry is regarded as the largest employer in the labour market and appropriate management of liquidity is essential. Construction contracts are divided into lump sum contracts, unit price contracts and cost plus a fee contracts and have the following role players: employer, employer’s representative, professional team, contractor, sub-contractor and adjudicator. This study analysed the relationship between working capital management and financial performance of JSE listed construction companies during the period 2009-2019. Annual financial statements, which included statement of financial position and statement of financial performance of all listed construction companies during the period 2009-2019 were extracted from the external database (IRESS) to obtain the data needed for statistical analysis. This study used a quantitative research method to analyse the relationship between working capital management and financial performance. Multiple linear regression and correlation analysis were used in this study with inventory conversion period (ICP), average collection period (ACP) and average payment period (APP) as independent variables and return on assets (ROA), return on equity (ROE) and gross operating profit (GOP) as dependent variables, in order to analyse the relationship between working capital management and financial performance of JSE-listed construction companies during the period 2009-2019. Results of this study indicated that working capital management has little or no influence on the financial performance of JSE-listed construction companies, therefore, this indicates that listed construction companies in South Africa need to manage their working capital properly by putting some new policies in place on their accounts payables and receivables, in order to have a relationship between working capital management and financial performance.

Thesis (MBA (Business Management))--University of Stellenbosch, 2008. / ENGLISH SUMMARY: During the period of change in South Africa in the year of the first democratic elections, 1994, the first King Report on Corporate Governance appeared. For the first time in South Africa, companies had a good reference for corporate practice and conduct. A second King report, commonly referred to as King II, appeared in March 2002 and expanded on the earlier Code to produce, what was considered at the time to be, a world-class code of corporate governance. In addition to the acceptance and incorporation of King II into corporate governance practice, the JSE included compliance with the King Code as part of its listing requirements. The code itself is not an enforceable set of rules, but rather guidelines to assist companies in implementing principles of good governance. In similar vein, the JSE has given companies the flexibility to justify non-compliance. This underscores the socalled comply or explain philosophy to which corporate governance in South Africa subscribes. Studies have found the level of corporate governance in South Africa to be high, especially for an emerging market. Compliance with corporate governance principles and transparency go hand in hand. In a comply or explain regime, where the regulation is considered to be done by the market, disclosure of compliance is especially important. The goal of this research project was to conduct a survey of the top listed South African companies to ascertain what the level of disclosure of corporate governance was, with specific reference to the recommendations contained in the King Code. For the purposes of this study, the top companies were defined as the FTSE/JSE Top 40 Index companies. The supposition was that most companies, having been confronted with the King Code for almost six years, would be compliant to a large degree and will disclose their compliance. This was expected to be more evident amongst top companies who have the resources and influence to effect changes sooner and take the lead on high profile issues. The study confirmed the supposition that companies, at least in the sample, were highly compliant. There were however some areas where improvements can be made to be more in line with global best practices. / AFRIKAANSE OPSOMMING: Gedurende die periode van vernuwing in Suid-Afrika en die jaar van die eerste demokratiese verkiesing, 1994, het die eerste King verslag op korporatiewe bestuur verskyn. Vir die eerste keer het maatskappye in Suid-Afrika ‘n goeie verwysing gehad in die bepaling van hul korporatiewe bestuurspraktyke en gedrag. ‘n Tweede King verslag, alombekend as King II, het in Maart 2002 verskyn en op die eerste verslag uitgebou om ‘n kode te voorskyn te bring wat ten tyde van publisering as wêreldklas bestempel is. Bo en behalwe die aanvaarding en toepassing van King II in die korporatiewe bestuurspraktyk, het die JSE ook nakoming van die Kode as deel van die noterings vereistes ingesluit. Die King Kode opsigself is nie ‘n afdwingbare stel reëls nie, maar eerder riglyne wat maatskappy bystaan in die implementering van beginsels van goeie bestuur. In ‘n soortgelyke manier gee die JSE ook aan maatskappye die buigsaamheid om gevalle van nie-nakoming te regverdig en verdedig. Dit onderskryf die sogenaamde voldoen of verduidelik filosofie wat korporatiewe bestuur in Suid Afrika aan gehoor gee. Studies het gevind dat die vlak van korporatiewe bestuursgedrag in Suid-Afrika hoog is, veral vir ‘n ontluikende mark. Nakoming met korporatiewe bestuurgedragskodes en deursigtigheid gaan hand aan hand. In ‘n voldoen of verduidelik regime, waar die mark geag word om te reguleer, is openbaarmaking van korporatiewe bestuursgedrag van kardinale belang. Die doel van hierdie navorsingsprojek was om ‘n peiling te maak van die voorste Suid-Afrikaanse maatskappye om te bepaal wat die vlak van openbaarmaking in terme van korporatiewe bestuursgedrag was, met spesifieke verwysing na die King Kode. Vir die doeleindes van die studie is die voorste maatskappye gedefiniëer as die FTSE/JSE Top 40 Indeks. Die veronderstelling was dat meeste maatskappye, gegewe die feit dat die Kode al ses jaar in omgang is, tot ‘n groot mate aan die Kode sal voldoen en inligting rakende die voldoening openbaar maak. Dit is ook verwag dat dit veral die geval onder die voorste maatskappye sou wees aangesien hulle oor die hulpbronne en invloed beskik om veranderinge vroeër teweeg te bring en leierskap te neem met hoë profiel kwesssies. Die studie het die veronderstelling korrek bewys dat maatskappye, ten minste in die geval van die ingeslote groep, ‘n hoë vlak van voldoening en openbaarmaking ten toon stel. Daar is egter nogtans areas waar verbeterings gedoen kan word om meer in lyn met internasionale beste praktyke te kom.

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: This study consists of three independent papers which all broadly examine South African economic issues using accounting data obtained from the annual reports of industrial The first paper reports on employment trends amongst listed industrial companies in South Africa over the period 1996 to 2002. The results obtained showed that overall employment decreased 1,26% per annum for the companies under review. This negative trend in the largest companies in the sample. By contrast, smaller companies showed excellent growth in employment numbers. Hence appeared that smaller companies might be the most important vehicle for employment growth in the formal sector of the South African economy. It was therefore recommended that greater emphasis be placed on encouraging small business development in order to reverse the declining rates of employment in South Africa. The of ratios calculated from value added statement data in South Africa. The sample used for this purpose included all listed industrial companies which published value added statements or cash value added statements over the period 1990 to 2002. The ratio V A x 100/sales and the various components of value added as a percentage of total value added were considered in studies, it was not wholly apparent why the central location of the ratio V A x 100/sales remained stable, while the central location of the value added component ratios varied over time. The paper examines the changes which took place in the formal sector of the South African economy vis-a-vis economic growth, employment, labour productivity and from the annual financial statements of 62 industrial companies listed on the JSE Securities by companies listed on the JSE Securities Exchange. by employment growth appeared to be driven mainly by decreased rates of employment amongst it second paper expands on existing knowledge concerning the trends and characteristics VA I detail. Although these ratios were shown to have values similar to those reported in previous I third growth. remuneration and also compares these changes with projections put forward in the Growth, Employment and Redistribution (GEAR) policy. The data used in the study was gathered Exchange over the period 1994 to 2000. income differential in South Africa. It thus appeared that in reality few of the projections put forward in GEAR were achieved by the companies representing the formal sector of the South The findings of this study demonstrated that value added could be used successfully as a proxy for economic growth. Although appeared as though labour productivity had increased, the increase was panly due to an overall decrease in employment, rather than a greater than expected increase in value added. emerged that the majority of companies which decreased employment in fact contributed negatively to economic growth. The companies which decreased employment were also shown to have increased salaries on a per employee basis, which meant that these companies did not reduce their overall salary expenses substantially. By decreasing employee numbers and increasing per capita remuneration, the companies in question only acted to further increase an already wide ronnal African economy. / AFRIKAANSE OPSOMMING: Hierdie werkstuk bestaan uit drie onafhanklike artikels wat Suid-Afrikaanse ekonomiese aspekte behandel. Die bogenoemde ekonomiese temas word ondersoek deur middel van die gebruik van rekenkundige data wat verkry is uit die jaarverslae van industriële maatskappye wat op die JSE Effektebeurs genoteer is. Die eerste artikeI beskryf die patrone van indiensneming van werkers deur genoteerde industriele maatskappye in Suid-Afrika gedurende die tydperk 1996 tot 2002. Die bevindings van hierdie studie bewys dat indiensneming met 1,26% per jaar gedaal het. Hierdie negatiewe neiging in indiensneming is grootliks veroorsaak deur 'n vermindering in die aantal werknemers in kleiner maatskappye toegeneem. Dit blyk dus asof kleiner maatskappye 'n belangrike roI kan speel om te verseker dat indiensneming in Suid-Afrika styg. Daar word op die ontwikkeling van kleiner besighede geplaas moet stuit. Die tweede artikel bou voort op die bestaande kennis oor kenmerke en neigings in toegevoegde waarde staat-verhoudings in Suid-Afrika. Die steekproef wat in hierdie geval bestudeer is, sluit alle genoteerde industriele maatskappye wat oor die tydperk 1990 tot 2002 toegevoegde waarde state in hul jaarverslae gepubliseer het. in. Die verhouding van TW x 100/verkope, asook die verhoudings van die verskillende komponente van toegevoegde waarde as 'n persentasie van die totale toegevoegde waarde, is ondersoek. Daar is bevind dat die waardes van die verhoudings ooreenstem met waardes in vroeëre onderdoeke. Dit was egter nie heeltemal duidelik waarom die sentrale plasing van die verhouding TW x 100/verkope bestendig gebly het, terwyl die sentrale plasing van die toegevoegde waarde komponentverhoudings nie. Die derde artikel ondersoek die veranderinge wat plaasgevind het in die Suid-Afrikaanse ekonomiese groei, indiensneming, arbeidsproduktiwiteit en vergoeding en vergelyk dit met die verandering wat in die Groei, werkskepping en herverdeling (GEAR) dokument voorspel is. Die data wat in hierdie studie gebruik is, is afkomstig van die jaarverslae van 62 industriële maatskappye wat vanaf 1994 to 2000 op die JSE Effectebeurs genoteer was. Die resultate van hierdie studie het gewys dat die verbetering in arbeidsproduktiwiteit deels as gevolg van 'n afname in indiensneming, eerder as 'n bo-gemiddelde toename in toegevoegde waarde, plaasgevind het. Daar is bevind dat die maatskappye wat indiensneming verminder het, 'n negatiewe bydrae gemaak het tot die ekonomie. Verder het hierdie maatskappye ook vergoeding per werknemer verhoog wat beteken dat hulle nie in geheel bespaar het op indiensnemingskoste nie. Die maatskappye wat hulle werknemers verminder en hulle salarisse per werknemer verhoog het, het net verder bygedra tot die groeiende inkomste differensiaal in Suid-Afrika. Dit blyk dus dat min van die beramings wat in GEAR uitgelê was deur maatskappye verteenwoordigend van die formele sektor van die Suid-Afrikaanse ekonomie, in hierdie studie bereik is.

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Magister Legum - LLM

Empirical evidence indicates that companies that reduce information asymmetry by increased voluntary disclosures achieve several benefits, such as lower cost of capital, improved pricing, and liquidity of their shares. Despite the possibility of such benefits, many studies report varying degrees of voluntary disclosure behaviour that is attributable to various factors. Recent studies indicate that investors’ investment horizon has a significant effect on actions taken by management. Companies with predominantly short-horizon investors spend less on research and development, invest in shorter-term projects that are less profitable than longer-term projects, and are more likely to manipulate earnings to meet short-term earnings expectations. This study investigates whether investors’ investment horizon has an effect on the quality of companies’ information environment. Long-horizon investors should be familiar with their investee company’s risks and rewards, using both their own internal information gathering processes and the cumulative information disclosed by management over time. Moreover, over the course of a long-term relationship, they can become familiar with management’s capability to deliver long-term sustainable returns. Long-horizon investors should therefore be less concerned with short-term fluctuations of earnings and management’s public explanations and disclosures thereof. I hypothesise that higher (lower) proportions of long-horizon investors are associated with lower (higher) quality voluntary disclosure. The shareholder familiarity hypothesis was tested in this study, using an ordinary least squares regression. Voluntary disclosures were observed via the channel of companies’ websites. A checklist was compiled of best practices for online investor relations, and content analyses were conducted on the websites of 205 companies listed on the Johannesburg Stock Exchange. Shareholder familiarity was proxied by shareholder stability, measured over nine years. The stability measure was lagged by one year to create a temporal difference between the shareholder profile and disclosure behaviour. I found that companies with a profile of unstable investors that are larger, younger, dual-listed and have a Big4 auditor have higher quality online investor relations practices. The hypothesis of a negative association between shareholder familiarity and voluntary disclosure quality is therefore accepted. This study extends the theory on information asymmetry and voluntary disclosure by providing evidence supporting the argument that investor horizon is a predictor of voluntary disclosure quality. The dictum of more is better does not hold in all scenarios. It is important for financial directors and investor relations officers to establish the investment horizon profile of their respective companies’ shareholders before they embark on extensive disclosure programmes. / Financial Intelligence

This research has investigated the long-run performance of corporate restructurings through unbundling transactions on the JSE between 2000 and 2012. The corporate unbundling transactions considered by the research are spin-offs and sell-offs. From the two unbundling transactions, four samples were derived, that is, 21 spin-offs, 14 parent-spin-offs, 14 sell-offs and 20 parent-sell-offs. The share price performance of these samples was investigated by a matching firm methodology under the buy and hold abnormal returns. The research found that positive abnormal returns are present for both samples for up to four years after unbundling. Secondly, with the exception of parent-sell-offs, significant abnormal returns were experienced by both samples for up to four years after unbundling. It was also found that a spin-off is a preferable corporate unbundling strategy to a sell-off over a long-run period. This research implies that companies with heavy structures should unbundle in order to unlock shareholders’ value. / Business Management / M. Com. (Business Management)

Magister Legum - LLM / South Africa

This thesis analyses the effects of relative market share and the rate of market growth on the strategic characteristics and financial performance of selected companies quoted on the Johannesburg Stock Exchange over the period 1977 to 198. It is well established that business performance is partially contingent upon relative market share position and the rate of market growth. Together these variables comprise the basis of the Boston Consulting Group approach to portfolio analysis in the form of the Boston Consulting Group Growth/Share Matrix. A methodology was designed to test the validity of this matrix in measuring and predicting corporate behaviour at the business level in South Africa. Selected companies were placed into the matrix and analysed in terms of their strategic attributes (represented by selected financial ratios) and their level of performance (represented by a wide range of financial performance measures). The research findings show that relative market share and the rate of market growth have a significant impact on the strategic attributes and financial performance of South African businesses. Also, certain attributes are closely associated with particular types of performance. Therefore, given a specific performance target, management should ultimately be able to isolate and monitor the relevant strategic attributes in ensuring that the target is achieved. The analysis of contingent models of strategy is still in its infancy, but this study indicates that the field is possessed of great potential.