Many articles have been written on the effect and potential benefit of cost reduction, downsizing and expense management. Most of these articles have conflicting messages, some even internally within the same article.The objective of this research was to critically evaluate these articles and to see if there was any evidence of the economic effects of cost reduction from the South African experience. The evaluation of the articles was done by a process of deductive reasoning with some help from the principles found within the application of the Theory of Constraints. The research further used a quantitative design to analyse the effect of a cost reduction event on certain ratios and the share price performance relative to an appropriate index over a period of six years after the event.The research has shown that at least some of the academic articles on this subject made different implicit assumptions during the research process. The results from the quantitative research have shown that there were no significant evidence of any effect on the ratios and share price performance from the South African market experience. / Dissertation (MBA)--University of Pretoria, 2013. / Gordon Institute of Business Science (GIBS) / unrestricted

This dissertation presents a variety of empirical studies in financial accounting with an emphasis on the association between published accounting data and share prices. These studies are the first attempt at empirical research in accounting in South Africa. There has been an alarming lack of research in this discipline in this country and only 14 doctorates in the accounting field have ever been conferred by South African universities. The major aim of the dissertation is to contribute to the understanding of the usefulness of accounting data and the effect that certain financial disclosures (and non-disclosures) have on share prices and consequently on the wealth of the users and potential users of these data. An essential premise of this thesis is that the primary purpose of financial reporting is the provision of information useful for economic decision making.

Companies are under pressure to develop and design effective incentive schemes for their employees with an aim of attracting and retaining talent. Whilst other organisations consider various methods to motivate employees, employee share schemes have dominated the agenda in many companies. It is expected that share schemes would achieve the desired objective through aligning the objectives of the employer with those of the employees. In the study, employee perceptions of share schemes are investigated to establish if the above objective is maintained. A medium sized company listed on the JSE was selected for the study with 105 respondents being solicited for a population of 242. The results confirmed that employee shareholders do have perceptions ranging from expectations of empowerment to employee engagement in decision-making. The study contributes to the body of knowledge and research in remuneration strategies for today‟s work environment, and makes recommendations for companies with the intention to improve the worker‟s social well-being. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

China's rapid economic growth and the development of its domestic stock market have attracted considerable attention from foreign investors. China's economic financial expansion, however, has emerged from an environment of state planning and radical socialist ideology. With a view of providing investors with a better understanding of the risk and return relationship in the Chinese A-share market over the past decade, this thesis adapts several empirical models to the circumstances in China and conducts four empirical analyses. First, in order to rationalize foreign investors' entry into the A-share market, the thesis compares the diversification benefits in three China-related stock markets, namely the A-share, the B-share and the H-share markets in a mean-variance framework using daily, weekly and monthly data respectively. The results suggest that of the three stock markets, the B-share market generates the highest average annual returns while the A-share market has the most significant diversification benefits regardless of whether the analysis is undertaken implementing a traditional mean-variance framework or a downside risk framework. Next, an empirical analysis using the Fama and MacBeth two-pass procedure is undertaken to test the relationship between beta, firm factors and stock returns. Similar to the findings in other stock markets, the results of this analysis show that the static betas for individual stocks fail to capture variation in stock returns in the A-share market. In contrast, the effects of book-to-market and trading volume are significant in the sample period. However, the fact that none of these factors have a persistent role in explaining stock returns suggests a possible change in the investment philosophy of Chinese domestic investors over the past decade. In the third analysis, two global betas are incorporated into the cross-sectional regressions in a bid to examine the integration or segmentation of the A-share market with the world and Hong Kong stock markets. Specifically, both time-varying betas and static betas are used in the analysis. The results suggest that there is no beta effect and the A-share marke t is totally segmented from both the world and Hong Kong stock markets. Finally, when the segmentation and integration status of the A-share market is further examined using the Maximum Likelihood Estimation framework without beta estimation and the assumption of a linear relationship between beta and stock returns, the findings suggest that the A-share market is becoming increasing integrated with the B-share and the Hong Kong stock markets.

China's rapid economic growth and the development of its domestic stock market have attracted considerable attention from foreign investors. China's economic financial expansion, however, has emerged from an environment of state planning and radical socialist ideology. With a view of providing investors with a better understanding of the risk and return relationship in the Chinese A-share market over the past decade, this thesis adapts several empirical models to the circumstances in China and conducts four empirical analyses. First, in order to rationalize foreign investors' entry into the A-share market, the thesis compares the diversification benefits in three China-related stock markets, namely the A-share, the B-share and the H-share markets in a mean-variance framework using daily, weekly and monthly data respectively. The results suggest that of the three stock markets, the B-share market generates the highest average annual returns while the A-share market has the most significant diversification benefits regardless of whether the analysis is undertaken implementing a traditional mean-variance framework or a downside risk framework. Next, an empirical analysis using the Fama and MacBeth two-pass procedure is undertaken to test the relationship between beta, firm factors and stock returns. Similar to the findings in other stock markets, the results of this analysis show that the static betas for individual stocks fail to capture variation in stock returns in the A-share market. In contrast, the effects of book-to-market and trading volume are significant in the sample period. However, the fact that none of these factors have a persistent role in explaining stock returns suggests a possible change in the investment philosophy of Chinese domestic investors over the past decade. In the third analysis, two global betas are incorporated into the cross-sectional regressions in a bid to examine the integration or segmentation of the A-share market with the world and Hong Kong stock markets. Specifically, both time-varying betas and static betas are used in the analysis. The results suggest that there is no beta effect and the A-share marke t is totally segmented from both the world and Hong Kong stock markets. Finally, when the segmentation and integration status of the A-share market is further examined using the Maximum Likelihood Estimation framework without beta estimation and the assumption of a linear relationship between beta and stock returns, the findings suggest that the A-share market is becoming increasing integrated with the B-share and the Hong Kong stock markets.

Labor share in the neoclassical context is perceived as a share of the labor income in GDP. A very basic way to compute the labour share simply entails dividing compensation of employees by gross value added. After a series studies and the rise of neoclassical economics, the assumption of labor share stability over time was introduced. With the publication of Kaldor's theory of growth, the assumption of labor share stability became a generally accepted fact. The aim of this thesis is to answer the question on how the labor share and its individual characteristics evolved in the Czech Republic in the years 1993-2015 and whether its average level and the overall trend in this period corresponds to the neoclassical labor share theories.

The subject of this master thesis is a released share. The paper is divided into 2 main parts which correspond with 2 main goals of this thesis - a detailed analysis of general provisions on a released share and analysis of the collision of provisions governing the released share and a share pledge. In the general part of the thesis, the released share is described thoroughly, as well as the process of how the companies have to deal with it. The structure of the general part follows the structure of the Business Corporations Act. Firstly, the released share is described, followed by the sale of released share with all its problems, settlement share and the process the company follows after the settlement share is paid out, i.e. the transfer of the released share to the remaining members or reduction of registered capital. In the general part of the thesis I also compare the effective legislation and the amendment of Business Corporations Act which is being prepared at the time of writing this paper and which could bring solutions to many problems arising out of the effective legislation. In the special part, which I assume to be the key part of this paper, I analyse the collision of regulations of released share and share pledge. To begin with, I describe the rights of the pledgee to the released pledged...

In Chinese culture, certain digits are considered lucky and others unlucky. This thesis evaluates how numerical superstition affects financial decision-making in the Chinese A-share IPO market for the period between 2003-2015. Evidence has been found that suggests that numerical superstition influences the initial return on the issuing day of A-share IPOs on the Shanghai exchange. On this exchange newly listed firms with the unlucky number 4 and lucky numbers 6 and 8 in their ticker are initially traded at a discount. A superstition effect for the lucky numbers 6 and 8 dissipates after the first trading day but remains visible after the IPO for the unlucky number 4 and disappears within a month. The Shenzhen exchange showed no effects of numerical superstition on the initial return of the first trading date. The additional regression results indicate that after one month and onwards, having an unlucky number in a ticker has a negative influence on IPO underpricing . After the 3rd and 6th month the lucky number 6 is has a significant negative impact on stock return.

Background: Sustainable development is the buzzword of the decade, yet developing countries struggle to comply with environmental guidelines. A study was done to determine the possibility of financial gain by means of share price prosperity as a result of compliance with environmental accounting principles. Objective: To investigate the relationship between the commitment to environmental accounting principles and the share price of Main Board listed companies on the Johannesburg Stock Exchange. Design: A quantitative, cross-sectional design with descriptive, explanatory and contextual elements was undertaken. Setting and Sample: An all-inclusive sample of the announcements of the Main Board listed companies of the Johannesburg Stock Exchange between 1 June 2008 and 1 June 2013 was used, as well as a stratified random sample of 32 companies – 16 as listed on the SRI Index and 16 not. Measurements: Data related to compliance with environmental accounting principles were correlated with share price fluctuations of Main Board listed companies. T-tests were done to determine whether a correlation exists between compliance with environmental accounting principles and fluctuations in share price. Results: 56 instances of upward trends and 80 instances of downward trends after one month followed announcements that included compliance to environmental accounting principles (one constant and one unknown). 52 instances of upward trends and 54 instances of downward trends after one year followed these announcements (30 unknown). 48 out of 336 listed companies (14%) announce environmental accounting principle compliance with their shareholders. More announcements referring to environmental accounting compliance were posted in 2012 and 2013 (n = 17 and n = 22 averaged for six months) compared to those in 2008 to 2011 (n = 9; n = 15; n = 14 and n = 15 averaged for six months). 56% of companies complying with environmental accounting principles are from the mining industry. 39.19% of principles complied with was within the diverse principle division. P-values derived from t-tests done to investigate correlations between share price and compliance with environmental accounting principles on various levels all revealed P-values of more than 0.25. Conclusions: No statistically significant correlation could be made between compliance with environmental accounting principles and fluctuations in share price. There is low divulgence of compliance practices to shareholders from mentioned companies. An upward trend for compliance with environmental accounting principles is noted during the past five years. The mining industry showed the greatest compliance with these principles when judged according to divulgence of compliance by means of announcements to their shareholders as well as when judged according to stance on the SRI Index. / MBA, North-West University, Potchefstroom Campus, 2014

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