The phenomenon of acquisitions has attracted research interest in the finance literature partly because of its impact on the u.s economy during the decade of the eighties. Whereas an impressive body of knowledge has been accumulated on this subject thus far, the hospitality literature has no empirical studies that seek to explain the nature of this phenomenon in the hospitality industry. Of particular interest in this study was the impact of acquisitions on the shareholder wealth of target hotel and restaurant shareholders. Therefore, there were three purposes in this study: 1) to determine whether stockholders of target hotel and restaurant companies involved in acquisitions earned significant additional wealth, 2) to determine whether there is a difference in the average size of additional wealth created in acquisitions involving hospitality companies versus those involving non-hospitality companies, and 3) to determine whether there is a difference in the average size of additional shareholder wealth accruing to hotel versus restaurant shareholders. The sample consisted of 39 restaurant and 18 hotel target companies acquired between 1980 and 1990. The datasource was the University of Chicago's Center for Research in Securities Prices (CRSP) database. The market model was used to predict stock returns for the target companies thirty days before and after the announcement of the acquisition. The difference between the predicted returns and actual returns for each trading day during this period constituted the abnormal return. The average abnormal returns for all the companies per trading day were cumulated and their significance determined. The results showed that the size of the additional shareholder wealth created when the restaurant companies were acquired was 8.86%, hotels was 29.86%, while the combined sample was 15.47%. These results provided evidence that hotel and restaurant shareholders earn significant abnormal returns during an acquisition, and that there is a significant difference in the size of additional shareholder wealth accruing to hospitality companies versus non-hospitality ones. Furthermore, there was a difference in the average size of abnormal returns earned by hotel shareholders versus restaurant shareholders. / Ph. D.

The separation of ownership and control in the modern corporation creates the potential for management to pursue its own self-interests at the expense of stockholder welfare. One mechanism protecting stockholders from self-interested management is the market for corporate control, or the takeover market. The literature suggests that inefficient managers, viewing the threat of takeover and resulting job displacement, have supported the enactment of antitakeover devices to protect themselves from the takeover market. The objective of this study is to provide information concerning the relationship of one type of antitakeover device, the non-fair price antitakeover amendment, to stockholder welfare. The research addresses the question: Are non-fair price antitakeover amendments being enacted to protect inefficient management at the expense of stockholder interest? This study uses accounting measures and market measures to compare the performance of firms with non-fair-price antitakeover devices with matching firm that do not have such amendments. Firm performance is used as a surrogate for management efficiency. Results of the study indicate that firms adopting these amendments exhibit lower performance than firms without such amendments. Amendments, therefore, appear to benefit inefficient managers and do not benefit stockholders. / Ph. D.

University of Macau / Faculty of Law

Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: Since the early 1990’s shortly after Namibia gained independence, the Namibian financial industry has gone through substantial changes. New bank legislation and regulatory requirements were introduced and the market broadened to include blacks who were excluded from the formal banking services. Customers gained more bargaining power, competition intensified, international scrutiny intensified and customers now demand more sophisticated products and quality service. The Namibian banking and financial industry is relatively well developed in terms of service institutions and instruments. Like most developing countries, the financial and banking industry is made up of formal and informal sectors. The formal sector consists of the central bank, commercial banks, development financial institutions (Development Bank of Namibia), insurance companies and the stock exchange, while the informal sector comprises mainly of micro lenders. The Namibian banking industry comprises of four commercial banking groups of which FNB Namibia is the market leader, as can be seen in this paper. The BEE (Black Economic Empowerment) partnership has also enabled FNB to venture into areas that were previously unbanked or under banked. The focus has shifted from urban centres to rural areas. The financial services industry has prospects to grow given the economic, political and environmental stability in Namibia. However, the Namibian economy is not immune to the external forces responsible for the global economic slowdown. This economic slowdown affects food, oil and energy prices, which in turn affect the performance and profitability of FNB Namibia. In addition to this, an entry of two commercial banks (ABSA and PHB Bank) is underway, which will erode FNB’s profits and reduce market share. The purpose of this research was to analyse and assess the alignment of the strategic planning and budgeting process within FNB Namibia. It further intends to establish how best this management model is able to cope with the fast changing environmental and business landscape. The research also explores an alternative strategic planning and budgeting approach that will promise to create and improve shareholder value. The research focuses on the experience of FNB Namibia Holdings Limited, which operates in the banking and financial industry. The FNB Group was traditionally a banking institution with its primary focus on retail banking and asset financing in the higher end of the market. The strategic goals of the Group are based on three pillars, i.e. People, Customer and Efficiencies. The Group seeks to achieve its mandate based on these pillars and through innovation and value adding partnerships. An overview of the banking industry as well as the governing structures of FNB and the entire banking industry is provided. The external and internal business environment has an impact on the operations of FNB, both negative and positive. Therefore an environmental analysis on the basis of the political, economic, social, technological and environmental aspects was done. A detailed historical perspective was provided, which also provided the context of the transformation that took place in the discipline of strategic planning and budgeting. The Beyond Budgeting management model that is based on devolved leadership was explored and recommended as an alternative to the traditional command and control model. The devolved leadership principles empower the frontline managers and allow decision making to be made at customer contact. The move from the traditional strategic planning and budgeting model to Beyond Budgeting will require a systems transformation and not only a change in some part. To understand FNB’s management model, the Biomatrix systems thinking approach is recommended to analyse the underlying processes in accordance with the seven perspectives of organisation, i.e. ethos, environment, aims, structure, process, resources and governance. The analysis of FNB along these seven perspectives will ensure that strengths and weaknesses are identified in the whole system (company) and that the people in the company are well prepared for change. The Balanced Scorecard was also explored and recommended as a tool to improve strategy implementation and a tool to communicate the strategy to the rest of the company. Conclusions were drawn from the research and some recommendations were made for the transformation of the FNB management model and the implementation thereof. / AFRIKAANSE OPSOMMING: Sedert die vroeë 1990’s en kort nadat Namibië onafhanklikheid verkry het, het die Namibiese finansiële bedryf aansienlike veranderinge beleef. Nuwe bankwetgewing en reguleringsvereistes is ingestel en die mark het breër geword om swart mense in te sluit, nadat hulle voorheen van die formele bankdienste uitgesluit was. Kliënte het groter onderhandelingsmag verkry, mededinging het intensiewer geword, die internasionale soeklig het feller geword en kliënte vereis nou meer gesofistikeerde produkte en gehaltediens. Die Namibiese bank- en finansiële bedryf is relatief goed ontwikkel ten opsigte van diensinstellings en –instrumente. Soos in die meeste ontwikkelende lande bestaan die finansiële en bankindustrie uit formele en informele sektore. Die formele sektor bevat die sentrale bank, handelsbanke, ontwikkelings-finansiële instellings (Ontwikkelingsbank van Namibië), versekeringsmaatskappye en die aandelebeurs, terwyl die informele sektor hoofsaaklik uit mikroleners bestaan. Die Namibiese bankwese omvat vier handelsbankgroepe waarvan FNB Namibia die markleier is, soos uit hierdie navorsing afgelei kan word. Die SEB-vennootskap (Swart Ekonomiese Bemagtiging) het FNB ook in staat gestel om toegang te verkry tot areas waar daar voorheen geen of te min bankbedrywighede was. Die fokus het van stedelike na landelike gebiede verskuif. Die finansiëledienstebedryf het groeivooruitsigte gegewe die ekonomiese, politieke en omgewingstabiliteit in Namibië. Die Namibiese ekonomie is egter nie immuun teen die eksterne magte wat verantwoordelik is vir die wêreldwye ekonomiese verlangsaming nie. Hierdie ekonomiese verlangsaming het ‘n uitwerking op die prys van voedsel, olie en energie, wat op hulle beurt die prestasie en winsgewendheid van FNB Namibia beïnvloed. Daarbenewens word die toetrede van twee ander handelsbanke (ABSA en PHB Bank) verwag, wat FNB se wins verder sal inkort en sy markaandeel sal verminder. Die doel van hierdie navorsing is om te ontleed en te beoordeel of die strategiese beplannings- en die begrotingsproses binne FNB Namibia met mekaar belyn is. Dit het verder ten doel om te bepaal hoe hierdie bestuursmodel die vinnig veranderende omgewings- en sakelandskap ten beste kan hanteer. Die navorsing ondersoek ook ‘n alternatiewe benadering tot strategiese beplanning en begroting met die oog op die skepping en verbetering van aandeelhouerswaarde. Die navorsing fokus op die ondervinding van FNB Namibia Holdings Ltd, wat in die bank- en finansiële nywerheid bedryf word. Die FNB Groep was tradisioneel ‘n bankinstelling met sy primêre fokus op kleinhandelbankwese en batefinansiering in die hoër gedeelte van die mark. Die strategiese doelwitte van die Groep is gebaseer op drie pilare, nl. Mense, Kliënt en Vaardighede. Die Groep wil sy mandaat bereik gebaseer op hierdie pilare en deur innovering en waardetoevoegende vennootskappe. ‘n Oorsig van die bankwese asook die bestuurstrukture van FNB en die totale bankindustrie word voorsien. Die eksterne en interne sakeomgewing het ‘n impak op die bedryf van FNB, beide negatief en positief. Daar is dus ‘n omgewingsontleding op die basis van die politieke, ekonomiese, sosiale, tegnologiese en omgewingsaspekte uitgevoer. ‘n Gedetailleerde historiese perspektief word gegee, wat ook die konteks voorsien vir die transformasie wat plaasgevind het in die dissiplines van strategiese beplanning en begroting. Die Beyond Budgeting-bestuursmodel, gebaseer op die afgewentelde leierskap is ondersoek en word aanbeveel as ‘n alternatief tot die tradisionele bevels- en beheermodel. Die beginsels van afgewentelde leierskap bemagtig die bestuurders in die kantore waar kliënteskakeling plaasvind, om besluite te neem. Die verskuiwing van die tradisionele model van strategiese beplanning en begroting na Beyond Budgeting, vereis ‘n stelseltransformasie en nie net ‘n gedeeltelike verandering nie. Ten einde die FNB se bestuursmodel te begryp, word die Biomatrix-benadering van stelseldenke aanbeveel om die onderliggende prosesse te ontleed ooreenkomstig die sewe perspektiewe van organisasie, naamlik etos, omgewing, doelwitte, strukture, proses, hulpbronne en bestuur. Die ontleding van FNB op grond van hierdie sewe perspektiewe verseker dat die sterk en swak punte in die hele stelsel (maatskappy) geïdentifiseer word en dat die mense in die maatskappy goed voorberei word op verandering. Die Balanced Scorecard is ook ondersoek en word aanbeveel as ‘n instrument om die implementering van strategie te verbeter en die strategie aan die res van die maatskappy te kommunikeer. Gevolgtrekkings is uit die navorsing gemaak en ‘n paar aanbevelings word gedoen vir die transformasie van die FNB-bestuursmodel en die implementering daarvan.

A Research Report presented to the Graduate School of Business of the University of Stelienbosch in partial fulfilment of the requirements for the degree of Master of Business Administration / Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: Certain companies in South Africa have dual classes of shares listed on the JSE Securities Exchange i.e. ordinary shares and N shares. Ordinary listed shares, nonmally holds one vote per share, are referred to as superior voting shares. Restricted voting shares have restricted voting benefits to the shareholders, in some cases one vote casting for thousand shares held. Some companies have listed N shares on the JSE Securities Exchange; these are the South African shares with restricted voting powers. A total of 34 companies have issued low voting shares in South Africa, 2 companies started as far back as 1990. Naspers Limited is the only company that has listed only low voting shares. This study investigates the justification for companies issuing low voting shares by comparing the price performance of these shares and also investigates the justification for shares with restricted voting rights. Tests are conducted to detenmine whether a premium is paid for South African superior voting shares by comparing the share prices of superior voting shares and restricted voting shares on the same day of trading on the JSE Securities Exchange. Various parties in the South African business community have opinions and arguments against and in favour of low voting shares; the reasons for the issuing of low voting shares are under scrutiny. In addition to the above mentioned tests the factors influencing the voting premium have also been investigated. The benefits of restricted shares are also investigated. The results of tests conducted on dual share classes trading in South Africa are compared with the results of similar studies on share price information of dual share classes trading on international stock exchanges. The findings of the study are: Ordinary listed shares are trading at a premium comparing to restricted voting shares, in South Africa the premium is calculated at 9.83%; The payment of dividends to shareholders does not influence the share premium; The ratio of ordinary shares in relation to total shares issued does not influence the VRP of a company; The capitalisation of company, in other words the outstanding number of ordinary shares valued at the market price, does not influence the voting premium; and Companies being controlled by families or major shareholding groups are more likely to issue shares with restricted voting rights; The conclusion of the study is that the limited benefits are offered to the owners of the companies that have issued the dual classes of shares and not to the investors' public. These owners of superior voting shares have utilised restricted voting shares to remain in control of the companies and get access to relative cheap investors funding. Restricted voting shares' popularity declined to the end of 1992, the phenomenon is consistent with demise of restricted voting shares in France / AFRIKAANSE OPSOMMING: Sommige Suid Afrikaanse genoteerde maatskappye het verskillende klasse aandele genoteer op JSE Securities Exchange. Daar word tel kens na gewone genoteerde aandele verwys as aandele met superieure stem reg, die aandele sal sonder uitsondering een stem hou vir elke uitgereikte gewone aandeel. In Suid-Afrika staan aandele met beperkte stem reg bekend as N-aandele. Die betrokke aandele het nie dieselfde stem reg voordele as gewone aandele nie en kan tot een stem per duisend uitgereikte aandele dra. 'n Totaal van 34 maatskappye het beide klasse aandele genoteer, Naspers Beperk is die enigste maatskappy wat slegs aandele met beperkte stemreg genoteer het. Die verhandeling ondersoek of daar enige geldige rede is vir die uitreiking van aandele met beperkte stem reg. 'n Ondersoek word geloods deur te kyk na die prysgedrag van die twee verskillende tipes aandele naamlik gewone en Naandele. Die redes vir enige prysafwykings word ook ondersoek. 'n Vergelykings tussen die aandelepryse van aandele met superieure stemreg en aandele met beperke stemreg (soos genoteer op die JSE Securities Exchange) word gedoen om te bepaal of aandele met superieure stem reg teen 'n premie verhandel. Verskeie partye het argumente en opinies teen en ten gunste van die gebruik van aandele met beperkte stemreg. die redes vir die uitreiking van aandele met beperkte stem reg word onder die vergrootglas geplaas. In Verdere ondersoek na die faktore wat verantwoordelik kon wees vir die premieverskil tussen aandeelpryse van aandele met superior stemregte en aandele met beperkte stemregte word ook gedoen. Daar word ook ondersoek of daar enige voardele is vir die uitreik van aandele met beperkte stemreg. Die studie sluit af met 'n vergelyking van die resultate in 'n Suid-Afrikaanse beleggingingomgewing met die resultate van soorgelyke studies wat gedoen is op aandeleinligting van verskeie intemasionale aandelebeurse waar aandele met beide superieure en beperkte stem reg genoteer is. Die bevindinge van die studie is as volg: Gewone genoteerde aandele (aandele met superieure stemreg) soos genoteer op die JSE Securities Exchange verhandel teen 'n premie van 9.83% oor die tydperk onder oorskou in vergelyking met aandele met beperkte stemreg. Die beta ling van dividende aan aandeelhouers speel geen rol op die grootte van die pryspremie in die verhandeling van gewone genoteerde aandele en aandele met beperkte stem reg. Die verhouding tussen gewone aandele in verhouding to totale aandele uitgereik speel nie 'n rol in die grote van die pryspremie nie; Die kapitalisasie van die maatskappye, met ander word die uitstaande gewone genoteerde aandele teen markprys, speel geen rol in die graolle van die pryspremie nie; en Die aandeelhouersstruktuur speel 'n ral in die uitreiking van aandele met beperkte stemreg. Maatskappye wat beheer word deur families of graot houermaatskappye is geneig om aandele met beperkte stemreg uit te reik. Die gevolgtrekking van die studie is dat aandele met beperkte stemreg wei voordele het, in die geval nie vir die breer beleggingspubliek nie maar wei vir persone of instansies in beheer van die spesifieke maatskappye met beide klasse aandele. Aandele met beperkte stemreg is gebruik am toegang te verkry tot goedkoop befondsing sander am beheer van die maatskappye te verloor. Aandele met beperkte stemreg se gewildheid het begin afneem, nie net in Suid-Afrika nie maar oak in Frankryk waar baie maatskappye besluil hel om weg Ie doen mel die soort aandele.

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: McDonald's is world renowned for the benchmark standards it sets in operations management. This is evidenced by the numerous references in operations management textbooks over the last 10-15 years. However, since 1999, McDonald's has not been able to link this operations excellence to creating shareholder value. In fact, the McDonald's share price has declined by 64 % over the last 4 years. In comparison, Wendy's (McDonald's biggest competition in the US fast food market) share price has increased by 2 % over the same period. Understanding why McDonald's has not been able to link operational excellence and the creation of shareholder value is the reasoning behind this mini-thesis. The hypothesis is that there are a number of factors. which influence shareholder value, and operational excellence is but one of these factors. A literature survey was conducted in order lO understand the underlying theories which link operational excellence and shareholder value creation. Evidence supporting this hypothesis is then presented and discussed. In Chapter 3, McDonald's ability to deliver operational excellence is evaluated against the evidence presented in operations management textbooks and other sources. The success of McDonald's in delivering perfonnance in the other factors affecting shareholder value is then discussed in Chapter 4 and compared to its biggest competition. Firstly, the share price of McDonald's is compared to its biggest competition (Wendy's), then the strategy of McDonald's and its impact on shareholder value creation is discussed, along with McDonald's ability to implement the other important factors and drivers, namely customer value creation, efficiency of value delivery and direct financial impact on shareholders. As a result of the above evidence. it was found that there are two basic reasons why McDonald's has not been able to link operational excellence and shareholder value creation: 1. Relative to its competition, McDonald's has not demonstrated sufficient competence in the other factors, which influence shareholder value creation. These factors are: customer value creation and the efficiency of customer value delivery. This is further evidenced by the financial output measures of McDonald's relative to its competition. 2. McDonald's ability in delivering operational excellence has diminished recently. This is evidenced by falling ratings in customer satisfaction surveys. The above reasons are evidenced by customer satisfaction survey results, comparative financial results and a number of non-direct driver results. In order to increase shareholder value creation, it is recommended that McDonald's change the focus of its strategy from operations to the creation of customer value. In order to support this change, the organisational structure and business processes will have to be changed by top management, who must be the crusaders of this change. / AFRIKAANSE OPSOMMING: McDonald's is bekend vir die maatskappy se wereldklas bedryfs bestuur standaardc. Die standaarde word tel kens na verwys in menige bedryfs bestuur handboeke oor die afgelope 10 tot 15 jaar. McDonald's kon egtcr nie daarin slaag om die hoe bedryfsbetuur standaarde in aandeelhouer waarde te omskep nic. Die waarde van die McDonald's aandele het met 64% gedaaJ oor die afgelope 4 jaar. In kontras het Wendy's (McDonald's se grootste mededinger in die Amerikaanse kitskos mark) se aandeel pryse met meer as 2% gestyg oor dieselfde peri ode. Die redc vir hierdie studie is dan juis om te bepaal waarom McDonald's nie hul voortrcflike bestuurs standaarde kon koppel aan stygende aandeelhouer waarde nic. Die hipotese is dat daar 'n aantal faktore is wat die aandeelhouer waarde van 'n maatskappy bepaal en dat bedryfs bestuur standaarde maar net een van hierdie faktore is. 'n Literatuur studie is gedoen om te bepaal wat die verwantskap is tussen puik bedryfsbetuur standaarde en die skepping van aandeelhouer waarde. Die bewyse vanuit die literatuurstudie is dan gebruik om die hipotese mee te toets. In Hoofstuk 3 is die vennoe van McDonald' s om hoe bedryfsbestuur standaarde te handhaaf evalueer aan die hand van die literatuur studie. McDonald's se sukses in die implementering van die ander faktore wat lei tot verhoogde aandeelhouer waarde is in Hoofstuk 4 bespreek en terselfde tyd vergelyk met die verrnoens van sy grootste mededingers. Eerstens is die aandeelprys van McDonald's met die van sy grootste mededinger (Wendy's) vergelyk en tweedens is die strategie van McDonald's en die impak daarvan op aandeelhouer waarde bespreek. Ander belangrike faktore soos kliente waarde skepping. effektiwiteit van waarde toevoeging en direkte finansiele impak op aandeelhouers is ingesluit in die bespreking. Daar is gevind dat daar twee hoofredes is waarom McDonald's nie daarin geslaag het om bedryfs bestuur uitmuntenheid te omskep in aandeelhouer waarde nie: 1. McDonald's het in vergelyking met sy mededingers nie goed genoeg gedoen m.b.t. die ander faktore wat aandeelhouer waarde bernvloed nie. Hierdie faktore is kliente waarde skepping en effektiwiteit van waarde toevoeging. 2. McDonald's se bedryfs bestuur standaarde het begin afneem. Dit word gestaaf deur laer waarderings in klante tevredenheids bepalings. Die onvermoe van McDonald' s om die bogenoemde faktore te implementeer word deur die klante tevredenheids bepalings, vergelykende finansiele resultate en 'n aantaJ indirekte maatstawwe gestaaf. Daar word dus voorgestel dat McDonald's sy stralegiese fokus moet verskuif vanaf bedryfs bestuur optimisering na kliente waarde skepping. Die organisasie struktuur en besigheids prosesse van McDonald's sal dus deur bestuur herorganiseer moet word om die verandering in strategie te kan ondersteun.

Accountants agree that nonqualified stock options are compensatory. However, only a limited amount of remuneration cost is recognized on the date that such options are granted; frequently, there is no recognition. Hence, the income numbers reported by grantor firms may be over-stated owing to such lack of recognition. In this regard, the objective of this study is to estimate the value of compensation implied in grants of stock options, and to present evidence pertaining to the materiality of the impact these estimates have on income from continuing operations of selected firms. The Black and Scholes option pricing model was selected to estimate the value of a stock option. This formula provides a probabilistic point estimate of the market value of a call option. A restrictive set of assumptions underlie the derivation of this formula, but empirical studies indicate that alterations of the model to accommodate violations of these assumptions fail to impart greater predictive ability. The standard Black and Scholes formula was used to estimate the compensation implied in grants of stock options during 1978 for a non-random sample of 171 firms. These estimates were adjusted for amounts related to such grants that had already been recorded. Since most firms granted options having exercise prices equal to the market prices of the optioned shares, such adjustments were infrequent. The resulting incremental compensation estimate was divided by income from continuing operations, giving an option compensation index for each enterprise in the sample. Assuming 10 percent, 5 percent, and 3 percent materiality thresholds, income from continuing operations is materially reduced for 16 percent, 31 percent, and 47 percent of the sampled firms, respectively. A statistical analysis suggests systematic association between the magnitude of the compensation index and the classification of the industry in which the enterprise operates. Other statistical tests indicate that estimates of compensation implied in grants of stock options are material for large firms in the manufacturing and retail sectors, and for small firms in the manufacturing, retail, and banking-finance sectors. These statistical results must be interpreted circumspectly owing to the non-random sample. Nevertheless, this evidence supports a re-examination of the accounting methods for stock options.

Zugleich: Diss. Mainz, 2008. / Literaturverz.

In this global world, many firms present a complex shareholding structure with<p>indirect participation, such that it may become difficult to assess a firm’s controllers.<p>Furthermore, if there are numerous dominant shareholders, the control can be shared between<p>them. Determining who has the most influence is often a difficult task. To measure this<p>influence, game theory allows the modeling of voting games and the computing of the<p>Banzhaf index. This thesis develops models to measure the Banzhaf indices in any ownership structure (pyramidal ownership structures and cross-ownership structures). The models are then applied to real cases studies such Colruyt, Elia, Lafarge and Allianz. / Doctorat en Sciences économiques et de gestion / info:eu-repo/semantics/nonPublished

Thesis (M.Com. (Accounting)) -- University of Limpopo, 2022 / For organisations to be successful, they need key stakeholders like shareholders, customers, employees, banks and the community. These stakeholders are essential in any profit-based organisation. All stakeholders have needs, which have to be balanced. However, it is difficult to balance the needs of different stakeholders as they have different preferences. This study seeks to determine how different needs of stakeholders can be balanced and which of these stakeholders an organisation can prioritise to create value in the organisation. The study used a quantitative method to extract secondary data from the Johannesburg Stock Exchange. The judgemental sampling method was utilised to selected 68 organisations from the JSE, which were utilised to determine which stakeholder has an impact on the value of an organisation. The study did not choose any industry but generalised. The results of the study indicate that shareholders, customers and banks (debtholders) have no effect on the financial performance of the organisation. This means that stakeholders do improve value in an organisation. However, the results further revealed that the community and employees have a positive influence on financial performance. Future researchers can choose one industry to determine how these particular stakeholders influence the financial performance of organisations in a particular industry. In addition, more stakeholders can be identified that are key to organisations. / National Research Fund through Risk and Vulnerability Science Centre