Value relevance and corporate responsibility reporting in the South African context: An alternate view post King-III

Marcia, Adrian; Callaghan, Chris William; Maroun, Warren

doi:10.4102/sajems.v18i4.1192

Cited by 24 publications

(23 citation statements)

References 8 publications

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“…In spite of this popular claim, the literature on the impact of ICR on company performance is inconclusive. For instance, in contrast with other findings which predict a positive relationship between levels of corporate social responsibility disclosures and company share prices (Carroll & Shabana, 2010; De Klerk & De Villiers, 2012), Marcia, Maroun and Callaghan (2015) found no significant association between such disclosures and the company's share price. In addition, to their distinct focus on ICR, these studies tend to negate CEO demographic traits (e.g., age, years as CEO compensation) which are at the heart of explaining share price fluctuations.…”

Section: Problem Statementcontrasting

confidence: 74%

Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies

Rambe

Mangara

2016

Problems and Perspectives in Management

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AUTHORSPatient Rambe Tonderayi B. Mangara ARTICLE INFOPatient Rambe and Tonderayi B. Mangara (2016). Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies.Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies Abstract Integrated corporate reporting (ICR), which entails the process of compiling, documenting and reporting on company's resources, its ongoing relationships with key stakeholders; business models; products (services); and the impact of such products (or services) on stakeholders, society, as well as the environment to optimize company value, has generated considerable interest among top 100 Johannesburg Stock Exchange (JSE) listed companies in South Africa over the last decade. Despite the surging interest in ICR to leverage the social responsibility, transparency and public accountability of companies in the developing African countries, little is known about the combined influence of ICR and internal company resources and/ capabilities (e.g., age and experience of the Chief Executive Officer (CEO)) on the performance of South African listed companies. The main objective of this study, therefore, is to examine the impact of Integrated Reporting Ratings (IRR); the company CEO's age; and his/her years as a CEO on the share price of the company within the South African context. The top-106 JSE listed companies for the period Year-end 2014 constitute the sample for this study. Multivariate non-parametric regression is used to model the relationship between the predictor (i.e., independent) variables and the response (i.e., dependent) variable using MATLAB. The model developed in this study is, then, used to evaluate the impact of IRR; the CEO's age and years of experience as CEO on the share price of individual companies. The proposed methodology is illustrated step-by-step. The finding of the study reveal that the share price of a company tended to increase with an increase in IRR, age and years of experience of the CEO, demonstrating that a company's established history in integrated reporting and corporate experience positively impact its performance (i.e., the share price).

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Section: Problem Statementcontrasting

confidence: 74%

Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies

Rambe

Mangara

2016

Problems and Perspectives in Management

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“…In contrast, if ESG issues are not seen as an integral part of the business model or as a significant business risk, the value relevance of the ESG information is reduced (Marcia et al, 2015). Disclosures are provided primarily to satisfy the expectations of a broad group of stakeholders (in terms of legitimacy theory) who do not have a direct interest in the firm or have only limited influence to demand change.…”

Section: Using Non-financial Reporting To Manage Stakeholder Expectatmentioning

confidence: 99%

“…Related closely to this, the drive for corporate sustainability is not always seen as consistent with a key objective of profit maximisation for the benefit of debt and equity providers (ibid). As such, ESG reporting can be used to satisfy the general social expectation for more comprehensive disclosures in an integrated report (see Institute of Directors in Southers Africa (IOD), 2011; de Villiers and Alexander, 2014) but is not regarded as value relevant from a financial perspective (Atkins et al, 2015b;Marcia et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

Strategy disclosures by listed financial services companies: Signalling theory, legitimacy theory and South African integrated reporting practices

Zijl¹,

Wostmann²,

Maroun³

2017

SAJBM

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This paper investigates the current extent of social-, environmental-and economic-(SEE) related strategy disclosure of companies listed in the financial services sector of the Johannesburg Stock Exchange. It uses signalling and legitimacy theory to analyse the findings from a developed SEE strategy-related disclosure checklist.The paper finds social and environmental strategy-related disclosure is still secondary to economic strategy-related disclosures. This may be due to persistent focus on providers of financial capital and the need to perform financially. Further, the subsector's business model and how closely the subsector interacts with their customers is seen as a driver of social and environmental strategy-related disclosure to maintain their legitimacy and to reduce information asymmetry, reduce cost of capital and assure investors that these factors are being appropriately managed by the entity.Following from above, the banking, insurance and real estate subsectors presented the most strategy-related disclosure. This was linked to their high public accountability and daily interaction with customers, necessitating the need to manage their legitimacy and address adverse selection. The paper also proposes some areas for future research to understand the potential obstacles to incorporating social and environmental concerns into strategy and related disclosures.

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“…Financial Analysis (FA): Studies have investigated the relation between CSR reporting or activities on market competition, stock returns, and financial performance (Marcia et al 2015;Ruiz-Palomino, Pozo-Rubio & Martínez-Cañas 2015;Ryu et al 2016), and the potential impact of the Marikana incident on stock prices of mining companies listed on the JSE (Hill & Maroun 2015). Huang, Su and Wang (2015) examine market reactions to seasoned equity offerings.…”

Section: Accounting Education (Ed)mentioning

confidence: 99%

“…A common contribution stated by studies is extending the current literature by improving research methodology, such as considering analysis of additional variables for a particular research topic or extended time periods or databases (Marcia et al 2015;Taljaard et al 2015;Ryu et al 2016). Studies also express addressing knowledge gaps in current literature (Barac et al 2016;Huang et al 2015;Leung & Gray 2016), and develop theories (Ram et al 2016).…”

Section: Accounting Education (Ed)mentioning

confidence: 99%

A review of accounting research in internationalising journals in the South African region

Villiers

Hsiao

2017

SAJEMS

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Background: This study analyses the accounting research articles published by South African journals.Aim and setting: A review of accounting research in internationalising journals in the South African region that publish accounting research.Methods: The characteristics of accounting articles were analysed. Five journals were analysed, including the four internationalising journals, Investment Analysts Journal, Meditari Accountancy Research, South African Journal of Business Management, and South African Journal of Economic and Management Sciences and one local journal, South African Journal of Accounting Research (SAJAR).Results: The findings of this study will be of interest to journal editors, authors who would like their research to make an impact and be cited, as well as university research administrators and government higher education policy-makers.Conclusion: The analyses show that many of the highly cited articles have been published recently, boding well for the citation statistics of these journals in future and indicating some success in their efforts to internationalise. The citations of SAJAR lag behind the citations of the internationalising journals. Each journal publishes articles that cover different subject area(s). Within accounting research, accounting education and social and environmental accounting are popular areas of research, whereas taxation; the public sector; and management accounting are not well represented among published articles during 2015–2016 in these five journals. About half of all accounting articles claim their insights will contribute to the accounting literature, with much smaller percentages claiming to contribute to management, policy-making and practice. The most prolific authors and most prominent universities to some extent follow the most popular subject areas, with a social and environmental researcher, Warren Maroun, featuring strongly, and his university, the University of the Witwatersrand, being prominent. Large proportions of authors of 2015–2016 articles are from outside of Africa, speaking to the success of the internationalisation efforts of the internationalising journals, whereas SAJAR mostly publishes articles by African authors.

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Value relevance and corporate responsibility reporting in the South African context: An alternate view post King-III

Cited by 24 publications

References 8 publications

Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies

Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies

Strategy disclosures by listed financial services companies: Signalling theory, legitimacy theory and South African integrated reporting practices

A review of accounting research in internationalising journals in the South African region

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