Browsing by Subject "corporate governance"

Now showing 1 - 4 of 4
  • Thumbnail Image
    Item
    Open Access
    A woman's worth: the impact of board bender diversity on company performance - a cross-country analysis
    (2021) Jakoet, Nuria; West, Darron; Willows, Gizelle
    Purpose: The study aims to investigate whether female representation on corporate boards impacts company financial and non-financial performance. Existing studies show conflicting results regarding the impact that female representation on the boards of directors may have on financial and non-financial performance, namely social and environmental performance. Studies suggest that critical mass may influence the impact that a woman on the board may have on company performance. Existing studies have observed behavioural changes in female directors when there are three or more women on the board compared to when there are less than three women on the board. The study will explore the effects of critical mass on the impact of board female representation on firm performance. Furthermore, studies posit that singlecountry studies contribute to conflicting results due to the influence of country-level factors. Country-level factors (including cultural norms, gender parity in terms of educational attainment, economic employment and opportunity) may influence the level of impact that female representation on the boards of directors have on company performance. Thus, this study explores whether country-level factors influence the impact of board female representation on company performance. Design: Using a linear mixed regression, an analysis of female representation (as measured by the percentage of women on the board and critical mass) of the top 100 listed companies from Australia, Japan and South Africa between financial and nonfinancial performance during 2016 to 2018 is performed. Both accounting and market measures are used to determine a holistic measure of financial performance. Nonfinancial performance is measured using a social and environmental performance score. To determine the influence of country level factors, interaction terms are used to compare the level of impact that female representation on the boards of directors have on company performance between Australia, Japan and South Africa. In addition, an analysis of the mean female representation by country is conducted to understand the existing level of female representation per country. Findings: The descriptive statistics show that female representation was highest in Australia with an average of 29% over the three-year period; South Africa was at 22% and Japan at only 7%, demonstrating that each country in the study has varying levels of female representation on the boards of directors. The regression results show that female representation on boards of directors, as measured by the percentage of women on the board, is shown to have a positive and significant relationship with accounting performance, market performance and social performance. Critical mass of female representation on corporate boards is shown to positively and significantly influence financial performance but has little impact on non-financial performance. Conversely, country-level factors do not significantly influence the level of impact of female representation on performance measures. However, the descriptive statistics suggest that country-level factors are shown to influence the number of women on the boards of directors. Originality and Value: This study is relevant to shareholders and stakeholders when considering board composition and the value of gender diversity on corporate boards for both financial and non-financial performance. In addition, this study aids the understanding of the current status of female representation on boards of directors. The study adds to the existing body of research by exploring the influence of critical mass and country-level factors on the impact of board gender diversity on company performance. Lastly, the study is relevant to regulators and policy-makers as it highlights factors which contribute to increased female representation on corporate boards.
  • Thumbnail Image
    Item
    Open Access
    Corporate Governance and Ubuntu: a South African and Namibian perspective
    (2021) Harris, Aisha-Deva; Yeats, Jacqueline
    Over the past two decades the emphasis on corporate governance practice has increased globally. The corporate governance models which guide corporate ethics, currently employed in African countries, are extensively driven by Western elements. Corporate governance practice in relation to the African philosophy of Ubuntu is under analysed. While Ubuntu has been studied comprehensively in a number of legal disciplines, it has not enjoyed comparable attention in its application, relevance, and potential to enhance corporate governance practices in Africa. Limited academic research exists on the integration of the Ubuntu philosophy into corporate governance and the ethical perspectives introduced. Therefore, this dissertation aims to bridge this gap by exploring the current guiding frameworks of selected corporate governance practice in relation to the principle of the African philosophy of Ubuntu. Here, corporate governance practice is examined in South Africa and Namibia. Business ethics, ethical perspectives, corporate social responsibility, and the African notion of Ubuntu, in relation to the role that it plays in ethical leaderships, is evaluated. Links between Ubuntu and established Western ethical perspectives and theories support its use and significance for enhancing current corporate governance frameworks in these countries. The findings of this dissertation strengthen the need to analyse Ubuntu, particularly in relation to its link with social responsibility and ethical perspectives, in order to augment current corporate governance practices in Africa. It is submitted that corporate governance practices in Africa should reflect the notions of Ubuntu more clearly and coherently which will serve as a progressive model to enhance effective corporate governance.
  • Thumbnail Image
    Item
    Open Access
    ESG and corporate financial performance: evidence from JSE listed firms
    (2022) Muzanya, Shelton; van Rensburg, Paul
    Business is an incredible social construct of the world, consisting of firms that are part of and arise from society. However, businesses have come under increasing scrutiny from internal and external stakeholders over sustainable business practices. A sustainable business model creates a balance between integrity, equity and financial prosperity, the so-called triple-bottom-line. Environmental, social and governance issues (ESG) have become the modern-day proxy for sustainable business practices. The relationship between sustainable business practices and corporate financial performance is a relatively new but prominent area of research in practice and academia in South Africa. This study explores the relationship between ESG disclosure performance and the corresponding corporate financial performance (CFP) for 70 sampled firms listed on the Johannesburg Stock Exchange (JSE) between the periods 2011 and 2019. In line with international and South African research, ESG in its composite and disaggregated form was considered against a select number of CFP metrics. Select accounting-, market- and qualitybased CFP metrics were considered. Quantitative research methods were employed, using panel regression models to investigate the ESG-CFP relationship where ESG was the independent variable while the CFP metrics were individually considered as the dependent variables. All CFP data was obtained from Bloomberg and Bloomberg's proprietary ESG scores were used. This study finds a statistically significant negative relationship between ESG and the selected CFP metrics. Upon disaggregating the ESG scores, it was evident that the E- and S-scores were also significantly and negatively related to the CFP metrics whilst the G-score was positively related to CFP, but it was not statistically significant. The empirical evidence suggests that over a nine-year investment horizon, higher ESG disclosure performance detracts from firm fundamental and market performance. Further interpretation of the results in conjunction with the literature may suggest that ESG ought to be seen as an insurance policy against excessive underperformance during volatile periods and not a CFP enhancer. Therefore, being “over-insured with ESG” may lead to underperformance.
  • Thumbnail Image
    Item
    Open Access
    A Proposal to Curb Excessive Executive Remuneration
    (Nelson R Mandela School of Law, 2006) Ncube, Caroline
    In the light of the King Report on Corporate Governance (King I) of 1994, existing vacuum concerning directors’ reports in the South African corporate law, this paper makes recommendations for curbing excessive remuneration for directors of companies. The paper supports the argument that excessive rise in directors’ remuneration will be curbed by introducing an advisory vote on directors’ remuneration similar to that introduced in the United Kingdom (UK) since there is evidence that the UK approach is proving successful and South African shareholders have voted against excessive directors’ pay.