Corporate governance and financial performance of asset managers in South Africa

dc.contributor.advisorAlhassan, Abdul Latif
dc.contributor.authorMpai, Abygale
dc.date.accessioned2025-12-23T07:25:06Z
dc.date.available2025-12-23T07:25:06Z
dc.date.issued2025
dc.date.updated2025-12-23T07:21:31Z
dc.description.abstractCorporate governance plays an important role in the creation of long-term value and the protection of shareholders and other stakeholders' interests. This research study examines the influence of corporate governance characteristics (board size, board independence, board chairman independence, audit committee independence, and audit committee financial expertise) on the financial performance of asset management firms in South Africa. The proxy for financial performance is Return on Assets. The study employed the fixed and random effects panel regression techniques to estimate a panel data of 11 asset management firms in South Africa from 2012 to 2023. The results of the analysis show a positive and significant relationship between Return on Assets, board chairman independence, and audit committee financial expertise. While the relationship between board independence and Return on Assets is observed to be positive, it is not statistically significant. By contrast, board size and audit committee independence ratio showed no significant relationship with Return on Assets. Therefore, this study recommends the appointment of an independent non-executive chairman on the board of directors to achieve enhanced directorship independence and improved monitoring and supervisory responsibilities within the organisation. Furthermore, South African asset management firms should consider drafting more members with financial expertise into the audit committee and, in particular, directors with a background in accounting, audit, regulation, compliance, internal controls, and enterprise risk management.
dc.identifier.apacitationMpai, A. (2025). <i>Corporate governance and financial performance of asset managers in South Africa</i>. (). University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/42479en_ZA
dc.identifier.chicagocitationMpai, Abygale. <i>"Corporate governance and financial performance of asset managers in South Africa."</i> ., University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2025. http://hdl.handle.net/11427/42479en_ZA
dc.identifier.citationMpai, A. 2025. Corporate governance and financial performance of asset managers in South Africa. . University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). http://hdl.handle.net/11427/42479en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Mpai, Abygale AB - Corporate governance plays an important role in the creation of long-term value and the protection of shareholders and other stakeholders' interests. This research study examines the influence of corporate governance characteristics (board size, board independence, board chairman independence, audit committee independence, and audit committee financial expertise) on the financial performance of asset management firms in South Africa. The proxy for financial performance is Return on Assets. The study employed the fixed and random effects panel regression techniques to estimate a panel data of 11 asset management firms in South Africa from 2012 to 2023. The results of the analysis show a positive and significant relationship between Return on Assets, board chairman independence, and audit committee financial expertise. While the relationship between board independence and Return on Assets is observed to be positive, it is not statistically significant. By contrast, board size and audit committee independence ratio showed no significant relationship with Return on Assets. Therefore, this study recommends the appointment of an independent non-executive chairman on the board of directors to achieve enhanced directorship independence and improved monitoring and supervisory responsibilities within the organisation. Furthermore, South African asset management firms should consider drafting more members with financial expertise into the audit committee and, in particular, directors with a background in accounting, audit, regulation, compliance, internal controls, and enterprise risk management. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - asset management LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - Corporate governance and financial performance of asset managers in South Africa TI - Corporate governance and financial performance of asset managers in South Africa UR - http://hdl.handle.net/11427/42479 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42479
dc.identifier.vancouvercitationMpai A. Corporate governance and financial performance of asset managers in South Africa. []. University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42479en_ZA
dc.language.rfc3066eng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subjectasset management
dc.titleCorporate governance and financial performance of asset managers in South Africa
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMBA
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