The impact on share prices of reporting financial targets and constraints

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dc.contributor.advisorAffleck-Graves , J Fen_ZA
dc.contributor.advisorBotha, Dereken_ZA
dc.contributor.authorMaguire, William Alexander Arthursen_ZA
dc.date.accessioned2016-02-24T11:16:39Z
dc.date.available2016-02-24T11:16:39Z
dc.date.issued1991en_ZA
dc.descriptionBibliography: pages 261-272.en_ZA
dc.description.abstractThis thesis examines the impact on share prices of voluntary reporting of financial targets and constraints, particularly the target rate of return, target dividend payout ratio and target debt ratio. Hypotheses developed about of this reporting are that a positive impact on in estimation risk the potential share price impact there will be share prices through a reduction an increase in the dispersion of share price changes owing to a revision of expectations a positive impact on share prices owing to a signalling effect. The hypotheses are tested by examining share price behaviour accompanying the voluntary reporting of financial targets and constraints over the period 1974 to 1982 by thirty-four companies listed on the Johannesburg Stock Exchange. This is an event study, in which the event is defined as the first occasion on which a company reports the specified financial targets and constraints. To test for a positive impact on share prices, weekly excess returns are calculated using the market model. To test for an increase in the dispersion of share price changes, weekly variability ratios are calculated which provide a measure of returns in the event week relative to the average variability of returns in the estimation period. The controls applied in this study to demonstrate the link between the event and the share price impact are the market model, diversification of calendar dates and two control groups. The results of the study reveal a positive impact on share prices when companies first report financial targets and constraints. This is consistent with all three hypotheses. As this form of voluntary reporting has not previously been tested in this way, the results should be of interest to financial managers and to those concerned with the regulation of financial reporting in South Africa.en_ZA
dc.identifier.apacitationMaguire, W. A. A. (1991). <i>The impact on share prices of reporting financial targets and constraints</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,College of Accounting. Retrieved from http://hdl.handle.net/11427/17236en_ZA
dc.identifier.chicagocitationMaguire, William Alexander Arthurs. <i>"The impact on share prices of reporting financial targets and constraints."</i> Thesis., University of Cape Town ,Faculty of Commerce ,College of Accounting, 1991. http://hdl.handle.net/11427/17236en_ZA
dc.identifier.citationMaguire, W. 1991. The impact on share prices of reporting financial targets and constraints. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Maguire, William Alexander Arthurs AB - This thesis examines the impact on share prices of voluntary reporting of financial targets and constraints, particularly the target rate of return, target dividend payout ratio and target debt ratio. Hypotheses developed about of this reporting are that a positive impact on in estimation risk the potential share price impact there will be share prices through a reduction an increase in the dispersion of share price changes owing to a revision of expectations a positive impact on share prices owing to a signalling effect. The hypotheses are tested by examining share price behaviour accompanying the voluntary reporting of financial targets and constraints over the period 1974 to 1982 by thirty-four companies listed on the Johannesburg Stock Exchange. This is an event study, in which the event is defined as the first occasion on which a company reports the specified financial targets and constraints. To test for a positive impact on share prices, weekly excess returns are calculated using the market model. To test for an increase in the dispersion of share price changes, weekly variability ratios are calculated which provide a measure of returns in the event week relative to the average variability of returns in the estimation period. The controls applied in this study to demonstrate the link between the event and the share price impact are the market model, diversification of calendar dates and two control groups. The results of the study reveal a positive impact on share prices when companies first report financial targets and constraints. This is consistent with all three hypotheses. As this form of voluntary reporting has not previously been tested in this way, the results should be of interest to financial managers and to those concerned with the regulation of financial reporting in South Africa. DA - 1991 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 1991 T1 - The impact on share prices of reporting financial targets and constraints TI - The impact on share prices of reporting financial targets and constraints UR - http://hdl.handle.net/11427/17236 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/17236
dc.identifier.vancouvercitationMaguire WAA. The impact on share prices of reporting financial targets and constraints. [Thesis]. University of Cape Town ,Faculty of Commerce ,College of Accounting, 1991 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/17236en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentCollege of Accountingen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherAccountingen_ZA
dc.titleThe impact on share prices of reporting financial targets and constraintsen_ZA
dc.typeDoctoral Thesis
dc.type.qualificationlevelDoctoral
dc.type.qualificationnamePhDen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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