Abstract

This paper aims to appraise the impact of energy reduction on revenue, return on equity (ROE) and adjusted headline earnings per share (aHEPS). It also aimed to assess the effect of energy reduction on revenue, ROE and aHEPS, and to examine the moderating role of black economic empowerment (BEE) on the effect of energy and water reduction on revenue, ROE and aHEPS. Secondary data from Woolworths Holdings Good Business Journey Report were analysed by using the OLS regression analysis. The results from the analysis show that energy reduction and water reduction have a significant effect on the three dependent variables namely revenue, ROA and aHEPS with a P<0.05. Furthermore, the results also show that after the BEE is introduced as a moderating independent variable, water and energy reductions show a stronger impact on revenue and aHEPS as the addition of BEE produced a stronger coefficient of correlation (R) and coefficient of determination (R<sup>2</sup>). This finding offers a practical significance to bolster corporate environmental management and financial sustainability strategy. This paper thus demonstrates that corporate attention and capacitation of previously disadvantage population through Black Economic Empowerment (BEE) has a visible short-term and long-term financial implication, which are drawn from improved corporate legitimacy, approval from the community with attendant enhanced patronage. This paper contributes to the literature by proposing a framework for understanding the moderating role of BEE on the effect of water and energy reduction on revenue, return on equity and adjusted headline earnings per share. The paper thus offers an agenda for future researchers on the accounting and financial implication of BEE performance.

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