African Companies Research Articles

The Human Capital Risk Reporting of Listed South African Companies: Exploring a Reporting Framework to Support Corporate Governance

Despite the importance and requirement of integrated reporting on human capital (HC), research indicates a lack of reporting frameworks and adequate disclosure in organization reports. Thus, a unique research opportunity is created for researchers to determine what is being presented in reports and how it correlates with human resource management. This article investigates HC reporting practices and proposes a risk reporting framework in support of corporate governance. A qualitative method utilizing qualitative document analysis was followed to analyze a purposive sample (n = 39) of Johannesburg Stock Exchange top 40 listed companies’ annual integrated reports of 2020. Overall, companies followed a widely accepted risk management approach, with inconsistencies in the phases and methods of reporting the risk management phases directed at HC. The magnitude of the risk to the companies is also not understood. The most commonly reported HC risks were employee growth and development, diversity and inclusion, career paths, and employee turnover and turnover intention. Employee work-related well-being was largely neglected. An interesting finding is that the reported risks were metrics-deprived. Current HC practices are backward-looking instead of forward-looking, and they are fragmented. Therefore, an HC reporting framework is suggested for future research that addresses the gaps in integrated reports.

SHAREHOLDERS’ INTERESTS VERSUS SOCIAL DEMANDS: INCONGRUOUS AGENDAS

In this note the chasm between shareholder and stakeholder interests in the running of the corporation in an emerging economy in general, and the third world country in particular, is considered. A study of two corporate governance models is undertaken with the intention to demonstrate that inclusive corporate governance which does not relegate stakeholder interests to the periphery is more efficient under the Two-Tier Board than the Anglo-Saxon model which is followed in South Africa. The reality of an entrenched corporate governance model which is supported in the South African Companies Act 61 of 1973 (the Anglo-Saxon model) is appreciated; hence it is argued that it is unlikely that South Africa might, in future, change to the Two-Tier board. The answer to the international revolution of realising societal expectations lies either in the King Report on Corporate Governance in South Africa (2002) (hereinafter King II) or modified corporate mindset, or both. It is also argued that the proposals in the Policy document of theDepartment of Trade and Industry (DTI) (South Africa Company Law for the 21st Century: Guidelines for Corporate Law Reform, May 2004, GN 1183 GG 26493 23-06-2004 May 2004, also available at http://www.dti.gov.za/ccrdlawreview/companylaw.htm) for optional representation of stakeholders on boards and the proposed inclusion of the statement recognising stakeholder interests in the Companies Act constitute a good start to changing the corporate mindset towards being stakeholder-sensitive. It is argued that the focus of King II on the triple-bottom line approach is negated by its ambivalence on enforcement and the status of stakeholdersin the South African corporation. The article then concludes that in a country which emerged from a history of entrenched overt racism, a significant recognition of stakeholder interests is critical to the socio-economic need for transformation to create a stable civil society. Globalisation has given rise to remarkable increase in the power of the global corporation. Events in the corporate sector can have negative repercussions not only for the shareholders of that particular corporation but also for society at large, either in that particular country or internationally. The emergence of powerful multinational corporations has led to a demise of state authority. The spate of corporate failures, however, has precipitated a move towards strengthening corporate governance rules to ensure thatcompanies are well governed. Indeed it has been opined that companies contribute enormously to the economic and social wellbeing of our societies (Worthington “Corporate Governance: Remedying and Ratifying Directors Breaches” October 2000 (116) LQR 638).

Examination Of Cardiovascular Disease Risk Factors And Objective Physical Activity At A South African Company

PURPOSE: Ukumela impilo is a randomized controlled trial (PACTR201911656014962) investigating the effectiveness of adjustable sit-stand desks (environmental change) on sedentary behaviour and cardiovascular disease risk factors in South African office workers. The target sample (n = 120) will be randomized equally into control and experimental groups. Early baseline findings to understand anthropometric and cardiometabolic factors will be reported. METHODS: This was a cross-sectional study. Participants were full-time employed office workers of a credit and information management company in South Africa. Standard protocols were followed for the collection of simple body composition, point-of-care non-fasting glucose, glycated haemoglobin (HbA1C) and lipid profile. Wrist-worn accelerometer data were collected on 7 days of wear time, measuring sleep and physical activity. RESULTS: We have recruited 37 participants with accelerometer data thus far, 65% (n = 24) are female. The mean BMI was 27.7 ± 6.6 kg/m2 while 29.7% (n = 11) were obese. The majority (73%) had elevated blood pressures (BP) (systolic BP ≥130 and/or diastolic BP ≥80 mmHg), while 13.5% (n = 5) participants had HbA1C levels ≥6.5%. The mean total cholesterol levels were 4.03 ± 0.82 mmol/L-1and only 10.8% (n = 4) had cardioprotective HDL levels ≥1.55 mmol/L-1. The participants spent 13.4 ± 21.7 minutes/day in moderate-to-vigorous physical activity (MVPA) and slept for 7 ± 1.3 hours/night. Univariate analysis showed that MVPA was inversely correlated with total cholesterol (r = -0.33, p = 0.046). CONCLUSIONS: These preliminary results show obvious concerns around cardiovascular disease risk factors in office workers that can benefit from physical activity. Future investigation seeks to understand their sedentary behaviour patterns and examine the effectiveness of environmental changes to interrupt extended sitting time during work hours.

The Extent of Occupational Health Hazard Impact on Workers: Documentary Evidence from National Occupational Disease Statistics and Selected South African Companies’ Voluntary Corporate Social Responsibility Disclosures

This paper explores the potential of Corporate Social Responsibility disclosures in providing alternative information on the extent of occupational health hazard impact on workers, by selected South African companies operating within the manufacturing and utilities sectors amidst an absent national occupational disease surveillance system. An online internet search was used to retrieve publicly available national occupational disease statistics published between 2001 and 2020, and Corporate Social Responsibility reports of selected South African case companies, published between 2015 and 2020. Content analysis was used to analyse the retrieved documents for both descriptive and numeric data. The collection and reporting of occupational disease data in South Africa is inconsistent. Corporate Social Responsibility disclosures related to occupational health metrics vary between companies. Occupational disease incidence was the least reported of the social aspects in Corporate Social Responsibility disclosures, and/or were reported as a single statistic or combined into occupational safety incidence rates in some instances, obfuscating the true extent of the impact caused by occupational health hazards on workers. Furthermore, noise-induced hearing loss remains the most prevalently reported occupational disease, in general. Corporate Social Responsibility reports point to occupational health hazards requiring regulatory intervention, whilst also providing an alternative information source for occupational disease statistics.

Statistical modelling to predict silicosis risk in deceased Southern African gold miners without medical evaluation

The Qhubeka Trust was established in 2016 in a legal settlement on behalf of former gold miners seeking compensation for silicosis contracted on the South African mines. Settlements resulting from lawsuits on behalf of gold miners aim to provide fair compensation. However, occupational exposure and medical records kept by South African mining companies for their employees have been very limited. Some claimants to the Qhubeka Trust died before medical evaluation was possible, thus potentially disadvantaging their dependants from receiving any compensation. With medical evaluation no longer possible, a statistical approach to this problem was developed. The records for claimants with medical evaluation were used to develop a logistic regression prediction model for the likelihood of silicosis, based on the potential predictors: cumulative exposure to respirable dust, age, years since first exposure, years of life lost prematurely, vital status at 31 December 2019, and a history of tuberculosis diagnosis. The prediction model allowed estimation of the likelihood of silicosis for each miner who had died without medical evaluation and is a novel approach in this setting. In addition, we were able to quantitatively evaluate the trade-offs of different silicosis risk classification thresholds in terms of true and false positives and negatives. Significance: A statistical approach can be used for risk estimation in settings where the outcome of interest is unknown for some members of a class. The likelihood of silicosis in deceased miners without medical evaluation in the Qhubeka Trust can be accurately estimated, using information from finalised claims. Strategies for classifying the silicosis status of deceased miners without medical evaluation in the Qhubeka Trust can be assessed in a rigorous, quantitative framework.

New approach to maintenance based on functional analysis of traction engines: Case of Locomotives of the International African Transport Company by RAIL

This document shows the difficulties encountered by railway companies in the operation of locomotives. He makes a special mention in the case of International African Transport Company by RAIL. To do this, the history of International African Transport Company by RAIL locomotive operating failures has allowed us to calculate their operational availability, their mean times of failure,2wsa3ewdcxe3rtf2wsa3ewdcxe3rtf6 and their average technical repair times. The analysis shows that out of twenty locomotives, 60 percent has an operational availability below the 95 percent reference value. Using the functional analysis method, the locomotive operating indicators are evaluated and represented in Operation Functional Specification showing the deficiencies and achievements. Ishikawa has also been used on the traction motor, the element at the origin of the unavailability of locomotives, to identify the major causes, allowing making proposals for solutions, to improve the operational availability of traction engines and, in turn, of locomotives.

The role and perception of accountants on environmental management accounting in an emerging market: Study on South Africa’s companies.

This research explores the role and views of accountants in environmental management accounting (EMA) and environmental performance. The study relied on a survey of 86 chief finance officers, accountants and finance managers from the top 40 listed South African companies. The chief finance officers, accountants and finance managers confess that they lack understanding on in what way environmental issues can be incorporated into EMA. In addition, the professionals disclose that EMA has not had an ample consideration by their companies. This suggests that a limited involvement by the accountants in EMA in South Africa exists. Hence, the sampled chief finance officers, accountants and finance managers indicated that they are not sure of their potential responsibility. This shows that South African accountants are noticeably absent from participating in EMA. This has been ascribed to EMA being a new branch of accounting, their little aptitude in environmental issues and also the voluntary nature bestowed on EMA practices. Therefore, this paper will increase literature on the views of accountants on EMA from a developing country’s perspective.

GÜNEY BATI NİJERYA'DA ÜRETİLEN AFRİKA BASKI KUMAŞ TASARIMLARININ TEMEL BİLEŞENLERİNİN İNCELENMESİ.

African print fabrics are customarily referred to as Ankara fabrics. They are major textile products because they have high economic value. This study focused on the basic components of African print fabrics produced in Southwest Nigeria. The study adopted survey research design. The population of the study comprised of African print fabric designers in the two functioning African print fabric companies in Southwest Nigeria. These companies were coded as company A and company B. At the time of the study, there were ten African print fabric designers working in both companies. Census was used to determine the sample size since the number is manageable. Questionnaire was used for data collection. The data collected was analyzed using descriptive statistical tools. The study revealed that colour, crackle effect, line effect, bold motifs and nature of fibre are major distinguishing components of African print fabrics. It was also established that although African print fabric is named after the African continent, the components are not essentially African. It was recommended that African print fabric designers should endeavour to consistently adopt Afrocentric design elements to African print fabric designs. This will encourage Africans to embrace the fabric more which will positively influence the economy.

The impact of the selected macroeconomic indicators’ volatility on the performance of South African JSE-listed companies: a pre-and post- Covid-19 study

The influence of macroeconomic variables on aspects of business and the country's economy has been a subject of robust discussion. This study was conducted to identify the effect of macroeconomic variables, namely inflation rate, economic growth, exchange rate and share price, on listed companies in South Africa. The goal was to study the long run and short run effects of macroeconomic volatility on company performance because of the world’s recent pandemic experience. To achieve this objective, the study applied the panel Autoregressive Distributed Lag (ARDL) model on annual panel data from 2010 to 2020 to analyse the short run and long run effects of macroeconomic variables on a company’s performance. The study results suggested a positive impact of economic growth, exchange rate and share price on asset returns, whilst a company's equity return is supported by economic growth and share price in the long run. The short run revealed that none of the independent variables has a sufficiently significant effect to influence a company's performance changes in the short run. Based on the findings, it was recommended that policymakers and economic authorities should introduce and implement strategies that favour and enhance the country's economic growth and stable exchange rate in order to improve company performance. Additionally, given that the company's short-run performance may highly depend on internal factors such as corporate governance, internal policies and business strategies, these decisions should be taken with precaution and a high level of professionalism.

Documentation and Memorialisation of the First Battles against Colonisation in Zimbabwe

The first few years of British occupation in Zimbabwe was characterised by power struggle between the indigenous population groups who were dissatisfied with systematic settler style of dispossessing them of their wealth and power. The result was local and regional wars, (Rebellions/Uprisings/ Umvhukela/ 1st Chimurenga). After the war, the British South African Company (BSAC) documented and memorialised most prominent battles of the conflict and yet the indigenous people who could not read and write could not do the same. The article seeks to motivate Zimbabweans to recognise the participation of the indigenous people into this conflict as a historic event whose documentation and memorialisation is an important component of the liberation heritage of Zimbabwe. The documentation and memorialisation of the conflict by the other belligerent is enough authentication that the indigenous people staged a brave and heroic fight which doubtlessly was characterised by commitment to a genuine cause of the black people to protect their birth right. It is only the inability to read and write of our ancestry which has mandated us to accept the description of the era as a dark history, which is worthy documentation and memorialisation for the benefit of the present and future generation. The researchers employed qualitative research method of acquiring data through desktop research and observation techniques. The article came to conclusion that the war between Zimbabwe and the then Rhodesia and their opponents should be documented so as to assist the present generation appreciate the history of the nation and preserve their heritage

The digital-era industrial/organisational psychologist: Employers’ view of key service roles, skills and attributes

Orientation: The nature of the Fourth Industrial Revolution’s technology-driven work and business profoundly alters the foundational assumptions upon which industrial/organisational (I/O) psychologists in future will base their understanding of their professional roles in the modern workplace.Research purpose: The objective of the study was to gain deeper insight into South African employers’ views of the service roles, skills and attributes of the future-fit digital-era I/O psychologist.Motivation for the study: More research is needed on the service roles, skills and attributes that employers require from I/O psychologists as companies are transitioning to technology-enabled hybrid and flexible models of work.Research approach/design and method: The study utilised a qualitative research approach. An open-ended question survey was conducted amongst (N = 14) executives and human resource managers of South African companies. Thematic analysis was utilised to analyse the collected data.Main findings: The data analysis revealed a shift toward key technology-enabled service roles and several intradigital, interdigital, interpersonal and intrapersonal skills and attributes that employers require the digital-era I/O psychologist to bring to the digital-driven workplace.Practical/managerial implications: Digitally dexterous I/O psychologists should be at the forefront of technology and its impact on workplaces and the profession’s scope of practice.Contributions/value-add: The study adds to the Industrial/Organisational Psychology research literature and reveals the dire need for I/O psychologists to adapt and evolve their scope of practice services and products to ensure the continued relevance of the IOP profession.

Sensitivity analysis of the impact of Covid-19 on corporate sustainability and company performance

The study examined the sensitivity analysis of the impact of Covid-19 on Corporate Sustainability and Company Performance of South African listed companies. The study employed secondary data retrieved from the annual reports of the selected companies. Stakeholder Theory and the Traditional Theory of Economics and Finance from the theoretical foundation of this study. Data retrieved from 40 companies for the period 2010 -2021 was analyzed using panel fully modified ordinary least squares (FMOLS) and dynamic ordinary least square (DOLS) methods, representing all sectors with the help of a convenience sampling method. Findings revealed a strong relationship between corporate sustainability performance and company performance with other explanatory variables. This study also implied that the impact of the Covid-19 pandemic was so sensitive on South African companies and companies must pay strong attention to recovery strategies suggested to reduce the severity of the impact on them and ensure a quick recovery.

Can a 280-character message explain stock returns? Evidence from South Africa

PurposeThe authors examine the contemporaneous and causal association between tweet features (bullishness, message volume and investor agreement) and market features (stock returns, trading volume and volatility) using 140 South African companies and a dataset of firm-level Twitter messages extracted from Bloomberg for the period 1 January 2015 to 31 March 2020.Design/methodology/approachPanel regressions with ticker fixed-effects are used to examine the contemporaneous link between tweet features and market features. To examine the link between the magnitude of tweet features and stock market features, the study uses quantile regression.FindingsNo monotonic relationship is found between the magnitude of tweet features and the magnitude of market features. The authors find no evidence that past values of tweet features can predict forthcoming stock returns using daily data while weekly and monthly data shows that past values of tweet features contain useful information that can predict the future values of stock returns.Originality/valueThe study is among the earlier to examine the association between textual sentiment from social media and market features in a South African context. The exploration of the relationship across the distribution of the stock market features gives new insights away from the traditional approaches which investigate the relationship at the mean.

Flutterwave—A digital payment solution in Nigeria

This case study analyses the Information & Communication Technology (ICT) sector of the West African country Nigeria; the growth of their internet services leading to online payment options. The rise of telecommunication companies and mobile payment options are also scrutinized here to some extent. The report discusses the overlying assumptions of weak online financial security issues that developing countries face and how payment aggregators are aiding in the process in order to achieve a smooth digital marketplace. Flutterwave, is a B2B digital payment Application Programming Interface (API) that allows processing of credit and debit for cards, other local alternative payments, such as mobile money and Automated Clearing House (ACH), across Africa. They ensure that global merchants are able to process payments like a local African company. The case of Flutterwave is discussed in detail with their business model—customer profiles, provided services, a landscape of their competitors and the challenges faced doing business; in order to shed some light on the aspect of making Nigeria a potential destination of investment for many Multinational Corporation (MNC’s) in the future.

Reorienting the “origins debate”: Anglo-American trafficking in enslaved people, c. 1615–1660

ABSTRACT This article argues that trafficking in enslaved Africans and Natives constituted a chief element in English overseas colonization and was a primary component of English overseas trade from the mid-1610s. The managers of this commerce seamlessly translated Atlantic slavery into the Anglophone world decades before the establishment of the Royal African Company in 1672. Accordingly, there was never a transition in planter labor preferences from indentured servitude to slavery. Only access to supplies of enslaved Africans determined the number of Africans in Anglo-America while the act of trafficking in human beings automatically relegated those enslaved to inferior status.

Data Mining in Product Cycle Prediction of Company Mergers

The dynamic nature of business marketing in various parts of the world and industries is associated with a quest to achieve or attain and retain competitive advantages. With such advantages coming in the form of increased product user bases, a majority of the firms have ended up embracing business internationalization to stretch beyond local and regional borders within which they are based. With these efforts associated with improved company performances, Wal-Mart has been unexceptional. The effort to retain a competitive advantage and superior brand image across the world has been evidenced by its recent merger with Massmart, a South African company that owns brands such as Builder’s Warehouse, Makro, and Game. It is also worth highlighting that Massmart is South Africa’s second largest distributor of consumer goods and remains the largest retailer dealing in basic foods, liquor and home improvement equipment, and general merchandise. This paper examines the merger between Wal-Mart and Massmart, focusing on issues such as the international market analysis of the retail industry, aspects of product category and demand size, and competition analysis. In so doing, resultant recommendations might give an insight into current trends in business marketing strategies that embrace mergers, as well as lay an opportunity for improvement in the Walmart-Massmart merger and others at the intra-industry and inter-industry level.

An econometric analysis of financial distress determinants from an emerging economy governance perspective

During times of distress, companies are compelled to reassess operational policies and reengineer strategic formulations to discern value maximising uses for limited resources. The executive’s agility to react to financial distress determines the probability of bankruptcy. Proper governance drives sound and sustainable, value maximising decision-making, while inept practices lead to value diminishing, self-serving behaviour that financially constrains companies, resulting in an acceleration of financial distress. This study examined the correlation between financial distress and corporate governance within a sample of 116 listed South African companies using the GMM estimation. Key financial distress determinants were found to be audit committees and shareholder activism (proxied by equity ownership) that may deter investor apathy, “director opportunism” and CEO dominance. Also, long-tenured CEOs and post-graduate directors possess contextually enriched latent knowledge that may assist distressed firms, particularly if the trade-offs between director’s remuneration and governance is well managed. Furthermore, the K-score model served as a robust financial distress proxy since it allowed the interrogation of grey zone companies. These findings provided financial distress determinants aiding decision-making for ailing businesses to avoid liquidation, which can be of use to regulatory bodies and policymakers in developing sustainable governance strategies.

Knowledge Management and Business Rescue in South Africa: A Systematic Literature Review

The business rescue law, in the South African Companies Act, No. 71 of 2008 was designed to alleviate the challenges facing distressed companies. The purpose of the paper is to provide a coherent synthesis of the systematic literature review on the incorporation of knowledge management into the business rescue practices in South Africa. Scholarly databases were searched to identify papers on knowledge management and business rescue in South Africa, which resulted in initial of 1961 papers. Exclusion criteria was applied, and it emerged that 12 papers were relevant for the study. Findings indicate the business rescue is a relatively new field in academic research and that there is a need to conduct further research on knowledge management pillars used in the business process by practitioners and the executives of distresses companies. The paper concludes that study findings can serve as guidance for improving practice notes and procedures in the industry.

Signalling of internal audit effectiveness

The internal audit function is increasingly recognised as an important internal governance mechanism and consequently factors that contribute to its effectiveness are now an area of great interest to researchers and practitioners. This study draws on signalling theory to fill a gap in the internal audit effectiveness (IAE) literature by investigating which IAE signals are sent by large South African companies in their company reports. Using a self-developed IAE signalling frame, a content analysis was performed on the integrated reports and other annual reports of the top 100 listed companies in South Africa over a five-year period. Thereafter a multiple correspondence analysis was used to extract IAE signals. The results revealed that IAE disclosure patterns of South African listed companies follow the normative dictates of the King Code and the Companies Act. The study also discovered a low average IAE disclosure rate linked to non-mandatory disclosure requirements. Disclosing more detail on IAE represents a missed opportunity to signal superiority through voluntary communication of the IAE signals especially on internal aspects such as management support for internal audit recommendations and the continuous professional development of internal auditors.

The Impact of Board Gender Diversity on Sustainability Reporting and External Assurance: Evidence from Lower-Middle-Income Countries in Asia and Africa

Based on the notion that a diverse board will pay greater attention to social responsibility and stakeholder concerns, this article examines the effect of board gender diversity on the adoption of new sustainability reporting practices (i.e., SDG reporting) and on the use of external assurance. After controlling for corporate governance as well as companies’ performances, sustainability commitment, industries, and regions, we find that gender-diverse boards are positively associated with sustainability reporting and the involvement of an external assurance provider. This article consolidates and provides information on the relationship between women participation on corporate boards and sustainability reporting activities of 366 large Asian and African companies. Additionally, it addresses the understudied question of how the gender diversity of board resources affects the adoption of the external assurance of sustainability reporting and the types of assurance providers.