The high-profile corporate collapses and failures in early 2000s changed the image of accounting, auditing, and regulatory environments. As a result, the need for implementing effective corporate governance practice (CGP) in corporate financial institutions has gained significant attention worldwide. Effective CGP paves the way for access to finance, lower cost of capital, better corporate financial performance (CFP), and favourable treatment by all stakeholders. This study examines the relationship between corporate governance variables and financial performance in the Ethiopian banking industry. The board size, independence, educational level of board and audit committee characteristics were employed as measures of corporate and return on assets (ROA) and return on equity (ROE) as financial performance metrics. The study involves a census of all major financial institutions supervised by the National Bank of Ethiopia (NBE) for six years, 2015-2020. The main finding of this study revealed that the existence of board independence, the presence of an audit committee, the financial leverage ratio and financial institution size have a positive significant influence on CFP. Therefore, this study offers an important implication for developing corporate governance and capital structure to support underdeveloped financial institutions. This makes a significant contribution to the existing literature by addressing the specific context of Ethiopian banking industries, filling a gap in knowledge regarding the relationship between corporate governance and financial performance in this sector. Keywords: Corporate governance practice, Ethiopian banks, Board characteristics, and corporate financial performance. JEL Code: C33, G01, G21, and G30
In South Africa, medical schemes contribute substantially to the funding of healthcare. Most of the private healthcare services are accessed through medical schemes. Given the huge amount of money that is spent on healthcare, there is a lot of exposure to fraud in claims submitted to medical schemes. The purpose of the study was to explore strategies to assist in mitigating fraud in South African medical scheme claims. Data was collected at the premises of the medical administrator selected in the case study. A qualitative research methodology was followed in conducting this study. A purposive sample of 15 study participants was selected from the administration company that was chosen as a case study. The results of the study showed that various strategies can be implemented, including establishing a fraud policy and regularly identifying known or unknown trends in fraudulent claims. The identification of these trends can be detected manually and with the aid of technology. Furthermore, implementing appropriate preventative and corrective control strategies can help to curb fraud in medical scheme claims. Collaboration within the medical scheme industry and with other stakeholders will strengthen the fight against this type of fraud. A comprehensive approach should be followed to mitigate fraud in medical scheme claims. Applying the recommendations from the study could assist the medical schemes to reduce the amount of money spent on fraudulent claims, thereby improving their financial viability and reducing the rate of increase in medical scheme contributions for their members. Keywords : South Africa, medical schemes, fraud, mitigation strategies, claims.
Formulating organisational objectives and strategies such as 'growing the firm' and 'improving financial performance' is a common practice. This paper reiterates that the concepts of 'firm size' and 'financial performance' are not singular ideas. The study aimed to answer the research question: Is there an association between firm size and the financial performance of selected companies? A descriptive research design was applied, and quantitative analysis was performed. Secondary data were extracted from financial statements through IRESS. The research set out predetermined sampling criteria for sample selection. Correlations were measured between financial ratios and different proxies of firm size. Frequencies of the different significant correlations were counted. The findings indicated that firm size proxies and measures of financial performance were either directly or inversely related. Profitability measures were inversely related to total assets and sales. Liquidity measures were associated with sales, while solvency measures were associated with sales and number of employees. Measures of market performance were inversely associated with market capitalisation. This paper contributes to academic knowledge by indicating that financial data of sampled South African companies deliver associations between firm size proxies and financial performance measures. These associations are not identical to the findings obtained by other researchers in different locations. The practical implications of this research entail that managers of South African companies need to select financial performance indicators and base the firm size estimation on proxies associated with such financial performance indicators. Limitations included that findings cannot be generalised, that the researchers relied on the integrity of audited financial statements and that IRESS did not make a full set of data available for all sampled entities. Limitations may inspire further research as the methodology may be mimicked by selecting another research sample. Keywords : financial performance; ratio analysis; firm size; JSE listed companies; financial ratios
The majority of unemployed South Africans reside in townships. Many individuals who start informal businesses do so because of their employment status. Budgets are generally recognised as management tools that possesses the capability to support the planning process and ensure efficient administration of assets. The aim of the study is to explore if small formal and informal business owners in the retail and service sectors in the township of Sharpeville make use of budgets as part of the managerial process. The first objective is to explore the usage and purpose of budgeting within small formal and informal businesses in Sharpeville. The second objective is to establish an understanding of whether budgeting is viewed as a tool for achieving business goals within small formal and informal businesses in Sharpeville. The third and final objective is to identify possible reasons for not using budgets by these small businesses in Sharpeville. The study is quantitative in nature where data were collected from 100 respondents through convenience sampling. A self-administered questionnaire was used as collection tool. IBM SPSS was applied to analyse and summarise the collected data. The results of this study revealed that formal and informal small business owners who operate in the retail and service sectors of Sharpeville, do not make use of budgets due to a lack of knowledge on how budgets should be prepared. This study indicates that small business owners do not possess the necessary knowledge to set budgets and stresses the need for accounting education for small formal and informal business owners. The findings in this study fill the knowledge gap with regards to the use of budgets by small businesses, concentrating on the retail and service sectors operating within the township of Sharpeville. Keywords: Small, Micro and Medium Enterprises; Budgets; Formal and Informal Businesses, Township Businesses.
Many scholars of accounting have written and known accounting on one seminal view, which is a view that supports accounting as a field that only came into exists after Luca Pacioli's double-entry system. This has given rise to the expression that accounting is a concept developed by Luca Pacioli in 1494. Traces of accounting origins have shown this is incorrect; accounting in Mesopotamia-accounting, in the ancient Egyptian, Greek, China, and Rome and other authors that wrote on the double-entry system before Luca Pacioli. The ultimate purpose of this research paper is to explain in-depth how accounting evolved through reviewing historical literature that existed before and after Luca Pacioli's double-entry system. All research papers published in prominent accounting journals in English in the 90 years were scanned. The review focused on research papers that explicitly explored accounting evolution. The greater part of this research paper focused on the authors who contributed to modern accounting. The majority of published research papers in the accounting field focus on Luca Pacioli, as he is the father of accounting. These research papers pertaining to the field of accounting were categorised and analysed in more detail and qualitatively classified in accordance with selected dimensions. Only a minority of research papers have an explicit history of the other authors before Luca Pacioli. The conclusion is that the state of this research paper is clearly non-paradigmatic in nature. Keywords: Accounting origin, Accounting Evolution, Accounting Theory, Accounting, Luca Pacioli
The present organisational and business landscape makes the quest for sustainable transformative performance an urgent imperative. Because of this, it is crucial to synthesise and understand the many facets of sustainable transformative performance, with a focus on the need for governance and accountability. This paper reviews the relationship between corporate governance, accountability, and sustainable transformative performance imperatives. The paper draws on the knowledge from several research papers submitted to the Issues in Social and Environmental Accounting Journal special issue publication. It thoroughly analyses various perspectives on sustainable transformation, ranging from environmental sustainability and disclosure practices to the function of governance, organisational culture, and responsible investing. Alongside these issues, the paper also explores the integration of technological governance, its impact on innovation, and the nuanced relationship between financial performance, firm size, and corporate practices. Through these thematic lenses, this paper highlights the significance of aligning governance frameworks, fostering accountability, and embracing responsible practices to drive sustainable transformative performance. The findings of the paper provide valuable insights to practitioners, policymakers, and researchers, shedding light on the complex nature of sustainable transformation and the imperative of effective governance and accountability. The conclusion drawn from the study highlights the transformative power of ethical decision-making, creative governance models, and responsible behaviours in promoting sustainability, good governance and value-driven performance. Keywords: Sustainable Transformative Performance, Governance, Accountability, Responsible Investment, Technological Governance, Environmental Disclosure and Performance, Environmental Sustainability, Organisational Culture.
In today's knowledge-based economy, intellectual capital has emerged as a crucial component for boosting productivity and sustaining organizational performance. The intellectual capital approach has assumed a preeminent position in the higher education industry, where knowledge is the primary output and input. The majority of its valuable input consists of researchers, managers, and students who are acquainted with the university's procedures, rules, and regulations, as well as its network of relationships. Principal outputs include research results, publications, educated students, and productive stakeholder relationships. If universities are to continue providing high-quality services and ensure their long-term viability, these intellectual capital components must be properly identified and managed. Malaysian public universities were chosen as the sample for this investigation into how universities extract the value of their intangible assets. This study seeks to provide empirical evidence on the relationship between the intellectual capital of universities and their performance. IBM-SPSS analysis software was applied to the dataset of 56 respondents. The analysis demonstrates that intellectual capital significantly influences universities’ performance, especially on financial, internal process and learning growth performance perspectives. This study provides a deeper understanding of how universities measure their intellectual capital and the significance of its value in enhancing the performance of public universities. The indicators discovered in measuring intellectual capital are anticipated to become a model applicable to ASEAN public universities for managing and reporting intellectual capital and its significant influence on a university’s performance. Keywords: Intellectual Capital; Public Universities; University Performance; Measurement
The rapid and strong flow of economic development and competition has compelled businesses in both the informal and formal sectors to be competitive in every way. Cost volume profit analysis (CVP) has become an important management accounting principle in this rapid and strong economic flow. This is because cost volume profit analysis is a management accounting principle that may be used in planning, monitoring, and decision-making by forcing minibus taxi owners to evaluate future possibilities, anticipate openings in terms of opportunities and restructuring, and detect future risks. The purpose of this research paper is to investigate how minibus taxi owners in the informal sector apply CVP as a management accounting principle tool in operating their minibus taxi business. This research paper used a quantitative research methodology in the form of an online questionnaire to gather data from a census of 500 minibus taxi owners situated in the Emfuleni Local Municipality. This is a cross-sectional research paper with a location restriction. Data were collected in 2021. The data collection was restricted to the online environment, because of the COVID pandemic restriction. Following data collection, the information was synthesized into an excel file, a conformity check was performed, and data cleansing was completed. The Statistical Package for the Social Sciences version 27.0 software package was used to analyses the data. The results were displayed using descriptive tools such as pie charts and bar charts. The results of these descriptive tools show that most minibus taxi owners do not apply cost volume profit analysis when running their minibus taxi industry. Lastly, the research paper concludes by providing recommendations on how minibus taxi owners may apply CVP to their minibus taxi business. Keywords: cost volume profit analysis - costs - volume - profits - minibus taxi industry.
Over the past six decades, a considerable amount of research has been conducted to better understand the explanatory ability of intrinsic equity valuation models to account for variations in equity share prices or returns, in which the accounting-based Ohlson residual income valuation framework has been the primary focus. Meanwhile, several variants of this model have emerged, the foremost of which typically comprises the decomposition of the Ohlson residual income variable into substitute accounting earnings variables, such as the traditional bottom-line earnings variable or, more recently, alternative earnings performance measures, of which earnings before interest, tax, depreciation and amortisation (EBITDA) is a particular case in point. However, there appears to be a lack of consensus about the variables of interest and the most appropriate model to define the predicted interconnections between accounting values and share prices or share price returns. In light of this lack of accord, the aim of this study was to examine the recent literature with regard to the approaches and evidence pertaining to the Ohlson model and the recent variants thereof that are based either on traditional or alternative earnings performance measures, with a view to answering the following research questions: 1. Which econometric model results in the best explanation of the association between accounting information and share prices? 2. Consequently, which variable, when combined with equity book values, seems to provide the most persuasive evidence of association with equity share prices: EBITDA, earnings or residual income? To answer these questions, a systematic literature review was conducted. The criteria were that the studies had to have at least two explanatory variables of interest in accounting for share price variations or returns, with one of them being equity book values and the other being any earnings performance measure, such as residual income, earnings, EBITDA, or combinations involving transformations of these. The review entailed a critical evaluation of the methodologies, model specification and model output against the reported findings, inferences and conclusions. The results revealed that the original Ohlson (1995) model, the Collins et al. (1997) and the recent EBITDA variations yielded equally valid demonstrations of the association of accounting information with share price variations. Consequently, depending on the choice of model, all three variables, EBITDA, earnings and residual income, appear to possess an equal amount of explanatory power to account for variations in equity share prices. The study’s major contribution is to clarify the explanatory power of Ohlson-based models and the specification of variables, as well as methodological and analysis issues that could inform future research in the field. Keywords: EBITDA; equity valuation; Ohlson (1995) residual income valuation framework; value relevance; alternative performance measures; fundamental valuation; intrinsic equity valuation. JEL classification codes: M41; G10, G12; G14; G11; G32
The traditional approach to financial performance reporting has experienced a significant shift as stakeholders increasingly demand greater transparency regarding firms' environmental and social impact. This has elevated the importance of environmental reporting due to its potential influence on firms' financial strength. This study investigates the relationship between environmental reporting and the value of manufacturing firms listed on the Johannesburg Stock Exchange (JSE) in South Africa. The study conducted a content analysis on 250 annual integrated reports from 50 manufacturing firms listed on the JSE between 2016 and 2020 and utilized a multiple regression analysis. The findings revealed a negative relationship between environmental reporting and firm value, suggesting that adopting environmental reporting may involve additional financial resources, which are perceived as an outflow of funds in an economic context. Consequently, this study recommends that manufacturing companies analyse their stakeholders' characteristics and information needs to present relevant environmental reporting in their annual integrated reports. By doing so, companies can enhance their legitimacy with stakeholders, maximise shareholder value, and ultimately increase firm value. This research contributes to the existing literature on environmental, social, and financial reporting, particularly in South Africa, by focusing specifically on manufacturing firms listed on the JSE. Keywords : Environmental Reporting, Social Reporting, Financial Performance, Firm Value.
Globally, the world economy has consistently experienced organisational failures, mainly arising from poor organisational governance. These organisational failures resulted in financial losses being suffered by millions of people worldwide. Whilst many scholars argue that good organisational governance promotes successful organisations, others have argued that the governance culture adopted by several organisations may not have had the positive effect of achieving optimal performance. Scholars have argued that public sector governance has consistently failed to deliver the required public goods to the communities. Global service delivery protests evidence these arguments. Scholars have also suggested that poor public sector governance resulted in several international crises, including the global economic meltdown in 2008. Recent economic crises have also been noted in several countries, including Sri Lanka and Ghana. This study was therefore conducted in national departments in South Africa adopting organisational performance management (OPM) as a tool to assist in effective service delivery. The study also explored national departments adopting internal auditing as a mechanism to improve OPM. A sequential mixed methods approach was followed in conducting this study. During the quantitative phase, eighteen national departments responded to a survey questionnaire. The quantitative phase was followed by the collection of narrative qualitative data through fourteen interviews with employees from four national and two monitoring departments. The interviews included deputy directors-general, chief directors, directors, deputy directors and a senior internal auditor. Focus group discussions were held with twenty-two internal auditors from the four departments participating in seven sessions. Thus, 38 officials, in total, participated in the interviews and focus group discussions. In addition, sixty-four documents were subjected to content analysis. The study found that whilst the public sector has implemented appropriate governance measures to achieve optimal organisational performance, several factors inhibited optimal OPM. The main findings from the study were the creation of multiple governance structures, poor consequence management, planning and budgeting non-alignment, outcomes rather than impacts focused, divergence in management’s expectations and actual internal auditing services rendered, and skills deficiency within the internal audit activity. Multiple governance structures have resulted in ineffectiveness and over-governance, resulting in governance and reporting fatigue experienced by organisational employees. Governance and reporting fatigue has led to employee lethargy with a resultant negative influence on organisational performance. KEYWORDS: Coordinated Governance; Governance Fatigue; Internal Auditing; Monitoring and Evaluation; Organisational Performance, Reporting Fatigue
Motivated by the growing concern for environmental, social, and governance (ESG) performance and behaviours among corporations, this study descriptively explores the voluntary environmental disclosures among public-listed plantation companies in Malaysia. As one of the most polluting industries, the plantation offers an interesting setting for a study on corporate environmental disclosure practices. Using a content analysis of the audited annual reports of these plantation companies, we categorized the plantation firms’ environmental disclosure into fourteen categories, with each category having distinct pre-identified items. We then employed binary coding for each disclosure item, assigning a score of 1 if the item is disclosed and 0 otherwise. Overall, this study documents an upward trend of environmental disclosure over the sample years (i.e., 2015 – 2019). Environmental Policy appears to be the most prevalent type of disclosure among the fourteen categories, while the least disclosed environmental category is Financial Data . Further analysis of our data according to the ‘hard’ and ‘soft’ classifications reveals that the environmental reporting among listed plantation firms in Malaysia is still very much dominated by soft information. Hard disclosure items (i.e., governance structure and management systems related to environmental protection, the credibility of the environmental disclosure, environmental performance indicators, and environmental spending) are difficult to be mimicked by the poor environmental performing firms. They hence are usually disclosed only by good environmental performers. On the other hand, soft items cover vision and environmental strategy claims, environmental profiles, and environmental initiatives. Our results suggest that most of the listed plantation firms in Malaysia are still at the early stage of their strategic move toward environmental protection. Keywords: ESG; Plantation Companies; Environmental Disclosure
This study investigates the implementation of the methodology, Interactive Qualitative Analysis (IQA) to understand how non-major accounting students learn Accounting 101 in a threshold concepts-inspired tutorial programme. Even though IQA is a predominantly qualitative method, it incorporates quantitative data with qualitative data systematically. These data collection and data analysis procedures are a means of aiding participants in a focus group to describe their experiences with a phenomenon, to name these experiences and to then describe the relationships between these named experiences. The objective of the IQA methodology is to create a picture, a Systems Influence Diagram (SID), representative of the mind map of the focus group participants, with regard to the phenomenon outlined in the issue statements. A summary of theoretical codes used to capture the relationships between affinities named, an Inter Relationship Diagram (IRD), is used to draw the SID. This study describes how the IQA methodology was implemented using an online platform, during the COVID-19 pandemic, to collect data regarding the explanations of each affinity pair relationship identified. Keywords: Non-major accounting students, Interactive Qualitative Analysis, Affinity Pair Relationships, Explanations, Systems Influence Diagram, Threshold Concepts Tutorial Programme
Since post-apartheid, South Africa has made great strides in increasing its investment through foreign cash inflows and domestic investment. This research tries to establish the effects of Foreign Direct Investment (FDI) and domestic investment on economic growth in South Africa. Guided by the unit root test results, this study uses the Autoregressive Distributed Lag (ARDL) cointegration technique and the vector error correlation model to investigate the effect of FDI and domestic investment on economic growth in South Africa from 1990-2019. To assess the validity of a model used, a number of diagnostic tests were conducted, including heteroskedasticity, multicollinearity and normality tests. The study found a statistically significant positive long-run relationship between domestic investment and economic growth. Conversely, the study found a negative relationship that is not statistically significant between FDI and economic growth. This finding is in line with a number of studies, including those conducted in South Africa. Possibly due to high levels of unemployment in South Africa, the study found a negative relationship between population growth and economic growth. The study concludes that policymakers should implement investment policies and promote strategies that will reduce linkages in investment to foster and promote job creation, political and social stability, and sustainability in encouraging economic growth. Keywords : Foreign Direct Investment, domestic investment, economic growth, population growth, South Africa
Following the end of apartheid, South Africa introduced the Curriculum and Assessment Policy Statement (CAPS), leading to a decline in the quality of Grades 8 and 9 EMS education. This has resulted in a skills gap among accounting educators, which has negatively impacted Grade 12 accounting performance. The University of Johannesburg has responded by offering exam technique workshops to educators since 2019. The primary objective of this study was to assess the perceptions of the educators regarding the effectiveness of the workshops as a way of improving students’ performance and ultimately the results. The secondary objective was to explore the type of support educators expect from universities to improve the grade 12 accounting results. This study employed a mixed-method approach, incorporating quantitative data collected through questionnaires and analyzed using STATKON software, alongside qualitative data from open-ended questions. The findings revealed that educators expressed a positive perception of the importance of careful instructional planning for effective learning in accounting. Additionally, they indicated a need for increased support from universities to enhance their teaching practices. The comprehensive insights gained from this mixed-method design highlight the significance of fostering strong collaborations between higher education institutions and educators in the field of accounting to optimize instructional strategies and promote effective learning outcomes. Keywords: Exam technique; Grade 12 Accounting Educators; Department of Education; D10 District Accounting Performance
Budgets are the foundation of any business, manifesting in its practices to provide the direction for actions and inactions. The management of small and medium enterprises (SMEs) has to maintain proper and appropriate capital budgeting processes and techniques to ensure survival and possible growth. There is a high risk of SMEs failing soon after they are established, with one likely cause being poor capital budgeting strategies. Thus, the study aims to ascertain the factors impacting SMEs' capital budgeting planning and practices, which are carried out by determining the degree of staff participation. The study adopted the quantitative method by administering questionnaires to the staff of 108 SMEs based in the Springfield Industrial Park, Durban, South Africa. The study's findings indicate that most staff are lowly skilled in computer literacy and financial skills, thus impacting the capital budgeting and planning process. Secondly, upward and downward communication levels were not prevalent; hence, more effective communication channels are fundamental. The study was limited to staff in the SMEs and, therefore, cannot be generalized to any other area or subject/s. It emerged that the implication of excluding staff may lead to poor decision-making. Therefore, more consideration should be given to active staff participation upgrading computer literacy and financial skills in business processes. Keywords: Capital budgeting; human factor; planning and practices. JEL Classification: M12; M41
The study aims to determine how organisational culture contributes to consequence management using lessons from the COVID-19 pandemic, drawing evidence from two government departments in South Africa. A qualitative research approach was adopted using content analysis and mapping previous literature studies and the Auditor General South Africa (AGSA) annual reports of the concerned government departments. The two government departments studied were the departments of Health and Employment and Labour. The article suggests that the extent to which consequence management is applied is dependent on the culture of an organisation. Considering the limited studies on this topic, the study also contributes to the existing body of knowledge by setting the tone for future studies. The use of two departments limits the generalisation of the findings. The article brings a fresh perspective on how organisational culture contributes to the ineffectiveness of policies governing departments, specifically consequence management. Government departments could use the findings from this study to enforce organisational cultures that value corrective action and consequence management. Accountability is at the centre of continuing public governance debate. The study unveils a fresh perception of accountability by enlightening the role of organisational culture in enforcing consequence management. The outcomes of the COVID-19 pandemic could be used by accounting authorities to prevent recurring transgressions in government departments and prepare for future unforeseen pandemics. Keywords: Consequence Management, Organisational Culture, Irregularity, PFMA, AGSA.
Employee attrition is a critical issue facing many organisations including higher education institutions. With the outbreak of the Coronavirus disease, employee attrition rate has accelerated across universities in South Africa and Durban University of Technology is not exempted. The role of human resource management functions becomes vital at such critical time. The study examines the gender differences in employee attrition and the perceptions on the talent management strategies at DUT. The study adopted a quantitative research approach and collected data from the university’s database for the period 2018-2022. A descriptive data analysis using SPSS was conducted depicting the gender differences in the attrition rate at DUT. The findings of the study show that, (i) female employees are exiting the institution employment when compared to their counterpart, (ii) the institutions talent management strategies are work in progress. Furthermore, the study findings gave insight into an important practical implication needed by universities for an effective implementation of retention policies and practices especially in achieving the SDG of gender balancing. The study is limited to data collected within DUT and the findings cannot be used for generalization. The study is deemed important in addressing the increasing employee attrition rates and contributes to the on-going discourse in gender related issues facing higher education institution. Keywords: Gender; Employee attrition; Talent management; Higher Education Institution; South Africa. JEL classifications : I23; O15; J63
Foreign direct investment flows have grown rapidly as the global economy has become more integrated. Developing countries consider FDI as a driving force to economic growth as it contributes to technology transfer, infrastructure improvement, employment creation and trade performance. However, it has been of great concern to many economists on how FDIs affect the economic growth of the host country. The study examines the effect of FDIs on South Africa’s economic growth using annual time series data for the period 1980 to 2021. The autoregressive distributed lag model (ARDL) bounds testing approach to cointegration was used to test the long run relationship between economic growth, foreign direct investment, and exchange rate. The study found that FDI has a positive effect on economic growth rate thus validating the FDI-induced growth nexus in the South African economy, while exchange rate had a negative significant impact on economic growth. This study suggests that policymakers adopt policies aimed at infrastructural development that will attract more FDIs and enhance the country’s economic growth. Though there is a prime need to attract more foreign investors in South Africa, it is important to concede that attracting inward FDIs alone is not enough for sustainable economic growth and development. The government will have to undertake reforms with clear objectives and commitments. Keywords: Economic Growth; Foreign Direct Investment; Exchange Rate; ARDL
In recent years, companies have been pushed towards good corporate citizenship. Consequently, responsible investment-driven capital allocation strategies have emerged as investors seek favourable sustainability exposure in their portfolios by increasingly applying non-financial factors to screen investments. However, the question of whether it is worth it in terms of risk and returns remains largely unanswered due to the mixed evidence and theoretical predictions. Accordingly, in this study, the performance of the FTSE/JSE Responsible Investment Index (RSI 113) was compared to the performance of the FTSE/JSE All Share Index (J203) in terms of returns and volatility in a GARCH framework. The comparison was extended to include the S&P 500 and S&P 500 ESG indices. The results show that there is a case to be made for responsible investment in South Africa but less so in the American market. These findings have significant implications for investors, companies and policymakers alike. Keywords: ESG; Responsible Investing, GARCH; South Africa; United States
