Orientation: Policy uncertainty imposes real economic costs. South African policymakers and business analysts now have access to two concurrently published indices: the perceptions-based North-West University Policy Uncertainty Index (PUI) and the Phronesis Analytics Expressed Policy Uncertainty Index (EPUI). Both claim to measure policy uncertainty, but they use different methods and information sources. No prior study has characterised when and why they diverge. Research purpose: This article provides the first quantitative characterisation of co-movement and divergence between the PUI and EPUI over their overlap period (2015Q3–2021Q4). Motivation for the study: The aim is to identify the conditions under which each index provides distinct information, enabling practitioners to make informed decisions about which index to monitor for specific purposes. Research approach/design and method: We compare the two indices using z-score standardisation, cross-correlation functions, Granger causality tests and Ordinary Least Squares (OLS) regression. Main findings: The two indices are weakly correlated (r = −0.18), confirming they capture different dimensions of policy uncertainty. The PUI shows a significant negative relationship with business confidence (r = −0.48, p < 0.05) and leads business confidence by one to two quarters. The EPUI does not show a comparable pattern. The 2016Q3 episode illustrates the practical stakes: the PUI and EPUI gave contradictory signals that quarter, and an analyst relying on either index alone would have received an incomplete picture. Practical/managerial implications: Practitioners should monitor both indices simultaneously. When they diverge, the divergence itself carries information about the mismatch between expressed and perceived uncertainty. Contribution/value-add: This article provides the first quantitative comparison of the PUI and EPUI, characterises their divergence patterns and enables informed index selection.
Orientation: The cost of debt (COD) is incorporated into the weighted average cost of capital, which is used in valuations, capital budgeting and costing applications. Research purpose: The study investigated factors that are correlated with the COD of listed companies in South Africa. Motivation for the study: The results of previous studies are divergent as to which factors are reliably correlated with the COD, measured as interest divided by average borrowings. Research approach/design and method: Potential determinants were identified from existing literature. Panel data from 229 companies listed on the Johannesburg Stock Exchange (JSE) were analysed using regression techniques. Main findings: Only one of the 18 commonly included control variables for COD, as identified from the existing literature, provided robust support for the hypothesised directional relationship with the COD: A binary variable for loss-making entities. Leverage, return on assets (ROA), asset turnover and listing age were statistically significant in the opposite direction to what was hypothesised, whereas the other 13 potential determinants did not demonstrate a stable, statistically significant relationship with the COD across different model specifications. Practical/managerial implications: Existing perceptions of the impact of factors, such as leverage and ROA, on the COD might be misguided, which brings the results of previous studies into question. Contribution/value add: The study raises questions about whether researchers include the correct control variables when performing regression analyses on the COD. The results also indicate that measuring the COD as interest divided by average borrowings warrants further scrutiny.
Orientation: The coronavirus disease 2019 (COVID-19) pandemic presented a severe liquidity shock that forced small and medium enterprises (SMEs) to adapt their working capital management (WCM) strategies. Understanding these responses is vital to assessing SME resilience in financial crises. Research purpose: The purpose of this study was to evaluate how SMEs, listed on the Johannesburg Stock Exchange’s Alternative Exchange (AltX), adjusted their net working capital (NWC) policies in response to the financial crises caused by the COVID-19 pandemic. Motivation for the study: While global literature has examined liquidity management during crises, limited evidence exists on how listed SMEs in emerging markets, particularly in South Africa, adapted their NWC in response to systemic shocks. The study integrates contingency theory, the resource-based view (RBV) and liquidity preference theory to explain company-level heterogeneity in financial adaptation. Research approach/design and method: A quantitative archival design was used. Secondary data from SMEs listed on the AltX covering 2017 to 2022 were analysed using the linear mixed model (LMM), the Wilcoxon signed-rank test, and descriptive statistics to evaluate variations in NWC across time and companies. Main findings: The results show no statistically significant difference in NWC before, during and after the financial crisis. However, descriptive analyses revealed a temporary liquidity build-up in 2021, indicating precautionary behaviour consistent with liquidity preference motives. The findings demonstrate context-driven, specific and resource-driven adjustments rather than structural policy changes. Practical/managerial implications: The study highlights the importance of integrating contingency planning and internal liquidity capabilities in SME financial management. Companies with stronger internal resources and access to capital exhibited greater working capital stability during the crisis. Contribution/value-add: This study contributes to the emerging literature of SME financial resilience by empirically linking liquidity preference, contingency adaptation and resource heterogeneity. It offers insights for policymakers and SME managers seeking to strengthen liquidity management and crisis preparedness in volatile environments.
Orientation: Independent sell-side analyst research is often focused on large, listed companies. Consequently, smaller companies resort to paying analysts to publish research on their companies, hoping to improve their visibility among investors and enhance the liquidity of their shares. Research purpose: This study aims to explore the information value of company-sponsored research in the context of Johannesburg Stock Exchange (JSE)-listed firms. Motivation for the study: The JSE has a number of smaller listed companies which struggle to compete for investor attention. These companies are driving the increase in company-sponsored analyst research on the JSE. Research approach/design and method: Our analysis is based on analyst reports, financial statements and stock exchange news announcements of a sample of 30 companies. We adopt an exploratory content analysis, with descriptive statistics employed to illustrate the information value of the analyst coverage by evaluating forecast accuracy and bid-ask spreads. Main findings: Our findings show optimistic revenue projections. However, share price projections reflect a more conservative stance, with most forecasts below the actual share prices. Furthermore, the analysis produced mixed results regarding the effect of sponsored coverage on bid-ask spreads. As such, we find no conclusive, empirical evidence of the effect of sponsored coverage on market liquidity. Practical/managerial implications: Companies are increasingly paying for coverage, indicating a gap in the information environment. Given the potential for conflicts of interest, there is scope for regulation on the JSE, as demonstrated on other exchanges. Contribution/value-add: Despite the increase in sponsored coverage, there is a lacuna in related academic research. To our knowledge, this is the first study to focus on company-sponsored research in the context of the JSE
Orientation: The notion that financial knowledge and capability alone drive optimal financial decision-making is being challenged, highlighting the complexity of financial behaviour and necessitating a more nuanced approach to analysing financial decision-making processes. Research purpose: The purpose of this study was to investigate the financial factors influencing financial capability and anxiety, and to explore strategies for reducing financial anxiety and elucidate the complex relationships between these constructs. Motivation for the study: This research explores the relationship between financial capability and anxiety in South Africa, contributing to the literature, with the purpose of enhancing financial well-being. Research approach/design and method: A quantitative approach was used, collecting cross-sectional primary data from 530 bank clients in South Africa using an online questionnaire, and analysing the data using structural equation modelling (SEM). Main findings: The study found that financial control, family financial socialisation, financial foresight and financial distress tolerance were positively associated with financial capability. In contrast, cautious spending and digital savvy did not reveal significant relationships. Financial anxiety was inversely associated with financial capability. Practical/managerial implications: The findings suggest that targeted financial education and counselling initiatives could be effective in mitigating financial anxiety and promoting financial well-being. Contribution/value-add: This study contributes to existing literature by exploring the relationships between financial capability, financial anxiety and various financial factors, providing valuable insights for policymakers, financial educators and practitioners.
Orientation: Hedging against price risk is central to asset management, especially during instability. The rise of real-estate investment trusts (REITs) has increased the use of property-related portfolios. Research purpose: This study tests whether systemic risk spillovers occur in REIT markets across major emerging countries and whether these linkages strengthen under stress. Motivation for the study: Although REITs matter in emerging-market portfolios, limited evidence shows how domestic systemic risk affects REIT volatility in normal and extreme conditions. This limits guidance on when REITs diversify portfolios and when hedging effectiveness weakens. Research approach/design and method: The study uses three econometric models: DCC-GARCH to capture volatility co-movements, Diebold–Yilmaz FEVD to measure volatility transmission and an Asymmetric GARCH-Copula to assess tail dependence during extreme episodes. Main findings: In normal periods, volatility transmission from systemic risk proxies to REIT volatility is low, with FEVD shares ranging from 0.01% to 2.48% for China and Brazil. The strongest channels are South Africa’s yield share (10.16%) and India’s volatility-index share (12.51%). Under stress, dependence rises markedly: tail dependence reaches 0.580–0.619 for South Africa and 0.421 for India, showing that diversification benefits weaken when systemic risk is elevated. Practical/managerial implications: REIT hedging performance is market- and regime-dependent. Asset managers should apply conditional hedging and stress testing, with greater vigilance in South Africa and India. Contribution/value-add: The study shows that normal-period spillover estimates can understate crisis-period dependence and provides a multi-model benchmark for monitoring REIT hedging effectiveness under systemic stress.
Orientation: Amid increasing stakeholder scrutiny of fairness in executive compensation and inclusive governance, there is growing interest in how internal pay structures and board composition influence firms’ social responsibility performance (SRP). Research purpose: This study examined the relationship between internal pay gaps (salary gaps and gender pay gaps) and SRP, as well as the effect of board diversity on this relationship. Motivation for the study: Existing research often treats pay disparities and board diversity as separate governance concerns. This study integrates these dimensions to examine their combined influence on SRP, addressing a gap in the literature. Research approach/design and method: Using firm-level data from the Refinitiv Eikon Database covering the period 2003–2023, this study applies panel regression models to analyse the direct effects of salary and gender pay gaps on SRP. Moderated regression analyses were conducted to assess the interaction effects of board gender diversity and board nationality diversity. Main findings: The findings show that both salary and gender pay gaps positively influence SRP, suggesting that firms with higher internal pay disparities may pursue SRP as a legitimacy-enhancing strategy. However, the moderating effects of board diversity are inconsistent. Practical/managerial implications: The results suggest that while internal pay gaps may incentivise social responsibility actions, board diversity alone may not strengthen this effect, highlighting the need for complementary governance mechanisms. Contribution/value-add: This study advances understanding of how pay structures and governance interact to shape SRP, offering integrated insights for scholars, boards and policy makers.
This Table of Contents reflects the print compilation of peer-reviewed articles published in the journal. Each article listed was originally published online under the journal’s open access model and remains individually accessible and citable. This compilation has been created solely for print distribution, reference, and archival purposes. No new research content is introduced. The publisher affirms that all articles included in this compilation have undergone the journal’s standard editorial and peer-review processes.
Orientation: Exasperating environmental degradation has necessitated an increased focus on strategies and policies that emphasise green growth. Research purpose: This study explores the effect of green growth on human capital development in South Africa. Motivation for the study: Despite the alarming environmental degradation and the growing demand for green growth, the effect of green growth on human capital development remains largely unexplored. Research approach/design and method: The study employs an Autoregressive Distributed Lag (ARDL) framework to examine the relationship between green growth and human capital development in South Africa. The model used secondary data from 1990 to 2021. Main findings: The results confirm the existence of a long-run, positive, significant relationship between green growth and human capital development. Educational expenditure and financial development also showed a positive and significant effect on human capital development. In contrast, trade openness was found to have a negative and insignificant effect on the dependent variable. Practical/managerial implications: The implications of these results suggest that South Africa should prioritise green growth strategies, not only as a means of promoting environmental sustainability but also as a catalyst for human capital development. Contribution/vale-add: This study provides South Africa–specific evidence on the long-run relationship between green growth and human capital using an ARDL (bounds testing) approach, highlighting the roles of education expenditure and financial development for policy.
Orientation: Issues of gender are prominent in the global development agenda. Although South African competition law mandates that public interest considerations must be considered as part of merger decisions, gender considerations are not explicitly included in this process. Research purpose: This study’s two-fold objective is to assess whether mergers influence gender distribution on company boards and in executive management and whether any observed changes could be linked to specific characteristics of the mergers. Motivation for the study: Gender diversity remains overlooked in merger and acquisition (MA) policy research despite its importance in the global development agenda, motivating this investigation. Research approach/design and method: The study employs a quantitative approach using secondary, pooled cross-sectional data from 80 South African mergers approved between 2010 and 2019, collected from various company financial statements and integrated annual reports, focusing on pre- and post-merger gender composition in management and board positions. Descriptive statistics, equality of means tests and ordinary least squares regressions are applied to analyse the impact of mergers on gender diversity. Main findings: The results show a modest but statistically significant increase in female board representation post-merger, particularly in cases where the acquiring firm was local rather than international. However, changes in female representation in executive management roles post-merger were generally not significant. Practical/managerial implications: The results highlight the need for policy interventions to promote female representation in corporate leadership, setting a precedent for broader diversity-focused policies in the Global South. Contribution/value-add: The study contributes to the limited literature on issues of gender diversity in MA policy (a virtually unexplored area in the South African literature) from the perspective of the Global South.
Orientation: This study investigates the structural and behavioural determinants of remuneration governance disclosure (RGD) among Johannesburg Stock Exchange (JSE)-listed firms. It frames pay (incentive remuneration) as a behavioural driver, power (board characteristics) as a structural mechanism, and people (ownership structures) as embodying both roles. Research purpose: The study examines the impact of executive remuneration structures, board dynamics and ownership patterns on RGD, providing insights into transparency practices within JSE-listed firms. Motivation for the study: The motivation stems from growing concerns over corporate transparency and accountability in emerging markets, particularly in South Africa, where governance and disclosure are critical for mitigating information symmetry and enhancing stakeholder confidence. Research approach/design and method: The study employs a cross-sectional analysis of firm-level data from JSE-listed firms for the 2023 financial year. Descriptive statistics and multiple regression were used to assess the influence of incentive-based remuneration, board characteristics, and ownership structures on RGD. Main findings: Firms with higher levels of incentive-based executive remuneration, larger board sizes and greater institutional ownership are associated with significantly enhanced RGDs. This highlights the critical role of incentive alignment, governance architecture and ownership oversight in shaping corporate disclosure behaviour. Practical/managerial implications: Policymakers and regulatory bodies may consider strengthening RGD frameworks to bolster investor trust and ethical governance across South Africa and comparable jurisdictions. Contribution/value-add: This study contributes to the literature by investigating how pay, power and people influence remuneration disclosure outcomes, advancing understanding of the governance mechanisms that drive transparency.
Orientation: The literature does not provide illustrative examples for simple swipe-only credit card rewards programme (CCRP) transactions. Research purpose: The study focused on developing and confirming illustrative examples of simple CCRPs after the effective date of International Financial Reporting Standards (IFRS) 15. Motivation for the study: Credit card rewards programme practitioners expressed a need for illustrative examples of accounting for CCRPs because of the lack of guidance provided in IFRS 15 and existing literature. Research approach/design and method: This qualitative study employed document analysis to develop illustrative examples, which were subsequently validated through the Delphi technique with input from 10 expert participants. The data were analysed using thematic analysis. Main findings: The illustrative examples developed included specific scenarios and amounts, which clearly indicated the journal entries to account for the initial recognition and derecognition of award credits in simple CCRP transactions. Specific complexities were addressed in the examples such as those related to derecognising award credits, including the principal versus agent consideration, the treatment of breakage when cardholders do not redeem all their award credits at once and a change in the estimated expected redemption rate over time. Practical/managerial implications: This study contributes to practice by offering illustrative examples that translate theoretical principles into practical application, thereby supporting CCRP management in accounting for these transactions and reducing associated uncertainty. Contribution/value-add: This additional guidance could ensure faithful representation of the underlying CCRP transactions, which will enhance comparability between companies, ultimately benefiting the users of financial statements.
Orientation: This study explored how household wealth in South Africa relates to key socioeconomic traits of household heads, against the backdrop of persistent inequality and growing scholarly interest in wealth as a driver of well-being and mobility. Research purpose: The study aimed to answer two central questions: (1) Are household head characteristics associated with different points of household wealth distribution across South African districts? (2) Is there greater variation in wealth within districts than between districts in these associations? Motivation of the study: Despite growing literature on wealth, few studies use micro-level data in developing countries. South Africa’s unequal context and the clustered nature of the National Income Dynamic Study (NIDS) data highlight the need for methods that capture distributional and geographic variation. Research approach/design and method: This study applied linear quantile multilevel modelling (LQMM) to Wave 5 NIDS data, accounting for district-level clustering and capturing how household head traits affect wealth across its distribution. Main findings: Household head characteristics – particularly age, education, marital status, gender and ethnicity – are significantly associated with household wealth. Importantly, these relationships vary across different quantiles of the wealth distribution, and there is substantial variation in wealth within and between districts. Practical/managerial implications: Given the heterogeneity in wealth outcomes, policies aimed at improving economic well-being in South Africa should consider both the geographic context (district-level disparities) and the distributional effects of household head characteristics. One-size-fits-all approaches may fail to address deeper inequalities. Contribution/value-add: This study advances the literature by using LQMM to model wealth across districts and distribution levels, emphasising district-level wealth disparities and deepening understanding of how socioeconomic traits shape wealth in unequal, post-apartheid South Africa. This model captures differences in effects across quantiles but does not correct for endogeneity from things such as omitted variables or measurement error.
Orientation: Family firms are important contributors to job creation and economic growth in South Africa. Research purpose: This study investigated the relationship between dividend distributions and board independence of family firms listed on the Johannesburg Stock Exchange (JSE) from 2006 to 2022. Motivation for the study: There is no consensus among scholars globally on whether dividends and board independence are substitute monitoring mechanisms. Insight into this topic is important, as JSE-listed family firms are held to the same governance standards as non-family firms. Research approach/design and method: Demographic data for 719 directors were hand collected from the integrated annual reports of 34 JSE-listed family firms. Two measures of board independence were computed. While the first was based on reported data, the second considered each director’s tenure and association with the founding family. Data on the firms’ dividend payout ratios, propensity to pay dividends and dividend per share ratios were sourced from Bloomberg. Main findings: Panel regressions revealed that both measures of board independence were positively (albeit not significantly) associated with the family firms’ dividend payout ratios and their propensity to pay dividends. An inverse relationship, however, existed between board independence and dividend per share. Practical/managerial implications: The findings suggest that board independence of JSE-listed family firms may not alleviate minority shareholder wealth expropriation, as suggested by some scholars, but rather act as a substitute monitoring mechanism for dividend distributions. Contribution/value-add: This study is the first of its kind in South Africa and draws heavily on the socioemotional wealth theory in its conceptualisation and interpretation of findings.
Orientation: Corporate disclosures have become increasingly important in financial reporting, leading to greater interest in understanding the value relevance of discretionary and non-discretionary disclosures. While prior studies often treat these disclosures as competing, this study explores whether they are complementary and how the reporting environment affects their value relevance. Research purpose: This study examines the joint and separate value relevance of discretionary and non-discretionary disclosures in emerging and developed economies. Motivation for the study: Inconsistent findings in the literature about the value relevance of these disclosures motivate this study. Previous research often analyses them in isolation, overlooking their potential complementary effects and the role of the reporting environment. Research approach/design and method: A quantitative approach was used, with a sample of firms from two emerging and two developed economies. The generalised method of moments (GMM) was employed to assess the value relevance of discretionary and non-discretionary disclosures, both jointly and separately. Main findings: Both discretionary and non-discretionary disclosures are value relevant when analysed separately and jointly. However, the value relevance of discretionary disclosures diminishes when considering the firm’s reporting environment, while non-discretionary disclosures remain consistent. Practical/managerial implications: Managers and financial analysts should incorporate both types of disclosures into their forecasting models, as they provide complementary insights into a firm’s financial health. Contribution/value-add: This study provides a nuanced understanding of the joint and separate value relevance of discretionary and non-discretionary disclosures and highlights the impact of the reporting environment, especially in emerging economies.
Orientation: The research is centred on the challenges of digital accounting systems in the evolving technological landscape and their role in the economic development of emerging markets such as South Africa. Research purpose: The purpose of this article is to provide a thorough analysis of the challenges encountered by financial accountants employed in the telecommunications sector in their efforts to enhance the reporting and analysis of financial information by utilising advanced digital accounting technologies. Motivation for the study: The aim of this study is to investigate challenges encountered in using digital accounting systems in the business operations of companies in the telecommunications industry in South Africa. Research approach/design and method: The study employed a qualitative research methodology, wherein data were gathered through semi-structured interviews. Thematic analysis was employed as the analytical approach to examine the gathered data. Main findings: Financial accountants lack adequate training to improve their proficiency in utilising modern technologies. Digital accounting systems are not regularly updated to improve financial reporting for accountants and align with complex International Financial Reporting Standards (IFRS). Financial accountants acknowledge the importance of cybersecurity; however, attending training to be aware of the associated threats is not mandatory, as these threats are not included in their Key Performance Indicators (KPIs). Practical/managerial implications: Management should stay informed about emerging technologies in digital accounting systems that can enhance efficiency for financial accountants. Continuous support will facilitate the optimal utilisation of these digital systems, thereby improving organisational performance. This can be achieved by providing training and ensuring the availability of ongoing resources to assist financial accountants in overcoming challenges. Contribution: This article explores the challenges financial accountants in the telecommunications sector encounter in their pursuit of using digital technologies to enhance their financial reporting and analysis efficiencies and effectiveness in their organisations.
This Table of Contents reflects the print compilation of peer-reviewed articles published in the journal. Each article listed was originally published online under the journal’s open access model and remains individually accessible and citable. This compilation has been created solely for print distribution, reference, and archival purposes. No new research content is introduced. The publisher affirms that all articles included in this compilation have undergone the journal’s standard editorial and peer-review processes.
