Corporate Finance A South African Perspective 2nd Edition Pdf Free Download

1 view

Skip to first unread message

Justina Sisti

unread,

Jul 22, 2024, 8:01:26 AM7/22/24

to folnopoto

This book addresses key issues in corporate finance and explores them from financial development and financial stability perspectives in emerging markets. Emerging economies are susceptible to rapidly changing financial sectors and products as well as financial upheavals. In this light, the growing interdependence of states and capital markets, and the risk of crises have an impact on the financing of firms. The chapters in this book highlight how companies and policies in emerging markets are affected and deal with the current post-crisis world. By combining academic and industry insights, the critical issues in corporate finance, financial development, and the preparedness of emerging markets are explored.

Shame Mugova is a financial analyst, a finance lecturer at the Management College of Southern Africa in Durban (South Africa), and a research fellow at the Durban University of Technology, where he holds a Ph.D. in finance from. His research interests are corporate social responsibility, corporate governance, and trade credit.

corporate finance a south african perspective 2nd edition pdf free download

Download Zip ✸ https://blltly.com/2zD6pk

The sample of sports-sponsoring companies experienced a larger annual mean EPS growth rate of 30.6 per cent compared to the remaining JSE Main Board companies which grew EPS annually at 27.4 per cent. The results of the Mann-Whitney U test confirm a significant difference in EPS growth for companies utilising consistent sports sponsorship as part of their marketing mix. From a practical interpretive perspective, this result reveals that those companies in South Africa involved in sports sponsorship consistently attain greater than market-related profit growth. This poses some interesting points for discussion, given that revenue growth was not statistically different, which suggests that many sponsors are utilising the sponsorships for purposes other than sales growths that result in a profitable outcome. The potential range of options is large but would likely comprise the creation of stronger supplier relationships, resulting in optimised business inputs. Sponsors might be utilising sponsorships to improve corporate social status, which assists them in creating regulatory compliance, in some instances. Additionally, these sponsorships may be utilised to maintain key client relationships that provide the highest levels of profitability, and whilst this might not grow revenue through new business acquisition, it may result in higher profitability as a result of a loyal and stable customer base.

This study estimates and analyses publicly-mobilised private finance for climate action in South Africa, between 2010 and 2015. The mobilisation effect of public climate finance on private finance is first estimated through an analysis and attribution of project-level co-finance data. A pilot-methodology (the investor perspective) then expands the analysis to also incorporate the mobilisation effect of financial support provided by South African policies in two sectors: renewable energy and energy efficiency. Results suggest that, in the South African context, domestic public actors play the major mobilisation role by providing support through targeted policies, and to a lesser extent by committing project-level co-finance.

Prof Senbet is internationally recognized for his widely cited contributions to corporate and international finance, which have appeared in such top journals as Journal of Finance, Review of Financial Studies, Journal of Business, Review of Finance, etc. He has published on wide-ranging issues, including agency conflicts and financial contracting, financial distress and financial crisis, banking regulation and incentives, corporate governance, and valuation effects of multinational corporate diversification, etc. The 1986 survey ranked him third among world-wide contributing authors to the Journal of Finance for the period 1976-1985. In 2009, Senbet was cited among the most prolific authors in the finance literature based on the Journal of Financial Literature survey of a half century of contributions. He was ranked # 24 among 8975 authors contributing to the leading finance journals over the 50-year period, 1959-2008.

Arras, G. & Crowther, D., 2009, 'Corporate Sustainability Reporting: A Study in Disingenuity?' Journal of Business Ethics 87, 279-288. -008-9806-0 [ Links ]Artiach, T., Lee, D., Nelson, D. & Walker, J., 2010, 'The determinants of corporate sustainability performance', Accounting and Finance 50(1), 31-51. -629X.2009.00315.x [ Links ]Bartels, W., Iansen-Rogers, J. & Kuszewski, J., 2008, Count me in: The readers' take on sustainability reporting, KPMG and sustainability, viewed n.d., from -Me-In-The-Readers-take-on-Sustainability-Reporting.pdf [ Links ]Berthelot, S., Coulmont, M. & Serret, V., 2012, 'Do investors value sustainability reports? A Canadian study', Corporate Social Responsibility and Environmental Management 19(6), 355-363. [ Links ]Brundtland, G., 1987, The Brundtland Report: Our common future. New York: United Nations World Commission on Environment and Development, viewed n.d., from -documents.net [ Links ]Christofi, A., Christofi, P. & Sisaye, S., 2012, 'Corporate sustainability: Historical development and reporting practices', Management Research Review 35 (2), 157-172. [ Links ]Cortina, J.M., 1993, 'What is coefficient alpha? An examination of theory and applications', Journal of Applied Psychology 78(1), 98-104. -9010.78.1.98 [ Links ]Dimitrov, .D.K. & Davey, H., 2011, 'Sustainable development: what it means to CFOs of New Zealand', Asian Review of Accounting 19 (1), 86-108. [ Links ]Du Toit, E., Erasmus, P., Kotze, L., Ngwenya, S., Thomas, K. & Viviers, S., 2010, Corporate finance: A South African perspective, Cape Town, Oxford University Press Southern Africa. [ Links ]

Jamie has over 25 years of experience in the corporate finance world, gained at some of the most successful global corporate finance practices including Catalyst Corporate Finance/Alantra and GCA Altium/Houlihan Lokey.

Considering the growth in ESG investments in South Africa over the recent years, this paper employed panel regression techniques to examine the effect of ESG ratings on financial performance of 40 JSE-listed firms included on FTSE/JSE RI between 2015 and 2019. The results of the 2SLS instrumental variable estimation of the panel regression models find evidence in support of the positive effect of ESG activities on firms' ROE and Tobin's Q performance. As such, this paper made a methodological contribution by accounting for the classic econometric issues, such as endogeneity and simultaneity biases that were not considered by prior studies (Franzén, 2019; Petitjean, 2019; Folger-Laronde et al., 2020; Amin and Tauseef, 2022). The second contribution of this research was made by analysing the effect of the entire sustainability construct as a collective initiative on firms' finance performance, where prior studies (Du Toit and Lekoloane, 2018; Sampong et al., 2021; Abdo and Fisher, 2007) merely applied the subsets of corporate sustainability. Furthermore, the lack of conclusive findings from research conducted on this topic required empirical verification of the relationship between ESG and CFP of firms operating in an emerging economy and listed on the JSE. The empirical results of this research have contributed towards the sustainability discourse by analysing the instantaneous and lagged effect on ESG investments on CFP.

On 28 September 2023, the FCA published a portfolio letter addressed to the CEOs of corporate finance firms (CFFs). The letter outlines the harms to consumers and markets that the FCA thinks are most likely to arise from the business models of CFFs, and sets out its strategy to address these harms and its expectations of those firms.

Firm size has remained a major area of investigation in corporate finance. Coase [1] is credited for the seminal work in this area. He raised questions on what determines firm boundaries and how these boundaries affect allocation of resources. What determines firm size has remained a major question under investigation by the researchers. Different theories of firm explain the reasons behind the existence of a firm [2]. You [3] surveyed diverse literature on the theories of firm size (determinants and distribution) and classified the literature into four streams including technological approach or the conventional microeconomics approach, institutional approach commonly known as transactional economics approach, industrial organizational (IO economics) approach and dynamic modelling approach.

This point carries serious repercussions. It must be noted that all measures of firm size are theoretically different and capture different aspects of size. A researcher might use a proxy/measure while examining firm size in relation to any area of corporate finance which might be irrelevant or has no connection to that specific area. Previous researchers have noted this problem, e.g. while examining leverage in relation to size, Ebel Ezeoha [24] argued that mixed results of past researchers on relationship between size and leverage does not mean that size simultaneously is positively and negatively related to leverage neither does it mean that all these findings are contextually wrong nor that size and leverage are uncorrelated. He noted that it is the difference in definitions of firm size employed by all the papers (employing different measures/proxies) which resulted in different results. Thus, examining sensitivity of different proxies of firm size in relation to practices of corporate finance is essential.

Therefore, this study examines the impact of different measures of firm size, namely total assets, total sales, market capitalization and total number of employees on seven important areas/practices of corporate finance including financial policy, investment policy, dividend policy, diversification, managerial compensation and incentives, firm performance and corporate governance. Specifically, study checks for R2 sensitivity, beta coefficient sensitivity and significance level sensitivity of all four different measures of firm size with these seven areas. Further, this study uses data from five emerging economies, i.e. Brazil, Russia, India, China and South Africa (BRICS). Our study adds to the existing body of knowledge in several ways: we have examined the effect of different measures of firm size on different corporate finance policies or simply corporate choices comprehensively. Our study is replication and extension of Dang et al. [30] who examined the same. However, we used different data sets and different years. We also included another measure of firm size, i.e. number of employees. We have used data from economic block of five emerging economies, i.e. BRICS. Overall, our results supported the formulated hypotheses. Different proxies of firm size have been found to differently relate to all areas/practices of corporate finance based on beta coefficient value, R2 and sign of coefficient.