Corporate growth of JSE listed empowerment companies

One of the aims of BEE is to foster sustainable corporate growth ofempowerment companies. This is projected to contribute to the growth of a deracialisedSouth African economy, eradication of inequalities, underdevelopmentand the achievement of enhanced widespread income levels in the economy.This study assessed the growth performance of empowerment companies listedon the JSE Securities Exchange against a background of enabling regulatory andother BEE support measures. In general, corporate growth manifests itself through numerical improvements infinancial measures like turnover, total asset value and share price. Thesefinancials for a sample of empowerment companies were statistically analysedand compared to market averages and selected growth predictor models. The results indicate that for the period 2003 to 2006, share price growth forempowerment companies listed on the JSE Securities Exchange followedclosely that of both the FTSE/JSE All Share Index and the sales growthpredictor model but not the FTSE/JSE Style Indices and the asset growthpredictor model. This implies that over this period, the aggregate portfolio oflisted empowerment companies did not exhibit attributes similar to those ofother listed companies weighted towards identifiable growth and valuecharacteristics. Copyright © 2007 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria Please cite as follows: Khosa, A 2007, Corporate growth of JSE listed empowerment companies, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03232010-134227/ > G10/146/ag