This study focuses on the role of the corporate board of directors and the relationship between the dynamics of board structure and the financial performance of listed South African companies. The research results found that the proportion of independent non-executive directors had a significant...

Past research on capital structure was spearheaded by the ground-breaking models of Nobel Prize laureates Modigliani and Miller. However, little research has been done on the application of their and other theories to banking institutions in South Africa. The study analyses the determinants of...

The aim of this study was to test whether findings by Johnson and Soenen (2003) regarding indicators of successful companies in the USA also apply to South African JSE-listed companies. To date, no South African study has tried to determine the indicators of the financial success of local...

The media regularly reports a growing incidence of a non-alignment of executive pay and performance, and in some cases, no link between the two whatsoever. The advent of new measures of shareholder wealth like economic value added (EVA) and market value added (MVA) have allowed some companies to...

To date, a vast body of research has been established on dividend policy. However, little research has been done on the impact of dividend payments on shareholders' wealth while considering the short- and long-run effects. This study is based on a sample of 46 companies listed on the...

The well-known earnings per share measure is simultaneously very popular but also potentially misleading. This study briefly discusses the popularity of EPS and then outlines three limitations, namely the inability of EPS to reflect shareholder value, EPS management and an inherent bias towards...

The economic value added (EVA) of a company is currently acknowledged as the single, most appropriate internal measure of corporate financial performance. Its appeal lies in the fact that it is conceptually sound as it reflects the true economic profit of a company after taking into account the...

It is generally believed that in order to maximise value for shareholders, companies should strive towards maximising MVA (and not necessarily their total market value). The best way to do so is to maximise the EVA, which reflects an organisation's ability to earn returns above the cost of...