Price earnings (P/E) multiples are commonly used by corporate financial managers as a measure of corporate performance and as a measure of corporate value. With this article an analysis of 74 companies is presented. Each company significantly changed its P/E multiple over a period of three...

In this research a survey was used to gain insight into the factors that affect the choice of capital structure, from the perspective of investment advisors. Content analysis of responses to open-ended questions in the questionnaire and interviews showed a clear support for the optimal capital...

The article reports the results of an investigation into the level of predictive accuracy required to benefit from a market-timing strategy using unit trusts as the investment medium. Three unit trusts within the same management company were used as the assets between which a market timer could...

Fama's (1970) efficient market hypothesis (EMH) and the capital asset pricing model (CAPM) jointly ascribed to Markowitz (1952), Treynor (1961), Sharpe (1964), Lintner (1965) and Mossin (1966) remain the foundation of most finance and investment courses. This is surprising, given the sustained...

The ability to accurately price equity is an ineluctable requirement within businesses where decisions need to be taken daily that impact upon the future viability of that business. The Capital asset pricing model (CAPM) is the preeminent tool, that has become entrenched within academia and...

Financial theory posits a positive relationship between the value of investment that firms undertake and subsequent shareholder returns. Surprisingly, recent studies on United States data have found a negative relationship between investment and subsequent shareholder return. This anomaly...

Effective working capital management assists a firm in achieving improved liquidity through the management of the components of receivables, inventory and payables. Previous studies have established that changes in working capital have a strong positive correlation to profitability and that...

The Insider Trading Act of 1999 and Johannesburg Stock Exchange (JSE) regulations require transparency in director dealings. Directors are required to report all share trading in companies of which they are principals, and this information has been regarded as a signal to the market. We examine...

A company's entry into (or exit from) a major share index provides a special opportunity to examine price discovery. In an efficient market, we expect the demand curve to remain horizontal and to be unaffected by external events that do not communicate new information to the public, even if...

Directors need to guide and govern companies on behalf of and for the benefit of shareholders and stakeholders (Adams, Hermalin, & Weisbach, 2010; "Duties of directors," 2011). However questions remain as to whether boards with higher levels of diversity amongst directors are better equipped to...