Search results

1 – 10 of over 4000
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 1 April 2004

J.H. de Wet and J.H. Hall

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…

1345

Abstract

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 capital. The leverage available to companies that incur fixed costs and use borrowed capital with a fixed interest charge has been known and quantified by financial managers for some time. The popularisation of EVA and MVA has opened up new possibilities for investigating the leverage effect of fixed costs (operational leverage) and interest (financial leverage) in conjunction with EVA and MVA, and for determining what effect changes in sales would have through leverage, not only on profits, but also on EVA and MVA. Combining a variable costing approach with leverage analysis and value analysis opens up new opportunities to investigate the effect of certain decisions on the MVA and the share price of a company. A spreadsheet model is used to illustrate how financial managers can use the leverage effects of fixed costs and the (fixed) cost of capital to maximise profits and also to determine what impact changes in any variable like sales or costs will have on the wealth of shareholders.

Access Restricted. View access options
Article
Publication date: 1 October 2008

P. de Jager

Empirical accounting research frequently makes use of data sets with a time‐series and a cross‐sectional dimension ‐ a panel of data. The literature review indicates that South…

1382

Abstract

Empirical accounting research frequently makes use of data sets with a time‐series and a cross‐sectional dimension ‐ a panel of data. The literature review indicates that South African researchers infrequently allow for heterogeneity between firms when using panel data and the empirical example shows that regression results that allow for firm heterogeneity are materially different from regression results that assume homogeneity among firms. The econometric analysis of panel data has advanced significantly in recent years and accounting researchers should benefit from those improvements.

Details

Meditari Accountancy Research, vol. 16 no. 2
Type: Research Article
ISSN: 1022-2529

Keywords

Access Restricted. View access options
Article
Publication date: 1 April 2001

J.H. de Wet and M.C. van Niekerk

In an educational environment in which global trends prompt educators to consider alternative approaches to teaching and learning, new ways should be found to educate more…

275

Abstract

In an educational environment in which global trends prompt educators to consider alternative approaches to teaching and learning, new ways should be found to educate more efficiently and effectively. In line with this learner/customer‐centred approach, the first‐year students in Financial Accounting at the University of Pretoria were requested to complete a questionnaire in order to identify weaknesses in the current approach, highlight possible areas to be developed or make suggestions regarding the improvement of the course. The results yielded several clear indications of the changes that could be made and new ideas that could be considered. Some of these suggestions have been implemented. The results, which are being monitored continuously, are reported in this article.

Details

Meditari Accountancy Research, vol. 9 no. 1
Type: Research Article
ISSN: 1022-2529

Keywords

Access Restricted. View access options
Article
Publication date: 1 October 2010

A.K. Halabi, A. Essop, T. Joosub, N. Padia, M. Vawda and Y. Yasseen

This paper compares the effectiveness of in‐house developed computer‐based learning (CBL) materials with face‐to‐face teaching. Two groups of higher education students were…

736

Abstract

This paper compares the effectiveness of in‐house developed computer‐based learning (CBL) materials with face‐to‐face teaching. Two groups of higher education students were randomly assigned to complete tutorial work in one highly structured topic of introductory accounting using either CBL materials (treatment group) or face‐to‐face teaching (control group). The effectiveness of both approaches was measured according to the students’ performance in a class test, in relation to their prior accounting knowledge and gender. The results showed that the students with no prior accounting knowledge who completed the CBL materials achieved a significantly higher test mark than the face‐to‐face teaching group. However, there was no significant difference in the marks of the students with prior accounting knowledge, and there was no difference on the basis of gender. The results of this South African study correspond to results in existing literature in other countries, and contribute to the overall knowledge of the effectiveness of CBL materials with respect to prior accounting knowledge and gender.

Details

Meditari Accountancy Research, vol. 18 no. 2
Type: Research Article
ISSN: 1022-2529

Keywords

Access Restricted. View access options
Article
Publication date: 1 October 2007

L.P. Steenkamp and R.J. Rudman

The South African Institute of Chartered Accountants and the International Federation of Accountants require Information Technology (IT) to be integrated with the professional…

245

Abstract

The South African Institute of Chartered Accountants and the International Federation of Accountants require Information Technology (IT) to be integrated with the professional subjects, including Auditing, qualified chartered accountants need. Internationally, people want changes to Auditing teaching. The Accounting Department of Stellenbosch University developed an audit simulation of the whole audit process from client acceptance to completion. Students must prepare working papers, using substantive procedures focusing on stock and a database large enough for students to use IT. The simulation’s learning objectives are integrating auditing with IT, and exposing students to as authentic an audit as possible. A questionnaire tested students’ perceptions on the simulation. Responses were favourable. Respondents felt that the simulation helped them to understand auditing and showed them the practical application of IT functionalities. However, respondents complained that the simulation took too long. The principles and findings apply to simulations and the use of case studies in any environment.

Details

Meditari Accountancy Research, vol. 15 no. 2
Type: Research Article
ISSN: 1022-2529

Keywords

Access Restricted. View access options
Article
Publication date: 13 April 2015

Lyn Murphy and William Maguire

The purpose of this paper is to assess the performance and current position of the Meditari Accountancy Research Journal by building a profile of the articles published over the…

531

Abstract

Purpose

The purpose of this paper is to assess the performance and current position of the Meditari Accountancy Research Journal by building a profile of the articles published over the 21 years since its inception.

Design/methodology/approach

A descriptive meta-analysis of 293 articles published in 30 issues was conducted and comparable South African and international studies to structure the research were drawn upon. Contributors, research fields, research methods, citations and jurisdictions were examined and emerging trends assessed.

Findings

Meditari Accountancy Research Journal has a strong relationship with the South African accounting community. All dimensions of this article indicate that Meditari Accountancy Research has evolved over the 21 years since its inception and has made progress towards an international research journal.

Research limitations/implications

Given that this study relates to one accounting research journal only, there is no specific benchmark against to which to assess its progress. However, the literature offers a basis for comparison.

Practical implications

The challenge is to maintain the traditional South African links while meeting the needs of a changing international accounting research environment.

Originality/value

The current study provides a comprehensive basis for an evaluation of the journal and its future potential by reviewing the full history of Meditari Accountancy Research Journal, which presents insights into the articles published within it, including the range and predominance of contributing authors, research methods, research fields, nature of research, citation rates and jurisdictions.

Details

Meditari Accountancy Research, vol. 23 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Available. Open Access. Open Access
Article
Publication date: 29 September 2022

Jasvir S. Sura, Rajender Panchal and Anju Lather

The main aim of this paper is to examine the claim that economic value added (EVA) advocates its superiority over the traditional accounting-based financial performance measures…

4473

Abstract

Purpose

The main aim of this paper is to examine the claim that economic value added (EVA) advocates its superiority over the traditional accounting-based financial performance measures, i.e. profit after tax (PAT), earnings per share (EPS), return on assets (ROA), return on equity (ROE) and return on investment (ROI) in the Indian manufacturing sector and at the same time, give empirical facts. It also tests and examines the information content of various performance measures and their relationship with stock returns.

Design/methodology/approach

The paper uses the sample of 534 Indian manufacturing companies from the Bombay Stock Exchange (BSE) during the period 2000–2018. Multiple regression models are applied to examine the information content of EVA and traditional performance measures in explaining shareholders’ returns.

Findings

Relative information content tests revealed that traditional accounting-based measures such as EPS, ROE and ROA performed better than EVA in explaining the returns of Indian manufacturing companies. Incremental information content of EVA adds little contribution to information content above traditional performance measures. The claim of superiority of EVA over accounting-based measures in association with shareholder returns is proved invalid in Indian manufacturing companies.

Originality/value

This study concludes that EVA has no superiority over traditional accounting-based financial performance measures in explaining stock returns of Indian manufacturing companies. To achieve heftiness in outcomes, panel data are tested by using Breusch–Pagan–Godfrey (BPG) test for heteroskedasticity, Hausman’s test for fixed and random effect, variance inflation factor (VIF) test for multicollinearity and Durbin–Watson test for autocorrelation.

Access Restricted. View access options
Article
Publication date: 8 August 2016

T. van Oordt and Ingrid Mulder

Educators in the accounting discipline are faced with the challenge of finding innovative ways to accommodate the flexible learning styles of Millennial students, using “in…

703

Abstract

Purpose

Educators in the accounting discipline are faced with the challenge of finding innovative ways to accommodate the flexible learning styles of Millennial students, using “in classroom/contact time” effectively and decreasing transactional distance between students and educators in large classes. In an attempt to address these challenges, this paper aims to describe the implementation of basic e-learning tools (podcasts, vodcasts and voice-over-PowerPoint) as supplementary and substitutional tools in an undergraduate taxation curriculum. The tools were implemented as part of a student-centred approach to the facilitation of learning, embedded in the Blended Learning Theory. The paper reports on students’ use and experience of various basic e-learning tools, as well as the impact of the use of these tools on student performance.

Design/methodology/approach

An action research methodology was followed, and data were collected by way of a voluntary, descriptive student survey and student class lists. A total of 387 students completed the survey.

Findings

Students appear to have access to devices and data to use e-learning tools. They perceive these tools as helpful study aids and prefer synchronous, substitutional tools. Use of the tools does not have a significant impact on performance; however, it does appear to have a positive impact on the learning environment and student engagement.

Originality/value

The results of the study may be of benefit to educators and curriculum designers who are responsible for reviewing and updating the content delivery methods of undergraduate taxation curricula in large classes with diverse student populations. These results add to the limited body of knowledge on the implementation of basic e-learning tools in a South African accounting education setting.

Details

Meditari Accountancy Research, vol. 24 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

Access Restricted. View access options
Article
Publication date: 3 August 2020

Nirupa Padia and Chris William Callaghan

In the wake of certain corporate scandals, many stakeholders are questioning if current high levels of executive remuneration, world-wide, are in fact related to company…

971

Abstract

Purpose

In the wake of certain corporate scandals, many stakeholders are questioning if current high levels of executive remuneration, world-wide, are in fact related to company performance. After the implementation of King III in 2010, there has been an expectation that governance has improved in South African companies. If so, empirical testing should find executive remuneration to be positively related to forms of performance that reflect an increase in company value, like Tobin's Q, or return on assets, rather than measures such as total revenue.

Design/methodology/approach

Agency theory predicts that if executive remuneration is not carefully designed to maximise the value of the company, executive directors will tend to maximise revenue instead. To test this prediction, hand-collected panel data from Johannesburg Stock Exchange company reports are linked to company performance data to test this prediction, across the years 2010–2017, post King III.

Findings

Results challenge certain important assumptions. Generalised method of moments tests find total revenue, rather than value added measures of performance such as Tobin's Q or return on assets, to predict executive director remuneration. This is notwithstanding the significance of Tobin's Q in testing based on ordinary least squares. Implications of these findings for the field are derived and discussed.

Originality/value

Unique findings suggest that complacency about the relationships between executive director compensation and company performance is unwarranted. In light of a decline in the country's international rankings on the quality of its corporate governance, a renewed focus on the effectiveness of human resource compensation strategy may be necessary in this context.

Details

Personnel Review, vol. 50 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

Access Restricted. View access options
Article
Publication date: 6 June 2016

John Henry Hall

Prior studies on determinants of shareholder value creation have reported conflicting and sometimes confusing results. In this study, to obtain more refined and industry-specific…

2310

Abstract

Purpose

Prior studies on determinants of shareholder value creation have reported conflicting and sometimes confusing results. In this study, to obtain more refined and industry-specific results regarding variables determining shareholder value creation, an analysis was performed focusing on different categories of firms or industries.

Design/methodology/approach

Two dependent and 11 independent variables were applied to five different industries to obtain the best set of significant value drivers of shareholder value creation for a particular industry.

Findings

Market value added (MVA) is a better indicator of shareholder value created compared to a market adjusted return. Accounting-based variables (EPS, ROA and NOPAT) are superior to economic-based variables (EVA and ROCE) in explaining shareholder value creation, but results differ, depending on the dependent variable chosen as shareholder value creation measure. For each industry, there is a unique set of variables that determine shareholder value creation; the industrial goods industry has seven significant value drivers, namely, EPS, NOPAT, ROCE, the Spread, EVA, EBEI and REVA, whilst for the food and beverages industry, there were only two significant value drivers (EPS and ROA).

Originality/value

These findings imply that management, analysts and shareholders should, depending on the specific industry in which their firm operates, take into account a more specific set of variables when making their financial decisions, including compensation or reward structuring.

Details

Studies in Economics and Finance, vol. 33 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

1 – 10 of over 4000
Per page
102050