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- Management Dynamics : Journal of the Southern African Institute for Management Scientists
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- Volume 17, Issue 1, 2008
Management Dynamics : Journal of the Southern African Institute for Management Scientists - Volume 17, Issue 1, 2008
Volume 17, Issue 1, 2008
The relative and incremental information content of the value-based financial performance measure Cash Value Added (CVA)Author Pierre ErasmusSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 17, pp 2 –15 (2008)More Less
This study investigates the relationship between the measure Cash Value Added (CVA) and market-adjusted share returns, and compares it to that of Economic Value Added (EVA), residual income, earnings and operating cash flow. Relative information content tests suggest that earnings have the strongest relationship with share returns. The results from the incremental information content tests indicate that although the CVA and EVA components provide statistically significant information content beyond that provided by residual income, the level of significance is low.
Source: Management Dynamics : Journal of the Southern African Institute for Management Scientists 17, pp 16 –30 (2008)More Less
Organisations in South Africa are facing numerous challenges related to the implementation of employment equity strategies. While compliance with the relevant legislation is imperative, the successful implementation of employment equity initiatives hinges on the organisation's ability to change the expectations of employees affected by employment equity initiatives, without negatively impacting on aspects of the employment relationship such as the psychological contract. The purpose of this exploratory study is to assess the extent to which the perceived influence of employment equity practices is related to the psychological contract and intention to leave in a sample of black and white male managers. A structured questionnaire comprising standardised scales was used to explore the relationship between types of psychological contract, intention to leave, and the perceived influence of employment equity practices. A sample of 55 respondents from a financial-services organisation participated in the study. A number of statistically significant relationships between the research variables were evident for each of the two groups of respondents. This study makes an initial contribution to an area potentially rich in research opportunities, with subsequent meaningful practical implications for managers implementing employment equity strategies.
Source: Management Dynamics : Journal of the Southern African Institute for Management Scientists 17, pp 31 –43 (2008)More Less
Owing to the absence of accounting standards for the preparation of a value-added statement (VAS), a large variety of methods are used in financial statements. In this study the published value-added statements (PVAS) of companies listed on the JSE Securities Exchange during the period 1976-2005 have been standardised by the Graduate School of Business of the University of Stellenbosch (USB) in order to quantify the differences between the standardised VAS (SVAS) and the PVAS.
These differences consist of the inclusion of items that do not belong in the VAS, items that are erroneously allocated among the distribution to stakeholders, and interpretation differences in whether a certain item forms part of the calculation of value added or the distribution thereof. The greatest difference quantified was the overstatement of the distribution to government that amounted to 54.4% of total differences.
For users, including government, to properly calculate and compare the value added of different business entities, a standard for the preparation and presentation of VAS ought to be published. In the South African context the need of a precise measurement of each business entity's contribution to the growth of the national economy is relevant, and this need should also be addressed.