Abstract
M.Com. (Financial Management)
The main purpose of this research study is to compare the performance of companies
listed on the Top 40 Index and the AltX Index of the JSE Ltd. The study also looks at
the companies that had better returns with less risk on both the AltX Index and the
Top 40 Index. The study uses data on 32 listed companies from the AltX Index and
the Top 40 Index over a five-year period, from 2012 to 2016. Using risk as a key factor
in determining performance, this study identifies which stock exchange platform
performs comparatively better using information on participating and listed companies
on the two exchanges. To determine performance, returns are calculated for the
market portfolio and the individual firms. The pooled regression model and Ordinary
Least Square (OLS) model are used as methods of analysis. To ensure the reliability
of the results, all the necessary diagnostic tests were performed on the data. The
results show that systematic risks affect all equity returns of all companies listed on
the Top 40 Index and the AltX Index. The results further indicate that it is safer and
more profitable to invest in the Top 40 Index rather than the AltX Index. Most
companies listed on the Top 40 Index generated positive returns between 2012 and
2016 whereas only a few companies listed on the AltX Index generated positive
returns.