Abstract
This study aimed at investigating and comparing the financial performance between Royal Bafokeng shareholding companies and other listed companies. The study sample consisted of 14 companies from the financial services sector and 16 companies from the mining sector. These companies were all listed on the Johannesburg Stock Exchange (JSE) mainboard and were divided in two groups: Royal Bafokeng shareholding companies and other listed companies. The study was carried out in South Africa and covered a 5-year period from 2015 through to 2019. A quantitative research methodology was utilised, and financial ratio analysis was performed to analyse data. Return on assets (ROA), return on equity (ROE), price earnings (P/E), debt to equity ratio (DER) and asset growth (AG) were used to measure the financial performance between the two groups of companies. The results of the study revealed that in the financial services sector, Royal Bafokeng shareholding companies performed better than other listed companies in terms of mean ROE, P/E and DER. On the other hand, other listed companies in the same sector performed better than Royal Bafokeng shareholding companies in terms of mean ROA and AG. In the mining sector, Royal Bafokeng shareholding companies performed better than other listed companies in terms of mean PE and DER. Other listed companies in the mining sector on the other hand performed better than Royal Bafokeng in terms of mean ROA, ROE and AG. In summary, it was therefore established that, Royal Bafokeng shareholding companies outperformed other listed companies in the financial services sector. Other listed companies in the mining sector, on the other hand, outperformed Royal Bafokeng shareholding companies. Key Words Family business, financial performance, return on assets (ROA), return on equity (ROE), debt to equity ratio (DER), price earnings (P/E), asset growth (AG), financial ratio analysis, governance, traditional leadership, Royal Bafokeng.
M.Com. (Finance)