Abstract
M.Com. (International Accounting)
There is a critical question being asked as to whether or not Black Economic Empowerment has benefited the companies that have adopted it. The objective of this paper is to evaluate whether there is a positive or negative relationship between company performance and employment equity appointments at board level. For the purpose of this paper, company performance is measured by using the return on equity and the price earnings ratio. Black Economic Empowerment data from the Top 40 companies listed on the Johannesburg Stock Exchange was obtained and evaluated. A quantitative analysis in the form of a correlation analysis was performed between black board management representation and company performance. The overall results of this paper suggests that there is no relationship between black board management representation and return on equity, and that there is a negative relationship between black board management representation and the price earnings ratio.