Organisational culture and financial performance in a South African investment bank.
- Davidson, G., Coetzee, M., Visser, D.
- Authors: Davidson, G. , Coetzee, M. , Visser, D.
- Date: 2007
- Subjects: Denison organisational culture survey , Culture trait , Financial performance , Income statement ratio analysis , Investment bank , Organisational culture , Profitability ratios
- Type: Article
- Identifier: uj:6430 , http://hdl.handle.net/10210/1297
- Description: The relationship between the organisational culture and financial performance of a South African investment bank was explored in this study. The Denison Organizational Culture Survey was used to measure the organizational culture and was administered to a sample of 327 employees. Income statement ratio analyses were used to assess the financial performance. The validity and reliability of the Denison Organizational Culture Survey was examined in a South African context for the first time. High correlations between the cultural traits suggested that the items were measuring a single trait rather than four distinguishable traits. Correlations above the 0.50 level between some subscales (team orientation, agreement, customer focus, core values and vision) and certain financial ratios were obtained. However, the results were regarded as tentative, because statistical significance was not reached for most of the correlations. The cultural trait consistency was significantly correlated with two of the four profitability ratios.
- Full Text:
- Authors: Davidson, G. , Coetzee, M. , Visser, D.
- Date: 2007
- Subjects: Denison organisational culture survey , Culture trait , Financial performance , Income statement ratio analysis , Investment bank , Organisational culture , Profitability ratios
- Type: Article
- Identifier: uj:6430 , http://hdl.handle.net/10210/1297
- Description: The relationship between the organisational culture and financial performance of a South African investment bank was explored in this study. The Denison Organizational Culture Survey was used to measure the organizational culture and was administered to a sample of 327 employees. Income statement ratio analyses were used to assess the financial performance. The validity and reliability of the Denison Organizational Culture Survey was examined in a South African context for the first time. High correlations between the cultural traits suggested that the items were measuring a single trait rather than four distinguishable traits. Correlations above the 0.50 level between some subscales (team orientation, agreement, customer focus, core values and vision) and certain financial ratios were obtained. However, the results were regarded as tentative, because statistical significance was not reached for most of the correlations. The cultural trait consistency was significantly correlated with two of the four profitability ratios.
- Full Text:
Validation of key relationships in an extended service-profit chain model in the South Africa retail industry context.
- Authors: Verwey, A.M. , Carstens, L.
- Date: 2003
- Subjects: Service profit chain model , Financial performance , Relationship quality , Conceptual model
- Type: Article
- Identifier: uj:5657 , http://hdl.handle.net/10210/2896
- Description: The purpose of the study was to evaluate an extended conceptual model depicting hypothesised relationships between employee climate, customer value and financial performance. Questionnaires assessing employee experienced climate and customer-experienced value were completed by all the employees (more than 1200) and more than 2000 customers of a single retail company operating almost 100 stores in Southern Africa. The major findings were that some of the components of employee-experienced climate are positively related to customer experienced value in terms of both product and relationship quality. There was no significant relationship between customer-experienced value and the financial performance of the organisation.
- Full Text:
- Authors: Verwey, A.M. , Carstens, L.
- Date: 2003
- Subjects: Service profit chain model , Financial performance , Relationship quality , Conceptual model
- Type: Article
- Identifier: uj:5657 , http://hdl.handle.net/10210/2896
- Description: The purpose of the study was to evaluate an extended conceptual model depicting hypothesised relationships between employee climate, customer value and financial performance. Questionnaires assessing employee experienced climate and customer-experienced value were completed by all the employees (more than 1200) and more than 2000 customers of a single retail company operating almost 100 stores in Southern Africa. The major findings were that some of the components of employee-experienced climate are positively related to customer experienced value in terms of both product and relationship quality. There was no significant relationship between customer-experienced value and the financial performance of the organisation.
- Full Text:
The relationship between financial performance and executive remuneration in South African state owned enterprises: an agency theory perspective
- Otieno, Druscilla Ogore Adhiambo
- Authors: Otieno, Druscilla Ogore Adhiambo
- Date: 2012-06-06
- Subjects: Executive remuneration , State owned enterprises , Financial performance
- Type: Mini-Dissertation
- Identifier: uj:2531 , http://hdl.handle.net/10210/4986
- Description: M.Comm. , Although there has been extensive research done on agency theory and in particular the relevance of agency predictions on executive remuneration, the focus of these studies has generally been on public companies. These research studies have mainly centred on quantitative methods using regression analysis techniques to explore the relationship between various financial performance variables and remuneration variables. The consistency of the findings with agency theory in these studies suggests the importance of remuneration schemes in the agency conflict. In relation to state owned enterprises (SOEs), the extent to which the predictions of agency theory can be applied in determining the relationship between financial performance and executive remuneration within these entities is limited. This study is therefore aimed at determining the relationship between financial performance and executive remuneration in South African SOEs within the context of agency theory using (net) profit, revenue and total assets as measures of financial performance. The findings show that in line with previous studies, the positive relationship between financial performance and executive remuneration in South African SOEs is consistent with the tenets of agency theory. Significantly, the results obtained in such a study could have pertinent policy applications in ensuring the negative impact of the principal-agent relationship in SOEs is minimised and executive remuneration schemes are designed to alleviate some of the costs arising from the agency relationship by aligning as far as possible the interests of the principal (the Government) and the agent (executive management).
- Full Text:
- Authors: Otieno, Druscilla Ogore Adhiambo
- Date: 2012-06-06
- Subjects: Executive remuneration , State owned enterprises , Financial performance
- Type: Mini-Dissertation
- Identifier: uj:2531 , http://hdl.handle.net/10210/4986
- Description: M.Comm. , Although there has been extensive research done on agency theory and in particular the relevance of agency predictions on executive remuneration, the focus of these studies has generally been on public companies. These research studies have mainly centred on quantitative methods using regression analysis techniques to explore the relationship between various financial performance variables and remuneration variables. The consistency of the findings with agency theory in these studies suggests the importance of remuneration schemes in the agency conflict. In relation to state owned enterprises (SOEs), the extent to which the predictions of agency theory can be applied in determining the relationship between financial performance and executive remuneration within these entities is limited. This study is therefore aimed at determining the relationship between financial performance and executive remuneration in South African SOEs within the context of agency theory using (net) profit, revenue and total assets as measures of financial performance. The findings show that in line with previous studies, the positive relationship between financial performance and executive remuneration in South African SOEs is consistent with the tenets of agency theory. Significantly, the results obtained in such a study could have pertinent policy applications in ensuring the negative impact of the principal-agent relationship in SOEs is minimised and executive remuneration schemes are designed to alleviate some of the costs arising from the agency relationship by aligning as far as possible the interests of the principal (the Government) and the agent (executive management).
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The impact of racial diversity of executive managers on financial performance of South African State-Owned Enterprises
- Authors: Hlobo, Modi
- Date: 2019
- Subjects: State-owned companies , Racial diversity , Financial performance
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/402094 , uj:33635 , Citation: Hlobo, M. 2019. The impact of racial diversity of executive managers on financial performance of South African State-Owned Enterprises.
- Description: Abstract: Globally corporate company are embracing both gender and racial diversity and they are beginning to witness its impact on performance. Several researchers have revealed that with increased diversity, companies can gain access to unique networks, information and human capital which ultimately improves financial performance (Carter, D’Souza, Simkins, & Simpson, 2010). In this paper, we investigate whether racial diversity at executive management level bears financial benefits, particularly in a South African context where since the dawn of democracy, regulations such as the Employment Equity Act of 1998 require companies to racially diversify their workforce. This research analyses data from 21 major State Owned Companies (SOC) from (2011 to 2014). The study used correlation and regression analysis to examine the relationship between the racial composition of executive managers (i.e. whether they are Black, White, Indian or coloured) in these companies and the companies’ financial performance (i.e. Profit Margin, Return on Assets as well as Fruitless and Wasteful Expenditure as a percentage of revenue). The results indicate that there is slow progress made by the South African government on including blacks at their executive management teams within SOCs. Furthermore, we also find no correlation between the racial diversity of the management teams and the financial performance) of these SOCs. These findings are significant, particularly for South African regulators and policy makers, as they provide justification for increased efforts to racially diversify the South African executive management teams in SOCs. This is important since numerous studies have demonstrated that such diversity was financially beneficial particularly in the private sector.
- Full Text:
- Authors: Hlobo, Modi
- Date: 2019
- Subjects: State-owned companies , Racial diversity , Financial performance
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/402094 , uj:33635 , Citation: Hlobo, M. 2019. The impact of racial diversity of executive managers on financial performance of South African State-Owned Enterprises.
- Description: Abstract: Globally corporate company are embracing both gender and racial diversity and they are beginning to witness its impact on performance. Several researchers have revealed that with increased diversity, companies can gain access to unique networks, information and human capital which ultimately improves financial performance (Carter, D’Souza, Simkins, & Simpson, 2010). In this paper, we investigate whether racial diversity at executive management level bears financial benefits, particularly in a South African context where since the dawn of democracy, regulations such as the Employment Equity Act of 1998 require companies to racially diversify their workforce. This research analyses data from 21 major State Owned Companies (SOC) from (2011 to 2014). The study used correlation and regression analysis to examine the relationship between the racial composition of executive managers (i.e. whether they are Black, White, Indian or coloured) in these companies and the companies’ financial performance (i.e. Profit Margin, Return on Assets as well as Fruitless and Wasteful Expenditure as a percentage of revenue). The results indicate that there is slow progress made by the South African government on including blacks at their executive management teams within SOCs. Furthermore, we also find no correlation between the racial diversity of the management teams and the financial performance) of these SOCs. These findings are significant, particularly for South African regulators and policy makers, as they provide justification for increased efforts to racially diversify the South African executive management teams in SOCs. This is important since numerous studies have demonstrated that such diversity was financially beneficial particularly in the private sector.
- Full Text:
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