Faculty of Accounting and Informatics
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Item An evaluation of the level of financial reporting compliance of public schools in KwaZulu-Natal(Universitas Negeri Yogyakarta, 2023) Maama, Haruna; Zungu, Amos; Oluka, Alexander Markey; Marimuthu, FerinaThe financial management and reporting practices of public schools in KwaZulu-Natal (KZN) are a matter of concern. Section 42 of the South African Schools Act (SASA) requires that the Member of the Executive Council (MECs) for Education in KZN develops financial reporting guidelines for the schools. As a result, each province in South Africa has its l financial reporting guidelines that provide a framework for schools to report their financial information accurately and transparently. However, there are concerns about the lack of financial accountability and transparency emanating from improper financial reporting on the parts of the schools. Poor reporting practices of KZN schools may lead to negative consequences such as financial mismanagement, misappropriation of funds, and inability to account for expenditures. As a result, this study examined how public ordinary schools complied with the financial reporting requirements set forth by the KZN Provincial Department of Education (PDE). The study used a content analysis method to collect data from 58 schools’ yearly financial statements over a two-year period. Descriptive statistics were used to analyze the quantitative data gathered from the financial statements to assess the degree of conformity with KZN PDE financial reporting rules. The findings revealed various instances of public schools failing to follow the rules. The schools’ reporting practices were particularly poor since they did not adhere to the reporting standards. The research contributes to understanding financial reporting compliance levels among schools in KZN. The study also provides recommendations to improve compliance and promote school financial accountability.Item A longitudinal analysis of environmental reporting practices of listed manufacturing firms in South Africa(CSRC Publishing, Center for Sustainability Research and Consultancy, 2023-03) Mgilane, Nolwando; Maama, Haruna; Marimuthu, FerinaPurpose: Environmental reporting has become a buzzword in the corporate reporting ecosystem, prompting questions about how firms practise it. This study aims to assess the environmental reporting practices of manufacturing firms listed on the JSE in South Africa. Design/methodology/approach: The data collection involved using a content analysis method to extract environmental information from the annual reports of 50 manufacturing firms from 2016 to 2020. Descriptive analysis and Wilcoxon signed ranked test were used to present the trend results and significance level in the changes of environmental reporting over the years. Findings: The results demonstrated an increasing trend in environmental reporting amongst the firms. Notably, the firms disclosed more information about their social and environmental activities, with little reporting emphasis on environmental degradation. The evidence further showed a significant increase in environmental reporting practices over the years. These findings complement the arguments of the legitimacy disclosure theory, suggesting that a quality environmental disclosure portrays firms as environmentally accountable and responsible, resulting in a competitive advantage and winning the trust of the public. Implications/ Originality/value: The study solidifies the existing definitions of legitimacy and stakeholder theory. It also provides consolidated evidence on the movements and trends amongst the social and environmental practices from JSE-listed manufacturing firms' perspectives.Item Does the corporate governance practice support the corporate financial performance of banking industries in Ethiopia? : panel data analysis(International Institute for Science, Technology and Education, 2023-01) Kotiso, Mesele Shiferaw; Marimuthu, Ferima; Maama, HarunaThe high-profile corporate collapses and failures in early 2000s changed the image of accounting, auditing, and regulatory environments. As a result, the need for implementing effective corporate governance practice (CGP) in corporate financial institutions has gained significant attention worldwide. Effective CGP paves the way for access to finance, lower cost of capital, better corporate financial performance (CFP), and favourable treatment by all stakeholders. This study examines the relationship between corporate governance variables and financial performance in the Ethiopian banking industry. The board size, independence, educational level of board and audit committee characteristics were employed as measures of corporate and return on assets (ROA) and return on equity (ROE) as financial performance metrics. The study involves a census of all major financial institutions supervised by the National Bank of Ethiopia (NBE) for six years, 2015-2020. The main finding of this study revealed that the existence of board independence, the presence of an audit committee, the financial leverage ratio and financial institution size have a positive significant influence on CFP. Therefore, this study offers an important implication for developing corporate governance and capital structure to support underdeveloped financial institutions. This makes a significant contribution to the existing literature by addressing the specific context of Ethiopian banking industries, filling a gap in knowledge regarding the relationship between corporate governance and financial performance in this sector.Item Review of sustainable transformative performance : governance and accountability imperatives(International Institute for Science, Technology and Education, 2023-01) Maama, Haruna; Marimuthu, FerimaThe present organisational and business landscape makes the quest for sustainable transformative performance an urgent imperative. Because of this, it is crucial to synthesise and understand the many facets of sustainable transformative performance, with a focus on the need for governance and accountability. This paper reviews the relationship between corporate governance, accountability, and sustainable transformative performance imperatives. The paper draws on the knowledge from several research papers submitted to the Issues in Social and Environmental Accounting Journal special issue publication. It thoroughly analyses various perspectives on sustainable transformation, ranging from environmental sustainability and disclosure practices to the function of governance, organisational culture, and responsible investing. Alongside these issues, the paper also explores the integration of technological governance, its impact on innovation, and the nuanced relationship between financial performance, firm size, and corporate practices. Through these thematic lenses, this paper highlights the significance of aligning governance frameworks, fostering accountability, and embracing responsible practices to drive sustainable transformative performance. The findings of the paper provide valuable insights to practitioners, policymakers, and researchers, shedding light on the complex nature of sustainable transformation and the imperative of effective governance and accountability. The conclusion drawn from the study highlights the transformative power of ethical decision-making, creative governance models, and responsible behaviours in promoting sustainability, good governance and value-driven performance.Item The role of environmental disclosures in enhancing firm value : evidence from listed manufacturing firms(International Institute for Science, Technology and Education, 2023-01) Mgilane, Nolwando L.; Maama, Haruna; Marimuthu, FerinaThe traditional approach to financial performance reporting has experienced a significant shift as stakeholders increasingly demand greater transparency regarding firms' environmental and social impact. This has elevated the importance of environmental reporting due to its potential influence on firms' financial strength. This study investigates the relationship between environmental reporting and the value of manufacturing firms listed on the Johannesburg Stock Exchange (JSE) in South Africa. The study conducted a content analysis on 250 annual integrated reports from 50 manufacturing firms listed on the JSE between 2016 and 2020 and utilized a multiple regression analysis. The findings revealed a negative relationship between environmental reporting and firm value, suggesting that adopting environmental reporting may involve additional financial resources, which are perceived as an outflow of funds in an economic context. Consequently, this study recommends that manufacturing companies analyse their stakeholders' characteristics and information needs to present relevant environmental reporting in their annual integrated reports. By doing so, companies can enhance their legitimacy with stakeholders, maximise shareholder value, and ultimately increase firm value. This research contributes to the existing literature on environmental, social, and financial reporting, particularly in South Africa, by focusing specifically on manufacturing firms listed on the JSE.Item A review of accounting, management and sustainability imperatives of sustainable transformative performance(International Institute for Science, Technology and Education, 2023-01) Maama, HarunaIn the dynamic contemporary business environment, sustainability has evolved as a central pillar of organisational performance, as financial performance is no longer considered a firm's sole objective. However, the impact of sustainability practice on accounting, management and strategies has been told in a disparate manner. As a result, this systematic literature review analyses and synthesises the complex intersection of accounting, management practices, and the compelling mandates of sustainability. This literature review covers numerous facets of organisational practices and performance as it moves through several research themes involving the nexus of accounting, management, and sustainability. The study reviews topics like financial valuation and reporting, looking at the complex connection between financial performance and sustainability disclosures. The study also discusses management and accounting procedures, looking closely at how organisations are changing their plans to comply with sustainability requirements. This covers issues including fraud prevention techniques and cost management focusing on sustainability. The review also looks into the complex effects of sustainability practices on economic development, growth, and investment. It discusses how foreign direct investments affect the sustainability of host nations' economies. In addition, the study explores the views of educators on the efficacy of efforts focused on sustainability within the context of education and academia. The study also examines career paths in accounting academia to shed light on how educational institutions contribute to a sustainable future. Finally, the study examines gender variations in employee attrition and how talent management strategies are perceived. This is done by focusing on talent management and human resources.Item Impact of environmental disclosure on financial health of manufacturing firms(Cosmos S.A., 2023) Marimuthu, Ferina; Mgilane, Nolwando; Maama, HarunaEnvironmental reporting can help firms stay in compliance with environmental regulations and manage environmental risks. By proactively addressing and disclosing their environmental impact, manufacturing firms can mitigate potential legal and regulatory penalties, fines, and reputation damage, thereby safeguarding their financial performance. In addition to the latter perspective, cost savings and operational efficiency, enhanced reputation and stakeholder engagement, as well as access to capital and investment opportunities, are critical factors to ensure that firms disclose information about their environmental performance, including its impact on the environment, sustainability initiatives, and environmental risks and opportunities to ensure that they maximise their financial performance. Hence, the aim of this study is to explore the relationship between environmental reporting and financial performance of South African listed manufacturing firms. A multiple regression analysis was adopted to achieve the aim by testing the relationship between the variables amongst a sample of 50 manufacturing firms listed on the Johannesburg Stock Exchange (JSE). A content analysis was utilized to attain environmental reporting information themes from the integrated annual reports retrieved from the JSE for the period 2016 to 2020. The results indicate a negative association between environmental reporting responsibility and financial performance, measured by return on equity (ROE) when the components of environmental reporting are tested individually. However, when these components namely: environmental reporting, social reporting and environmental degradation are combined the findings reveal a positive and statistically significant relationship. These results imply that the adoption of environmental reporting, specifically an increase on the quality of environmental reporting results in an increase in the manufacturing firm performance.Item The determinants of financial performance of South African state-owned entities(PT Keberlanjutan Strategis Indonesia, 2023) Marimuthu, Ferina; Mvunabandi, Jean Damascene; Maama, HarunaSeveral state-owned enterprises (SOEs) have severally faced imminent collapse, resulting in various support from the government. This has increased the debt level of the government and the SOEs. The study examined the factors that influence the financial performance of South African SOEs. This study used a quantitative methodology and secondary data of 33 South African SOEs from 1995 to 2017. The data were analysed using a multiple regression model and the GMM estimation technique. The study's conclusions show a statistically significant inverse relationship between capital structure and financial performance. The evidence further showed that government intervention in financial assistance, such as grants, funds, rebates, and subsidies, has contributed to the poor performance of SOEs. The inverse association suggests that the SOEs performance continues to worsen despite government support, which is quite concerning. The results demonstrate that government support is not a sound choice for developing SOEs since it makes management more dependent on it to meet operational needs and seize expansion possibilities. Additionally, the increased use of debt stresses government finances due to the rise in government guarantees. The study concludes that, contrary to the agency theory, leverage does not enhance SOEs' performance, suggesting they should be careful when selecting their capital structure. Finally, the South African SOEs’ performance is being hampered by government support. The findings have several policy implications for the government and the management of SOEs.Item Firm-specific determinants of aggressive Tax management among East African firms(EconJournals, 2023) Kimea, Alfred James; Mkhize, Msizi; Maama, HarunaSince tax represents an inflow of revenue to the government and an outflow of revenue to firms, factors that influence the tax planning activities of firms have gained considerable attention among management, shareholders, policymakers and researchers. Following the impact of taxation on an economy and a firm, the study investigated the factors that influence aggressive tax management practices of firms listed in East African economies. Data were collected from 99 firms for an 11-year period, from 2008 to 2018. Both cash effective tax rate and accounting effective rate were used as measures of tax planning. Multiple regression models were used for the estimation. The study results showed that smaller firms are more tax aggressive compared with larger firms, which is consistent with the political cost theory. This finding may alert policymakers and regulatory authorities (for example, revenue authorities) that small firms are most likely to avoid paying taxes compared with larger firms. This might be associated with fewer regulations and enforcements imposed on this category of business. The evidence further demonstrated that profitable firms are less tax aggressive. Consistent with the political power theory, this study has confirmed the view that profitable firms have enough earnings to pay their taxes and thus are less tax aggressive. The study further found that older firms are less involved in tax avoidance. This study has policy implications as it will assist both policymakers and firm management in their decision-making. Shareholders and firm management would benefit by understanding why some firms successfully reduce their tax burden compared to other firms.Item The transformative effect of South African higher education policy frameworks through the lens of Margaret Archer’s sociological concepts(CV. Radja Publika, 2023) Maama, HarunaAfter the end of the apartheid regime, the South African Government and other stakeholders have made several commitments to enhance and transform the nation's educational system, particularly higher education. To achieve this, the government implemented several educational reforms, passed legislation, and established policies. Despite some discussions and debates surrounding educational improvement, there is still a lack of comprehensive analysis that examines the specific contributions, challenges, and potential challenges of these policy frameworks in driving positive transformations. Accordingly, this research examines the transformative impact of South African Higher Education policy frameworks using Margaret Archer's morphogenetic theory as an analytical framework. The study conducts a desktop document analysis of published literature, including policy documents from the South African government, to explore the contributions and challenges of these policy frameworks. The analysis reveals a lack of significant changes in agency, social, and cultural structures, indicating the absence of morphogenesis processes. Furthermore, there is a lack of commitment from various agents to the policy objectives, particularly evident in weaknesses in fulfilling mandates and the resulting institutional instability due to student protests. The study highlights that the anticipated impact of policies, strategies, and financial resources may have fallen short of expectations regarding the transformation process. The findings contribute to understanding the limitations and effectiveness of South African Higher Education policy frameworks, offering insights into the complex dynamics between structure, culture, and agency. This research informs policymakers, educators, and stakeholders involved in higher education by providing recommendations to enhance the transformative potential of these policy frameworks. The research has broader implications for understanding educational improvement and policy frameworks in other contexts, as the insights gained from this study can be applicable and valuable to similar settings facing challenges in educational reforms..