- Title
- The development of sustainability ratios for public listed companies
- Creator
- Anywar, Apio Dorcas
- Subject
- Business enterprises -- Finance
- Date Issued
- 2019
- Date
- 2019
- Type
- Thesis
- Type
- Doctoral
- Type
- DBA
- Identifier
- http://hdl.handle.net/10948/40229
- Identifier
- vital:35991
- Description
- Financial analysis is important when assessing a business’ financial as well as economic performance, and ratios are among the best known and most widely - used tools for financial analysis. Ratios act as a benchmarking and trend analysis tool by disclosing relationships as well as bases of comparison that reveal conditions and trends that cannot be detected by the individual components of the ratio. In addition, there is a need to measure sustainability performance as sustainability aims to radically transform how businesses understand and create value. Measuring sustainability performance can determine whether a business is moving in the right direction. This study developed a proposed set of sustainability ratios that could be used to determine the efficient and effective sustainability performance of public listed companies in South Africa. The study used a mixed methods research approach in three phases consisting of ten steps. In Phase 1 (Step 1), a secondary research in the form of a literature review was conducted. The critically evaluated secondary literature sources were used to create a theoretical framework of sustainability ratios and a ‘schedule for content analyses. In Phase 2 (Steps 2, 3, 4, 5), a quantitative content analysis of sustainability reports of FTSE/JSE Responsible Investment Top 30 Index companies was performed to obtain the variables that were used to calculate the sustainability ratios in the theoretical framework. It also identified additional sustainability ratios that were used by companies in practice, but that were not included in the theoretical framework of sustainability ratios. The sustainability ratios from the theoretical framework were calculated using the variables collected from the sustainability reports. Thereafter, descriptive statistical techniques were used to analyse the results. Lastly, in Phase 3 (Steps 6, 7, 8, 9), qualitative criteria were used to test the variables for the sustainability ratios that could not be calculated and to select the ratios from those calculated, reported and tested to be included in the proposed set of sustainability ratios. The purpose of Phase 3 was to test the usability, relevance, measurability, understandability and comparability of the sustainability ratios proposed in the theoretical framework as well as the sustainability ratios that were applied in the content of sustainability reports in South Africa. Step 10 represented the outcome of the study, a set of sustainability ratios was proposed. A set of 101 sustainability ratios were proposed. The proposed set of sustainability ratios linked the different sustainability issues to financial results by classifying them into four main categories, namely, (i) sustainable operational efficiency and effectiveness ratios (SOEE), (ii) sustainable risk - minimisation ratios (SRM), (iii) sustainable reputation – brand value ratios (SRBV) and (iv) sustainable innovation ratios (SI). These sustainability ratios could be used to assess the efficiency and effectiveness of a business’ sustainability strategies, its risk minimisation strategies, innovative capacities and reputation as well as brand value enhancing strategies. As the concern for business sustainability increases, the proposed sustainability ratios might satisfy the concerns of customers and stakeholders. These proposed ratios could also be refined in the future.
- Format
- xviii, 387 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | APIO DORCAS ANYWAR.pdf | 6 MB | Adobe Acrobat PDF | View Details Download |