An empirical analysis of the value added statements of 65 companies for the period 1977-2000

Geldenhuys, Barend Petrus (2004-03)

Thesis (MBA)--Stellenbosch University, 2004

Thesis

ENGLISH ABSTRACT: Value added is the wealth that a reporting entity has been able to create by its own and its employees' efforts. A Value Added Statement (VAS) reports on how this value added is shared between employees, providers of capital, the state and reinvestment. In order to put wealth created by an organization in proper perspective, the users of VAS should be able to compare the results in a statement of an entity over a given period of time to evaluate trends and should furthermore be able to compare the statements of various companies in order to determine the relative performance of a company in the creation of wealth. Little empirical work has been done on Value Added Statements in South Africa resulting in a lack of standards or benchmarks against which to judge/compare the value-added data and ratios of different entities. The aim of this study was to contribute towards creating a data bank, which ultimately will be used in setting industry standards. This study was limited to 65 companies, which published Value Added Statements for five or more consecutive years and disclosed the number of employees during the period 1977 to 2000. The research is of an exploratory nature and it was decided to focus on the following aspects of a Value Added Statement in order to calculate standards or benchmarks: (a) Common size Value Added Statements. (b) Compound growth rates for the different elements of a Value Added Statement. (c) Annual growth rates of sales/employee, salaries and wages/employee and valueadded/ employee. Certain trends were identified.

AFRIKAANSE OPSOMMING: Toegevoegde waarde is die rykdom wat 'n verslaggewende eenheid skep deur eie en werknemers se pogings. Toegevoegdewaardestate (TWS) doen verslag oor hoe hierdie toegevoegde waarde gedeel word tussen die werknemers, kapitaalvoorsieners, die staat en herinvestering. Ten einde die rykdom wat deur 'n organisasie geskep is in toepaslike perspektief te sien, moet die gebruikers van TWS hierdie resultate, kan vergelyk oor 'n gegewe tydperk ten einde tendensie-ontledings te kan doen. Verder moet die gebruikers van TWS 'n vergelyking kan maak tussen die state van verskillende maatskappye om sodoende die relatiewe prestasie in die skepping van rykdom te evalueer. In Suid-Afrika is min proefondervindelike navorsing gedoen oor TWS, met die gevolg dat daar 'n gebrek aan standaarde of beginpunte is waarteen die toegevoegde waarde data en verhoudings van verskillende maatskappye gemeet kan word. Die doel van hierdie studie is om by te dra tot die databank wat uiteindelik gebruik sal word in die daarstelling van bedryfstandaarde. Die studie is beperk tot 65 maatskappye wat TWS vir 'n tydperk van vyf of meer opeenvolgende jare gepubliseer het asook die hoeveelheid werknemers vir die tydperk 1977 tot 2000 bekend gemaak het. Die navorsing is ondersoekend van aard en daar is gefokus op die volgende aspekte in die daarstelling van standaarde en beginpunte in 'n Toegevoegdewaardestaat: (a) Gemene grootte Toegevoegdewaardestate. (b) Saamgestelde groeikoers vir die verskillende komponente van TWS. (c) Jaarlikse groeikoers in toegevoegde waarde, verkope/werknemers, toegevoegde waarde/werknemers en salarisse en lone/werknemers. Sekere tendensies is geidentifiseer.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49837
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