Cumulative factors : INET versus USB

Madinga, Phillip Austin (1999-03)

Thesis (MBA)--Stellenbosch University, 1999.

Thesis

ENGLISH ABSTRACT: This is a comparative study to determine the accuracy of the cumulative factors calculated and used by INET and the University of Stellenbosch, Graduate School of Business (USB). These factors are calculated whilst taking into account the changes in capital structure due to the effects of share splits (splits), consolidations and capitalisation issues in the calculation of dividends per share (both interim and final), and closing share prices. For this purpose the data of 350 listed industrial companies on the Johannesburg Stock Exchange was evaluated over a 28-year period (1970-1997). In cases where a company was delisted before the date of the financial year-end 1997, that company was deleted from the study for the full period. The analysis of share splits, consolidations and capitalisation issues in the calculation of a cumulative factor for the determination of dividends per share and closing share prices, is therefore of critical importance. It is important to the companies as well as parties who are involved in maintaining data of listed companies on the Johannesburg Stock Exchange. It is also important to those who use this data for research purposes. South African studies using dividends per share and share prices from INET or the USB assume that the data is accurate. This study is an effort to verify the accuracy of the two mentioned databases. The results of the study clearly suggest or indicate that there are indeed numerous inaccuracies (differences) between the data kept by both INET and USB databases. It is therefore important that the data be revisited so that these anomalies can be rectified.

AFRIKAANSE OPSOMMING: Hierdie is 'n vergelykende studie om die akkuraatheid te bepaal van die kumulatiewe faktore soos deur INET en die Universiteit van Stellenbosch se Nagraadse Bestuurskool (USB) bereken en gebruik. Hierdie faktore word bereken om die effek van die onderverdeling en konsolidasie van aandele, asook kapitalisasie-uitgifte op die dividend per aandeel (beide interim en finaal) en sluitingsaandeelpryse te bepaal. Vir hierdie doel was die data van 350 industriele maatskappye wat op die Johannesburgse Aandelebeurs genoteer is oor 'n 28-jaar periode (1970-1997) geevalueer. In gevalle waar die maatskappye voor die finansiele jaareinde 1997 gedenoteer is, is die maatskappy uit die studie weggelaat. Die analise van onderverdeling en konsolidasie van aandele en kapitalisasie-uitgifte in die berekening van 'n kumulatiewe faktor vir die bepaling van dividend per aandeel en die sluitingsaandeelpryse, is van kritiese belang. Dit is belangrik vir die maatskappye en ander belanghebbendes wat gemoeid is met die instandhouding van data van genoteerde maatskappye op die Johannesburgse Aandelebeurs. Dit is ook van belang vir diegene wat die data vir navorsingsdoeleindes gebruik. Suid-Afrikaanse studies wat op dividend per aandeel en aandeelpryse van INET of die USB gebaseer is, veronderstel dat die data korrek is. Hierdie studie poog om die akkuraatheid van die genoemde twee databasisse te verifieer. Die resultate van die studie toon duidelik aan dat daar 'n hele aantal onakkuraathede (verskille) tussen die data onderhou deur beide INET en die USB bestaan. Dit is dus belangrik dat die data weer ondersoek word ten einde verskille uit die weg te ruim.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/51189
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