Browsing by Author "Vermeulen, M."
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- ItemConsolidation of the number of treasury shares : the South African experience(AOSIS, 2014) Vermeulen, M.; Yaffar, Y.Unlike most other values found in companies’ annual reports, there are no accounting standards that prescribe the calculation of market capitalisation and net asset value per share. These two figures play quite a significant role when valuing and comparing different companies. It is also frequently used in determining when a company should repurchase its own shares. In South Africa the number of the holding company’s shares can differ from the total number of the group’s shares after consolidation, as subsidiaries and share trusts are allowed to hold shares in their holding company. The published financial statements of a sample of JSE-listed companies were investigated to determine which number of shares companies use to calculate net asset value per share and market capitalisation, and if it is used consistently. Eight different combinations of consolidated and unconsolidated numbers of shares were found in the calculations of market capitalisation and net asset value per share showing inconsistency in application across the JSE-listed companies.
- ItemDividend payout and future earnings growth : a South African study(AOSIS, 2011) Vermeulen, M.; Smit, E. v d M.Conventional wisdom posits that the payment of dividends will decrease the funds available to finance growth, and will therefore lead to lower future earnings growth. This belief was challenged in recent years with research that tested the relationship between dividend payout and future earnings growth, both on the individual company level and aggregate market level in different countries. Recent results contradict popular belief, and show that companies with high payout ratios tend to realise stronger future earnings growth. This study investigated the same relationship in South Africa, as an example of a developing country, using a large sample of 12,669 company-years over the period 1973 to 2009. The results fully support recent findings that dividend payouts precede higher future earnings growth.
- ItemShare repurchases in the South African mining sector(AOSIS, 2014) Vermeulen, M.The purpose of this study was to obtain an overview of the share repurchase activities of companies listed in the mining sector of the JSE, and to determine the extent to which detail information of these share repurchases are available on public data sources such as SENS (Securities Exchange News Service - the office of the JSE that distributes all relevant company information electronically). The study focused on a period of 11 years, from July 1999 until the 2010 financial year-end. The annual reports of a sample of companies were analysed to determine the number of shares, as well as the monetary value of the shares that were repurchased. The SENS announcements were then scrutinised to determine the number of share repurchases recorded in the annual reports that were announced to shareholders. From a total of 55 share repurchase transactions, only 23 transactions were announced on SENS. The repurchase transactions were then further analysed in terms of the method used (general or specific repurchase), the repurchasing entity (company, subsidiary or share trust) and the subsequent sale of treasury shares from the subsidiary to the holding company. It was concluded that the majority of share repurchases are announced. However, if only companies with primary listings on the JSE are considered, 60% of share repurchases are not announced. The use of the general and specific methods are more or less equal for companies with primary listings on the JSE, but for companies with secondary listings on the JSE, 98% of repurchases are general. Of the specific share repurchases of companies with primary listings about 46% are not announced, but of the general share repurchases about 77% are not announced. Since share repurchases made by companies with secondary listings on the JSE were significant in terms of numbers and value, it changed the total statistics substantially from what it would be if only companies with primary listing on the JSE were considered. Even though about 85% of total share repurchases are announced, studies on share repurchases cannot rely on SENS announcements only, since this would exclude a significant portion of the repurchase activities of companies with primary listings on the JSE (60%), and therefore lead to unreliable results.
- ItemStrategic local manufacturing supplier development roadmap as a decision support tool(Elsevier, 2019) Vermeulen, M.; Oosthuizen, G. A.ENGLISH ABSTRACT: Local manufacturing suppliers are critical to a country’s economy and to ensure sustainability. In order to address all key areas for developing a local manufacturing supplier (LMS) from the informal- to the formal economy a strategic approach is required. A systematic literature study was conducted to establish the theoretical foundation. The conceptual roadmap was validated using case studies and the key elements, sequence of development phases, types of development projects and the role each stakeholder plays along the development of local suppliers were evaluated. This holistic roadmap for developing a LMS, as a strategic decision support tool can assist the end user to make informed decisions of the current maturity level and to determine the most appropriate LMS to develop. The roadmap further establishes a clear prioritised action plan relative to its maturity phase.