Record Details

Effect of Black Economic Empowerment on profit and competitiveness of firms in South Africa

Acta Commercii

 
 
Field Value
 
Title Effect of Black Economic Empowerment on profit and competitiveness of firms in South Africa
 
Creator Kleynhans, Ewert P.J. Kruger, Melinda C.
 
Subject Economics and Law BEE policy, firms, Black Economic Empowerment, micro-level, profits, competitiveness, efficiency, investment
Description Orientation: The key obstacle hindering optimal profitability levels and competitiveness in firms in South Africa is the application of labour legislation policies and tools aimed at narrowing the income gap between different racial groups and resolving inequality amongst a diverse workforce.Research purpose: This article determined whether the implementation of a Black Economic Empowerment (BEE) policy by companies has a positive effect on their growth in terms of profits and competitiveness.Motivation for the study: This study determined whether the implementation of BEE could be profitable for companies.Research design, approach and method: A quantitative study was undertaken in order to find empirical evidence supporting the relation between high BEE Scores, profitability and competitiveness. The empirical investigation utilised regression analysis, correlations and other methods, based on data between January 2009 and December 2011. The BEE Scorecard was used to obtain BEE scores of the top 50 BEE companies. Thereafter, the top 50 companies’ financial information was gathered from the Johannesburg Securities Exchange.Main findings: The implementation of BEE within companies has a positive effect on profitability, turnover and investment. Numerous factors have, however, been hindering,while other factors enhanced the success of BEE.Practical/managerial implications: The findings encourage mangers to engage in BEE as it may facilitate higher profits and indicates where labour legislation could be improved.Contribution/value-add: Value was added through new research determining the effects of BEE and labour legislation on profitability and competitiveness of firms on a micro-level.
 
Publisher AOSIS
 
Contributor not applicable
Date 2014-07-17
 
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — Literary review, descriptive statistics, correlations and regression analysis
Format text/html application/octet-stream text/xml application/pdf
Identifier 10.4102/ac.v14i1.200
 
Source Acta Commercii; Vol 14, No 1 (2014); 10 pages 1684-1999 2413-1903
 
Language eng
 
Relation
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:

https://actacommercii.co.za/index.php/acta/article/view/200/316 https://actacommercii.co.za/index.php/acta/article/view/200/317 https://actacommercii.co.za/index.php/acta/article/view/200/318 https://actacommercii.co.za/index.php/acta/article/view/200/314 https://actacommercii.co.za/index.php/acta/article/downloadSuppFile/200/16
 
Coverage South Africa Contemporary 1994 - 2013 Economic data e.g. investment, production, growth etc.
Rights Copyright (c) 2014 Ewert P.J. Kleynhans, Melinda C. Kruger https://creativecommons.org/licenses/by/4.0
ADVERTISEMENT

International Tel: 021 975 2602

15 Oxford street, Durbanville, Cape Town, 7550 (South Africa)
Copyright © AOSIS (Pty) Ltd. All rights reserved.
No unauthorised duplication allowed