IDEAS home Printed from https://ideas.repec.org/a/taf/deveza/v25y2008i4p437-453.html
   My bibliography  Save this article

Black economic empowerment ownership initiatives: a Johannesburg Stock Exchange perspective

Author

Listed:
  • Kurt Sartorius
  • Gerhard Botha

Abstract

The success of black economic empowerment (BEE) is still not clear. The objective of this paper is to assess the results of BEE equity transfers and contribute to the development of a framework to assess the cost/benefit of transferring equity in this fashion. BEE data from 62 companies listed on the Johannesburg Stock Exchange were analysed using a qualitative methodology and descriptive analysis. The results indicate that respondent companies have transferred less than 25 per cent equity to BEE partners, that a majority of firms appear to support the social objectives of BEE, that external partners appear to best promote shareholder wealth, and that the primary source of funding for BEE equity transactions is third-party funding or the respondent companies themselves. Finally, the Malaysian experience of affirmative action offers some useful lessons for South Africa's BEE programme, as well as some valuable insights into the economics of wealth redistribution.

Suggested Citation

  • Kurt Sartorius & Gerhard Botha, 2008. "Black economic empowerment ownership initiatives: a Johannesburg Stock Exchange perspective," Development Southern Africa, Taylor & Francis Journals, vol. 25(4), pages 437-453.
    • Handle: RePEc:taf:deveza:v:25:y:2008:i:4:p:437-453
    DOI: 10.1080/03768350802318530
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/03768350802318530
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/03768350802318530?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rulof Burger & Ronelle Burger & Servaas van der Berg, 2004. "Emergent Black Affluence and Social Mobility in Post-Apartheid South Africa," Working Papers 04087, University of Cape Town, Development Policy Research Unit.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lerato Shai & Comfort Molefinyana & Geo Quinot, 2019. "Public Procurement in the Context of Broad-Based Black Economic Empowerment (BBBEE) in South Africa—Lessons Learned for Sustainable Public Procurement," Sustainability, MDPI, vol. 11(24), pages 1-27, December.
    2. Ricardo Hausmann & Tim O'Brien & Andres Fortunato & Alexia Lochmann & Kishan Shah & Lucila Venturi & Sheyla Enciso & Ekaterina Vashkinskaya & Ketan Ahuja & Bailey Klinger & Federico Sturzenegger & Mar, 2023. "Growth Through Inclusion in South Africa," CID Working Papers 434, Center for International Development at Harvard University.
    3. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    4. Hilary Tinotenda Muguto & Lorraine Rupande & Paul-Francois Muzindutsi, 2019. "Investor sentiment and foreign financial flows: Evidence from South Africa," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(2), pages 473-498.
    5. Adeyanju Adebiyi Sunday & Farai Kwenda, 2021. "Corporate Ownership Structure and Firm Value: Empirical Evidence of JSE-Listed Firms, South Africa," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 9(2), pages 89-106.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:deveza:v:25:y:2008:i:4:p:437-453. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CDSA20 .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.