Aspects of the motivation for voluntary disclosures: evidence from the publication of value added statements in an emerging economy

This paper investigates the motivation for the voluntary disclosure of financial information by companies in their annual financial statements, by examining aspects of the usefulness of the value added statement. The value added statement is published voluntarily with the annual financial statements and is currently experiencing high levels of publication in South Africa, which is evidently brought about by the high political costs and significant legitimacy threats that companies operating in South Africa are facing. It was found from the literature and from a survey among management that the value added statement was primarily aimed at the employees. Employees have also been regarded as users of financial information in the literature. However, a survey among trade unions in South Africa found that almost no use is made of the value added statement even though the unions make use of other financial information. This indicates that voluntary disclosures do not necessarily satisfy the information needs of their intended audience. The research also indicates that the trade unions might not use the value added statement because they suspect that the statement is being used to reduce political costs and legitimacy threats, and is therefore not reliable. This is a major shortcoming of voluntary disclosures

The value added statement: bastion of social reporting or dinosaur of financial reporting?

South Africa is at present experiencing the highest incidence of publication of the value added statement reported anywhere in the world to date. In addition research investigating the predictive ability of value added information has been conducted in the USA since 1990, even though the value added statement has not been published there. The research reported in this paper sets out to establish whether the value added statement is a disclosure worth considering by companies around the world, by investigating the South African experience with the value added statement. The social accounting theories of organisational legitimacy and political costs were found to be best suited to explain why the value added statement is published. Surveys among the companies publishing the value added statement indicated that management had the employees in mind when they published this information. However, a survey among users has indicated that very little use has been made of the value added statement. The main reason for this seems to be that the unregulated nature of the value added statement allows for inconsistencies in disclosures, which eventually caused users to suspect bias in the reports. The USA evidence that the information has additional predictive power is not confirmed by a South African study, and is complicated by the limited additional information contained in the value added statement. The South African experience with the value added statement does not make a convincing case for publication. Rather, it highlights the need for unbiased and verified social disclosures that will be useful to all the stakeholders of the company. In addition, it has implications for other voluntary social and environmental disclosures

The corporatisation of local body entities: A study of financial performance

The New Zealand electricity industry provides us with a unique opportunity to examine how entities responded to major restructuring of the industry. This research studies the financial performance of three entities, each with a different ownership structure, over a 15 year period from 1988 to 2002. The aim is to examine the possible influence of ownership type and corporatisation on the development and financial performance of the entities by examining the changes that took place from the pre-corporatisation period to the post-corporatisation period and comparing and contrasting the performance and funding of the three entities over that time. In this way an assessment is made of the possible influence of ownership type on financial performance. This research can be framed to some extent by agency theory aspects of positive accounting theory. In addition legitimacy theory has been used to explain the behaviour of managers and the process of organizations adapting to a changing environment. Both theories acknowledge the interaction of organizations and their environment. The comparison shows that at the end of the study period the council owned company was the smallest, in terms of total assets, of the three companies examined (although it was similar in size to the biggest one at the outset). The council owned company also returned most capital to its shareholders and is the most conservatively financed one of the three with only 10% debt at the end of 2002 compared to 28% for the trust-held company and 87% for the listed company. The listed company ended up being the biggest and the one with the highest gearing, the highest ROA and the highest profit margin. The study concludes that ownership structure did have an influence on financial performance and level of debt funding

Web assisted teaching: an undergraduate experience

The emergence of the Internet has created a number of claims as to the future of education and the possibility of dramatically changing the way in which education is delivered. Much of the attention has focussed on the adoption of teaching methods that are solely web-based. We set out to incorporate web-based teaching as support for more traditional teaching methods to improve the learning outcomes for students. This first step into web-based teaching was developed to harness the benefits of web-based teaching tools without supplanting traditional teaching methods. The aim of this paper is to report our experience with web-assisted teaching in two undergraduate courses, Accounting Information Systems and Management Accounting Services, during 2000. The paper evaluates the approach taken and proposes a tentative framework for developing future web-assisted teaching applications. We believe that web-assisted and web-based teaching are inevitable outcomes of the telecommunications and computer revolution and that academics cannot afford to become isolated from the on-line world. A considered approach is needed to ensure the integration of web-based features into the overall structure of a course. The components of the course material and the learning experiences students are exposed to need to be structured and delivered in a way that ensures they support student learning rather than replacing one form of learning with another. Therefore a careful consideration of the structure, content, level of detail and time of delivery needs to be integrated to create a course structure that provides a range of student learning experiences that are complimentary rather than competing. The feedback was positive from both extramural (distance) and internal students, demonstrating to us that web sites can be used as an effective teaching tool in support of more traditional teaching methods as well as a tool for distance education. The ability to harness the positives of the web in conjunction with more traditional teaching modes is one that should not be overlooked in the move to adopt web based instruction methods. Web-based teaching need not be seen as an all or nothing divide but can be used as a useful way of improving the range and type of learning experiences open to students. The Web challenges traditional methods and thinking but it also provides tools to develop innovative solutions to both distance and on campus learning. Further research is needed to determine how we can best meet the needs of our students while maintaining high quality learning outcomes

Abandoning weight-loss programmes

Published scientific reports on obesity have repeatedly confirmed subjects' difficu"ies in maintaining weight loss. A study of unsuccessful dieters focused on a group of 50 obese subjects who had previously joined a slimming organisation, but who had dropped out. They were interviewed with emphasis on factors relating to reasons why the weight loss programmes had been abandoned. The subjects were reached through active members, who brought along unsuccessful slimmers to the group interviews. Interviews were recorded, transcribed and analysed. The results highlighted the following problem areas: motivational issues, perception of self, interpersonal/social and situational constraints, behaviour paUerns, physiological concerns, and previous experiences of weight loss programmes. Sample characteristics were examined with regard to relevant demographic and educational variables. Implications of the results are discussed

Does religious identification of South African psychiatrists matter in their approach to religious matters in clinical practice?

BACKGROUND. It is not known whether psychiatrists’ approach to religious matters in clinical practice reflects their own identification or non-identification with religion or their being active in religious activities. OBJECTIVE. This question was investigated among South African (SA) psychiatrists and psychiatry registrars, including the importance they attach to the religious beliefs of patients for diagnostic and therapeutic purposes. METHODS. Respondents from the SA Society of Psychiatrists (SASOP) completed a purpose-designed questionnaire anonymously online. Respondents were compared statistically with regard to whether they identified with a religion, and the regularity of their participation in religious activities. Further comparisons were made based on gender and years of clinical experience. RESULTS. Participants who identified with a religion showed no statistical differences in comparison with those who did not, regarding: how they viewed the importance of a patient’s religious beliefs for purposes of diagnosis, general management, psychotherapy, pharmacotherapy, recovery from an acute episode, maintenance of recovery or remission, time to be spent on religious education, referral for religious/ spiritual counselling according to patient’s own beliefs; referral when patient and participant are of different religions; and whether referral is considered harmful when a patient’s religious beliefs are similar to or different from the participant’s. Statistically significant differences were found where participants who did not identify with a religion were more likely to indicate religion had ‘little importance’ for the purpose of understanding the patient and to indicate ‘no’ when asked if they would refer a patient for religious/spiritual counselling. When comparing regularity of participation in religious gatherings, participants who indicated their participation as ‘no/never’ were more likely to answer ‘no’ when asked if they would refer a patient for religious/spiritual counselling, even when of a similar religion to that of their patient. In comparing genders, males were more likely to answer ‘yes’ than females when asked if they considered religious/spiritual counselling (in accordance with the patient’s own religious beliefs) potentially harmful when the patient’s religion was different from the participant’s. CONCLUSION. It appears that SA psychiatrists’ identification with religion and regularity of participation in religious gatherings do not influence their approach to religious matters of their patients in most respects. The exception seems to be for those psychiatrists who do not identify with a religion (~16%), who tend to respond that they do not refer for religious counselling and that they consider the patient’s religious identification to be of little importance in understanding the patient.http://www.sajp.org.zahb201

Stress Distribution in Mandible Regulated by Bone and Dental Implant Parameters: Part I - Methodology

The complicated inter-relationships between mandibular bone components and dental implants have attracted the attention of many a structural mechanics researcher as well as many a dental practitioner. This paper describes the methodology and analysis techniques employed to enable accurate evaluation of a vast range of the implant and bone parameters. The complex material and geometric properties of the bone and implant are modelled using two-dimensional (2D) triangular and quadrilateral plane strain elements. Assumptions made in the analysis include: (a) 50% osseointegration between bone and implant; (b) linear relationships exist between the stress value and the Young’s moduli of the cancellous and cortical bone at any specific point. In the companion paper (Part II) various bone, implant and loading parameters are evaluated for their influence on the stress distribution within the bone, in particular in the mandible

Heavy metal contamination in South African medicinal plants: A cause for concern

AbstractThe quality and safety of herbal medicines is becoming a major concern worldwide particularly due to contamination by heavy metals. The present study quantified the levels of heavy metals in frequently used South African medicinal plants and determined the variations in certain biological activities and phytochemical compositions. Eleven plant species were obtained from both muthi shops (MS) (commercial outlets) and from open street markets (OSM) for comparison. Samples were dried, powdered and digested using microwave acid-assisted digestion. The digested solutions were analysed for heavy metals using Inductively Coupled Plasma Optical Emission Spectroscopy (ICP-OES). Plants were classified based on their elemental composition using chemometric techniques. Powdered plant samples were extracted using 70% acetone and screened for antibacterial activity against E. coli and S. aureus. Phytochemical analyses were carried out to determine total phenolic and flavonoid content. Of the 22 samples analysed, Bulbine natalensis obtained from OSM and Alepidea amatymbica obtained from MS exhibited high levels of Al [5559 and 4392mg/kg dry weight (DW)] and Fe (4164 and 4465mg/kg DW) respectively. Levels of As and Hg were above the World Health Organization permissible limits in most of the samples analysed. Hierarchical cluster analysis classified the samples into four groups based on their metallic analyte concentrations. Group one having low metal content and group four having a high metal content. In general, plant samples with high levels of metals yielded greater antibacterial activity. However, antibacterial activity recorded in this study is not an indicator of high levels of heavy metal contamination as some samples despite the high levels of metal exhibited low antibacterial activity. The variations in the amounts of phenolics and flavonoids in the evaluated samples could have probably been that some of the plant samples may have been harvested from different localities or at different times of the year, perhaps plant age or degree of storage. The results highlighted the need for in-depth risk and quality assessments