A financial performance analysis of bundura nickel ltd by mr lenon watambwa (2019) abstract
Download 1.23 Mb. View original pdf
|
- Navigate this page:
- Reputational analysis
- Share prices and earnings per share analysis
| Social structure analysis Petra Hartman. P (2016) proposes that Paying taxis part of the social responsibility of any organization. Payment of taxes is a fundamental requirement if businesses intend to sustainably run operations. Businesses benefit from infrastructure, security, education, health and social peace, they use resources, and therefore paying taxes will go along way in meeting that need. Hartman. Petal went on further to say that companies, claiming that corporate social responsibility is important for them, have been revealed as avoiding the complex system in avoiding paying their fair share of taxes. The European Parliament draft recommendation to the Council and Commission (2017), contained a statement saying, Carrying out a responsible tax strategy is to be considered a pillar of corporate social responsibility (CSR) and that tax evasion, tax avoidance and aggressive tax planning practices are incompatible with CSR”. Preuss. L (2010), summarizes that The payment of taxes is both crucial corporate contribution to society and essential to good governance but not enough quantitative research on corporate social responsibility (CSR) has been carried out to date. His paper examined whether companies that engage in tax avoidance through offshore accounts make many claims to act socially responsibly. Reputational analysis: BNC maintains ISO certification for environmental practices, and continued air quality monitoring confirms that the dust generated by mining activities It recognises its obligation to rehabilitate the sites where it has operated. In addition, financial provisions are in place for costs associated with the closure of the company’s operations in Zimbabwe and South Africa, as prescribed by local laws Share prices and earnings per share analysis Seetharaman (1995) stated that earnings per share reflect the good or bad position of the company and its increase reflect not only in the market price in the stock exchange but also in the PE ratio, dividend cover, dividend yield and earnings yield. Baldwin (1984) examined whether users of financial statement are able to predict EPS better after the Securities and Exchange Commission’s (SEC) disclosure requirements. The information would enable the financial statement users to assess better the size and timing of future profits Ina similar vein, the International Accounting Standards Board (IASB) in its International Financial Reporting Standard (IFRS) 14 defines EPS to reflect the company’s net after-tax earnings that belong to equity shareholders divided by the number of outstanding shares. In theory, shares can be classified into two types, such as ordinary shares and preference shares. Electronic copy available at https://ssrn.com/abstract=3521211 13 The type of shares referred to in the computation of EPS is the ordinary shares or also known as common shares in which the number of preference shares is to be excluded. Ball and Brown (1968) were the first to note that even after earnings are announced, the estimated cumulative abnormal returns continue to drift up for good news companies and down for bad news companies. In the US, corporations announce earnings quarterly during the first week of every next quarter. But issue earnings warning typically during the last week of the current quarter. The authors highlighted that unfortunately in many studies abnormal returns are measured as return in excess of the market return, which holds the implicit assumption that the stock in question has a unit CAPM. He further elaborated that if abnormal return is measured as excess return, abnormal return is underestimated for stock with CAPM betas less than unity. On the other hand, the stock was overestimated if the CAPM betas were greater than unity. The authors failed to mention other possible factors that could influence the stock price. Download 1.23 Mb. Share with your friends:
|