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2024 | OriginalPaper | Buchkapitel

Value Relevance of Economic and Accounting Performance Metrics During the COVID-19 Pandemic in South Africa

verfasst von : Dinis P. Maculuve, Anthanasius F. Tita, Akindele J. Ogunsola, Adefemi A. Obalade

Erschienen in: Information Processing and Accounting Standards

Verlag: Springer Nature Switzerland

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Abstract

This chapter investigates the value relevance of economic and accounting based performance metrics for 51 nonfinancial South African listed companies during the COVID-19 pandemic. This study adopted the Driscoll and Kraay (Review of Economics and Statistics 80:549–560, 1998) nonparametric estimator strategy to avoid the problem of misspecification. The findings reveal that COVID-19 has negative implications for shareholder returns on the Johannesburg Stock Exchange (JSE). In addition, accounting-based performance indicators are irrelevant to the behaviour of shareholder returns. However, we found that economic-based metrics, namely, refined economic value added and economic value added momentum, are value relevant to the JSE. Consequently, the chapter concludes that economic-based performance metrics provide superior explanations for shareholder returns on the JSE relative to accounting-based metrics, particularly during the COVID-19 pandemic.

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Vorheriges Kapitel Systematic Review of Libraries and Financial Management Practices Amidst COVID-19
Nächstes Kapitel Corporate Cash Holdings Puzzle and the Role of the Covid-19 Pandemic
Fußnoten
1
See Stewart’s (1991) recommendations for the adjustment process.
 
2
According to García-Teruel and Martínez-Solano (2007) and Melicher and Leach (2011), the cash conversion cycle (CCC) can be calculated as: CCC = DDTO + DITO + DCTO, where: DDTO = days debtor turnover = (accounts receivable/sales) x 365 days; DITO = days inventory turnover.
 
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Metadaten
Titel
Value Relevance of Economic and Accounting Performance Metrics During the COVID-19 Pandemic in South Africa
verfasst von
Dinis P. Maculuve
Anthanasius F. Tita
Akindele J. Ogunsola
Adefemi A. Obalade
Copyright-Jahr
2024
Buch
Information Processing and Accounting Standards

Print ISBN: 978-3-031-64868-7

Electronic ISBN: 978-3-031-64869-4

Copyright-Jahr: 2024

DOI
https://doi.org/10.1007/978-3-031-64869-4_9

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