Corporate Governance Country Assessment : Republic of South Africa

This report assesses the corporate governance practices of listed companies in South Africa, within the broader context of the institutional capacity needed to ensure compliance and enforcement. The diagnostic reflects the corporate governance framework as of December 2001. South Africa has a well developed equity market with a market capitalization of 154 percent of GDP. Listed companies account for half of the corporate sector by value. As of 2001, on average, listed firms used equity financing for 35 percent of total funding. Given capital account restrictions, issuers operate largely in a captive market for domestic institutional investors. Institutional investors, however, take a passive attitude with respect to corporate governance. The policy recommendations herewith, can be grouped under three broad categories: legislative reform, institutional strengthening and voluntary/private initiatives. The legislative and regulatory framework dealing with corporate governance practices is undergoing substantial changes, and it is anticipated that most of the pending legislative and regulatory issues will be resolved. The most serious problems are compliance and enforcement. Hence, one of the key recommendations for policymakers is to strengthen the enforcement powers of the securities regulator.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2003-07
Subjects:	ACCESS TO INFORMATION, ACCOUNTABILITY, ADVISORY SERVICES, AUTHORITY, AUTHORIZATION, AUTHORIZED CAPITAL, BALANCE SHEET, BOARD MEMBERS, BOARD OF DIRECTORS, CAPITAL MARKET, CAPITAL MARKETS, CASH FLOW, CASH-FLOW, CHARTERED ACCOUNTANTS, CLASSES OF SHARES, COMPANY, CONFLICT OF INTEREST, CONFLICTS OF INTEREST, CONSTITUTION, CORPORATE CONTROL, CORPORATE GOVERNANCE, CORPORATE PERFORMANCE, CORPORATE RESPONSIBILITY, CORPORATE STRATEGY, CORPORATION, CORPORATIONS, DEGREE OF CONTROL, DISCIPLINARY COMMITTEE, DISCLOSURE, DISCLOSURE REQUIREMENT, DISCLOSURE REQUIREMENTS, DISCRIMINATION, DIVIDENDS, DOMESTIC INSTITUTIONAL INVESTORS, DUE DILIGENCE, EMPLOYMENT, ENFORCEMENT POWERS, EQUITY CAPITAL, EXECUTION, EXECUTIVE DIRECTORS, EXPENDITURES, EXTERNAL AUDITORS, FINANCIAL CONTROL, FINANCIAL MARKETS, FINANCIAL RESULTS, FINANCIAL SERVICES, FINANCIAL SITUATION, FINANCIAL STATEMENTS, FIRMS, FOREIGN SHAREHOLDERS, HOLDING COMPANY, INCENTIVE SCHEMES, INSIDER TRADING, INSTITUTIONAL CAPACITY, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL INVESTORS, INTERNAL AUDIT, LEGAL FRAMEWORK, LEGISLATION, LEGISLATIVE REFORM, LIFE INSURANCE COMPANIES, LIQUIDATION, LISTED COMPANIES, MANAGEMENT, MARKET PRICE, MERGERS, MINISTRY OF FINANCE, MINORITY SHAREHOLDER, MINORITY SHAREHOLDERS, NUMBER OF SHARES, OWNERSHIP STRUCTURE, PAYOUT, PENSION FUND, PENSION FUNDS, PORTFOLIOS, PRIVATE PENSION, PRIVATE SECTOR, PUBLIC COMPANIES, PUBLIC COMPANY, PUBLIC DOMAIN, REGULATORY ACTION, REGULATORY BODIES, REGULATORY FRAMEWORK, REPRESENTATIVES, RISK ASSESSMENT, RISK MANAGEMENT, SHARE CAPITAL, SHARE OWNERSHIP, SHARE PRICE, SHARE PURCHASE, SHAREHOLDER MEETING, SHAREHOLDER MEETINGS, SHAREHOLDERS, STAKEHOLDERS, STATEMENT, STATEMENTS, STOCK EXCHANGE, TOTAL MARKET CAPITALIZATION, TRANSPARENCY, VOTING,
Online Access:	http://documents.worldbank.org/curated/en/2003/07/6588977/south-africa-report-observance-standards-codes-rosc-corporate-governance-country-assessment https://hdl.handle.net/10986/14483
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