The information content of the Financial Mail’s “Top Companies” announcements

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dc.contributor.author Esterhuysen, W.D. (Willem Derek)
dc.contributor.author Ward, Mike
dc.date.accessioned 2012-08-01T06:54:01Z
dc.date.available 2012-08-01T06:54:01Z
dc.date.issued 2011
dc.description.abstract Investors look beyond accounting and financial data and incorporate factors relating to morality, society, the environment and corporate governance (inter alia) in making their investment choices. This study examines the share price performance of South African companies which best comply with the financial and qualitative criteria as prescribed in the Financial Mail’s “Top Companies” publication. Using event-study methodology, the abnormal and cumulative abnormal returns of companies recommended by analysts as “Top Companies” were examined. Positive, significant excess cumulative returns were observed for new entrants to the “Top Companies” sample after the publication date. Thereafter, negative returns were observed for the long-term post-publication holding period of up to 200 trading days. The results suggest that any new information related to the criteria in the FM “Top Companies” publication is of value, but only to short-term traders with low transaction costs. Long-term investors who buy these shares based on the recommendations of the FM analysts generally receive below market rates of return, suggesting that once companies have made it into the list, the value is overstated. en
dc.description.librarian nf2012 en
dc.description.uri www.sajar.co.za en_US
dc.identifier.citation Esterhuysen, WD & Ward, M 2011, 'The information content of the Financial Mail’s “Top Companies” announcements', SA Journal of Accounting Research, vol. 25, no.1, pp. 129-143. en
dc.identifier.issn 1010-8270
dc.identifier.uri http://hdl.handle.net/2263/19502
dc.language.iso en en_US
dc.publisher Independent Regulatory Board for Auditors (IRBA), South African Institute of Chartered Accountants (SAICA) and Southern African Accounting Association (SAAA) en_US
dc.rights Independent Regulatory Board for Auditors (IRBA), South African Institute of Chartered Accountants (SAICA) and Southern African Accounting Association (SAAA) en_US
dc.subject Social responsible investment en
dc.subject Information content en
dc.subject Share price performance en
dc.subject.lcsh Social responsibility of business -- South Africa en
dc.subject.lcsh Business enterprises -- Ratings and rankings -- South Africa en
dc.title The information content of the Financial Mail’s “Top Companies” announcements en
dc.type Article en


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