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The impact on share prices of reporting financial targets and constraints
Bibliography: pages 261-272.
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| Other Authors: | |
| Format: | Thesis |
| Language: | English |
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College of Accounting
2016
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| _version_ | 1867613845390884864 |
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| access_status_str | Open Access |
| author | Maguire, William Alexander Arthurs |
| author2 | Affleck-Graves , J F |
| author_browse | Affleck-Graves , J F Maguire, William Alexander Arthurs |
| author_facet | Affleck-Graves , J F Maguire, William Alexander Arthurs |
| author_sort | Maguire, William Alexander Arthurs |
| collection | Thesis |
| description | Bibliography: pages 261-272. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/17236 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:42:37.314Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | College of Accounting |
| publisherStr | College of Accounting |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/17236 The impact on share prices of reporting financial targets and constraints Maguire, William Alexander Arthurs Affleck-Graves , J F Botha, Derek Accounting Bibliography: pages 261-272. This thesis examines the impact on share prices of voluntary reporting of financial targets and constraints, particularly the target rate of return, target dividend payout ratio and target debt ratio. Hypotheses developed about of this reporting are that a positive impact on in estimation risk the potential share price impact there will be share prices through a reduction an increase in the dispersion of share price changes owing to a revision of expectations a positive impact on share prices owing to a signalling effect. The hypotheses are tested by examining share price behaviour accompanying the voluntary reporting of financial targets and constraints over the period 1974 to 1982 by thirty-four companies listed on the Johannesburg Stock Exchange. This is an event study, in which the event is defined as the first occasion on which a company reports the specified financial targets and constraints. To test for a positive impact on share prices, weekly excess returns are calculated using the market model. To test for an increase in the dispersion of share price changes, weekly variability ratios are calculated which provide a measure of returns in the event week relative to the average variability of returns in the estimation period. The controls applied in this study to demonstrate the link between the event and the share price impact are the market model, diversification of calendar dates and two control groups. The results of the study reveal a positive impact on share prices when companies first report financial targets and constraints. This is consistent with all three hypotheses. As this form of voluntary reporting has not previously been tested in this way, the results should be of interest to financial managers and to those concerned with the regulation of financial reporting in South Africa. 2016-02-24T11:16:39Z 2016-02-24T11:16:39Z 1991 Doctoral Thesis Doctoral PhD http://hdl.handle.net/11427/17236 eng application/pdf College of Accounting Faculty of Commerce University of Cape Town |
| spellingShingle | Accounting Maguire, William Alexander Arthurs The impact on share prices of reporting financial targets and constraints |
| thesis_degree_str | Doctoral |
| title | The impact on share prices of reporting financial targets and constraints |
| title_full | The impact on share prices of reporting financial targets and constraints |
| title_fullStr | The impact on share prices of reporting financial targets and constraints |
| title_full_unstemmed | The impact on share prices of reporting financial targets and constraints |
| title_short | The impact on share prices of reporting financial targets and constraints |
| title_sort | impact on share prices of reporting financial targets and constraints |
| topic | Accounting |
| url | http://hdl.handle.net/11427/17236 |
| work_keys_str_mv | AT maguirewilliamalexanderarthurs theimpactonsharepricesofreportingfinancialtargetsandconstraints AT maguirewilliamalexanderarthurs impactonsharepricesofreportingfinancialtargetsandconstraints |