Papers by Prof Cosmas M Ambe
Corporate Ownership and Control, 2015
Heightening consciousness concerning natural environmental issues has also resulted in high press... more Heightening consciousness concerning natural environmental issues has also resulted in high pressure on firms to introduce green friendly programs. This study explored the relationship between environmental consciousness and green investment practices in 100 South African CDP firms on the JSE over a period of 5 years (that is, 2010 to 2014). The paper analysed the data using Chi-square tests and the results demonstrates that environmental consciousness influences green investment activities in JSE listed companies. Furthermore, a positive direct relationship involving environmental consciousness and green investment activities was ascertained. The paper also produced common and major indicators of environmental consciousness for the firms under study. A brief discussion on corporate views from selected JSE listed firms in relation with environmental consciousness was also implemented.
Competition and the performance of strategic business units ‐ A study of the South African beverage industry
Meditari : Research Journal of the School of Accounting Sciences, Apr 1, 2002
Historically, South Africa's apartheid policies had a negative effect on the financial p... more Historically, South Africa's apartheid policies had a negative effect on the financial performance of the South African beverage industry. This effect was characterised by the non-participation of South African companies in the global market and the presence of foreign enterprises in the domestic market. From 1994, South African industries have been increasingly exposed to new opportunities and forces. Globalisation, deregulation, changing manufacturing systems and the entry of foreign competitors in the 1990s exposed the local industry to competitive challenges in the domestic and the global market. This study examined the impact of changing levels of competition on the performance of strategic business units and the mediating role of management accounting in the South African beverage industry. The methodology employed to investigate this relationship comprised both a survey and a case study. The results indicate a positive correlation between the level of competition and the performance of business units. The results furthermore indicate that enterprises can utilise a management accounting system (MAS) as a strategic response to competition. The increased use of MAS will, in turn, improve the performance of an enterprise. Enterprises that do not respond positively to competition will not survive.
DOAJ (DOAJ: Directory of Open Access Journals), Mar 1, 2017
This paper discusses fundamental roles of corporate green investment activities on sustainable de... more This paper discusses fundamental roles of corporate green investment activities on sustainable development. This article undertook a conceptual exploration and identifies how firm green investment practices contributes to economic sustainability, social sustainability and environmental sustainability in pursuit of generating a green economy. The paper proposes a model on corporate green investment practice adoption, important in supporting sustainability objectives which are significant in generating a low-carbon or green economy.
DOAJ (DOAJ: Directory of Open Access Journals), Mar 1, 2017
This paper discusses a broadened perspective of where gaps in prior studies exist with regard to ... more This paper discusses a broadened perspective of where gaps in prior studies exist with regard to the association involving environmental legislation and green investment practices. The study used a multiple case study method that evaluated 100 South African Carbon Disclosure Project (CDP) firms which are listed on the JSE. Content analysis techniques were employed to extract data from the company's 2012 sustainability and/or annual integrated reports and Chi-Square tests were utilized to analyze the data. The findings of the study indicated that environmental legislation influenced green investment practices in JSE listed firms. The strength of the relationship between environmental legislation and green investment practices was determined to be a positive linear association. The paper also identified the motivators of environmental legislation for the companies under study. In addition, company views in relation to environmental legislation were also discussed.
Perspectives on environmental management accounting (EMA) in South Africa
Southern African Journal of Accountability and Auditing Research, 2007
Conventional management accounting practices do not provide adequate information for managing the... more Conventional management accounting practices do not provide adequate information for managing the environment in a world where environmental concerns, as well as environment-related costs, revenues, and benefits, are on the rise. Environmental management accounting (EMA) is a tool used for balancing the interaction between the economic, social and technological factors in the development process to achieve conditions for sustainable development. In this study, a survey and case study technique is used to document a South African perspective on EMA. The findings indicate that, while EMA is gaining increasing awareness, its application is still at its infancy. Some of the elements of EMA may be found in practice, but they are not called EMA. Based on the findings, ten steps for implementing EMA are suggested.
Environmental Management Accounting Network Africa (EMAN-Africa)
Corporate image as a factor that supports corporate green investment practices in Johannesburg Stock Exchange listed companies
International Journal of Sustainable Economy, 2016
Green investment practices assist preservation of the company's image through shielding it fr... more Green investment practices assist preservation of the company's image through shielding it from undesirable media reports plus consumer boycotts. Green investment practices also improve the company's image thereby enhancing the firm to acquire better business contracts in addition to developing broadened market bases. This paper examine the relationship involving corporate image and green investment practices in 100 South African CDP companies on the JSE over a period of five years (that is, 2010 to 2014). Statistical tests indicate that corporate image influence green investment practices in JSE listed firms plus a significantly positive relationship is demonstrated. It follows that investing in green activities is important to improve corporate green image. The study also discusses the corporate perceptions in relation to green image for JSE listed companies which were extracted from the firm's sustainability and/or integrated report from 2010 to 2014. In addition, the associated major motivators of corporate reputation of JSE listed companies are presented.
Determinants of corporate green investment practices in the Johannesburg Stock Exchange listed firms
International Journal of Sustainable Economy, 2017
The purpose of this study was to determine the factors which spur corporate green investment prac... more The purpose of this study was to determine the factors which spur corporate green investment practices amongst 100 South African CDP companies listed on the Johannesburg Stock Exchange (JSE). The data were sourced from companies' annual sustainability reports over a period of five years (2010 to 2014). Using chi-square tests the findings indicate that legislation influences the corporate green investment practices of JSE listed firms as do corporate image, profitability and environmental consciousness. Legislation, corporate image, profitability and environmental consciousness also showed a significant relationship with the green investment practices of JSE listed firms. An increasing number of JSE listed firms supporting examined variables was also noted from 2010 to 2014. This study makes a modest contribution to knowledge by suggesting a framework to understand corporate green investment practice in JSE listed firms based on the study's findings and a review of the literature.
Environmental Management Accounting Network Africa (EMAN-Africa)
Environmental Economics, 2017
This paper discusses a broadened perspective of where gaps in prior studies exist with regard to ... more This paper discusses a broadened perspective of where gaps in prior studies exist with regard to the association involving environmental legislation and green investment practices. The study used a multiple case study method that evaluated 100 South African Carbon Disclosure Project (CDP) firms which are listed on the JSE. Content analysis techniques were employed to extract data from the company’s 2012 sustainability and/or annual integrated reports and ChiSquare tests were utilized to analyze the data. The findings of the study indicated that environmental legislation influenced green investment practices in JSE listed firms. The strength of the relationship between environmental legislation and green investment practices was determined to be a positive linear association. The paper also identified the motivators of environmental legislation for the companies under study. In addition, company views in relation to environmental legislation were also discussed.
Environmental Economics, 2017
This paper discusses fundamental roles of corporate green investment activities on sustainable de... more This paper discusses fundamental roles of corporate green investment activities on sustainable development. This article undertook a conceptual exploration and identifies how firm green investment practices contributes to economic sustainability, social sustainability and environmental sustainability in pursuit of generating a green economy. The paper proposes a model on corporate green investment practice adoption, important in supporting sustainability objectives which are significant in generating a low-carbon or green economy.
Effects of environmental pro-activeness on financial performance in South Africa: short panel vector autoregressions analysis
International Journal of Sustainable Economy, 2018
Employing impulse response function analysis in short panel vector autoregressions, we examined t... more Employing impulse response function analysis in short panel vector autoregressions, we examined the response of financial performance proxies namely return on asset, return on sale, equity returns and market value of equity deflated by sales to shocks in environmental pro-activeness, measured by energy usage intensity and emissions intensity of JSE's SRI firms for the period 2008-2014. The results showed that while financial measure, return on asset responds negative to shocks in environmental pro-activeness, measured by energy usage intensity in the first four years, the financial measure tends to respond positive to shocks in environmental pro-active measured by emissions intensity at each time responsive period. On the contrary, return on sale tends to show negative response to shocks energy usage intensity at each time responsive period, but a positive response to shocks in emissions intensity in the first 2 years and the last 2 years. Furthermore, the paper found that shocks in 'end of pipe' activities value drives equity returns only in year 1. Shocks in 'prevention' and 'end of pipe' activities seemed to show value destroying tendencies on market value of equity deflated by sale at each time responsive period.
Managing Global Transitions, 2018
The paper examines environmental responsibility threshold effect on the financial performance of ... more The paper examines environmental responsibility threshold effect on the financial performance of jse sri's firms for the period 2008-2014. Employing bootstrap dynamic panel threshold estimations, the paper confirms the existence of triple threshold in all the regression relationship. Furthermore, the study established a nonlinear (inverted U-shape) association between environmental initiative, measured by energy usage intensity and return on sale, and a linear (inverse U-shape) relationship between carbon input intensity and market value of equity deflated by sale. We also found that return on sale decreases by -0.08868 when environmental responsibility, measured by energy usage intensity ratio exceeds 0.00093. The results however showed that an increase in energy usage intensity ratio at any point increases equity returns.
Determinants of corporate green investment practices in the Johannesburg Stock Exchange listed firms
International Journal of Sustainable Economy, 2017
The purpose of this study was to determine the factors which spur corporate green investment prac... more The purpose of this study was to determine the factors which spur corporate green investment practices amongst 100 South African CDP companies listed on the Johannesburg Stock Exchange (JSE). The data were sourced from companies' annual sustainability reports over a period of five years (2010 to 2014). Using chi-square tests the findings indicate that legislation influences the corporate green investment practices of JSE listed firms as do corporate image, profitability and environmental consciousness. Legislation, corporate image, profitability and environmental consciousness also showed a significant relationship with the green investment practices of JSE listed firms. An increasing number of JSE listed firms supporting examined variables was also noted from 2010 to 2014. This study makes a modest contribution to knowledge by suggesting a framework to understand corporate green investment practice in JSE listed firms based on the study's findings and a review of the literature.
Corporate Ownership and Control, 2015
Heightening consciousness concerning natural environmental issues has also resulted in high press... more Heightening consciousness concerning natural environmental issues has also resulted in high pressure on firms to introduce green friendly programs. This study explored the relationship between environmental consciousness and green investment practices in 100 South African CDP firms on the JSE over a period of 5 years (that is, 2010 to 2014). The paper analysed the data using Chi-square tests and the results demonstrates that environmental consciousness influences green investment activities in JSE listed companies. Furthermore, a positive direct relationship involving environmental consciousness and green investment activities was ascertained. The paper also produced common and major indicators of environmental consciousness for the firms under study. A brief discussion on corporate views from selected JSE listed firms in relation with environmental consciousness was also implemented.
Corporate image as a factor that supports corporate green investment practices in Johannesburg Stock Exchange listed companies
International Journal of Sustainable Economy, 2016
Green investment practices assist preservation of the company's image through shielding it fr... more Green investment practices assist preservation of the company's image through shielding it from undesirable media reports plus consumer boycotts. Green investment practices also improve the company's image thereby enhancing the firm to acquire better business contracts in addition to developing broadened market bases. This paper examine the relationship involving corporate image and green investment practices in 100 South African CDP companies on the JSE over a period of five years (that is, 2010 to 2014). Statistical tests indicate that corporate image influence green investment practices in JSE listed firms plus a significantly positive relationship is demonstrated. It follows that investing in green activities is important to improve corporate green image. The study also discusses the corporate perceptions in relation to green image for JSE listed companies which were extracted from the firm's sustainability and/or integrated report from 2010 to 2014. In addition, the associated major motivators of corporate reputation of JSE listed companies are presented.
Risk Governance and Control: Financial Markets & Institutions, 2016
Eco-aware customers and stakeholders are demanding for a measurement that links environmental per... more Eco-aware customers and stakeholders are demanding for a measurement that links environmental performance with other business operations. To bridge this seemingly measurement gap, this paper suggests ‘Eco-Ratio Analysis’ and proposes an approach for conducting eco-ratio analysis. It is argued that since accounting ratios function as a tool for evaluating corporate financial viability by management and investors, eco-ratio analysis should be brought to the fore to provide a succinct measurement about the linkage between environmental performance and conventional business performance. It is hoped that this suggestion will usher in a nuance debate and approach in the teaching, research and practice of environmental management and sustainability accounting.
Journal of Governance and Regulation, 2015
The overall objective of the paper is to assess the application of environmental management accou... more The overall objective of the paper is to assess the application of environmental management accounting (EMA) at Tshwane University of Technology (TUT) as a service organization and examine how the institution manages, account and report environmental cost. Data was collected by means of exploratory and explanatory research techniques using two data sets; documentary and fourteen in-depth individual face-to-face interviews employing a semi-structured questionnaire with closed and open ended questions to collect primary data. The results indicate that; the implementation of EMA and general governance for environmental responsibility and accountability is extremely weak. The potential use of EMA is neglected and, as such, EMA implementation is not considered a priority. Three barriers to the adoption of EMA within TUT were identified as: institutional pressures, a low profile of accounting for the environment, and management’s attitudes. A general ledger model and action plan for the i...
Managing Global Transitions, 2013
This paper examines the impact of environmental management practices on the financial performance... more This paper examines the impact of environmental management practices on the financial performance of a South African mining firm. The major aim of this paper is to investigate whether such practices have a close relationship with the mining firm's financial performance (represented by return on equity [roe]). The approach is a case study of a South African mining firm listed under the socially responsible index (sri) of the Johannesburg Stock Exchange (jse). It uses Green-Steel sa (pseudonym used in place of the real name) as a case study. Using multiple regression statistics, the return on equity of Green-Steel sa is regressed on three environmental management practices of Green-Steel (carbon reduction, energy efficiency, and water usage). The result shows there is no significant relationship between the variables and this lends credence to information gathered from Green-Steel environmental reports that Green-Steel's environmental management practices are driven mostly by a desire to abide by regulations and also by a moral obligation to use environmental management practices to mitigate climate change impact.
Financing Challenges for Water and Sanitation Services: The Case of South Africa's Local Governments and Municipalities
SSRN Electronic Journal, 2008
The paper is the third and final document which was prepared for the finance syndicate team at th... more The paper is the third and final document which was prepared for the finance syndicate team at the joint gathering (indaba) of local government leaders and water experts. It addresses the financial issues of water and sanitation service provision in South Africa. Access to finance is an essential part of local capacity building to develop and manage water services in a sustainable way. Funding flows should double to meet the MDGs and financing institutions should adjust their instruments to enhance the supply of finance for the sub-sovereign level as recommended in the report of the Panel on Financing Water Infrastructure under the chairmanship of Michel Camdessus in 2003. ODA and government allocations have not been sufficient. Furthermore, the importance of rural and urban local governments is growing because of decentralization and constitutional imperatives. The bulk of the finance originates from contribution of users of the services and taxpayers. However, the main obstacle in increasing the financial flows is the local capacity. In this paper we attempt to document the demand side of the local actors and the development of proper water service action plans to enhance access to finance for local governments. We have posted it in social science research network so that researchers in other developing environments can benefit from South Africa's experience.
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Papers by Prof Cosmas M Ambe