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 fram...
| Main Author: | |
|---|---|
| Format: | Corporate Governance Assessment (ROSC) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/07/6588977/south-africa-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14483 |
| Summary: | 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. |
|---|