Thesis Chapters by Francois Steyn
As a result of high economic inequality, widespread discontent with excessive chief executive off... more As a result of high economic inequality, widespread discontent with excessive chief executive officer (CEO) compensation levels is acute in South Africa (SA). Some commentators argue that instead of high levels of CEO pay causing inequality, it may be part of the solution if higher levels of CEO compensation translate into better company performance, so reducing unemployment.
International studies investigating the relationship between CEO short-term cash compensation and current company performance generally report a weak or no relationship where accounting based measures of performance are used. Developments in the international literature reflect a stronger relationship when long-term incentive compensation (LIC) is included and total shareholder return (TSR) used to measure company performance. However, a concerning negative association between the highest paid CEOs in terms of excess LIC and future abnormal TSR is reported.
In contrast, SA pay-performance research is largely not reflective of the developments in the international literature, with local studies mostly finding no pay-performance relationship, except where size-related accounting measures are used. As a result of the strong correlation between CEO pay and company size reported in the international literature, and local studies not adequately controlling for company size, the accuracy of the conclusions drawn in prior studies on the pay-performance sensitivity relationship in SA are brought into question.
This study addresses the gaps in the SA literature by investigating the relationship between the size-adjusted excess CEO compensation and future abnormal TSR for the top 100 SA companies listed on the Johannesburg Stock Exchange for the period 2011 to 2013. A positive relationship is found between future abnormal TSR and short-term cash compensation, but not LIC. The levels and structure of CEO compensation in SA is also described.
Conference Presentations by Francois Steyn
The literature suggests that many accounting curricula fail to adequately address professional sk... more The literature suggests that many accounting curricula fail to adequately address professional skills development even though it is a requirement of many professional bodies. Van der Merwe (2013) addresses this by administering an integrated business case study, requiring group work and oral presentation, to third year accounting students and investigates their perceptions regarding their development of these skills with a survey questionnaire. He found that the most obvious benefits of the assignment relate to the perceived level of learning that takes place and the perceived contribution to the development of professional skills. Some students did, however, experience high levels of stress and time constraints.
This paper reports on a follow-up study whereby the original case study was adapted and administered at a different institution with a larger population composed predominantly of students from previously disadvantaged communities, similar to the original study. The findings of this follow-up study are generally corroborative of the students’ learning experiences and perceptions regarding skills development as reported in the original paper. The adaptations made appear to have had some influence on students’ perceptions regarding aspects of their skills development, particularly in the area of presentation skills and teamwork.
Papers by Francois Steyn
In fulfilment of the requirements for the degree of Masters in Commerce (M.Com)
International Business & Economics Research Journal (IBER)
Some of the main challenges faced in accounting education are developing professional skills and ... more Some of the main challenges faced in accounting education are developing professional skills and encouraging deep learning in students. The literature offers numerous accounts of the case study method as a successful tool for developing professional skills and linking theory with practice. This paper reports on a follow-up study which aimed to contribute to the field in three ways: 1) in corroborating the findings of a prior study on case studies as a tool to develop professional skills, 2) by investigating whether changes in the way the case study was administered had an effect on students’ perceived development, and 3) by gaining some insight into the actual learning that took place by analyzing the assessment outcomes. The findings show that the changes in the way the assignment was administered had no significant effect on the perceptions of students, but that team selection and the provision of homework assistance should be carefully considered. The assessment results support s...
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Thesis Chapters by Francois Steyn
International studies investigating the relationship between CEO short-term cash compensation and current company performance generally report a weak or no relationship where accounting based measures of performance are used. Developments in the international literature reflect a stronger relationship when long-term incentive compensation (LIC) is included and total shareholder return (TSR) used to measure company performance. However, a concerning negative association between the highest paid CEOs in terms of excess LIC and future abnormal TSR is reported.
In contrast, SA pay-performance research is largely not reflective of the developments in the international literature, with local studies mostly finding no pay-performance relationship, except where size-related accounting measures are used. As a result of the strong correlation between CEO pay and company size reported in the international literature, and local studies not adequately controlling for company size, the accuracy of the conclusions drawn in prior studies on the pay-performance sensitivity relationship in SA are brought into question.
This study addresses the gaps in the SA literature by investigating the relationship between the size-adjusted excess CEO compensation and future abnormal TSR for the top 100 SA companies listed on the Johannesburg Stock Exchange for the period 2011 to 2013. A positive relationship is found between future abnormal TSR and short-term cash compensation, but not LIC. The levels and structure of CEO compensation in SA is also described.
Conference Presentations by Francois Steyn
This paper reports on a follow-up study whereby the original case study was adapted and administered at a different institution with a larger population composed predominantly of students from previously disadvantaged communities, similar to the original study. The findings of this follow-up study are generally corroborative of the students’ learning experiences and perceptions regarding skills development as reported in the original paper. The adaptations made appear to have had some influence on students’ perceptions regarding aspects of their skills development, particularly in the area of presentation skills and teamwork.
Papers by Francois Steyn
International studies investigating the relationship between CEO short-term cash compensation and current company performance generally report a weak or no relationship where accounting based measures of performance are used. Developments in the international literature reflect a stronger relationship when long-term incentive compensation (LIC) is included and total shareholder return (TSR) used to measure company performance. However, a concerning negative association between the highest paid CEOs in terms of excess LIC and future abnormal TSR is reported.
In contrast, SA pay-performance research is largely not reflective of the developments in the international literature, with local studies mostly finding no pay-performance relationship, except where size-related accounting measures are used. As a result of the strong correlation between CEO pay and company size reported in the international literature, and local studies not adequately controlling for company size, the accuracy of the conclusions drawn in prior studies on the pay-performance sensitivity relationship in SA are brought into question.
This study addresses the gaps in the SA literature by investigating the relationship between the size-adjusted excess CEO compensation and future abnormal TSR for the top 100 SA companies listed on the Johannesburg Stock Exchange for the period 2011 to 2013. A positive relationship is found between future abnormal TSR and short-term cash compensation, but not LIC. The levels and structure of CEO compensation in SA is also described.
This paper reports on a follow-up study whereby the original case study was adapted and administered at a different institution with a larger population composed predominantly of students from previously disadvantaged communities, similar to the original study. The findings of this follow-up study are generally corroborative of the students’ learning experiences and perceptions regarding skills development as reported in the original paper. The adaptations made appear to have had some influence on students’ perceptions regarding aspects of their skills development, particularly in the area of presentation skills and teamwork.