Original Research

JSE listed companies in the food and drug retail sector: A content analysis of financial statements to determine their primary purpose

Vanessa Gregory, Mihalis Chasomeris
Journal of Economic and Financial Sciences | Vol 9, No 3 | a77 | DOI: https://doi.org/10.4102/jef.v9i3.77 | © 2016 Vanessa Gregory, Mihalis Chasomeris | This work is licensed under CC Attribution 4.0
Submitted: 19 December 2017 | Published: 03 December 2016

About the author(s)

Vanessa Gregory, School of Accounting, Economics and Finance, University of KwaZulu-Natal, South Africa
Mihalis Chasomeris, Graduate School of Business and Leadership, University of KwaZulu-Natal, South Africa

Full Text:

PDF (347KB)

Abstract

The overall purpose of the study is to analyse financial statements to determine the primary purpose of JSE listed companies in the food and drug retail sector. There were two parts to the analyses. First, the study examines the literature on the three models, namely: neoclassical, conscious capitalism and entity maximisation and sustainability in order to identify themes or major identifiers of each model. Second, it analyses the financial statements (over five years from 2010 to 2014) of JSE listed companies in the food and drug retail sector, in particular the non-financial information. The entire population was analysed as there were only four in the population, namely SPAR, Pick n Pay, Shoprite and Clicks. Annual integrated reports and sustainability reports (where separately published) were analysed using content analyses. Keywords and themes were used to link the attributes of the company to the attributes identified in the literature to determine the model the company used. The content analyses showed that the dominant model was the entity maximisation and sustainability model. However, each company appears to have chosen to focus on a different stakeholder: SPAR on employees, Pick n Pay on customers (with a differentiation strategy), Shoprite on customers (with a low cost strategy) and Clicks on shareholders.

Keywords

Stakeholder orientation; sustainability reporting; profit maximisation; entity maximisation; triple bottom line; food and drug retail sector

Metrics

Total abstract views: 3424
Total article views: 1510


Crossref Citations

No related citations found.