Original Research

Corporate social responsibility: the financial impact of black economic empowerment transactions in South Africa

Hendrik Wolmarans, Kurt Sartorius
South African Journal of Economic and Management Sciences | Vol 12, No 2 | a275 | DOI: https://doi.org/10.4102/sajems.v12i2.275 | © 2011 Hendrik Wolmarans, Kurt Sartorius | This work is licensed under CC Attribution 4.0
Submitted: 18 August 2011 | Published: 22 August 2011

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Hendrik Wolmarans, University of Pretoria, South Africa
Kurt Sartorius, University of Witwatersrand, South Africa

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Corporate social responsibility (CSR) has recently received considerable attention in literature. One of the vehicles by which companies can conform to CSR in South Africa is Black Economic Empowerment (BEE). In this regard, BEE has been employed to assist previously disadvantaged groups of investors obtain a larger share of the equity of South African listed companies. The question has often been asked whether the announcement of BEE transactions by listed companies increases shareholder wealth. This article tries to answer this question by examining the share performance of 125 BEE transactions involving 95 companies during the period January 2002 to July 2006. The results indicate a positive relation between BEE transaction announcements and shareholder wealth creation, but only during the last part of the period covered by the study.


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