Types of Non-Financial Performance Measures Prevalent for Top 40 Companies Listed on the Johannesburg Securities Exchange

Witness Siwela and Peter N Kamala
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Witness Siwela: University of South Africa, Pretoria, South Africa
Peter N Kamala: Sheridan College Institute of Technology and Advanced Learning, Mississauga, Canada

Oblik i finansi, 2025, issue 1, 160-170

Abstract: In the past decade, many companies have begun to make greater use of non-financial performance measures, which are believed to affect profitability ultimately. The attention to these non-financial metrics is in sync with the global trend of companies embracing sustainable corporate practices. This ascendancy of non-financial metrics entails that companies obtain a glimpse of their progress in real-time before a financial verdict is pronounced and the soundness of their investment allocations has become moot. However, prior studies show that most companies have made little attempt to identify types of non-financial performance that might advance their chosen strategy. This article aims to analyze the balanced scorecard's non-financial perspectives to unveil the most prevalent non-financial performance measures companies employ in South Africa. The study used a quantitative research paradigm and multiple case study design to empirically analyze the Top 40 companies listed on the Johannesburg Securities Exchange (JSE). Data were collected using the content analysis technique in congruence with the adopted research approach. A census approach was employed to select a sample to enhance the accuracy of the results. Accordingly, we drew snapshot data from Integrated Annual Reports (IARs) and Sustainability Reports (SRs) for analysis using a Control list and a Judgement scale. The results revealed that the sampled companies employed all three types of non-financial performance measures related to the non-financial perspectives of the balanced scorecard. Thus, out of the 34 performance measures listed, only two were not utilized by any of the sampled companies. The study's findings are expected to improve the quality of decisions made by the JSE-listed companies and their stakeholders by encouraging the use of the balanced scorecard approach to integrated reporting. Moreover, this study fills in the gap in research on the non-financial performance measurement practices of companies listed on the JSE.

Keywords: non-financial performance; sustainability; control list; integrated annual reports; contingency theory; balanced scorecard; financial measures (search for similar items in EconPapers)
JEL-codes: G30 M14 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2025:i:1:p:160-170

DOI: 10.33146/2307-9878-2025-1(107)-160-170

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