Research Article
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Year 2018, Volume: 10 Issue: 1, 167 - 183, 01.01.2018

Abstract

References

  • Barnabè, F. (2011). A system dynamics-based Balanced Scorecard to support strategic decision making. International Journal of Productivity and Performance Management, 60(5), 446-473.
  • Baroma, B., Bellisario, A., Chirico, A. & Apoloni A. (2013). Breakthroughs in the Management Accounting Science: Imaging a Balanced Scorecard Thought by Lean Philosophy Rationales. Transition Studies Review, DOI 10.1007/s11300- 013-0279-1. Accessed 2017/12/22.
  • Bloomberg. (2018). Quote. https://www.bloomberg.com/quote/SNH:SJ/. Accessed 2018/06/12.
  • Bowen, G. (2009). Document analysis as a qualitative research method. Qualitative research journal, 9(2), 27-40.
  • Business Dictionary. (2017). Stakeholders.http://www.businessdictionary.com/definition/stakeholder.html/. Accessed 2017/03/14.
  • Carels, C., Maroun, W. & Padia, N. (2014). Integrated reporting in the South African Mining Sector. Corporate Ownership & Control, 11(1), 992.
  • Cassim, R.J. (2014). The value of financial ratio analysis in predicting the failure of JSE Listed companies. Masters Dissertation. Vanderbijlpark: North-West University.
  • Chakrabortty, R.K. & Kumar, S.P. (2011). Study and implementation of lean manufacturing in a garment manufacturing company: Bangladesh perspective. Journal of optimization in industrial engineering, 7, 11-22.
  • Citizen. (2018). Five things you need to know about Steinhoff. https://citizen.co.za/news/news-cns/1752460/five-things-you-need-to-knowabout- steinhoff/. 2018/06/15.
  • Correia, C., Flynn, D., Uliana, E., Wormald, M. & Dillon, J. (2015). Financial Management. 8th edition. Cape Town: Juta & Co Ltd.
  • Creswell, J.W. (2009). Research design, qualitative, quantitative and mixed methods approaches. 3rd edition. Thousand Oaks: Sage.
  • De Arbulo-Lopez, P.R. & Fortuny-Santos, J. (2010). An accounting system to support process improvements: transition to lean accounting. Journal of Industrial Engineering and Management, 3(3), 576-602.
  • Enoch, O.K. (2013). Lean accounting and lean business philosophy in Nigeria: an exploratory research. International journal of economics, finance and management, 2(7), 508-515.
  • Fin24. (2018). Steinhoff International Holdings. https://www.fin24.com/Company/Steinhoff-international-holdings-nv/. 2018/02/12.
  • Flick, U. (2011). Introducing research methodology: a beginner’s guide to doing a research project. Thousand Oaks: Sage.
  • Fonou Dombeu, N.C. (2016). Preparedness of accounting grauates in lean accounting in South Africa. Masters Dissertation. Vanderbijlpark: North-West University.
  • Gray, D.E. (2009). Doing research in the real world. 2nd edition. London UK: Sage Publications.
  • Hyer, N. L. & Wemmerlöv, U. (2002). Reorganizing the factory: competing through cellular manufacturing. Portland: Productivity Press.
  • International Accounting Standards Board. (2010). The Conceptual Framework for Financial Reporting. London: IFRS Foundation.
  • Karsak, E.E. (2004). Fuzzy multiple objective, decision-making approach to prioritize design requirements in quality function deployment. International Journal of Production Research, 42(18), 3957-3974.
  • Marshall, C. & Rossman, G. (2014). Designing qualitative research. 3rd edition. London: Sage publication.
  • Maskell, B.H. & Baggaley, B.L. (2004). Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprise. New York: Productivity Press.
  • Maskell, B.H. & Kennedy, F.A. (2007). Why do we need Lean Accounting and how does it work? The journal of Corporate Accounting and Finance, 18, 59-73.
  • Maskell, B.H. (2013). What is lean accounting? http://www.maskell.com/LeanAcctg.htm. 2017/02/18.
  • Oberholster, J.G.I., Koppeschaar, Z.R., Janse van Rensburg, C., Binnekade, C.S., Hattingh, M., De Klerk, M., Rossouw, J. & Du Toit, E. (2011). Introduction to IFRS. 4th ed. Johannesburg: Lexis Nexis.
  • OECD. (2010). Transfer pricing guidelines for multinational enterprises and tax administrators. France: OECD Publishing.
  • Ofileanu, D. & Topor, D. (2014). Lean Accounting - An Ingenious Solution for Cost Optimization. International Journal of Academic Research in Business and Social Sciences, 4(4), 342-352.
  • Ramezani, A.R. & Razmeh, A.P. (2014). Kaizen and Kaizen costing. Academic Journal of Research in Business & Accounting, 2(8), 43-52.
  • Ranaweera, D. (2010). Accounting for Lean, Six Sigma or Lean Six Sigma and Lean Accounting. The Cima Edge, CIMA Sri Lanka Division, 2(5), 5-7.
  • Salah, W. & Zaki, H. (2013). Product Costing in Lean Manufacturing Organizations. Research Journal of Finance and Accounting, 4(6), 86-98.
  • Sedevich Fonds, L.A. (2012). Integration of quality cost and accounting practices. The Total Quality Management (TQM) Journal. 24(4), 338-351.
  • Swanepoel, M.J. (2018). The development of an integrated financial decisionmaking model using lean accounting. PhD Dissertation. Vanderbijlpark: North-West-University.
  • Van Rensburg, L.R.J. (2010). Business Management: an introduction. 3rd edition. Pretoria: Van Schaik.
  • Wall, A. (1919). Study of credit barometrics, Federal Reserve Bulletin, 5(3), 189-301.
  • Wall, K.D. & MacKenzie, C.A. (2015). Military Cost–Benefit Analysis: Theory and Practice. Edited by Melese, F., Richter,A. & Solomon, B. London and New York: Routledge.
  • Woehrle, S.L. & Abou-Shady, L.A. (2010). Using Dynamic Value Stream Mapping and Lean Accounting Box Scores to Support Lean Implementation. American Journal of Business Education, 3(8), 67-75.

INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES

Year 2018, Volume: 10 Issue: 1, 167 - 183, 01.01.2018

Abstract

The business environment has changed drastically since the start of the new millennium. Over the years, owners of businesses have been sidelined from the daily operations of companies by managers and directors. This phenomenon is known as the agency theory whereby the managers and directors are driven, like shareholders and investors, by wealth creation, which sometimes culminates in greed. This greed usually ends with financial losses to the shareholders and investors. Investors use traditional financial decision-making models to determine the best investment possibilities. However, these models have failed shareholders and investors time and time again. Shareholders and investors are looking towards the accounting profession for answers. The integration of lean accounting principles in decision-making models could be a possible solution. The purpose of this study is to investigate if an integrated financial decision-making model, using lean accounting principles, could have provided the shareholders and investors of the ill-stricken Steinhoff International Holdings with results, which could have led to different decisions. A qualitative research approach using document analysis was employed in the study. The document analysis was deemed to be appropriate as it is a systematic procedure for the review and evaluation of documents. The annual financial statements of Steinhoff International Holdings for the five years ending 30 September 2016 were analysed and applied to the integrated financial decisionmaking model using lean accounting principles. The results of the analysis revealed that using the integrated financial decisionmaking model more conservative results on key financial ratios were obtained, compared to traditional financial decision-making models. These more conservative results could have changed shareholders and investors’ decision regarding Steinhoff International Holdings, long before its 52 week share price range fell from 7401c to 201c, emanating in a 97,3% loss in value to shareholders. The recommendation of this study is to integrate financial decision-making models with lean accounting principles. This study could impact shareholders and investors’ decision-making, providing an alternative and more conservative financial decision-making model.

References

  • Barnabè, F. (2011). A system dynamics-based Balanced Scorecard to support strategic decision making. International Journal of Productivity and Performance Management, 60(5), 446-473.
  • Baroma, B., Bellisario, A., Chirico, A. & Apoloni A. (2013). Breakthroughs in the Management Accounting Science: Imaging a Balanced Scorecard Thought by Lean Philosophy Rationales. Transition Studies Review, DOI 10.1007/s11300- 013-0279-1. Accessed 2017/12/22.
  • Bloomberg. (2018). Quote. https://www.bloomberg.com/quote/SNH:SJ/. Accessed 2018/06/12.
  • Bowen, G. (2009). Document analysis as a qualitative research method. Qualitative research journal, 9(2), 27-40.
  • Business Dictionary. (2017). Stakeholders.http://www.businessdictionary.com/definition/stakeholder.html/. Accessed 2017/03/14.
  • Carels, C., Maroun, W. & Padia, N. (2014). Integrated reporting in the South African Mining Sector. Corporate Ownership & Control, 11(1), 992.
  • Cassim, R.J. (2014). The value of financial ratio analysis in predicting the failure of JSE Listed companies. Masters Dissertation. Vanderbijlpark: North-West University.
  • Chakrabortty, R.K. & Kumar, S.P. (2011). Study and implementation of lean manufacturing in a garment manufacturing company: Bangladesh perspective. Journal of optimization in industrial engineering, 7, 11-22.
  • Citizen. (2018). Five things you need to know about Steinhoff. https://citizen.co.za/news/news-cns/1752460/five-things-you-need-to-knowabout- steinhoff/. 2018/06/15.
  • Correia, C., Flynn, D., Uliana, E., Wormald, M. & Dillon, J. (2015). Financial Management. 8th edition. Cape Town: Juta & Co Ltd.
  • Creswell, J.W. (2009). Research design, qualitative, quantitative and mixed methods approaches. 3rd edition. Thousand Oaks: Sage.
  • De Arbulo-Lopez, P.R. & Fortuny-Santos, J. (2010). An accounting system to support process improvements: transition to lean accounting. Journal of Industrial Engineering and Management, 3(3), 576-602.
  • Enoch, O.K. (2013). Lean accounting and lean business philosophy in Nigeria: an exploratory research. International journal of economics, finance and management, 2(7), 508-515.
  • Fin24. (2018). Steinhoff International Holdings. https://www.fin24.com/Company/Steinhoff-international-holdings-nv/. 2018/02/12.
  • Flick, U. (2011). Introducing research methodology: a beginner’s guide to doing a research project. Thousand Oaks: Sage.
  • Fonou Dombeu, N.C. (2016). Preparedness of accounting grauates in lean accounting in South Africa. Masters Dissertation. Vanderbijlpark: North-West University.
  • Gray, D.E. (2009). Doing research in the real world. 2nd edition. London UK: Sage Publications.
  • Hyer, N. L. & Wemmerlöv, U. (2002). Reorganizing the factory: competing through cellular manufacturing. Portland: Productivity Press.
  • International Accounting Standards Board. (2010). The Conceptual Framework for Financial Reporting. London: IFRS Foundation.
  • Karsak, E.E. (2004). Fuzzy multiple objective, decision-making approach to prioritize design requirements in quality function deployment. International Journal of Production Research, 42(18), 3957-3974.
  • Marshall, C. & Rossman, G. (2014). Designing qualitative research. 3rd edition. London: Sage publication.
  • Maskell, B.H. & Baggaley, B.L. (2004). Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprise. New York: Productivity Press.
  • Maskell, B.H. & Kennedy, F.A. (2007). Why do we need Lean Accounting and how does it work? The journal of Corporate Accounting and Finance, 18, 59-73.
  • Maskell, B.H. (2013). What is lean accounting? http://www.maskell.com/LeanAcctg.htm. 2017/02/18.
  • Oberholster, J.G.I., Koppeschaar, Z.R., Janse van Rensburg, C., Binnekade, C.S., Hattingh, M., De Klerk, M., Rossouw, J. & Du Toit, E. (2011). Introduction to IFRS. 4th ed. Johannesburg: Lexis Nexis.
  • OECD. (2010). Transfer pricing guidelines for multinational enterprises and tax administrators. France: OECD Publishing.
  • Ofileanu, D. & Topor, D. (2014). Lean Accounting - An Ingenious Solution for Cost Optimization. International Journal of Academic Research in Business and Social Sciences, 4(4), 342-352.
  • Ramezani, A.R. & Razmeh, A.P. (2014). Kaizen and Kaizen costing. Academic Journal of Research in Business & Accounting, 2(8), 43-52.
  • Ranaweera, D. (2010). Accounting for Lean, Six Sigma or Lean Six Sigma and Lean Accounting. The Cima Edge, CIMA Sri Lanka Division, 2(5), 5-7.
  • Salah, W. & Zaki, H. (2013). Product Costing in Lean Manufacturing Organizations. Research Journal of Finance and Accounting, 4(6), 86-98.
  • Sedevich Fonds, L.A. (2012). Integration of quality cost and accounting practices. The Total Quality Management (TQM) Journal. 24(4), 338-351.
  • Swanepoel, M.J. (2018). The development of an integrated financial decisionmaking model using lean accounting. PhD Dissertation. Vanderbijlpark: North-West-University.
  • Van Rensburg, L.R.J. (2010). Business Management: an introduction. 3rd edition. Pretoria: Van Schaik.
  • Wall, A. (1919). Study of credit barometrics, Federal Reserve Bulletin, 5(3), 189-301.
  • Wall, K.D. & MacKenzie, C.A. (2015). Military Cost–Benefit Analysis: Theory and Practice. Edited by Melese, F., Richter,A. & Solomon, B. London and New York: Routledge.
  • Woehrle, S.L. & Abou-Shady, L.A. (2010). Using Dynamic Value Stream Mapping and Lean Accounting Box Scores to Support Lean Implementation. American Journal of Business Education, 3(8), 67-75.
There are 36 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Research Article
Authors

M.j. Swanepoel This is me

Publication Date January 1, 2018
Published in Issue Year 2018 Volume: 10 Issue: 1

Cite

APA Swanepoel, M. (2018). INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES. International Journal of Economics and Finance Studies, 10(1), 167-183.
AMA Swanepoel M. INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES. IJEFS. January 2018;10(1):167-183.
Chicago Swanepoel, M.j. “INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES”. International Journal of Economics and Finance Studies 10, no. 1 (January 2018): 167-83.
EndNote Swanepoel M (January 1, 2018) INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES. International Journal of Economics and Finance Studies 10 1 167–183.
IEEE M. Swanepoel, “INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES”, IJEFS, vol. 10, no. 1, pp. 167–183, 2018.
ISNAD Swanepoel, M.j. “INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES”. International Journal of Economics and Finance Studies 10/1 (January 2018), 167-183.
JAMA Swanepoel M. INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES. IJEFS. 2018;10:167–183.
MLA Swanepoel, M.j. “INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES”. International Journal of Economics and Finance Studies, vol. 10, no. 1, 2018, pp. 167-83.
Vancouver Swanepoel M. INVESTIGATING STEINHOFF INTERNATIONAL HOLDINGS’ RESULTS: APPLICATION OF INTEGRATED FINANCIAL DECISION-MAKING MODEL AND LEAN ACCOUNTING PRINCIPLES. IJEFS. 2018;10(1):167-83.