Dipakiso Clara Msiza

This study examines the impact of Environmental, Social, and Governance (ESG) disclosures on the firm valuation of non-financial firms listed in South Africa, using Tobin’s Q as a firm value proxy. Using a panel data approach of 642 firm-year observations from 2017 to 2022, the study applies Fixed Effects, Random Effects, and Generalized Method of Moments (GMM) estimators to address possible endogeneity concerns. The results consistently show that, for the whole sample, ESG disclosures are positively and significantly related to firm value, thus supporting the view that markets reward transparency and sustainability initiatives. Firm size and liquidity also have positive impacts, while financial leverage has an inverse relationship with firm value. Subgroup regression analysis shows significant sectoral differences: ESG disclosure in non-manufacturing companies has a positive and significant relationship with firm value, in line with stakeholder and signaling theories, emphasizing the premium for intangible assets like reputation and trust. However, in manufacturing companies, ESG disclosure is negatively and significantly associated with firm value, implying concerns among investors regarding compliance costs, strategic misalignment, or possible “greenwashing.” The study contributes to the emerging-market literature by (i) introducing a PCA-based ESG index specific to JSE-listed non-financials, (ii) triangulating results across static and dynamic specifications to ensure robustness, and (iii) uncovering sectoral heterogeneity that has been largely overlooked. The research also has practical implications for corporate managers, policymakers, and investors on the alignment of ESG practices to industry attributes for long-term value optimization.

The legalisation of the prodigal green crop has left the most vulnerable small-scale cannabis farmers high and dry. In 2018 the South African constitutional court legalised the use of cannabis for personal and medical use. The 2018 regulations on cannabis were welcomed and a new lifeline in the eradication of poverty. However, in the haste to join the global urgency in cultivating cannabis, small-scale farmers were left behind and prevented in the bid of the green-gold rush. The cannabis legislation and laws that were created to enable South Africans to participate in the lucrative cannabis market has done the opposite and has crafted barriers of entry. Using a desktop study, this article explores how the 2018 regulations on cannabis cultivation prevent small-scale farmers in participating in the l market in South Africa. The aim of this paper is to highlight the challenges that small-scale cannabis farmers face in South Africa and how their participation in the newly opened market would benefit the communities they live and operate in. The main findings of the research indicate the challenges for small-scale farmers of no support system and transformational issues persist even after the 24 years of democracy in South Africa.