Understanding Financial and non-Financial Information to Assess Listed Johannesburg Stock Exchange (JS']JSE) Companies' Performances

Today there is an urgent need for companies to adapt to the constantly changing business conditions as the business environment exposes executives to so much data that data needs to be converted into useful information. Executives of companies need to understand what information is available since recent research has shifted to a broader, more profitable focus on the global business environment and competitive forces. The purpose of the paper is to investigate the reality of financial and non-financial information in listed Johannesburg Stock Exchange (JSE) companies. An exploration is undertaken to see what financial and non-financial information are available, how it is used (or not) to make decisions and to solve problems to assess the company's performance and the role played by executives in that process by using Executive Information Systems (EISs). A mixed method was used; quantitative and qualitative in nature. An empirical study and observations derive from a questionnaire to executives of 334 listed JSE companies. Thereafter structured interviews were undertaken with executives in listed JSE companies, focusing on the understanding of financial and non-financial information to enhance the performance of companies. The findings of the study conclude that several factors have served to enhance the demand and increasing awareness of EISs activities to assess the performance of listed JSE companies. The three most important elements in upgrading information on EISs by respondents are as follow: financial information: Income statement, comparative figures, Balance sheet and non-financial information: director's information, logo, contact details of the company. Companies portray a positive image by upgrading all crucial information that is important for companies to have a competitive advantage. The role played by executives in the process concluded that respondents selected executives as the main decision-maker for implementing EISs and as the responsible person to define the requirements of an EIS. Executives must work together with the developers to discuss the requirements of the EIS and to ensure that the information is made available to the system. It is noted that respondents also selected executives as the main decision makers in deciding the content of EISs, to add new features, to ensure the integrity and to assure ownership to an EIS. The findings from the interviews concluded that successful EISs provide executives with the necessary real-time information and is a trusted source of information to provide financial and non-financial information. The value of the study explains that the trend has increasingly shifted towards management empowerment to improve the reality in understanding financial and non-financial information of companies to assess their performances.