The impact of Black Economic Empowerment transactions on

The purpose of the study is to evaluate the impact of the Black Economic Empowerment(BEE) transaction on shareholder value. In this study a specific reference data of 2002has been chosen for analysis.The analysis measures and compares various financial ratios before 2002 and after 2002for those companies that implemented BEE transactions in 2002. This is basically anevent study where the event window is in 2002.We have a sample of 33 companies from a population of 103 BEE transactions fromlisted and unlisted companies. The ratios such as ROI, ROIC, ROE, ROCE, EVA andCVA were calculated for each of the 33 companies before 2002 and after 2002.Test results show there is no statistically significant change in the various ratios. Thus theBEE transactions are adding no significant value to current shareholders in the targetcompanies.The findings have significance for future BEE policy considerations