Information technology governance disclosure compliance of JSE-Listed companies

Abstract

Information Technology (IT) plays a vital role in the operations of companies, easing most business processes. However, IT introduces unique risks for which governance is essential. The Johannesburg Stock Exchange (JSE) of listed companies are required to comply with the King Code of Governance 2009 (King III), including requirements related to IT, yet previous research indicated areas for improvement in compliance. This study determined the extent to which JSE-listed companies comply with the King III IT governance requirements by means of an empirical review of companies most recent financial reports, and found that not all businesses fully comply with these requirements. It is believed that this study will assist the Institute of Directors in Southern Africa, authors of the King reports, in clarifying the disclosure requirements of IT governance. These findings will benefit investors as agreement with governance is an important investment consideration. In addition, the present study clarifies compliance requirements of King III for companies management.