It has long been argued that efficient working capital management should contribute to the creation of shareholder value. This study investigates the relationship between working capital management and firm profitability for a sample containing both listed and delisted South African industrial firms. The results obtained from the full sample revealed statistically significant negative relationships between a firm's profitability (as quantified by the return on assets in the narrower sense) and its net trade cycle (NTC), debt ratio and liquidity ratio. Similar results are observed if the listed firms are investigated separately. In the case of firms that delisted during the period under review, however, the liquidity and debt ratios appear to play a more important role than the NTC. Based on the results of this study, it would appear that management could attempt to improve firm profitability by decreasing the overall investment in net working capital.
The objectives of the study were to investigate the levels of congruity and incongruity existing between the consumer and managerial perceptions of store image. The store intercept method was used to collect data on the perceptions of a consumer sample (n = 200), while the data from the sample of managers (n = 14) were collected by means of personal interviews. An adapted version of the Apparel Store Image Scale (ASIS) was used in this study. The data analysis included the use of descriptive statistics and an ANOVA analysis. The congruence / incongruence classification was performed using Samli's six-type classification system. The empirical results revealed higher overall importance ratings by consumers when compared to managerial ratings. Managerial and consumer ratings on the importance of store image sub-dimensions differed significantly across 26 sub-dimensions. Proposals for rectifying the incongruence are suggested.
The purpose of this study is to test the invariance of a theoretical model in order to examine the interrelationship between overall perceptions of service quality, satisfaction and behavioural intentions, based on the customer's stage in the service delivery process. The data were collected through a survey of 260 "early stage" and 264 "late stage" banking customers. In order to test invariance, a structural equation model (SEM) with maximum likelihood estimates of the model parameters was used. The results revealed that the SEM model was invariant across the two service stages, meaning that the same theoretical model is valid for both service stages. The findings provided support for the hypothesis that satisfaction mediates the relationship between service quality and behavioural intentions for both service stages.