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- Management Dynamics : Journal of the Southern African Institute for Management Scientists
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- Volume 23, Issue 3, 2014
Management Dynamics : Journal of the Southern African Institute for Management Scientists - Volume 23, Issue 3, 2014
Volume 23, Issue 3, 2014
Author Rousseau LotterSource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 23, pp 2 –12 (2014)More Less
This study evaluates the effect of the 2008 market crash on general equity unit trusts' performance persistence and performance relative to fund size. Fund performance relative to fund expenses after the 2008 market crisis is also assessed. Overall, managers' ability to remain in the same ranking quartile decreased after the 2008 market crash. The findings contradict the conclusion of previous studies that performance persistence decreased as lengthier subsequent periods were considered before and after 2008. Performance persistence patterns over six and 12 months changed significantly after the 2008 crisis. It is concluded that the total expense ratio of the funds should not be considered as an indication of expected performance. Contrary to the negative relationship between performance and unit trust size reported by studies before the crisis, this study did not reveal any significant relationship after the crisis. The largest funds proved to have the most stable quartile rankings after the 2008 financial crisis.
The influence of relationship intention on cell phone users' satisfaction, loyalty and retention after service recoverySource: Management Dynamics : Journal of the Southern African Institute for Management Scientists 23, pp 13 –29 (2014)More Less
South African cell phone network providers are bound to fail customers' expectations sometimes, as the occasional service failure is almost inevitable. This failure, if it occurs, may lead to switching behaviour. Cell phone network providers thus need to consider all influences on post-recovery customer behaviour. One possible influence on post-recovery customer behaviour that has not been fully explored is that of customers' relationship intentions. To address this gap in the literature, the purpose of this study was to assess the influence of relationship intention on cell phone users' satisfaction, loyalty and retention after service recovery. Convenience sampling was used to capture 605 respondents' satisfaction, loyalty and retention after two hypothetical service recovery scenarios.
The results indicate that the relationships between respondents' relationship intentions and satisfaction, loyalty and retention were significantly higher after a combination of restorative and apologetic service recovery strategies, rather than after a restorative service recovery strategy alone. Managerial implications are presented based on these results.
Source: Management Dynamics : Journal of the Southern African Institute for Management Scientists 23, pp 30 –42 (2014)More Less
In the mid-1980s it was suggested that liquidity might be a factor influencing stock returns. However, in the South African equity market, studies of this so-called liquidity effect are still limited. This study analysed liquidity as a risk factor on the Johannesburg Stock Exchange (JSE) during the period 1996 to 2012, using different methodologies from those employed in previous South African studies. In contrast to most United States-based studies, this study found that liquidity is not a significant risk factor affecting broad market returns. Instead, the effect is significant in small- and low-liquidity portfolios only. However, the study found that including a liquidity factor improved the Fama-French three-factor model in capturing shared variation in stock returns. Finally, incorporating a liquidity style into two passive portfolio strategies yielded weak evidence of enhanced risk-adjusted performance.