bluuebunny/crossref_metadata_2025 huggingface dataset:
The use of price-to-earnings-to-growth (PEG) ratios to predict share performance on the JSE
Authors: I’Ons T. , Ward M.
Published: April 2018

The effectiveness of the Price Earnings Growth ratio as a valuation tool has been a topical debate amongst analysts ever since being popularised by Lynch (1989). This study examines the appropriateness of the fair value criteria of a PEG of 1,0, as proposed by Lynch (PEGL), and compares this with the time-series based, share specific model, proposed by Trombley (2008) (PEGT). In addition, the study analyses several factors which influence the accuracy of analyst’s forecasts (viz. the number of analysts’ contributions, the dispersion of forecasts and the forecast horizon), with the objective of identifying an optimal trading rule based on the PEG ratio. We find consistent outperformance of the PEGT model. We also note (unexpectedly) that analyst’s forecasting accuracy may have a less significant impact on the usefulness of the PEG ratio than their optimism. Finally, we report an optimised PEG trading rule which delivered annual abnormal returns of 13,7% over the study period. The trading rule appeared to single out small-capitalisation firms, with above market growth prospects, which performed well in a buoyant market.
Capital budgeting practices in South Africa: A review
Authors: Correia C.
Published: April 2018

This paper reviews the capital budgeting survey literature in South Africa over the period 1972 to 2008. The survey evidence indicates a significant growth in Discounted Cash Flow (DCF) methods and a fall in the use of other methods. In particular, there has been growth in the use of Net Present Value (NPV). Yet, the Internal Rate of Return (IRR) technique remains the primary method used in practice despite some serious drawbacks. Larger companies are more likely to use DCF methods. There has been a significant growth in the use of sensitivity analysis and scenario analysis. However, there is little use of sophisticated risk analysis tools such as Monte Carlo simulation, and decision trees. Although financial theory predicates the use of risk adjusted discount rates, surveys indicate that the majority of companies use a single firm discount rate. Companies have increasingly used inflation-adjusted cash flows but the process of ranking mutually exclusive projects is not aligned with finance theory. There is limited use of the Modified Internal Rate of Return (MIRR) method and DCF dominant companies do not outperform non-DCF dominant companies. The most important phase of project evaluation is the project definition and cash flow estimation phase and yet research studies have focused mainly on the financial analysis and project selection phase.
Young adults’ relationship intentions towards their cell phone network operators
Authors: Kruger L. , Mostert P. G.
Published: April 2018

Marketers use relationship marketing to establish mutually beneficial long-term relationships with their customers as a means to retain them in the competitive market environment. Relationship marketing should not be used to target every customer as not all customers want to build long-term relationships with organisations. In order to identify the most profitable customers for relationship marketing, organisations should consider their customers’ relationship intentions to form long-term relationships with them. The primary objective of this study was to determine young adults’ (aged 18 to 25) relationship intentions towards the South African cell phone network operators they use, namely Vodacom, MTN or Cell C. Five constructs (involvement, expectations, forgiveness, feedback and fear of relationship loss) were used to measure relationship intention. Data was collected from 315 respondents at a tertiary education institution in South Africa by means of a non-probability convenience sample. Findings indicate that a relatively high percentage of respondents have a high relationship intention towards their cell phone network operator and that respondents with high relationship intentions are more Involved with and Fear losing their relationship with their cell phone network operator than respondents with low relationship intentions
Are bank loans to SMEs procyclical? Evidence from an analysis of the lending behavior of Korean banks
Authors: Seo Ji-Yong
Published: April 2018

This paper investigates the procyclicality of bank loans to Small and Medium Enterprises (SMEs) and to Large Enterprises (LEs) using aggregated and cross-sectional data from major private, foreign, and state-owned banks in Korea in the period from 1999 to 2008. Based on previous studies, it is hypothesized that compared to LEs, banks loans to SMEs may be more vulnerable to external economic shock. Berger and Udell (1994) suggested that bank loans to SMEs are comparatively risky due to their relatively low collateral and heavy dependence on banks for raising funds. In this study, empirical tests are verified by applying the rolling vector error correction Model (VECM), panel generalized least squares model (GLS), and the Clustering Fixed Effect Model. Findings include robust support for the procyclicality of bank loan to SMEs, but not for LEs. The review of short-term dynamics among first differential variables such as loans and GDP provides evidence to support a related hypotheses: the profit-oriented motivation of commercial banks in enhancing relationships with SMEs, the characteristics of governance structure in three types of banks (private, state-owned, and foreign owned banks), and the large-bank barriers assumption.
Students’ entrepreneurial regulation and intention to become an entrepreneur: A comparison between public and private universities
Authors: Pihie Z. A.L. , Bagheri A.
Published: April 2018

Motivation and ability to orient ones’ knowledge, thought and behavior to accomplish entrepreneurial goals and tasks has recently termed as entrepreneurial regulation. Entrepreneurial regulation strongly affects the whole process of new venture creation and specifically entrepreneurial opportunity exploration that is the first step in the entrepreneurship process. However, few researchers examined the construct particularly among potential entrepreneurs such as university students. This study aims to measure self-regulation (promotion focus), entrepreneurial self-efficacy and intention to become an entrepreneur among university students. 722 students from both public and private universities were randomly selected as the participants based on the assumption that entrepreneurship education and training programs and university environment highly influence the development of entrepreneurial regulation, self-efficacy and intention in students. Analysis of the data revealed a significant relationship between students’ promotion focus, entrepreneurial self-efficacy and entrepreneurial intentions. Furthermore, students from public universities had significantly higher entrepreneurial regulation and intentions than their counterparts from private universities. We discuss the implications of the findings for entrepreneurship research, theory development and education.
A marketing view of the customer value: Customer lifetime value and customer equity
Authors: Estrella-Ramón A. M. , Sánchez-Pérez M. , Swinnen G. , VanHoof K.
Published: April 2018

Throughout this research the customer valuation trend in marketing is going to be reviewed, emphasizing Customer Lifetime Value and Customer Equity measures. The main theoretical contributions in the development and evolution of the Customer Lifetime Value concept are analysed. Customer Lifetime Value is also differentiated from Customer Equity and Customer Profitability analysis to estimate customer value in terms of firm profitability. Customer Lifetime Value and Customer Equity concepts are formally defined. Additionally, a classification of a set of published researches into Customer Lifetime Value and/or Customer Equity is developed. This classification has been posited according to several criteria that serves as a guide to key requirements for developing these types of models. Finally,several conclusions, suggestions and future research streams are highlighted.
Factors determining exportation and internationalization in family businesses: The importance of debt
Authors: Benito-Hernández S. , Priede-Bergamini T. , López-Cózar-Navarro C.
Published: April 2018

This study focuses on the factors that may influence Spanish family owned businesses to decide to export and move towards internationalization, posing their level of debt as a possible determining factor. To do so, a review of publicationson the subject has been carried out, as well as an empirical study using a sample of 1,846 businesses, which include both family and non-family firms. The results seem to show that the debt level of businesses whose propriety and management are handled by a family differs from that of those that do not fit this characteristic, especially where the decision whether or not to export products abroad is concerned.
What it means to succeed: Personal perceptions of career success held by senior managers
Authors: Visagie S. , Koekemoer E.
Published: April 2018

This research describes the findings of a qualitative study which analyses how senior managers conceptualise and experience career success for themselves. A non-probability voluntary sample of 24 senior managers, using objectivecareer success criteria, was selected from two international financial institutions located in Johannesburg. This research study entailed semi-structured in-depth interviews that were digitally voice recorded, transcribed verbatim, and analysedusing content analysis. In exploring career success from the perspective of the individual (i.e. the senior manager) and not the organisation, the research attempts to fill the gap in the career literature. Findings demonstrate that although senior managers have general conceptualisations of what career success entail, they have unique personal meanings which they associate with their own career success (e.g. being associated with successful business brands, receiving feedback and recognition and adding value to the organisation). Senior managers also have specific goals set for their future in terms of careers (e.g. owning your own business venture, embracing new opportunities and investing in the community). Talent retention is particularly important among senior managers. Thus, in order to retain them as valuable employees, it is crucial to address and fulfil their career needs accordingly.
Consolidation of the number of treasury shares: The South African experience
Authors: Vermeulen M. , Yaffar Y.
Published: April 2018

Unlike most other values found in companies’ annual reports, there are no accounting standards that prescribe the calculation of market capitalisation and net asset value per share. These two figures play quite a significant role whenvaluing and comparing different companies. It is also frequently used in determining when a company should repurchase its own shares. In South Africa the number of the holding company’s shares can differ from the total number of the group’s shares after consolidation, as subsidiaries and share trusts are allowed to hold shares in their holding company. The published financial statements of a sample of JSE-listed companies were investigated to determine which number of shares companies use to calculate net asset value per share and market capitalisation, and if it is used consistently. Eight different combinations of consolidated and unconsolidated numbers of shares were found in the calculations of market capitalisation and net asset value per share showing inconsistency in application across the JSE-listed companies
The investigation into the influence of the features of furniture product design on consumers’ perceived value by fuzzy semantics
Authors: Lee A. S.
Published: April 2018

This study employed fuzzy theory to investigate the influence of the features of furniture product design on the fuzzy semantics of Taiwanese consumers’ perceived value in new product design and development in hopes of providing product designers or developers with a reference to new product design and development. Furniture designers or  manufacturers can use u(x), the fuzzy membership function value of the model for investigating the fuzzy semantic relation between the features of furniture product design and consumers’ perceived value, to evaluate the fuzzy semantics  of consumers’ perceived value, and they can also employ the fuzzy semantic mean equation, namely to transform the research data into fuzzy semantics. In this study, all the consumers agreed that the features of furniture product design were significantly correlated to the fuzzy semantics of consumers’ perceived value. In terms of the fuzzy semantics of the perceived value, the consumers with different genders, ages, education backgrounds, and incomes had different opinions about the features of furniture product design, and there were significant differences between the variables. In short, this study is helpful to understand consumers’ demand for products as well as the development of consumer-oriented products, enhance their purchase intention, and improve corporate performance and market competitiveness.
Consumers’ attributions and emotional responses to negative expectancy disconfirmation: Anger and regret
Authors: Kim S. H.
Published: April 2018

This study examines the process by which consumer dissatisfaction is formed under negative expectancy disconfirmation with respect to consumer attributions and emotions. Although previous studies have demonstrated that negative expectancy disconfirmation can induce dissatisfaction of consumers, few studies have provided specific discussions on the mechanism underlying such dissatisfaction. This study focuses on consumers' cognitive and psychological responses to negative expectancy disconfirmation and examines the process by which consumer dissatisfaction is formed. For this, the study employs consumer attributions and emotional responses as antecedent variables for consumer dissatisfaction. Specifically, the study considers internal and external attributions as consumer attributions and anger and regret as their emotions. It further examines the mechanism underlying consumer dissatisfaction and behavior. The results indicate that under negative expectancy disconfirmation, external attributions were more likely to induce anger than regret, whereas internal attributions were more likely to induce regret than anger. Consumers’ dissatisfaction and behaviors, such as complaining and switching, were more likely to be influenced by anger than by regret.
Designing a hotel website: An empirical analysis for a classic destination using a conjoint experiment
Authors: Huertas-Garcia R. , Gázquez-Abad J. C. , Forgas-Coll S. , Casas-Romeo A.
Published: April 2018

Internet has become one of the most important channels for the promotion and sale of services related to tourism. As a result, producers and distributors alike are keen to resolve the question as to which factors will determine website choice by internet browsers. In this paper we develop an experiment to determine the factors that need to be taken into consideration when designing a website for a mature, familiar tourist destination. To this end, the basic factors shaping the architecture of a website are theoretically described and, based on the results of a conjoint experiment, the main factors influencing a website for a classic destination are extracted. Our results suggest that a website that includes objective information (e.g., price, activities of interest, number of rooms) and multiple photos has a positive influence on customer perceptions. The paper also makes an important methodological contribution, as it proposes a new design for calculating the weight of the factors, interactions of two factors and the factors squared.
What is your corporate brand worth? A guide to brand valuation approaches
Authors: Reyneke J. , Abratt R. , Bick G.
Published: April 2018

Brand league tables are becoming very popular as a reflection of the performance of an organisation. Stakeholders also view the ranking of brands as an important yardstick when forming a brand image. This article reviews the available approaches to brand valuation. The research followed a case study methodology. The case site that was used for this study was The South African Gold Coin Exchange. The main objective of this study was to calculate the value of the corporate brand of one company using different methods. The aim was to show that the value of the brand is highly dependent on the method used. In total twelve senior managers and directors were interviewed. It then calculates the value of the South African Gold Coin Exchange Brand using a number of different models. There is a different result under each approach. It has been established that different models are more appropriate than others depending on the manager's valuation objectives. This research is a single case study and therefore future research should have an increased sample size and be a cross industry study. Managers are often confronted with the problem of deciding which valuation method to use as there are many alternative approaches. We provide guidance for managers who want to perform a brand valuation of their organisation.
The influence of potential outcomes of corporate social responsibility engagement factors on SME competitiveness
Authors: Venter E. , Turyakira P. , Smith E. E.
Published: April 2018

While SMEs are globally recognised for their importance in the social and economic development of many economies, their survival and competitiveness has remained a cause for concern. More than half of SMEs in Uganda fail during their first year. Analytical and empirical research on appropriate strategies for SMEs' competitiveness in Uganda is limited. The potential outcomes of CSR engagement such as employee satisfaction, business reputation, and customer loyalty have been found to be positively related to the competitiveness of SMEs. The primary objective of this article is to identify and empirically test the factors that influence the competitiveness of SMEs in Uganda. A structured selfadministered questionnaire was distributed to 750 potential SME respondents. The respondents were identified using purposive sampling technique, and the data were collected from 3 83 usable questionnaires. An exploratory factor analysis was conducted, and Cronbach-alpha coefficients calculated to determine the discriminant validity and reliability of the measuring instrument. Correlations were analysed using Structural Equation Modeling. The empirical results of this study indicate that Employee satisfaction, Business reputation, Customer loyalty and Stakeholder trust significantly impact the competitiveness of SMEs.
Market underreaction to open market share repurchases on the JSE
Authors: Wesson N. , Muller C. , Ward M.
Published: April 2018

This study examined the long-term performance of open market share repurchase announcements made by companies listed on the JSE during their reporting periods including 1 July 1999 to 2009. A total of 195 open market share repurchase announcements were identified. A maximum outperformance of about 35% was found on day t+550 (about two years subsequent to the announcement). After splitting the sample into 'value' (low P/E ratio) and 'growth' shares (high P/E ratio), it was found that the outperformance was almost entirely confined to the value portfolio, reaching a maximum of about 80% by day t+630 (about two-and-a-halfyears subsequent to the announcement). This study applied a more robust research methodology than used in earlier South African research on this topic; it also used an improveddataset and extended the research period, compared to other research. The results of this study showed much higher positive abnormal returns than were found in earlier international and South African studies. Investors should takeadvantage of the informational value of open market repurchase announcements and the related significant abnormal returns to be earned.
The price-to-book effect on the JSE: Valuation disparities and subsequent performance
Authors: Du Toit S. G. , Krige J. D.
Published: April 2018

The purpose of this study was to determine whether the relative out- or underperformance of a value portfolio versus a growth portfolio can be anticipated in advance by comparing a valuation difference multiple with the subsequent fiveyear relative performance of the value and growth portfolios. The valuation difference multiple was calculated as the median price-to-book value (P/B) ratio of the growth portfolio divided by the median P/B ratio of the value portfolio. Using monthly data for the period 1991 to 2011, this study found that in most instances the higher the valuation difference multiple, the higher the outperformance of the value portfolio over the subsequent five-year period, as compared to the growth portfolio.
Perceptions of international strategic moves: Saudi Arabia versus the United States
Authors: Robertson C. J. , Yaghmour M. A. , Kawther E. H.
Published: April 2018

Competitive strategy is one of the most important activities that top management team members can undertake. In the global marketplace perceptions of strategic moves and plausible foreign markets to enter can vary based on cultural differences, economic conditions and past experiences. In this study we match the Miles and Snow strategic orientations with possible entry into different foreign markets. An in-depth survey of strategic orientation perceptions is developed and, based on a two-country research design, we obtain responses from 89 individuals from The United States and Saudi Arabia. A review of literature related to strategic orientation and cultural differences is performed and results suggest differences in perceptions of strategic preference and rating of promising foreign markets between the two national cohort groups. Three salient hypotheses are tested and supported related to topics such as where individuals prefer to invest, cultural distance and economic systems. Our differentiating contributions are (a) methodological, we use survey data rather than archival firm data as well as vignettes, and (b) theoretical, we assess managerial perceptions of foreign entry choice as opposed to firm level decisions. Managerial and future research implications are also discussed.
Online-mobile service cross-channel cognitive evaluations in a multichannel context
Authors: Nel J. , Boshoff C.
Published: April 2018

Since the advent of mobile commerce, many firms have added a mobile (m-) service to their existing offline and online services. The adoption of an m-service in a multichannel context is not only influenced by factors directly associated with the m-service, but also by cross-channel cognitive evaluations emanating from other existing channels. These cross-channel evaluations can lead to evaluative synergies and dissynergies that can influence consumer decision-making. To explore empirically the impact of cross-channel synergies and dissynergies between the online service and the m-service offered by the same firm, against the background of expectation-transfer theory and status-quo-bias theory, data were collected from 666 online-service users. Consistent with expectation-transfer theory and status-quo-bias theory, the results of the study demonstrated that cross-channel evaluative synergies and dissynergies do indeed impact salient m-service beliefs. The results suggest that managers can leverage the cross-channel synergies emanating from online trust and ease-of-use beliefs to enhance the adoption of the m-service. The results also suggest that, to enhance wider adoption, the marketing managers of m-services need to mitigate the status-quo-bias effects emanating from online-service facilitating conditions, and lower online-service risk perceptions.
Network-based resources for the innovation process of South African micro-entrepreneurs: A conceptual framework
Authors: Griffin-EL E. W.
Published: April 2018

The paper explores the social networks of South African micro-entrepreneurs in order to understand the socially-embedded resources that micro-entrepreneurs apply towards their innovation process. The paper posits that the social capital embedded within the network of a micro-entrepreneur is activated by the demands of the innovation process to generate other forms of resources by which the innovation process is facilitated. Analysing empirical data collected via in-depth interviews of urban micro-entrepreneurs in the Johannesburg metropolitan area, the analysis conceptually organizes these various forms of socially embedded resources into an original framework referred to as Network Diversity Value (NDV). Two central dimensions frame NDV – the orientation of the innovation process and the form of the emerging resource. The interaction of these dimensions reveal a variety of network-based resources perceived as valuable, and suggest a greater degree of complexity and nuance in the South African micro-entrepreneur’s innovative process than that which common discourse conveys.
Promoting entrepreneurial potential in adolescents: A pilot study based on intergenerational contact
Authors: Fumero A. , De Miguel A. , García-Rodríguez F. J.
Published: April 2018

Recently there has been an increasing interest in promoting entrepreneurship among undergraduates, however, there have been few studies focusing on adolescents. The two aims of this research were to demonstrate the reliability and validity of the Attitudes to Entrepreneurship (ATE) test with a sample of Spanish adolescents, and to study the effect of using an intervention based on intergenerational contact on the entrepreneurial potential of young people. Two studies were carried out with these objectives. The results from Study 1 confirmed the reliability of the ATE test; entrepreneurial potential was related to achievement motivation and affected by gender. In Study 2, we used an experimental and control groups design and pre and post-test measures. In the classroom context, older adults were interviewed by students about their life and work experiences. Entrepreneurship was increased by the intergenerational contact in the experimental group, specifically, in the Leadership, Creativity and Achievement factors, in boys. Achievement motivation in the academic context also was increased. The intergenerational contact based on emotional implications and active participation promotes latent entrepreneurship and academic interest.
Developments in the value-added efficiency of South African workers – an exploratory study
Authors: Morris C.
Published: April 2018

Human capital efficiency (HCE) refers to an employee's ability to create value-added for his employer. The purpose of this study is to investigate the movement in HCE of the workers of South African listed companies over time. The metric for HCE, value-added human capital (VAHU), is calculated as the value-added per Rand spent on employee costs. The median of the compound annual growth rate of VAHU was calculated for all JSE Main Board and ALT-X listed companies, per industry, over the financial years ended 31 December 2001 to 30 June 2011. This median growth was used to infer an improvement or deterioration in HCE. HCE was found to have declined in all South African industries, except Consumer Services, from 2001 to 2011. The overall decline is attributable to an over-emphasis on tangible physical resources; excessive compensation levels imposed by the ‘strike’ culture in South Africa; poor education and, possibly, to the overall economic decline after the global financial crisis of 2007. The government's drive for quality education has not translated into improved HCE. Companies may be forced to shoulder the cost of additional education and training themselves to further develop the basic skills of their employees.
E-commerce applications in the tourism industry: A Tanzania case study
Authors: Chang B-Y. , Magobe M. J. , Kim Y. B.
Published: April 2018

Tourism which is regarded as information intensive sector is the mostly affected sector by technology revolution and its traditional trading structures have been totally changed. The adoption and use of e-commerce in tourism sector is regarded as a tool to widen market reach and improve efficiency and effectiveness of business operations. The degree of impact of e-commerce use on business performance depends on the intensity of its usage in organization’s key value-chain activities. However, the intensity of e-commerce use is influenced by technological, organizational and environmental (TOE) contextual factors. Based on TOE model and the existing literature on post-adoption use of e-commerce, a set of factors that affect the intensity of e-commerce use in Tanzanian tourism sector was identified. A survey was conducted with 181Tanzanian tourism firms that have already adopted e-commerce and structural equation modeling (SEM) was used to analyze the data. The findings indicated that the scope of e-commerce use has a positive impact on business performance in terms of improved internal processes, competitive position, customer service delivery, overall business performance and increased customer base. The scope of e-commerce use is affected positively by pressure intensity and perceived benefits and negatively by barriers to e-commerce use. The findings have highlighted key areas that require immediate actions from both the government and private sector in order to promote a successful growth of e commerce in the country.
The relationship between labour unions’ bargaining power and firms’ operating flexibility: New evidence from emerging markets
Authors: Choi I. G. , Sohn P. , Seo J-Y.
Published: April 2018

This study analyses the relevance between the bargaining power of labour unions and the operating flexibility on firms’ capital costs by using non-financial firms listed on the Korean stock exchange from 1999 to 2013. Under the assumption that constraints in business activities attributed to the collective bargaining power of labour unions lead to reduced operating flexibility and increased capital costs, we test this notion empirically; the main test results are as follows: First, we find from portfolio analysis that the cost of capital is higher for firms in more unionized industries. Second, we find that union coverage positively affects the cost of capital at a significant level. Third, we confirm through robustness tests that the industry adjusted union coverage (IAUC) also has a positive effect on the cost of capital at a significant level. As a result, the effect holds after controlling for a host of industry- and firm-level characteristics, and is stronger when unions have more favourable bargaining power. Thus, our findings are consistent with the hypothesis that the increase of labour unions’ bargaining power leads to raise firms’ capital costs by decreasing operating flexibility in the Korean firms.
The impact of regulatory fines on shareholder returns
Authors: Strydom J. , Ward M. , Muller C.
Published: April 2018

Corruption has been shown to undermine the efficiency of market-based economies by allowing participants to profit from illegal rent-seeking activities, which decrease public support for business and increase the cost of capital (Zingales, 2015). Over the past decade, the Competition Commission in South Africa has investigated and issued punitive fines amounting to around R8bn to companies engaged in non-competitive behaviour. Using event study methodology, we examine the impact on the share prices of listed companies upon the announcement of an investigation, a fine, and the payment of thefine. We find that shareholder returns were unaffected at the initiation and payment stages of the process, but that the returns were positively affected at the conviction stage. A buy-and-hold longitudinal study was also undertaken to determine if an ex-post portfolio consisting of stocks of convicted companies out-performed an equal-weighted all share benchmark, as well as a portfolio of matched companies which had not been fined. The results reveal that both the portfolio of fined companies and the matched portfolio of non-fined companies out-performed the market benchmark over a 24-year period. However, the portfolio consisting of convicted companies underperformed the portfolio of companies which had not been fined. We conclude that the market anticipated the fines and that the quantum of fines levied was less than expected. We also find that the non-competitive behaviour of convicted companies did not benefit their shareholders in the long-term.
Post IPO dynamics of capital structure on the Johannesburg Stock Exchange
Authors: Chipeta C.
Published: April 2018

This paper examines the dynamics of capital structure for firms engaging in initial public offerings (IPOs) on the Johannesburg Stock Exchange (JSE). Censored Tobit regressions are used to model capital structure targeting behaviour. The findings suggest evidence of targeting behaviour consistent with the static trade off theory of capital structure. On average, IPO firms adjust towards the capital structure target at a faster pace than seasoned firms; IPO firms take, on average, 0.77 years to cover half the financing gap, whereas seasoned firms take an average of 2.65 years. In the first year following the IPO, hot market IPOs significantly reduce their total debt, while cold market IPOs increase the total debt significantly. In terms of the total debt ratio, hot market IPOs adjust at a marginally faster pace than cold market IPOs. However, the opposite is true when the long term debt ratio is considered. In addition, hot market IPOs adjust faster than cold market IPOs in the first year following the IPO. The average first year adjustment speed of hot market IPO firms is 45.61 percent higher than the speed of adjustment for the average cold market IPO firm.
Measuring consumer knowledge of life insurance products in South Africa
Authors: Ramchander M.
Published: April 2018

The financial services industry is characterized by product suppliers having more information than consumers regarding product features and services. The purpose of this article is to explore this information asymmetry with particular reference to the life insurance industry. Financial advisors, acting as intermediaries, are charged with the task of resolving this asymmetry through mandatory disclosures demanded by regulation. In South Africa, the Financial Services Board (FSB) monitors, regulates and supervises the financial services industry through the Financial Advisory and Intermediary Services Act of 2002 and The Code of Conduct for Financial Advisors. This paper distinguishes financial products from other products and highlights the need for disclosures regarding product features, by financial advisors. Using multistage sampling a national survey was conducted to establish whether consumers are knowledgeable of the features of basic insurance products. The findings were that consumers have a low to very low level of understanding of the features of basic insurance products. The study makes an important contribution to insurers’ understanding of consumers’ knowledge regarding the features of basic life insurance products. Furthermore, the findings would also contribute to insurersunderstanding the level to which intermediaries resolve the information asymmetry between product suppliers and consumers.
Clustering Kruger National Park visitors based on interpretation
Authors: Botha E. , Saayman M. , Kruger M.
Published: April 2018

Interpretation is considered to be an important educational tool that not only addresses visitors’ expectations but also contributes to national parks’ conservation purposes. This study segmented the Kruger National Park’s visitors based on expected interpretation services and revealed four clusters that differed based on their expected and experienced interpretation services as well as their motivational aspects. This study’s distinct contribution is the alternative segmentation approach which revealed the viability of the expected interpretation variable to use for ecotourism segmentation purposes. This study not only assists the Kruger National Park to appropriately address interpretation services but also aids other ecotourism destinations.
The development of a measurement instrument to measure the quality of internet investor relations
Authors: Nel G. F. , Brummer L. M.
Published: April 2018

The purpose of this study was to develop a measurement instrument to measure the quality of Internet investor relations (IIR). This study will aid future research to examine IIR and provide guidance to companies in the development of an IIRstrategy. The development of the instrument was based on best practice guidelines issued by the Investor Relations Society, an extensive literature review and a pilot study. The result was a measurement instrument that consists of 346 attributes.Quality is assessed by measuring content as widely as possible, by including attributes to measure the accessibility, navigation and timeliness of information, and by allowing for the measurement of attributes as being partially availablebased on breadth, usability and timeliness considerations. The reliability and validity of the measurement instrument was confirmed on the basis of the measurement results of a sample of 85 JSE-listed companies.
Boards of directors in SMEs: An empirical evidence of board task performance
Authors: Iturralde T. , Maseda A. , Arosa B. , García-Ramos R.
Published: April 2018

This paper seeks to provide a better understanding of what makes boards effective. We analyse the relationships between board demography and company performance and between working structures and board tasks in small and medium-sized enterprises (SMEs). We test our hypotheses on a sample of 307 Spanish SMEs. The main empirical result is the negative impact that the proportion of outside directors and the board size have on firm performance. We also find a negative impact of outsiders’ presence and a positive impact of director tenure on the board’s service role. Our analysis of the role of board control highlights the negative relationship between this variable and CEO tenure.
Towards integrated reporting: The inclusion of content elements of an integrated annual report in the chairmen’s statements of JSE-listed companies
Authors: Mmako N. , Jansen van Rensburg M.
Published: April 2018

A call for greater transparency following various corporate scandals in a volatile global economy has placed intense pressure on South African corporations to reform, not only their conduct but also their reporting. As investors and other stakeholders insisted on the assurance that company practices were transparent, accountable and fair to all stakeholders, the JSE changed listing requirements to oblige listed companies to integrate their sustainability reports with their annual reports. To understand how companies incorporate integrated reporting standards in voluntary narrative disclosures, this article reports on how chairpersons of 50 high-performing and 50 poor-performing companies listed on the JSE included content elements within their statements. Qualitative content analysis was used to analyse how content elements were presented and communicated in the 2012 chairpersons’ statements. Findings indicate that South African companies embraced new reporting requirements. Just as the King Reports have been praised as an internationally leading code of governances, annual corporate reports of JSE-listed companies can become an international benchmark for integrated reporting. Even though the chairperson’s statement does not present the platform to discuss all the content elements in detail, the content elements of integrated reporting seem to provide a useful framework for chairpersons on what to include in their chairperson’s statement.
Investigating the effect of location, specifically shopping centres, on franchisees’ entrepreneurial orientation: A cluster analysis
Authors: Botha M. , Prawlall T.
Published: April 2018

Franchisees play an important role in franchise systems, as they are responsible for managing their business and ensuring its overall performance. Since earlier research confirmed the relationship between entrepreneurial orientation (EO) and performance, this study explores the effect of location on the five dimensions of EO for franchisees. This study assessed franchisees, their risk taking, innovation, pro-activeness, competitive aggression and autonomy, and investigated location clusters related to this. Location was investigated from a geographical and operational stance. A face-to-face survey was conducted among 104 franchisees operating in four major cities in the retail sector in South Africa. Two clusters were identified: ‘operating inside of shopping centres’ (50%) and ‘operating outside of shopping centres’ (50%). Contradictory to what was found in the literature, the results indicate that a franchisee is likely to be more entrepreneurially orientated when operating outside of a shopping mall in the Johannesburg region. The strongest and weakest EO dimensions in terms of cluster construction were identified. Furthermore we found that, since the EO dimensions are highly correlated, it is likely that a franchisee will experience high levels of all of the dimensions simultaneously and therefore share in the positively associated benefits of EO, such as growth and performance.
The effect of tax avoidance on cost of debt capital: Evidence from Korea1
Authors: Shin H-J. , Woo Y-S.
Published: April 2018

This study investigates the relation between tax avoidance and the cost of debt capital and analyzes the effect of the debt ratio and profitability on the relation between tax avoidance and the cost of debt. The results of our empirical analysis are as follows. First, tax avoidance is significantly positively associated with the cost of debt capital. This result shows that tax avoidance is considered as the signal of increasing information risk; thus, investors demand a higher return. Second, the debt ratio decreases the positive relation between tax avoidance and the cost of debt capital. This result indicates that the positive relation between tax avoidance and the cost of debt capital significantly decreases when the debt ratio is high. Finally, we find that the profitability of a company increases the positive relation between tax avoidance and the cost of debt capital. This result means that the cost of debt capital increases as the tax avoidance increase when the profitability of company is favorable. We find that the profitability of a company is one of the critical factors that have an effect on the relation between tax avoidance and the cost of debt capital.
Avaliação sazonal e espacial da qualidade das águas superficiais da bacia hidrográfica do rio Longá, Piauí, Brasil
Authors: Medeiros Waneska Maria Vasconcelos , Silva Carlos Ernando da , Lins Ruceline Paiva Melo
Published: April 2018

Este artigo teve como objetivo avaliar a qualidade das águas superficiais da bacia hidrográfica do rio Longá no Estado do Piauí, Brasil. Sete pontos foram monitorados, com base na proximidade de estações meteorológicas e acessibilidade, para obter melhores caracterizações espaciais e de ocupação da bacia hidrográfica. As amostras de água foram coletadas mensalmente (01/2015-12/2015). Foram medidas as variáveis: temperatura, pH, turbidez, condutividade elétrica, sólidos totais, fósforo total, nitrato, oxigênio dissolvido, demanda bioquímica de oxigênio (DBO) e Escherichia coli (E. coli). Os resultados foram avaliados individualmente e comparados aos padrões brasileiros para águas doces de classe 2, conforme Resolução nº 357/2005 do Conselho Nacional do Meio Ambiente (CONAMA). Os dados foram avaliados utilizando-se análises multivariadas (agrupamento e análise de componentes principais - ACP). As variáveis E. coli, pH, turbidez, nitrato, DBO e condutividade elétrica variaram entre os dois períodos analisados ​​(seco e chuvoso). As variáveis DBO, E. coli estiveram em desacordo com os padrões do CONAMA nos pontos urbanos P2, P3 e P5, devido à poluição difusa observada no período chuvoso. O agrupamento mostrou uma tendência espacial, apresentando dois grupos distintos (rural e urbano). A ACP identificou quatro componentes principais que explicaram uma variação de 58,64% nos dados. O Componente 1 (CP1) refletiu uma contribuição de poluentes relacionados à poluição difusa de áreas agrícolas e urbanas. O Componente 2 (CP2) foi fortemente associado à poluição, especialmente por esgoto doméstico não tratado. As outras ACPs também refletiram pressões de atividades antropogênicas nos corpos d’água.
Determinação de hormônios estrogênicos em esgoto bruto e efluente de uma estação descentralizada de tratamento por lodos ativados
Authors: Teixeira Rossana Borges , Marques Carolina Alves , Carvalho Natália Rodrigues de , Gomes Luiz Eduardo Thans , Silva Flávio Teixeira da , Paiva Teresa Cristina Brazil de
Published: April 2018

Hormônios estrogênicos, provenientes dos esgotos, atingem os corpos hídricos e podem causar perturbações aos organismos aquáticos. Os tratamentos secundários das estações de tratamento de esgoto (ETE) possibilitam alguma remoção destes compostos, mesmo em ETEs descentralizadas, apesar de ainda haver poucos estudos sobre elas. Em sistemas por lodos ativados, a eficiência tem sido relacionada ao tempo de detenção hidráulica (TDH), à idade de lodo, à desnitrificação biológica e à carga de alimentação. O objetivo deste trabalho foi quantificar os hormônios estrona (E1), 17-β-estradiol (E2), estriol (E3) e 17-α-etinilestradiol (EE2) no esgoto e no efluente de uma ETE descentralizada por lodos ativados, além de caracterizar a ETE do Campus Universitário da EEL-USP quanto à matéria orgânica recebida, ao tempo de detenção hidráulica e a remoção de nitrogênio. Cromatografia líquida com detecção UV foi utilizada na determinação dos hormônios. Os resultados mostraram concentrações dos hormônios superiores às encontradas na literatura, em ambos: esgoto (5,158 ± 2,747; 7,434 ± 4,356; 5,200 ± 3,331 e 5,638 ± 4,312 μg L-1 de E1, E2, E3 e EE2) e efluente (5,062 ± 3,366; 4,191 ± 3,527; 7,743 ± 3,951, 2,550± 2,162 de E1, E2, E3 e EE2). No esgoto, as altas concentrações podem ser relacionadas à maior predominância de urina, visto os altos níveis de nitrogênio detectados, à menor geração de esgoto e a amostragem em período seco causando reduzida diluição dos hormônios. Remoção insuficiente dos hormônios devido a menor TDH (2h05) e irregularidade na desnitrificação (-54 a 61%) pode ser o motivo das altas concentrações de estrógenos no efluente. Ademais, a desconjugação dos hormônios pode ter ocorrido durante o tratamento.