Working capital plays a vital role in shareholders’ wealth creation, yet there is a dearth of empirical studies on the relationship between working capital management and firm value in the South African economic environment. This study attempts to fill this gap by using Richards and Laughlin’s (1980) Cash Conversion Cycle theory to investigate the impact of working capital management efficiency and its separate components on firm value of South African firms listed on the Johannesburg Stock Exchange (JSE). Panel data regression methodology was used to analyze accounting data obtained from I-Net Bridge/BFA McGregor for 75 firms for the 10 year period, 2003 to 2012, to determine the nexus between WCM and profitability (proxied by return on assets). The key findings of the study are as follows: 1) there exists a significant positive relationship between firm value and both inventory conversion period and receivables conversion period; 2) the relationship between the cash conversion cycle and firm value is positive but insignificant; 3) there is a significant positive relationship between accounts payable deferral period (PDP) and profitability; 4) firm size and firm value are significantly positively related, and 5) there is a significant negative relationship between leverage and firm value.
Pilgrimages around the world attract large numbers of followers, often classified as religious tourists. More than a million people attend the annual Easter weekend meeting of The Zion Christian Church in the Limpopo Province of South Africa. It is one of the largest pilgrimages in the world and could be expected to have a significant impact on the regional economy. The aim of this paper is to shed light on the spending behaviour of pilgrims at the gathering and the impact that the event has on the economy of Limpopo -one of the poorest provinces in South Africa.
The Limpopo province is one of the poorest regions in South Africa. The article develops a poverty profile for the province by location, administrative region and racial grouping. Poverty is quite high in the rural areas though urban poverty is also significant. Bushbuckridge, Southern, Central and Lowveld administrative regions are the poorest as are non-white households.
The persistent high unemployment rate confronting South Africa, in particular among the youth, continues to be a cause of concern for all stakeholders including academic researchers dealing with labor market issues. As a contribution to efforts at finding solution to the unemployment challenge, the study sought to investigate the nature and causes of rural unemployment amongst the youth using data on a sample of 580 randomly and systematically selected youth from the four local municipalities in the Vhembe district of Limpopo province, South Africa. Binary logistic regression model was estimated to determine the socio-demographic, as well as economic factors that influence youth unemployment. Results of the binary logistic regression model showed that having received (skills) training and work experience were associated with reduced odds of being unemployed. This study highlights the importance of skills training opportunities, as well as apprenticeship in mitigating the unemployment challenge among the youth. The provision of necessary training infrastructure and funding for skills training, as well as work integrated learning and extended career specific internship programs to help to equip South African youth with work experience are major recommendations from this study. Keywords: unemployment, youth, binary logistic regression, Vhembe district, South Africa. JEL Classification: J64
Abstract. The study investigated the socio-economic impact of religious tourism (UAAC gathering) on the local tourism industry and on surrounding rural communities in Vhembe District Municipality (VDM) of South Africa. Questionnaires were used to collect data on pilgrims (visitors), businesses, and residents during, and immediately after the event. Statistical techniques were used to analyse the data to gain insight into the data as basis for answering the research questions posed in this study. The results revealed that majority of the pilgrims to the UAAC gathering were from the host province of Limpopo. Also, most pilgrims travel to the pilgrimage site solely for religious reasons. Another significant finding is that the average spending per pilgrim by pilgrims from the rest of South Africa is larger than their Limpopo and foreign pilgrim counterparts. Furthermore, the results showed that while businesses were positive about the pilgrimage's contribution to increased sales from their businesses, they at the same time opined that the event does not generate any additional employment. This could be because out of every R100 of pilgrims spending only R2.16 remains in the local economy through leakages. Finally an important finding of the study is overall consensus among residents that the annual pilgrimage gathering promotes morality, improved socialization as well as a sense of feeling good and proud of their community.
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