Original Research
The relationship between return on investment and the market share of certain listed companies in selected market sectors: 1975 - 1985
South African Journal of Business Management | Vol 19, No 3 | a976 |
DOI: https://doi.org/10.4102/sajbm.v19i3.976
| © 2018 P. W.C. De Wit, N. J.R. Steyn
| This work is licensed under CC Attribution 4.0
Submitted: 19 October 2018 | Published: 30 September 1988
Submitted: 19 October 2018 | Published: 30 September 1988
About the author(s)
P. W.C. De Wit, Department of Business Economics, University of Pretoria, South AfricaN. J.R. Steyn,, South Africa
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During a theoretical study of company objectives it was found that it is generally assumed that a positive relationship exists between return on investment and the market share of a company. Examination of the formula for calculating return on investment shows, however, that this may not necessarily be the case. As existing studies regarding this relationship could not give any clarity, the need arose for a South African based study. An empirical study was accordingly executed on listed retail stores and companies involved in the manufacturing and distribution of furniture. The period involved was 1975-1985. No meaningful relationship between return on investment and market share could be found. Various recommendations that may lead to more conclusive results during future research were made. The need for accurate findings exists to establish whether the marketing objective is in line with the company objective.
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