Predictors and the effect of earlier entry into business rescue

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dc.contributor.advisor Fairhurst, Keith en
dc.contributor.postgraduate Mcdonald, Richard en
dc.date.accessioned 2017-04-07T13:06:09Z
dc.date.available 2017-04-07T13:06:09Z
dc.date.created 2017-03-30 en
dc.date.issued 2017 en
dc.description Mini Dissertation (MBA)--University of Pretoria, 2017. en
dc.description.abstract For companies in distress, the option of business rescue, as an alternative to liquidation, is "the difference between resuscitating your business and burying it" (Olivier, 2014, p. 30), business rescue provides a lifeline for distressed companies heading toward failure. To ensure South African business take full advantage of this lifeline, the research sought to determine the applicability of turnaround literature on business rescue in South Africa through empirically testing the applicability of Z scores on Johannesburg Stock Exchange listed companies, which had entered into business rescue, as a predictor of the outcome of the business rescue process. Subsequently, the research examined the relationship between earlier entry into business rescue and the outcome of the business rescue process. The research took the form of quantitative research and examined the correlation between Z scores and the outcome of business rescues and the differences in group means of Z scores over fixed time periods prior to entry into business rescue. The initial sample for testing correlations consisted of twelve firms, which was later reduced to eleven, for the difference in group means testing. The research established a statistically significant, strong, positive correlation between the Altman Z score and the outcome of business rescue. This correlation was then used to examine the inter group differences between the Z score at entry into business rescue and periods prior to entry into business rescue. There were significant differences in Z score at eighteen months and at twenty-four months prior to entry into business rescue. Combining these findings the research is able to conclude that earlier entry into business rescue will lead to significantly better results in a business rescue process. en_ZA
dc.description.availability Unrestricted en
dc.description.degree MBA en
dc.description.department Gordon Institute of Business Science (GIBS) en
dc.description.librarian sn2017 en
dc.identifier.citation Mcdonald, R 2017, Predictors and the effect of earlier entry into business rescue, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/59874> en
dc.identifier.uri http://hdl.handle.net/2263/59874
dc.language.iso en en
dc.publisher University of Pretoria en
dc.rights © 2017 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. en
dc.subject UCTD en
dc.title Predictors and the effect of earlier entry into business rescue en_ZA
dc.type Mini Dissertation en


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