Exploring the indirect costs of a firm in business rescue

dc.contributor.authorRosslyn-Smith, Wesley John
dc.contributor.authorDe Abreu, Nicole Varela Aguiar
dc.contributor.authorPretorius, Marius
dc.contributor.emailwesley.rosslyn-smith@up.ac.zaen_ZA
dc.date.accessioned2020-05-20T11:54:25Z
dc.date.issued2020
dc.description.abstractIt may be argued that the indirect costs of financial distress are substantially higher than the direct costs. Consequently, indirect costs of participating in a formal turnaround may hinder the success of a reorganisation attempt. This study set out to explore the indirect costs financially distressed firms face as a consequence of participating in business rescue in South Africa. Due to the implicit nature of these costs, the focus was placed on investigating and identifying the sources of the indirect costs associated with business rescue. This study employed a qualitative research design, whereby semi-structured interviews were conducted with 13 business rescue practitioners. The study confirmed that firms may experience six difficulties during business rescue. However, there are several factors that influence the severity of these difficulties. Conversely, it appears that indirect costs may also offer firms several benefits. The results of the study may assist affected parties, as they offer some insight and clarity on the indirect costs of business rescue. Understanding indirect costs may assist stakeholders involved in the process to find strategies that will help to preserve the value of the firm and reduce the negative impact for all stakeholders involved.en_ZA
dc.description.departmentBusiness Managementen_ZA
dc.description.embargo2020-12-17
dc.description.librarianhj2020en_ZA
dc.description.urihttp://www.tandfonline.com/loi/rsar20en_ZA
dc.identifier.citationRosslyn-Smith, W., De Abreu, N.V.A. & Pretorius, M. 2020, 'Exploring the indirect costs of a firm in business rescue', South African Journal of Accounting Research, vol. 34, no. 1, pp. 24-44.en_ZA
dc.identifier.issn1029-1954 (print)
dc.identifier.issn2376-3981 (online)
dc.identifier.other10.1080/10291954.2019.1667647
dc.identifier.urihttp://hdl.handle.net/2263/74656
dc.language.isoenen_ZA
dc.publisherNISC Pty (Ltd) and Informa Limited (trading as Taylor & Francis Group)en_ZA
dc.rights© 2020 South African Journal of Accounting Research. This is an electronic version of an article published in South African Journal of Accounting Research, vol. 34, no. 1, pp. 24-44, 2020. doi : 10.1080/10291954.2019.1667647. South African Journal of Accounting Research is available online at : http://www.tandfonline.com/loi/rsar20.en_ZA
dc.subjectFinancial distressen_ZA
dc.subjectInsolvencyen_ZA
dc.subjectReorganisationen_ZA
dc.subjectBusiness rescueen_ZA
dc.subjectIndirect costsen_ZA
dc.subjectSouth Africa (SA)en_ZA
dc.titleExploring the indirect costs of a firm in business rescueen_ZA
dc.typePostprint Articleen_ZA

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