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Predicting corporate turnaround of listed companies in South Africa
Corporate turnaround, in comparison to financial distress, is not substantially researched either internationally or locally in South Africa. This study attempts to explore this area of research by developing models that identify financially distressed companies with a potential for turnaround. This...
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| Format: | Thesis |
| Language: | English |
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Department of Finance and Tax
2017
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| _version_ | 1867613257506750464 |
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| access_status_str | Open Access |
| author | Chin, Chu-Kuo |
| author2 | West, Darron |
| author_browse | Chin, Chu-Kuo West, Darron |
| author_facet | West, Darron Chin, Chu-Kuo |
| author_sort | Chin, Chu-Kuo |
| collection | Thesis |
| description | Corporate turnaround, in comparison to financial distress, is not substantially researched either internationally or locally in South Africa. This study attempts to explore this area of research by developing models that identify financially distressed companies with a potential for turnaround. This analysis examines listed companies on both the JSE Securities Exchange ('JSE') and Alternative Exchange ('AltX') for the period 2007 to 2014 by using available data from iNet BFA. The financial distress model, Taffler's Z-score, is used to identify companies that fall within the sample. Multiple linear discriminant models with interaction variables are used as part of the process to derive the turnaround models. The first model shows that efficiency is a key driver for a successful turnaround. The second model reveals that JSE-listed companies are more likely to survive than AltX companies. This study contributes to the existing research by identifying significant factors for corporate turnaround and summarizing its findings in a practical manner. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/22915 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:15.376Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/22915 Predicting corporate turnaround of listed companies in South Africa Chin, Chu-Kuo West, Darron Financial Management Risk Management Corporate turnaround, in comparison to financial distress, is not substantially researched either internationally or locally in South Africa. This study attempts to explore this area of research by developing models that identify financially distressed companies with a potential for turnaround. This analysis examines listed companies on both the JSE Securities Exchange ('JSE') and Alternative Exchange ('AltX') for the period 2007 to 2014 by using available data from iNet BFA. The financial distress model, Taffler's Z-score, is used to identify companies that fall within the sample. Multiple linear discriminant models with interaction variables are used as part of the process to derive the turnaround models. The first model shows that efficiency is a key driver for a successful turnaround. The second model reveals that JSE-listed companies are more likely to survive than AltX companies. This study contributes to the existing research by identifying significant factors for corporate turnaround and summarizing its findings in a practical manner. 2017-01-23T07:55:32Z 2017-01-23T07:55:32Z 2016 Master Thesis Masters MCom http://hdl.handle.net/11427/22915 eng application/pdf Department of Finance and Tax Faculty of Commerce University of Cape Town |
| spellingShingle | Financial Management Risk Management Chin, Chu-Kuo Predicting corporate turnaround of listed companies in South Africa |
| thesis_degree_str | Master's |
| title | Predicting corporate turnaround of listed companies in South Africa |
| title_full | Predicting corporate turnaround of listed companies in South Africa |
| title_fullStr | Predicting corporate turnaround of listed companies in South Africa |
| title_full_unstemmed | Predicting corporate turnaround of listed companies in South Africa |
| title_short | Predicting corporate turnaround of listed companies in South Africa |
| title_sort | predicting corporate turnaround of listed companies in south africa |
| topic | Financial Management Risk Management |
| url | http://hdl.handle.net/11427/22915 |
| work_keys_str_mv | AT chinchukuo predictingcorporateturnaroundoflistedcompaniesinsouthafrica |