The characteristics of successful and unsuccessful resolution of corporate failure on the Johannesburg Stock Exchange

• Main Author: Karani, Pascal
• Other Authors: Uliana, Enrico
• Format: Dissertation
• Language: English
• Published: University of Cape Town 2014
• Subjects: Financial Management
• Online Access: http://hdl.handle.net/11427/9587

Includes bibliography. === The study analyses the incentives and mechanisms of failing firms on the Johannesburg Stock Exchange that restructure their claims following a decline in performance and value. The study also analyses patterns for restructuring of failing firms. The sample contains firms that were delisted between 1986 and 1996. Firms that were delisted and re-instated number 28 and constitute the sample for firms that restructured successfully their claims. Firms that were delisted on the JSE following an unsuccessful debt restructuring number 32 and constitute the sample for unsuccessful firms. The study finds that firms that restructured successfully on the JSE have more intangible assets, less bank debt and few creditors. This finding means that South African corporate restructuring activities relies more on assets characteristics rather than financial characteristics.