An investigation of the effectiveness of corporate rescue as a tool to resuscitate financially distressed companies. A case of Crowe Advisory (Zimbabwe).
- Author
- Karonga, Real P. D.
- Title
- An investigation of the effectiveness of corporate rescue as a tool to resuscitate financially distressed companies. A case of Crowe Advisory (Zimbabwe).
- Abstract
- This research investigated the effectiveness of corporate rescue as a tool to resuscitate financially distressed companies. The study employed a mixed-method approach to collect data from Crowe Advisory and its client Chidmarc Electrical (The distressed company) and a sample of 20 participants in a population of 26. The data collection method included semi-structured interviews, surveys, and document analysis. The data was presented using SPSS 20, bar graphs, line graphs, pie charts and tables. The researcher used a case study as a research design. The study also found that corporate rescue is not the only rescue option available for financially distressed companies, and other options such as bailouts, scheme of arrangements informal workout and liquidation can also be effective. The researcher initially observed on the challenges do businesses encounter during the company rescue process, business rescue's strengths and weaknesses and finally other rescue techniques which can be used to save companies that are financially distressed. The study also found that business rescue is more effective in rescuing companies that are in financial distress, although the current 12% rate of success of business rescue shows that it is yet to become fully effective. Level of understanding and consciousness regarding corporate rescue scheme, absence of resources, financial as well as environmental difficulties, consumer trust diminished and a poor rate of success constitute some of the factors that affect how efficient business rescue is. The study recommended that companies should explore various rescue options and consider the scheme of arrangement as an effective option. The study also suggests that further research is needed to explore and improve the success rate of business rescue. The findings of this study can provide valuable insights into the effectiveness of corporate rescue as a tool to resuscitate financially distressed companies and help businesses make informed decisions regarding their financial distress.
- Date
- 2023
- Publisher
- BUSE
- Keywords
- Effectiveness of corporate rescue
- Supervisor
- N/A
- Item sets
- Department of Accountancy