Thesis (MBA)--Universiteit van Stellenbosch, 1997. / ENGLISH ABSTRACT: In this study an investigation has been made into the cash flow of delisted companies to
determine whether any patterns appear.The hypothesis has been make that if companies, after
their annual company taxation and finance charges have been paid, have a negative cash flow
over two consecutive years, they will most probably be delisted the third year. In order to
address the problem in the short term a rights issue can be done, but the problem is not
necessarily solved.
In lay language it would imply that the operating capital cycle is too high, or that the earnings
before interest and taxation are too low, or that the growth rate is too high, or a combination
of the three factors. Financing must therefor be arranged to meet the legal liabilities, such as
interest and taxation, and also to finance any expansion, investment or growth. The
short-term answer is indeed a rights issue to existing shareholders. If this option is exercised
the cash-flow pattern could be disturbed since the extra capital can, in some cases. save the
company despite the negative cash flow. In the long term it is not preferable since the
company may run into financial difficulties due to excessive growth as a result of poor
management, although the rights issue can keep the company alive in the short term. Nonna1
and preference shares are issued regularly to increase capital and the resulting costs are less
than those of a long or short-term loan. Shareholders will lose dividends under these
circumstances provided that the company grows and the share price rises in the process. This
study has shown that even these companies, where the poor cash flow pattern is disturbed,
could not be saved from financial disaster. / AFRIKAANSE OPSOMMING: In hierdie studie is ondersoek ingestel oa die kontantvloei van gedenoteerde maatskappye om
te bepaal of daar enige patrone voorkom. Die hipotese is gemaak dat as maatskappye, nadat
hulle jaarlikse maatskappybelasting en finansieringskostes betaal is, 'n negatiewe kontantvloei
oor twee agtereenvolgende jare bet, hulle heel moontlik die derde jaar gedenoteer sal word.
Om op die kort termyn die probleem aan te spreek sal 'n regte-uitgifte gedoeu kan word,
maar die probleem word nie noodwendig opgelos nie.
In leketaal sou dit impliseer dat die bedryfSkapitaa1siklus te groot is, of dat die verdienste
voar rente en belasting te laag is, of dat die groeikoers te boog is, of 'n komhinasie van die
drie faktore. Finansiering moet dus geree} word am die wetlike aanspreeklikhede, soos rente
en belasting, Da te kom en ook am enige uitbreiding, investering of groei te finansier. Die
korttermynantwoord Ie juis in 'n regte-uitgifte aan bestaande aandeelhouers. Indien hierdie
opsie uitgeoefen word, sal die kontantvioeipatroon versteur kao word aangesien die ekstra
kapitaal die maatskappy, ongeag die negatiewe kontantvloe~ in sommige gevalle kan red.
Oor die lang termyn is dit rue wenslik rue aangesien die maatskappy homself kan doodgroei of
bloot kan ondergaan as gevolg van swak bestuur, alhoewel die regte-uitgifte die maatskappy
oor die kort termyn lewendig hou. Gewone en voorkeuraandele word geree1d uitgereik om
kapitaal te verhoog en die voortspruitende verpligtinge is minder as die van 'n lang- of
korttermynlening. Aandeelhouers sal onder omstandighede dividende inboet mits die
maatskappy groei en die aandeelprys in die proses styg. Die ondersoek het getoon dat selfs
die roaatskappye. waar die swak kontantvloeipatroon verst-eur word, nie van ondergang gered
kon word rue.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/55569 |
| Date | 03 1900 |
| Creators | Jacobs, Liza |
| Contributors | Hamman, W. D., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | af_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 89 p. |
| Rights | Stellenbosch University |
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