The resilience of South African companies against strikes

dc.contributor.advisorRajaratnam, Kanshukan
dc.contributor.advisorSokolovski, Valeri
dc.contributor.authorMarais, Albertus Wynand Christoffel
dc.date.accessioned2020-03-18T13:40:14Z
dc.date.available2020-03-18T13:40:14Z
dc.date.issued2019
dc.date.updated2020-03-17T13:07:27Z
dc.description.abstractThe South African Labour Market has experienced labour disputes from as early as 1913 (Davenpot, 2013). These labour disputes serve as a visual illustration of the inefficiencies that reside in the collective bargaining process between the working class and the top management of a company (Becker and Olson, 1986). This study aims to investigate these inefficiencies and determine the impact that they may have on the shareholder value of a company. By doing this, an improved understanding of the South African Financial Markets can be developed. This study consists of a sample set of 46 strikes between 2003 to 2017. This represents only a fraction of the total amount of strikes that South Africa has experienced in recent years as the majority of strikes revolve around community disputes (Department of Labour, 2018). The study concluded that investors react negatively when a strike is longer than 10-days – leading to a sell-off of the company’s share. This led the study to further investigate whether duration plays a key part in the negative abnormal returns generated by a strike. It was then determined that strikes that were longer than 20-days resulted in far greater negative returns, whilst strikes that were shorter seemed to be overlooked by investors. The paper also found that the market is unable to predict an incoming strike that may possibly damage the financial integrity of a firm. Lastly, the study concluded that the amount of Net Income, Dividends Paid, Free Cash Flow, Cash and Debt listed in the financial statements did not significantly influence the abnormal returns induced by strikes.
dc.identifier.apacitationMarais, A. W. C. (2019). <i>The resilience of South African companies against strikes</i>. (). ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from en_ZA
dc.identifier.chicagocitationMarais, Albertus Wynand Christoffel. <i>"The resilience of South African companies against strikes."</i> ., ,Faculty of Commerce ,Department of Finance and Tax, 2019. en_ZA
dc.identifier.citationMarais, A.W.C. 2019. The resilience of South African companies against strikes. . ,Faculty of Commerce ,Department of Finance and Tax. en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Marais, Albertus Wynand Christoffel AB - The South African Labour Market has experienced labour disputes from as early as 1913 (Davenpot, 2013). These labour disputes serve as a visual illustration of the inefficiencies that reside in the collective bargaining process between the working class and the top management of a company (Becker and Olson, 1986). This study aims to investigate these inefficiencies and determine the impact that they may have on the shareholder value of a company. By doing this, an improved understanding of the South African Financial Markets can be developed. This study consists of a sample set of 46 strikes between 2003 to 2017. This represents only a fraction of the total amount of strikes that South Africa has experienced in recent years as the majority of strikes revolve around community disputes (Department of Labour, 2018). The study concluded that investors react negatively when a strike is longer than 10-days – leading to a sell-off of the company’s share. This led the study to further investigate whether duration plays a key part in the negative abnormal returns generated by a strike. It was then determined that strikes that were longer than 20-days resulted in far greater negative returns, whilst strikes that were shorter seemed to be overlooked by investors. The paper also found that the market is unable to predict an incoming strike that may possibly damage the financial integrity of a firm. Lastly, the study concluded that the amount of Net Income, Dividends Paid, Free Cash Flow, Cash and Debt listed in the financial statements did not significantly influence the abnormal returns induced by strikes. DA - 2019 DB - OpenUCT DP - University of Cape Town KW - Finance LK - https://open.uct.ac.za PY - 2019 T1 - The resilience of South African companies against strikes TI - The resilience of South African companies against strikes UR - ER - en_ZA
dc.identifier.urihttps://hdl.handle.net/11427/31618
dc.identifier.vancouvercitationMarais AWC. The resilience of South African companies against strikes. []. ,Faculty of Commerce ,Department of Finance and Tax, 2019 [cited yyyy month dd]. Available from: en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Finance and Tax
dc.publisher.facultyFaculty of Commerce
dc.subjectFinance
dc.titleThe resilience of South African companies against strikes
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
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