Market reaction to industrial actions in South Africa.

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dc.contributor.author Ngidi, Nondumiso
dc.date.accessioned 2012-11-07T11:37:28Z
dc.date.available 2012-11-07T11:37:28Z
dc.date.issued 2012-11-07
dc.identifier.uri http://hdl.handle.net/10539/12165
dc.description.abstract This study examines the impact of strike action on the stock market in SA, particularly the company share price. In recent years, SA has seen a steady increase in strike actions related to wage increases, which have generally been of short duration. The study is conducted by computing abnormal returns and subsequently cumulative abnormal returns for listed companies that had experienced strikes between 2003 and 2009. The sample included 49 listed companies on Johannesburg Stock Exchange. The results of the study reveal that stock prices react negatively to the news of a strike action five days prior to the strike and continue on a downward trajectory approximately 5 days post the strike action. The study finds that JSE is not an efficient market as it takes days for the market to return to equilibrium after an announcement. The research observed that there were numerous factors that influence the occurrence of strikes/industrial actions in South Africa namely; SA’s political history, trade unions irrational behaviour, information asymmetry and economic climate among other factor. en_ZA
dc.language.iso en en_ZA
dc.subject Strikes en_ZA
dc.subject South Africa en_ZA
dc.subject Industrial action en_ZA
dc.subject Stock prices en_ZA
dc.subject JSE en_ZA
dc.subject Johannesburg Stock Exchange en_ZA
dc.title Market reaction to industrial actions in South Africa. en_ZA
dc.type Thesis en_ZA


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