An assessment of the potential effect of the Marikana incident on mining companies listed on the JSE
Hill, Nicholas Rowland
This report examines the potential effect of the Marikana incident on the companies listed in the mining sector on the Johannesburg Stock Exchange (JSE) for the defined observation period (3rd January 2012 to 23rd August 2012). Event study methodology was used to capture the market reaction to the incident. This entailed the determination of abnormal returns on the event date and cumulative abnormal returns for windows defined as 2 and 5 days post the event date. The entire population of companies listed in the Mining sector on the JSE was used in order to capture the full consequence of the event. The results presented a contained effect, limited exclusively to Lonmin Plc. (‘Lonmin’), which exhibited significant abnormal returns on the event date but recovered in the subsequent days.
Thesis (M. Com. (Accountancy))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Accountancy, 2014.