Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
The resilience of South African companies against strikes
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 an...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
Department of Finance and Tax
2020
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867614522304364544 |
|---|---|
| access_status_str | Open Access |
| author | Marais, Albertus Wynand Christoffel |
| author2 | Rajaratnam, Kanshukan |
| author_browse | Marais, Albertus Wynand Christoffel Rajaratnam, Kanshukan |
| author_facet | Rajaratnam, Kanshukan Marais, Albertus Wynand Christoffel |
| author_sort | Marais, Albertus Wynand Christoffel |
| collection | Thesis |
| description | 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. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/31618 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:53:22.869Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/31618 The resilience of South African companies against strikes Marais, Albertus Wynand Christoffel Rajaratnam, Kanshukan Sokolovski, Valeri Finance 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. 2020-03-18T13:40:14Z 2020-03-18T13:40:14Z 2019 2020-03-17T13:07:27Z Master Thesis Masters MCom https://hdl.handle.net/11427/31618 eng application/pdf Department of Finance and Tax Faculty of Commerce |
| spellingShingle | Finance Marais, Albertus Wynand Christoffel The resilience of South African companies against strikes |
| thesis_degree_str | Master's |
| title | The resilience of South African companies against strikes |
| title_full | The resilience of South African companies against strikes |
| title_fullStr | The resilience of South African companies against strikes |
| title_full_unstemmed | The resilience of South African companies against strikes |
| title_short | The resilience of South African companies against strikes |
| title_sort | resilience of south african companies against strikes |
| topic | Finance |
| url | https://hdl.handle.net/11427/31618 |
| work_keys_str_mv | AT maraisalbertuswynandchristoffel theresilienceofsouthafricancompaniesagainststrikes AT maraisalbertuswynandchristoffel resilienceofsouthafricancompaniesagainststrikes |