Performance and Conflict Minerals: A study on corporate due diligence and market effects from the Dodd-Frank Act Section 1502
Master thesis
Permanent lenke
http://hdl.handle.net/11250/2621934Utgivelsesdato
2019Metadata
Vis full innførselSamlinger
- Master of Science [1822]
Sammendrag
In July of 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act
was signed into law. December 15th of 2010, Section 1502 was announced to be
amended in the legislation. The goal behind this particular Section was to prevent
funding of rebel groups in the DRC which profit from artisanal mining of conflict
minerals. This thesis investigates how an amendment, such as Section 1502,
affected firm value, the 3TG markets and supply chain sustainability. Through
difference-in-differences estimation, we find that changes in abnormal return
among firms affected by Section 1502 are not explained by firm characteristics. Our
assessment is that the firm value effects were more likely due to off-balance sheet
effects, such as increased information flow and other supply chain initiatives.
Furthermore, the slowing effect Section 1502 might have had on the 3TG markets
was more than made up for by the growing mineral demand fueled by emerging
economies. Finally, we find that by 2016 most firms contract conflict free mineral
processors, indicating that the amendment worked as intended in this regard.
Beskrivelse
Masteroppgave(MSc) in Master of Science in Business, Business law, tax and accounting - Handelshøyskolen BI, 2019