Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa
We examine whether there is a relationship between xenophobic attacks and the stock market value of supermarket groups in South Africa. We perform an event study analysis on significant incidents of violent attacks targeted at shops owned by foreigners in South Africa for the period 2006–2017. Using...
Saved in:
| Main Authors: | , |
|---|---|
| Other Authors: | |
| Format: | research article |
| Language: | English |
| Published: |
Taylor and Francis Group
2022
|
| Subjects: | |
| Online Access: | https://cris.library.msu.ac.zw//handle/11408/5315 https://doi.org/10.1080/03031853.2022.2063144 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1779905300686438400 |
|---|---|
| author | Nixon S. Chekenya Laurine Chikoko |
| author2 | Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX, USA |
| author_facet | Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX, USA Nixon S. Chekenya Laurine Chikoko |
| author_sort | Nixon S. Chekenya |
| collection | DSpace |
| description | We examine whether there is a relationship between xenophobic attacks and the stock market value of supermarket groups in South Africa. We perform an event study analysis on significant incidents of violent attacks targeted at shops owned by foreigners in South Africa for the period 2006–2017. Using an event study approach with an augmented market model, we uncover evidence that the stock market perceives these events as bad news instead of good news for supermarkets having operations in South Africa and other parts of Africa, as they realise a decline in abnormal returns of about 2.57 percent. We interpret our findings as economic costs of xenophobic attacks emanating from the Johannesburg Stock Exchange. Our analysis attempts to shed light on the peace-building challenges and the potentially grim implications of xenophobia on economic activity in South Africa. |
| format | research article |
| id | ir-11408-5315 |
| institution | My University |
| language | English |
| publishDate | 2022 |
| publisher | Taylor and Francis Group |
| record_format | dspace |
| spelling | ir-11408-53152022-12-20T10:40:18Z Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa Nixon S. Chekenya Laurine Chikoko Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX, USA Department of Banking and Finance, Midlands State University, Gweru, Zimbabwe Xenophobia Cross-border business Supermarket groups South Africa We examine whether there is a relationship between xenophobic attacks and the stock market value of supermarket groups in South Africa. We perform an event study analysis on significant incidents of violent attacks targeted at shops owned by foreigners in South Africa for the period 2006–2017. Using an event study approach with an augmented market model, we uncover evidence that the stock market perceives these events as bad news instead of good news for supermarkets having operations in South Africa and other parts of Africa, as they realise a decline in abnormal returns of about 2.57 percent. We interpret our findings as economic costs of xenophobic attacks emanating from the Johannesburg Stock Exchange. Our analysis attempts to shed light on the peace-building challenges and the potentially grim implications of xenophobia on economic activity in South Africa. 61 3 360 378 2022-12-20T10:40:17Z 2022-12-20T10:40:17Z 2022-05-04 research article https://cris.library.msu.ac.zw//handle/11408/5315 https://doi.org/10.1080/03031853.2022.2063144 en Agrekon 2078-0400 open Taylor and Francis Group |
| spellingShingle | Xenophobia Cross-border business Supermarket groups South Africa Nixon S. Chekenya Laurine Chikoko Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa |
| title | Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa |
| title_full | Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa |
| title_fullStr | Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa |
| title_full_unstemmed | Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa |
| title_short | Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa |
| title_sort | intolerance, xenophobia and cross-border supermarket groups’ operations in south africa |
| topic | Xenophobia Cross-border business Supermarket groups South Africa |
| url | https://cris.library.msu.ac.zw//handle/11408/5315 https://doi.org/10.1080/03031853.2022.2063144 |
| work_keys_str_mv | AT nixonschekenya intolerancexenophobiaandcrossbordersupermarketgroupsoperationsinsouthafrica AT laurinechikoko intolerancexenophobiaandcrossbordersupermarketgroupsoperationsinsouthafrica |