IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v6y1988i4p105-117.html
   My bibliography  Save this article

South African Disinvestment: Causes And Effects

Author

Listed:
  • BERNARD FEIGENBAUM
  • ANTON D. LOWENBERG

Abstract

Divestment pressure is one channel through which those interest groups opposing apartheid have attempted to induce U.S. firms to withdraw from South Africa. This paper investigates empirically the relationship between stockholder influence, disinvestment, and the behavior of South Africa‐active firms. The paper finds that if institutional investors hold a large proportion of a firm's shares, then that firm will be induced to participate in fair employment and social programs to benefit its black labor force. However, the same “socially responsible” firm is also more likely to disinvest—leaving a less progressive employer in its place.

Suggested Citation

  • Bernard Feigenbaum & Anton D. Lowenberg, 1988. "South African Disinvestment: Causes And Effects," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 105-117, October.
    • Handle: RePEc:bla:coecpo:v:6:y:1988:i:4:p:105-117
    DOI: 10.1111/j.1465-7287.1988.tb00550.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1988.tb00550.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1988.tb00550.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thomas W. Hazlett, 1988. "Economic Origins Of Apartheid," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 85-104, October.
    2. Lundahl, Mats, 1984. " Economic Effects of a Trade and Investment Boycott against South Africa," Scandinavian Journal of Economics, Wiley Blackwell, vol. 86(1), pages 68-83.
    3. Thomas O. Bayard & Joseph Pelzman & Jorge Perez‐Lopez, 1983. "Stakes and Risks in Economic Sanctions," The World Economy, Wiley Blackwell, vol. 6(1), pages 73-88, March.
    4. Margaret P. Doxey, 1980. "Economic Sanctions and International Enforcement," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-04335-4, December.
    5. Kaempfer, William H & Lowenberg, Anton D, 1986. "A Model of the Political Economy of International Investment Sanctions: The Case of South Africa," Kyklos, Wiley Blackwell, vol. 39(3), pages 377-396.
    6. William H. Kaempfer & Michael H. Moffett, 1988. "Impact Of Anti‐Apartheid Sanctions On South Africa: Some Trade And Financial Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 118-129, October.
    7. Haider Ali Khan, 1988. "Impact Of Trade Sanctions On South Africa: A Social Accounting Matrix Approach," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 130-140, October.
    8. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. William H. Kaempfer & Michael H. Moffett, 1988. "Impact Of Anti‐Apartheid Sanctions On South Africa: Some Trade And Financial Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 118-129, October.
    2. Poitras, Geoffrey, 1994. "Shareholder wealth maximization, business ethics and social responsibility," MPRA Paper 113221, University Library of Munich, Germany.
    3. Judith F. Posnikoff, 1997. "Disinvestment From South Africa: They Did Well By Doing Good," Contemporary Economic Policy, Western Economic Association International, vol. 15(1), pages 76-86, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Afesorgbor, Sylvanus Kwaku & Mahadevan, Renuka, 2016. "The Impact of Economic Sanctions on Income Inequality of Target States," World Development, Elsevier, vol. 83(C), pages 1-11.
    2. William H. Kaempfer & Michael H. Moffett, 1988. "Impact Of Anti‐Apartheid Sanctions On South Africa: Some Trade And Financial Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 118-129, October.
    3. Russell Sobel, 1998. "Exchange rate evidence on the effectiveness of United Nations policy," Public Choice, Springer, vol. 95(1), pages 1-25, April.
    4. Peter A.G. van Bergeijk, 2009. "Economic Diplomacy and the Geography of International Trade," Books, Edward Elgar Publishing, number 13518.
    5. Ishva Minefee & Marcelo Bucheli, 2021. "MNC responses to international NGO activist campaigns: Evidence from Royal Dutch/Shell in apartheid South Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 971-998, July.
    6. Seitz, William Hutchins, 2016. "Stock market reactions to conflict diamond trading restrictions and controversies," Business and Politics, Cambridge University Press, vol. 18(1), pages 63-84, April.
    7. Arturo Estrella & Anthony P. Rodrigues, 1998. "Consistent covariance matrix estimation in probit models with autocorrelated errors," Staff Reports 39, Federal Reserve Bank of New York.
    8. T.R.L. Fry & R.D. Brooks & Br. Comley & J. Zhang, 1993. "Economic Motivations for Limited Dependent and Qualitative Variable Models," The Economic Record, The Economic Society of Australia, vol. 69(2), pages 193-205, June.
    9. repec:elg:eechap:15325_21 is not listed on IDEAS
    10. Paleti, Rajesh, 2018. "Generalized multinomial probit Model: Accommodating constrained random parameters," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 248-262.
    11. Maria Iacovou, 2002. "Class Size in the Early Years: Is Smaller Really Better?," Education Economics, Taylor & Francis Journals, vol. 10(3), pages 261-290.
    12. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1109-1139, August.
    13. Haoying Wang & Guohui Wu, 2022. "Modeling discrete choices with large fine-scale spatial data: opportunities and challenges," Journal of Geographical Systems, Springer, vol. 24(3), pages 325-351, July.
    14. Y. Saks, 2016. "Socio-economic transitions on the labour market : a European benchmarking exercise," Economic Review, National Bank of Belgium, issue iii, pages 41-58, December.
    15. Kodila-Tedika, Oasis & Khalifa, Sherif, 2022. "State History and State Fragility in Sub-Saharan Africa," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(4), pages 39-53, December.
    16. Garcia, Philip & Hudson, Michael A. & Waller, Mark L., 1988. "The Pricing Efficiency of Agricultural Futures Markets: An Analysis of Previous Research Results," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 20(1), pages 119-130, July.
    17. Haaijer, Marinus E., 1996. "Predictions in conjoint choice experiments : the x-factor probit model," Research Report 96B22, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    18. Ashok Mishra & Barry Goodwin, 2006. "Revenue insurance purchase decisions of farmers," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 149-159.
    19. Hu, Michael Y. & Chen, Haiyang, 1996. "An empirical analysis of factors explaining foreign joint venture performance in China," Journal of Business Research, Elsevier, vol. 35(2), pages 165-173, February.
    20. Bagi, Faqir Singh, 1983. "A Logit Model Of Farmers' Decisions About Credit," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(2), pages 1-7, December.
    21. Monika Bütler, 2002. "The Political Feasibility of Increasing the Retirement Age: Lessons from a Ballot on the Female Retirement Age," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 9(4), pages 349-365, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:6:y:1988:i:4:p:105-117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.