Market reaction to Passage Conflicts mineral Law under Dodd Frank Act

Since the first introduction of conflict minerals disclosure regulation in 2009 by Senator Sam Brownback, there have been certain events related to the final introduction of the Dodd-Frank Act in 2010. Appendix A presents a timeline with details of these events. Each event presents information to market participants about the probability of success or failure of the Act. Each event had various implications for companies regarding the degree of exposure to conflict minerals. For this reason, we focus on the aggregate equity market reaction to all events, so we can investigate whether the market views the Act as improving or destroying shareholder value.This study is based on the methodology of the study of Armstrong et al. (2010) and MackKinlay (1997) and uses an event study to observe what the market reaction (via cumulative abnormal returns) was of affected firms’ stocks on regulation events.