Seeking Golden Opportunities : A study of Gold Mining Companies in Colombia

Abstract

In this thesis, we examine the Colombian gold mining industry from 2010 to 2023 in the context of the country's ongoing conflict. We apply an event study methodology to analyze how conflict-related events, law enforcement actions, and regulatory changes impact investors' reactions and company returns. Events escalating the conflict do not result in significant abnormal returns, while de-escalating events, on average, lead to significant positive abnormal returns. Further, increased law enforcement and increased regulations lead to positive abnormal returns. Events reducing law enforcement do not result in abnormal returns, while events reducing the ability to regulate result in negative abnormal returns. The results contribute to understanding how sector-specific companies are affected by a low-intensity conflict.