Accounting for Human Rights Violations Risk: Conflict Minerals Mandatory Disclosures under the Dodd Frank Act

This paper examines the equity market response to firms’ disclosure of human rights violation risk with regard to conflict mineral usage as required by Section 1502 of the Dodd-Frank Act (the Act). This paper assesses the aggregate equity market response to regulatory events leading to the passage of the Act, the equity market reaction to voluntary early disclosures and mandatory disclosures of conflict mineral information in Form SD, as well as the determinants of the equity market response. Using a sample of 4,399 US registrants from January 1, 2008 to September 30, 2014, we document a significant negative stock market reaction to the passage of the Act and to conflict minerals disclosures on Form SD. The equity market reaction is more negative and limited to companies that source their minerals from conflict zones, companies with human rights violations, and companies with ambiguous disclosures. Taken together, the results of this study provide an economic justification for companies with poor conflict minerals practices to improve in order to avoid high costs that will arise if firms are forced to disclose human rights abuses. This paper also provides preliminary evidence that Form SD is successful in reducing the governance gap that exposes investors to unnecessary sanction, litigation and reputation risk from firms’ activities in conflict minerals usage.

Bright’s Wines Limited fonds, 1983-1989

One of the oldest wineries in Ontario, Bright’s Wines is now a part of Vincor International Inc. and still producing wines today. In the year 1874 Thomas G. Bright and Francis A. Shirriff came together in a partnership and formed a wine company in Toronto, Ontario. As the company began to prosper the gentlemen decided to move the location to Niagara, Ontario. Sixteen years later the Niagara Falls Wine Company opened on Dorchester Road. In 1911, Bright bought out all of Shirriff’s shares in the company and the name became the T. G. Bright and Co. Limited. A few years later in 1933 Harry C. Hatch bought the wine company from the Bright family and began changing how Bright’s operated through greater, more diverse wine production, as well as research and development. Bright’s leadership in wine research and development in Canada helped bring Canadian wines to their position of respect around the world. In 1934 Bright’s began a viticultural and vinicultural program, changing the way the Canadian wine industry worked. They put more money into research and development than any other winery in all of Canada. Soon, gold medals and “best of class” international designations were being awarded to Bright’s wines. As a result of their success, the founders soon discovered that they needed additional money to develop their business. So they borrowed money from a local bank and other lenders, or creditors, and used the funds to expand the business. Subsequent acquisition of other companies and consolidations in the wine industry led to the creation of Vincor International in 1993. Today, Vincor has established itself as a major participant in the North American super-premium wine market. By acquiring other companies, Vincor has fuelled growth in its sales from $114 million in 1995 to $654 million in 2005. The company’s success attracted the attention of its competitors. On September 27, 2005, Constellation Brands, Inc. announced its intention to buy Vincor and subsequently acquired the company in June 2006.

Fourth Annual Report of The Electric Development Company of Ontario Limited For the Year Ending 31st December, 1906

Fourth Annual Report of The Electrical Development Company of Ontario Limited for for the year 1906. The report discusses the main line between Niagara Falls and Toronto and the line between the Township of Pelham and the city of Brantford. The report also details the purchase of stocks and bonds in several different companies.