What Should Be Disclosed in an Initial Coin Offering?

Cryptoassets ◽  
2019 ◽  
pp. 157-202 ◽  
Author(s):  
Chris Brummer ◽  
Trevor I. Kiviat ◽  
Jai Massari
Keyword(s):  
Financial Statement ◽  
Common Assumption ◽  
Public Offerings ◽  
Disclosure Requirements ◽  
Initial Coin Offerings

This chapter unsettles the all-too-common assumption that existing Securities Act registration and disclosure requirements offer adequate remedies for the increasingly obvious shortcomings of initial coin offerings (ICOs). It argues that, as currently constituted, the Securities Act and its accompanying regulations offer, at best, only a partial remedy to the disclosure challenges that ICOs pose. Even if subject to the full panoply of disclosures operative in public offerings, ICO promoters would not necessarily disclose all factors material to evaluating and pricing their tokens. Furthermore, even where disclosures are made, they may not be done in ways that investors can easily understand, and technical disclosures would not be subject to the kind of financial statement audits common in more traditional securities offerings.

MANAJEMEN LABA PADA PERIODASEBELUM DAN SESUDAH PENAWARAN SAHAM PERDANA DI BURSA EFEK JAKARTA: ANALISIS DENGAN MODEL DEANGELO

2006 ◽  
Vol 2 (2) ◽  
pp. 67
Author(s):  
Elisa Indah ◽  
Erny Ekawati
Keyword(s):  
Real Estate ◽  
Earnings Management ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Operating Performance ◽  
Discretionary Accruals ◽  
Building Construction ◽  
Financial Statement ◽  
Public Offerings ◽  
Industrial Group

The previous research fotmd empirical evidence about existence of earnings monagement of suuraunding IPO (Initial Public Offerings). Previous reseqrch also found that operating performance at period after IPO less than before IPO. The purposes of this research is to reexamine earnings management surrounding IPO and association earnings manog"*"it surrotmding IPO with the operating performance in Indonesiancapital market.This study uses the companies data conducting IPO on 88 /irms that went at Jakarta Stock Exchange for the periods 1995-2002. Company do not the included in industrial group of property, real estate and building construction, and industrial group of finance. The method used toexamine eantings management are the method that develop by DeAngelo.Ihe result of this study by using t-test is fomd that firms manage theiremnings to increqse reported income before IPO and after IPO. It meansthat IPO issuers make income increasing discretionary accruals in thefmancial statement before IPO and in the financial statement afier IPO.In this study by using double regression examination also found thatoperoting performance after IPO less than before IPO. This conditionis consequence firms conduct earnings managetnent before IPO untilhappen underperformance after IPO.Keywords z IPO, earnings management, income increasing discretionaryaccruals, operating performance, DeAngelo model.

Cryptoassets

2019 ◽  
Keyword(s):  
Financial Services ◽  
Record Keeping ◽  
The Public ◽  
High Profile ◽  
Financial Products ◽  
Blockchain Technology ◽  
Disclosure Requirements ◽  
The World ◽  
Considerable Controversy ◽  
Initial Coin Offerings

Cryptoassets represent one of the most high-profile financial products in the world, and fastest growing financial products in history. From Bitcoin, Etherium, and Ripple’s XRP—so-called “utility tokens” used to access financial services—to initial coin offerings that in 2017 rivaled venture capital in money raised for startups, with an estimated $5.6 billion (USD) raised worldwide across 435 Initial Coin Offerings (ICOs). All the while, technologists have hailed the underlying blockchain technology for these assets as potentially game-changing applications for financial payments and record-keeping. At the same time, cryptoassets have produced considerable controversy. Many have turned out to be lackluster investments for investors. Others, especially ICOs, have also attracted noticeable fraud, failing firms, and alarming lapses in information sharing with investors. Consequently, many commentators around the world have pressed that ICO tokens be considered securities, and that concomitant registration and disclosure requirements attach to their sales to the public.

scholarly journals Investor Protection and Judicial Enforcement of Disclosure Regime in Bangladesh: A Critique

2005 ◽  
Vol 34 (3) ◽  
pp. 229-255
Author(s):  
S.M. Solaiman
Keyword(s):  
Initial Public Offerings ◽  
Investor Protection ◽  
Securities Market ◽  
Securities Litigation ◽  
Public Offerings ◽  
The Public ◽  
Securities Law ◽  
Legal Provisions ◽  
Disclosure Requirements

The effectiveness of any law largely depends on the clarity of legal provisions and the activity of their enforcement institutions. Securities law, which is inherently complex, must be unambiguous to be properly applied. Judges and lawyers dealing with securities litigation need to be trained properly to provide justice for the public. Laws governing initial public offerings in Bangladesh are ambiguous in many respects, and the judiciary lacks judges and lawyers sufficiently experienced in this area of law. As a result, judicial enforcement of disclosure requirements in prospectuses appears to have been a difficult task. The administrative enforcement of those requirements is not effective either. In such a situation, potential investors remain market-shy keeping the Bangladesh securities market moribund for years. This paper identifies the drawbacks of the existing mechanism of judicial enforcement of disclosure regime, and provides suggestions for their elimination.

scholarly journals Initial Coin Offerings (ICOs): the importance of human capital

2021 ◽  
Author(s):  
José Campino ◽  
Ana Brochado ◽  
Álvaro Rosa
Keyword(s):  
Human Capital ◽  
Initial Public Offerings ◽  
Econometric Model ◽  
Disruptive Technology ◽  
Capital Theory ◽  
Public Offerings ◽  
Perceived Impact ◽  
Indicators Of Success ◽  
The Impact ◽  
Initial Coin Offerings

Abstract The Initial Coin Offerings (ICOs) subject has been gaining relevance due to its novelty, due to the capital amounts involved in the projects, as well as the disruptive technology and methods involved. ICOs are a disruptive way to finance new projects which involve high risks and which are mainly technological. This way to finance a project has been compared to others, namely, crowdfunding, venture capital or Initial Public Offerings (IPOs). Nevertheless, ICOs have very specific characteristics which make them unique. We have studied the ICO projects and developed a literature review on the topic. Building on the Human Capital Theory (HCT), we have also studied the importance given to the project’s team and its perceived impact on projects’ success. Our contribution to fill in this literature gap was to develop an econometric model which measures the impact of team’s characteristics on the success of a project. The database was collected with the combination of two data sources and is composed of 3158 profiles and 340 ICO projects. We have concluded that team variables are significant contributors to project’s success. Our data suggests that people’s location contributes to projects’ success as well as promoters’ networks. The ratings attributed by external parties to the project are also indicators of success. Several control variables such as the implementation of thresholds to investment, the number of currencies accepted, the platform in which the ICO is developed, the existence of bonus schemes and the year of the project were found to be statistically significant having an impact on projects’ outcome.

scholarly journals Quality of Information and the Moderating Effect of Board Size on SME Financial Structure: Malaysian Evidence

2018 ◽  
pp. 851-859
Keyword(s):  
Empirical Evaluation ◽  
Financial Structure ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Financial Statement ◽  
Board Size ◽  
Quality Of Information ◽  
Disclosure Requirements ◽  
The Relationship

This study examines whether the quality of financial statement information affects the financial structure of small and medium-sized enterprises (SMEs). Furthermore, it also make the first attempt to test the moderating effect of board size on the relationship between quality of information and leverage decision. Malaysian SMEs are used because there are important differences in the magnitude of disclosure requirements among them. A sample size of 100 SMEs has been considered to do the empirical evaluation. The Ordinary Least Squares (OLS) regression was used to analyze the identified firm-specific variables that affect financial structure. In contrast with the traditional view that asymmetric or incomplete information restricts access to external funds, the results indicate that the quality of financial statement information is not significantly related to SME leverage. Board size does not exert any influence on the relationship between quality of information and leverage decision. However, leverage is negatively related to total assets and profitability.

scholarly journals Uji Model Kualitas Audit: Studi Empiris Perusahaan yang Melakukan IPO di Bursa Efek Indonesia

2020 ◽  
Vol 16 (2) ◽  
pp. 44-52
Author(s):  
T. Husain ◽  
Melani Quintania ◽  
Nedi Hendri
Keyword(s):  
Initial Public Offerings ◽  
Public Perception ◽  
Audit Quality ◽  
Financial Statement ◽  
Public Offerings ◽  
Public Company ◽  
Quality Modeling ◽  
Profitability Ratios ◽  
Weak Influence

Various financial statement scandals lead to a low public perception of audit quality. The quality of the audit itself can be studied from various perspectives. This research uses the paradigm of thinking to test audit quality modeling in predicting financial ratios consisting of liquidity ratios, activity ratios, solvency ratios, profitability ratios, and market prospect ratios. The type of research is causality with a quantitative approach. The subject of this research uses a public company that does Initial Public Offerings (IPO) in 2019. Data analysis methods use logistic regression analysis. This study's findings show that it meets the model's specifications, with nagelkerke r square score of 0.151, which means it has a weak influence in explaining the model. Besides that, does not yield influence simultaneously with omnibus tests of model coefficients and only one proof of the hypothesis of the Financial Ratio's viz price-to-book value proxy test that has a partially significant effect with the wald testing.

scholarly journals A Users Approach To Constructing The Business Reporting Model: An Internet-Based Research Case

1997 ◽  
Vol 1 (3) ◽  
pp. 95-110
Author(s):  
Saeed Roohani ◽  
Steve Sutton
Keyword(s):  
Financial Reporting ◽  
Information Sources ◽  
Financial Statement ◽  
Financial Disclosure ◽  
The Internet ◽  
Special Committee ◽  
Business Research ◽  
Business Reporting ◽  
Current Information ◽  
Disclosure Requirements

This case aids the exploration of exploring the financial disclosure requirements proposed by the AICPA Special Committee on Financial Reporting (i.e., the Jenkins Committee). The premise of the Committees report was to propose a model for comprehensive business reporting that is closer in line with the needs of financial statement users. This case provides a reusable framework for investigating and report upon the availability of current information disclosures available for a given company and facilitates a comparison with those disclosures advocated by the Jenkins Committee. The re-usability feature is derived from the uniqueness that each company report will have based upon the information available for a given company at a given point in time. Hence, the case will differ for each student assignment in the same semester and will also differ from one semester to the next. Five primary objectives have been specifically addressed: (1) to raise students awareness of evolving issues I the accounting profession, (2) to facilitate students understanding of the real changes in current reporting that may evolve from the Jenkins Committee, (3) to understand the difficulties faced by financial statement users who currently must search for additional disclosures through multiple information sources of questionable reliability, (4) to provide a meaningful analysis of financial statement content and disclosures, and (5) to demonstrate how the Internet can be used as s tool for aggregating information when conducting business research and analysis.

Damages Actions by Investors on the Back of Market Disclosure Requirements

2018 ◽  
Author(s):  
Paul Davies
Keyword(s):  
Publicly Traded ◽  
Liability Rules ◽  
Publicly Traded Companies ◽  
Public Offerings ◽  
Administrative Action ◽  
Disclosure Requirements ◽  
The Subject ◽  
Disclosure Rules ◽  
National Systems

EU rules requiring disclosures to the market by publicly traded companies have developed enormously since the first Listing Particulars Directive of 1980. However, even today they are hesitant about dealing with the subject of investor actions for damages for breaches of the rules. In relation to public offerings, periodic disclosures, and episodic disclosures, the current EU rules do not bring about harmonisation of national systems of damages liability in investor actions, but rather place almost exclusive emphasis on coordinated administrative action and sanctions. This chapter considers the question of how the liability rules should be shaped if they are to contribute most effectively to the achievement of the goals of the Union's disclosure rules. The discussions cover investor actions and the promotion of disclosure, investor litigation in the context of public offerings, and investor litigation in the context of continuing disclosures.

Noncompliance with Mandatory Disclosure Requirements: The Magnitude and Determinants of Undisclosed Permanently Reinvested Earnings

2014 ◽  
Vol 90 (1) ◽  
pp. 59-93 ◽  
Author(s):  
Benjamin C. Ayers ◽  
Casey M. Schwab ◽  
Steven Utke
Keyword(s):  
Accounting Standards ◽  
Data Availability ◽  
Financial Statement ◽  
Mandatory Disclosure ◽  
Cross Sectional ◽  
Foreign Earnings ◽  
Disclosure Requirements ◽  
Deferred Tax ◽  
Jel Classifications

ABSTRACT We develop estimates of a firm's foreign earnings designated as permanently reinvested (PRE) and the unrecorded deferred tax liability (TAX) associated with PRE that are independent of whether a firm explicitly discloses this information. We then investigate firms' noncompliance with Accounting Standards Codification (ASC) 740 provisions that require financial statement disclosure of PRE and either the tax associated with PRE or a statement that calculating the tax is not practicable. We find that a nontrivial portion of firms do not comply with the PRE disclosure requirements and that the amounts of undisclosed PRE and the related tax are substantial in magnitude. Cross-sectional evidence suggests managers opportunistically choose when to disclose PRE and TAX and that compliance with PRE disclosure requirements increased following the American Jobs Creation Act of 2004, which increased incentives to disclose PRE. JEL Classifications: M40; M41; H25; K34. Data Availability: Data used in this study are available from public sources identified in the paper.

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