Corporate liquidity, supply chain and cost issues awareness within the Covid-19 context: evidence from us management reports’ textual analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Athanasios Fassas ◽  
Sotirios Bellos ◽  
George Kladakis
Keyword(s):  
Empirical Analysis ◽  
Textual Analysis ◽  
Securities And Exchange Commission ◽  
Business Community ◽  
Workforce Reduction ◽  
Content Type ◽  
Related Information ◽  
Document Frequency ◽  
The Us ◽  
Before And After

Purpose The purpose of this study is to assess the management responses and intentions of 3,279 US firms from all industries, before and after the coronavirus outbreak, to identify the level of managerial concern about specific financial issues and potential economic costs of the COVID-19 pandemic. Design/methodology/approach This paper uses textual analysis of official management reports to search for specific single words in five domains related to corporate finance and governance. This paper focuses on the relative frequency of single words using a weighting scheme that adjusts for document length and for the inverse document frequency. This paper then uses t-tests to investigate the univariate differences across groups of reports before and after the US stock market crash in February 2020. Findings The applied textual and empirical analysis provides evidence that firms’ primary concerns relate to the disruption in supply chains, liquidity need and coronavirus-led recession. This paper also shows that the main cost reduction measure they are considering is salary reduction, rather than workforce reduction. This paper also shows evidence that firm managers are rather swift to provide coronavirus-related information in the US Securities and Exchange Commission (SEC) corporate filings. Practical implications The findings provide a primary view of the directions, on which US firms will move in the near future, and thus, they can be used as tools for the formulation of appropriate government policies in the corresponding sectors, which could mitigate the economic risks related to the pandemic. At the business level, the disseminated knowledge can assist firms either in the same sector or in similar/related sectors to “locate” themselves within the map of the pandemic and to adjust or align correspondingly their strategies and decisions as they will have a view of the bigger picture. Originality/value The empirical analysis divulges US firms’ management primary concerns after the COVID-19 outbreak, and thus, offers insights to the processes taking place in the US business community and the formulating new corporate and economic reality.

SEC approves amendments to the NYSE’s substantial stockholder issuance rule and 20 per cent rule for shareholder approval of certain private offerings

2019 ◽  
Vol 20 (2) ◽  
pp. 16-19
Author(s):  
Justin Hoffman ◽  
Jude Dworaczyk
Keyword(s):  
New York ◽  
Listed Company ◽  
Market Value ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
Book Value ◽  
The Us ◽  
Before And After ◽  
Private Placements ◽  
Definition Of

Purpose To explain recent amendments by the US Securities and Exchange Commission (the SEC) to Sections 312.03(b) relating to issuances of securities to substantial stockholders (the Substantial Stockholder Issuance Rule) and 312.03(c) (the 20 Per cent Rule) of the New York Stock Exchange’s (the NYSE) Listed Company Manual to change the definition of “market value” for purposes of the 20 Per cent Rule and eliminate the requirement for shareholder approval of certain private issuances at a price less than book value but greater than market value. Design/methodology/approach This article provides background on the purpose and policy behind the Substantial Stockholder Issuance Rule and the 20 Per cent Rule and summarizes the provisions of each rule, both before and after the recent SEC amendments thereto. This article then highlights the most important changes to the Substantial Stockholder Issuance Rule and the 20 Per cent Rule and explains the implications thereof for NYSE-listed issuers. Findings The amended Substantial Stockholder Issuance Rule and the 20 Per cent Rule provide NYSE-listed issuers greater flexibility in structuring transactions involving private placements of equity and will likely reduce the number of such transactions requiring a shareholder vote. Originality/value Practical guidance from experienced corporate finance and capital markets lawyers.

US SEC approves amendments to Nasdaq’s 20 per cent rule for shareholder approval of certain private offerings

2019 ◽  
Vol 20 (1) ◽  
pp. 1-4 ◽  
Author(s):  
Justin F. Hoffman ◽  
Jude A. Dworaczyk
Keyword(s):  
Design Methodology ◽  
Market Value ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
Book Value ◽  
The Us ◽  
Before And After ◽  
Private Placements ◽  
Practical Guidance ◽  
Definition Of

Purpose To explain a recent amendment by the US Securities and Exchange Commission (the SEC) to Nasdaq Rule 5635(d) (the 20 per cent Rule) to change the definition of “market value” for purposes of the 20 per cent Rule and eliminate the requirement for shareholder approval of certain private issuances at a price less than book value but greater than market value. Design/methodology/approach This article provides background on the purpose and policy behind the 20 per cent Rule and summarizes the provisions of the 20 per cent rule, both before and after the recent SEC amendment thereto. This article then highlights the most important changes to the 20 per cent Rule and explains the implications thereof for Nasdaq-listed issuers. Findings The amended 20 per cent Rule provides Nasdaq-listed issuers greater flexibility in structuring transactions involving private placements of equity and will likely reduce the number of such transactions requiring a shareholder vote. Originality/value Practical guidance from experienced corporate finance and capital markets lawyers.

Textual analysis for China’s financial markets: a review and discussion

2019 ◽  
Vol 10 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Alan Huang ◽  
Wenfeng Wu ◽  
Tong Yu
Keyword(s):  
Financial Markets ◽  
Sentiment Analysis ◽  
Textual Analysis ◽  
Small Sample ◽  
Textual Information ◽  
Content Type ◽  
Survey Paper ◽  
The Past ◽  
The Us ◽  
Important Field

Purpose This is a literature survey paper. The purpose of this paper is to focus on the latest developments in textual analysis on China’s financial markets, highlighting its differences from existing works in the US markets. Design/methodology/approach The authors review the literature and carry out an experiment of sentiment analysis based on a small sample of Chinese news articles. Findings Based on the experiment of sentiment analysis, there is limited evidence on the association between sentiment and other contemporaneous or future returns. Originality/value The supply of financial textual information has grown exponentially in the past decades. Technological advancements in recent years make the programming-based analysis an effective tool to digest such information. The authors highlight the use of credible textual information and discuss directions of research in this important field.

Aztec multilatinas: characteristics and strategies of Mexican multinationals

2018 ◽  
Vol 28 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Jose L. Huesca-Dorantes ◽  
Snejina Michailova ◽  
Christina Stringer
Keyword(s):  
Multinational Enterprises ◽  
Stock Exchange ◽  
Geographical Location ◽  
Securities And Exchange Commission ◽  
Data Sources ◽  
Annual Reports ◽  
Content Type ◽  
Making Sense ◽  
The Us ◽  
Internationalization Strategies

Purpose This paper provides an overview of the Aztec 13 – the top 13 multinational enterprises in Mexico. Different from research that groups countries and regions, the purpose of the paper is to deliver a nuanced picture of these multinationals in terms of their key characteristics and the strategies they follow when they internationalize. Design/methodology/approach All data sources that have been identified and reviewed are documents, printed and electronic. The Aztec multilatinas were identified using Forbes Global 2000 (2017). Other data sources such as media texts, company annual reports, reports filed with the Mexican Stock Exchange and the US Securities and Exchange Commission, as well as investor presentations, were collected and analyzed. Data sources were published in English and Spanish. The analytic procedure adopted entailed identifying, selecting, making sense of and synthesizing the data contained in the documents. Findings Aztec multilatinas have specific characteristics which, to a great extent, influence their internationalization strategies. Characteristics include the geographical location of their headquarters, their origin and history, their ownership structure and ties with families and government. These factors, combined, help to describe in greater nuance the internationalization strategies and activities of the Aztec 13. Such a detailed and focused description is a first necessary step for subsequent potential theorizing. Originality/value This paper contributes to the vibrant scholarly conversation on multinational enterprises from less researched regions and countries. Latin America is such a region and Mexico is such a country. Focusing on a single country and its top 13 multinationals allow a comprehensive description and disciplined analysis, with no dangerous generalizations to large regions and even larger settings such as emerging markets multinationals and with no false claims for theorizing.

Bringing order to non-GAAP financial measures: SEC sues to enforce “equal-or-greater-prominence” requirement

2019 ◽  
Vol 20 (4) ◽  
pp. 51-57
Author(s):  
Richard J. Parrino
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
Financial Measures ◽  
Generally Accepted Accounting Principles ◽  
Enforcement Action ◽  
Accounting Principles ◽  
Depth Analysis ◽  
The Us ◽  
Earnings Releases

Purpose This article examines the first action by the US Securities and Exchange Commission to enforce the “equal-or-greater-prominence” requirement of its rules governing the presentation by SEC-reporting companies, in their SEC filings and earnings releases, of financial measures not prepared in accordance with generally accepted accounting principles (GAAP). Design/methodology/approach This article provides an in-depth analysis of the equal-or-greater-prominence rule and the SEC’s enforcement posture in the context of the SEC’s concern that some companies present non-GAAP financial measures in a manner that inappropriately gives the non-GAAP measures greater authority than the comparable GAAP financial measures. Findings Although the appropriate use of non-GAAP financial measures can enhance investor understanding of a company’s business and operating results, investors could be misled about the company’s GAAP results by disclosures that unduly highlight non-GAAP measures. The SEC’s enforcement action signals a focus on the manner in which companies present non-GAAP financial measures as well as on how they calculate the measures. Originality/value This article provides expert guidance on a major SEC disclosure requirement from an experienced securities lawyer.

Parties push to enforce statutory time limits on SEC enforcement actions

2015 ◽  
Vol 16 (3) ◽  
pp. 30-32
Author(s):  
Benjamin Neaderland ◽  
Jared Cohen
Keyword(s):  
Design Methodology ◽  
District Of Columbia ◽  
Securities And Exchange Commission ◽  
Courts Of Appeals ◽  
Content Type ◽  
Time Limits ◽  
Court Of Appeals ◽  
Securities Law ◽  
The Us ◽  
Practical Implications

Purpose – To alert companies and individuals subject to regulation and investigation by the US Securities and Exchange Commission (SEC) of potential arguments to enforce time limits on enforcement actions that have heretofore commonly been ignored. Design/methodology/approach – Analyzes two cases - one recently decided and one pending - in US Courts of Appeals, explains significance of issues at stake. Findings – The Courts of Appeals for District of Columbia Circuit has recently reviewed, and the Court of Appeals for the 11th Circuit will soon decide whether statutory timing provisions effectively remove SEC power to bring enforcement actions past their deadlines, at least in some circumstances. Practical implications – Depending on the outcomes of the cases, companies and individuals may gain a new procedural defense or two against SEC enforcement actions. They may also expect the SEC to respond by more actively seeking tolling agreements, and/or being more cautious in issuing Wells notices. Originality/value – Guidance based on pending decisions interpreting US securities law, may bring regulatory adjustments to agency practice and procedure.

Extractives transparency gathers pace in the West

2016 ◽  
Keyword(s):  
Oil And Gas ◽  
Commodity Prices ◽  
Balance Of Power ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Good Time ◽  
Power Structures ◽  
Financial Transfers ◽  
Content Type ◽  
The Us

Subject Developments on transparency in the extractives sector. Significance Transparency legislation on the extractives sector progressed in December 2015 when the US Securities and Exchange Commission published a revised proposal to enhance the transparency of extractive (ie, mining and oil and gas) industries' payments to governments in producing countries. The aim is to provide information on financial transfers which can then be used by civil society, media and other stakeholders to hold those governments to account. The United States was a pioneer in this area, but litigation against its original initiative delayed its progress. Impacts Low commodity prices shift the balance of power from producing countries to consuming ones. That makes producer countries more susceptible to pressures for reform and may be a good time to push for greater transparency. However, opaque and inaccessible power structures in producer states could still limit NGO capacity to use more data to reduce corruption. A test of this will be whether the issue of resource transparency gains traction within the G20.

Cryptocurrency regulations will become more variable

2018 ◽  
Keyword(s):  
Securities And Exchange Commission ◽  
Futures Trading ◽  
Content Type ◽  
Securities Law ◽  
The Us ◽  
Commodity Futures Trading Commission ◽  
Regulatory Scrutiny ◽  
Market Capitalisation ◽  
And Control

Subject Cryptocurrency classification. Significance The classification of crypto assets under US securities law is less clear than in Japan, China and South Korea, but a working group comprising senior officials of the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) is discussing it. The unclear status of Ethereum’s ether and Ripple’s XRP, the second- and third-largest crypto assets by market capitalisation, is the centre of attention. Impacts Mined crypto assets including bitcoin and litecoin are likely to remain classed as commodities. Ether and XRP are unlikely to be designated as commodities as they were initial coin offerings (ICOs) but also not as standard securities. As ICOs come under increasing regulatory scrutiny and control, more will fail, but a few may achieve notable success.

A review of the SEC Participating Affiliate No-Action Letters’ relief from Investment Advisers Act of 1940 registration for foreign investment advisers

2017 ◽  
Vol 18 (4) ◽  
pp. 22-28 ◽  
Author(s):  
Wendy E. Cohen ◽  
David Y. Dickstein ◽  
Christian B. Hennion ◽  
Richard D. Marshall ◽  
Allison C. Yacker ◽  
...  
Keyword(s):  
Foreign Investment ◽  
Financial Services ◽  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
The Us ◽  
Information Update ◽  
Practical Guidance ◽  
Investment Advisers

Purpose To explain the US Securities and Exchange Commission (the “SEC”) staff’s (the “Staff”) participating affiliate exemption from investment adviser registration for foreign advisers set forth in a line of Staff no-action letters issued between 1992 and 2005 (the “Participating Affiliate Letters”) and to discuss recent guidance issued by the Staff in an information update published in March 2017 (the “Information Update”) with respect to complying with requirements of the Participating Affiliate Letters. Design/methodology/approach Reviews the development of the Staff’s approach regarding the non-registration of foreign advisers that rely on the Participating Affiliate Letters from prior to the issuance of those letters through the Information Update and sets forth recommendations for registered investment advisers and their participating affiliates. Findings While there are arguments that the Information Update goes beyond restating established standards and does not clearly explain whether submission of all listed documentation is required, the Information Update will likely standardize the information submitted to the SEC. Originality/value Practical guidance for advisers relying on the Participating Affiliate Letters from experienced securities and financial services lawyers.

US-Vietnam security ties may trump trade

2017 ◽  
Keyword(s):  
United States ◽  
Prime Minister ◽  
The United States ◽  
Business Community ◽  
Donald Trump ◽  
Content Type ◽  
Technology Transfers ◽  
Look Ahead ◽  
The Us ◽  
Vietnamese Diaspora

Subject US-Vietnam relations. Significance Vietnam’s Prime Minister Nguyen Xuan Phuc met US President Donald Trump on May 31 in Washington, during a two-day visit in which he also conferred with the US business community and Vietnamese diaspora. Phuc’s visit is part of Hanoi’s plan to forge a relationship with the new US administration. The prime minister sought the continuance of the Obama-era US-Vietnam Comprehensive Partnership and to look ahead to the APEC meeting in Da Nang in November, which Trump will attend. Impacts Even without the twelve-member TPP, Vietnam will improve its intellectual property and labour laws. Increased US security support may see more frictions over maritime issues between Beijing and a more confident Hanoi. Trump’s wish to protect US borders will cause Hanoi concern that Vietnamese student numbers in the United States will fall. If so, this could hit knowledge and technology transfers from the United States to Vietnam.

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