Mark Cuban defense verdict highlights difficulty of proving “misappropriation” theory of insider trading

2014 ◽  
Vol 15 (1) ◽  
pp. 38-40
Author(s):  
Jonathan Green ◽  
Aaron Miner
Keyword(s):  
Insider Trading ◽  
Design Methodology ◽  
Public Information ◽  
Content Type ◽  
Jury Verdict ◽  
Turn On ◽  
Securities Analysts ◽  
Confidentiality Agreement ◽  
Corporate Insiders ◽  
Relationship Of

Purpose – To summarize and draw conclusions from the insider trading suit brought against well-known entrepreneur Mark Cuban in 2008. Design/methodology/approach – Summarizes the facts of the 2008 case, brought by the SEC against Cuban for allegedly misappropriating material, non-public information conveyed to him purportedly pursuant to a confidentiality agreement. Reviews the basics of the misappropriation theory of insider trading, and the basis of the jury verdict in Cuban's favor. Concludes by stressing that securities analysis and major investors should still remain cautious, and explains why. Findings – The Cuban verdict appears, at first glance, to be a substantial victory for securities analysts and major investors whose businesses depend on regular communications with corporate insiders or others who possess material non-public information. It demonstrates the challenges the SEC faces under existing law in establishing a relationship of trust and confidence between the recipient of alleged material, non-public information and the source of that information for purposes of proving misappropriation liability. Nevertheless, the Cuban judgment did not ultimately turn on the existence of such a relationship, and the contours of misappropriation liability remain unsettled. Accordingly, securities analysts, investors and any other entity or individual who receives information pursuant to a confidentiality agreement should remain cautious and refrain from acting on material, non-public information regardless of the circumstances. Originality/value – Practical explanation by experienced litigators.

Why is insider trading law ineffective? Three antitrust suggestions

2016 ◽  
Vol 33 (4) ◽  
pp. 704-715 ◽  
Author(s):  
Viktoria Dalko ◽  
Michael H. Wang
Keyword(s):  
Literature Review ◽  
Insider Trading ◽  
Design Methodology ◽  
Equity Market ◽  
Monopoly Power ◽  
Content Type ◽  
The Third ◽  
Corporate Insiders ◽  
Conceptual Paper ◽  
Practical Implications

Purpose The purpose of this paper is to uncover the essence of insider trading, explain why insider trading law is ineffective and provide implications of the effectiveness of the law. Design/methodology/approach This conceptual paper offers three propositions. The first two are based on a literature review of 62 articles in empirical research to develop an understanding of the essence of insider trading and identify the areas in which insider trading is ineffective. This analysis is used in the third proposition to provide a direction in suggesting effective measures to improve insider trading law. Findings The essence of insider trading is that corporate insiders exercise informational monopoly power over their trades. This understanding explains why insider trading law is ineffective because it has not taken away the monopoly power that corporate insiders possess and exercise. This understanding also leads to three antitrust suggestions aimed at improving insider trading law. Practical implications The findings may provide assistance to the lawmakers and regulators to make insider trading law more effective and enforcement more simplified. Originality/value This paper is of value to other researchers attempting to understand the essence of insider trading and to policymakers concerned about the existence of monopolistic behavior in the equity market and income inequality due to corporate insiders’ trading profit.

SEC announces new guidance for public company disclosures on cybersecurity risks

2018 ◽  
Vol 19 (4) ◽  
pp. 22-25 ◽  
Author(s):  
Stuart Gelfond ◽  
Una Dean ◽  
Dave N. Rao ◽  
Justin Sedor
Keyword(s):  
Insider Trading ◽  
Public Information ◽  
Securities And Exchange Commission ◽  
Public Companies ◽  
Content Type ◽  
Policies And Procedures ◽  
Public Company ◽  
Corporate Insiders ◽  
Standard Set ◽  
Disclosure Obligations

Purpose To discuss the new guidance on public companies’ disclosure obligations regarding cybersecurity risks and incidents, which was recently unanimously approved by the Securities and Exchange Commission (SEC). Design/methodology/approach Outlines the general disclose requirements and the materiality standard set forth by the SEC, explains specific guidance on public company cybersecurity disclosure, and discusses cybersecurity risk management and insider trading policies. Findings In addition to clarifying the disclosure requirements with respect to cybersecurity issues, the article discusses two additional areas of concern identified by the New Guidance that public companies should consider in the context of cybersecurity and related disclosure. First, public companies must design and maintain policies and procedures to help manage cybersecurity risks and respond to incidents as they occur. Second, public companies should consider adopting insider trading policies that specifically prohibit management and other corporate insiders from trading on the basis of material non-public information regarding a cybersecurity risk or incident. Originality/value Practical analysis of the guidance on disclosure obligations regarding cybersecurity risks and incidents, including discussion surrounding two aspects of cybersecurity not previously addressed in prior SEC staff guidance on the topic.

The strategic design of port services based on a total landed cost approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosa G. González-Ramírez ◽  
J. Rene Villalobos ◽  
Cesar Meneses
Keyword(s):  
Service Time ◽  
Public Information ◽  
Service Level ◽  
Competitive Position ◽  
Content Type ◽  
Service Levels ◽  
Strategic Design ◽  
Confidentiality Agreement ◽  
Traffic Volumes ◽  
High Level

PurposeThis paper explores the effect of port's service time, particularly the mean and variability, on shippers' total landed costs to determine the competitive position of the port and derive recommendations for the strategic design of port services.Design/methodology/approachThe competitive position of a port is estimated considering the service level offered to the end-users of the port such as port service time, its variability and its effect on the total landed costs observed by the port users. The proposed methodology is meant to help ports to determine the required service time levels to maintain or gain a competitive advantage against other ports, in terms of attracting common hinterland's customers.FindingsResults show the advantages of considering service levels factors to determine the competitive position of a port, and what are the minimum characteristics required to capture more traffic volumes, that can help port managers to take strategic design decisions to better position the port in the current fierce market.Research limitations/implicationsThe proposed methodology is illustrated by considering a case study, which is the Port of Guaymas in Mexico. Data was not directly collected by the port, but based on interviews with shippers and public information, a representative case is presented. Due to a confidentiality agreement with the Port, specific references for most of the data used to estimate the model's parameters are not provided. The analysis is intended to show the potential value of this mechanism and can be used for evaluating the competitive position, from a high-level perspective, of any port to determine potential hinterland by improving the service level of the port.Originality/valueThe existing literature on port choice and port competition has not previously considered the effect of port service levels under the perspective of total landed costs of the users, being this paper a contribution to fulfill this gap.

Passive leadership and its relationship with organizational justice

2018 ◽  
Vol 37 (2) ◽  
pp. 212-223 ◽  
Author(s):  
Muhammad Majid Adeel ◽  
Hafiz Ghufran Ali Khan ◽  
Naveed Zafar ◽  
Syed Tahir Rizvi
Keyword(s):  
Organizational Justice ◽  
Design Methodology ◽  
Direct Relationship ◽  
Social Science Knowledge ◽  
Content Type ◽  
Mediating Role ◽  
Independent Variable ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship among passive leadership, organizational justice and affect-based trust. In addition, the meditating role of affect-based trust between these relationships is also investigated. Design/methodology/approach The data have been collected using anonymously completed questionnaire that has questions regarding passive leadership as independent variable, affect-based trust as mediator and organizational justice as dependent variable. Findings It is noted that the passive leadership is negatively associated with the affect-based trust and perceptions of organizational justice and the mediating role of affect-based trust is also confirmed between these relationships. Originality/value This study provides a new insight for social science knowledge base by explaining the direct relationship of passive leadership with organizational justice and through affect-based trust.

scholarly journals Exploring the relationship between leadership and followership of Chinese project managers

2019 ◽  
Vol 13 (3) ◽  
pp. 616-647
Author(s):  
Haoran Li ◽  
Zhenzhi Zhao ◽  
Ralf Müller ◽  
Jingting Shao
Keyword(s):  
Design Methodology ◽  
Project Managers ◽  
Content Type ◽  
Leaders And Followers ◽  
Predicting Behavior ◽  
New Perspective ◽  
Nation Wide Survey ◽  
Relationship Of ◽  
The Relationship ◽  
Selection Of

Purpose Followership is the free will recognition of leadership in the commitment toward realization of the collectively adopted organization vision and culture. The purpose of this paper is to identify the relationship between project managers’ leadership and their followership. Most project managers are both leaders and followers at the same time, but research typically investigates only their leadership. This ignores followership as an important aspect in understanding and predicting behavior, and further in the selection of project managers. Design/methodology/approach The method used for this paper is the explanatory in nature and a deductive approach, within which the above research hypothesis is tested through quantitative techniques. Data are collected through a nation-wide survey in China. Data analysis was done through factor analysis, canonical correlation analysis and multiple regression analysis. Findings The results show that transformational leadership is positively correlated with transformational followership and transactional followership, and that transactional leadership is negatively correlated with transactional followership. Research limitations/implications The paper supports a deeper investigation into leadership and followership theories. A model for both leadership and followership is developed. The findings from this paper will guide organizations to choose the project managers. Originality/value The originality lies in the new way to examine the relationship between leadership and followership. It is the first study on the relationship of project managers. Its value is new insights, which introduced a new perspective to understand leadership and followership.

Buddhist economics: a model for managing consumer society

2014 ◽  
Vol 33 (8/9) ◽  
pp. 824-832 ◽  
Author(s):  
Gullinee Mutakalin
Keyword(s):  
Design Methodology ◽  
Frankfurt School ◽  
Consumer Society ◽  
Content Type ◽  
Marxian Economics ◽  
Goods And Services ◽  
Structure And Agency ◽  
Dialectical Relationship ◽  
Relationship Of ◽  
Exemplary Model

Purpose – The purpose of this paper is to critically evaluate consumer society through various perspectives. In addition, it applies Buddhist economics as an exemplary model which helps managing consumer society. Design/methodology/approach – The study started by comparing and contrasting the management of consumption between Mainstream and Buddhist economic. In addition, various perspectives such as Marxian economics, Frankfurt School, sociology as well as social critics are added to comprehend consumer society. Finally, it proposed the practices of Buddhist economics as an exemplary model for managing consumer society. Findings – The study found that while Mainstream economics focusses on increasing the amount of goods and services, Buddhist economics focusses on converting the insatiable to satiable desires. There are two viewpoints of the interconnected spheres of consumption and production through the evolution of consumerism; a producer-led approach and a consumer-led approach. This polarization presents the debate in a very well-established tension between structure and agency. Originality/value – This paper proposed an exemplary model for managing consumer society by applying the dialectical relationship of both structure and agency.

Georgia rural hospital authorities as “shadow governments”

2018 ◽  
Vol 21 (2) ◽  
pp. 98-112
Author(s):  
Mary Eleanor Rawlings Wickersham ◽  
Robert Yehl
Keyword(s):  
Local Government ◽  
Design Methodology ◽  
Descriptive Analysis ◽  
Public Information ◽  
Content Type ◽  
The Public ◽  
Private Interests ◽  
The Usa ◽  
Special District

Purpose The tenuous financial viability of many of Georgia’s rural hospitals has driven increased scrutiny of the hospital authorities (HAs) that own and govern them. HAs are a type of “special district” established in state law to allow for specialization of function, while evading statutes that can limit local government borrowing and multi-year contracts. The paper aims to discuss this issue. Design/methodology/approach This paper uses a case example to introduce transparency and accountability in one local Georgia hospital and expands to include a descriptive analysis of transparency measures in 29 rural Georgia HAs. Findings Findings indicate that, like many other special districts in Georgia and the USA, Georgia’s rural HAs often act more like private entities than the public organizations they are. The lack of transparency demonstrated in this sector limits access to public information and reduces opportunities for citizen engagement, a necessary component of representative institutions. Research limitations/implications This case study is limited to Georgia HAs; however, the data support the lack of accountability and transparency found in many special district governments. Originality/value The lack of transparency in all of the organizations reviewed in this study demonstrates blurred lines between between public matters and private interests and raises questions of transparency, a key value in democracies.

Phenomenology and organizational communication

2014 ◽  
Vol 115 (7/8) ◽  
pp. 394-404 ◽  
Author(s):  
John M. Budd ◽  
Diane L. Velasquez
Keyword(s):  
Organizational Communication ◽  
Design Methodology ◽  
Effective Communication ◽  
Natural Attitude ◽  
Content Type ◽  
Self And Other ◽  
Communication In Organizations ◽  
Difficult Challenge ◽  
Relationship Of ◽  
Unique Relationship

Purpose – The purpose of this paper is to present ways for managers to attain the phenomenological attitude. Achieving effective communication in organizations like libraries and information agencies is a difficult challenge. The business literature offers some suggestions, but those fall short. Application of phenomenological methods by managers can help meet the challenge and bring people together around the intended messages. Design/methodology/approach – Of utmost importance to effective communication is transcending what can be called the “natural attitude” in favor of the “phenomenological attitude”. This requires recognition by managers of the unique relationship of self and other, plus the realization that action is intentional (meaning that being conscious means being conscious of something). This paper presents ways for managers to attain the phenomenological attitude. Findings – Phenomenological methods of communicating have the potential to engage and involve everyone in the organization by enabling all to comprehend fully the nature of what is communicated and what is to be accomplished. Originality/value – Phenomenology is seldom applied to organizational communication; this paper demonstrates that it presented the wherewithal to help managers improve the effectiveness of libraries and information agencies.

Strategic orientation of the firm towards its stakeholders and inclination towards sustainability – the conceptual framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Borge Obel ◽  
Igor Gurkov
Keyword(s):  
Design Theory ◽  
Design Methodology ◽  
Organizational Design ◽  
Strategic Orientation ◽  
Content Type ◽  
Strategic Resources ◽  
Novel Treatment ◽  
New Models ◽  
Relationship Of ◽  
The Impact

Purpose The purpose of this paper is to address issues related to better identification of strategic orientation of the firm and the impact of strategic orientation on sustainable development of the firm. Design/methodology/approach The paper presents an overview of the existing literature on strategic orientation of the firm, reexamines the major findings and fills the discovered gaps in theoretical constructs and models by new models. Findings In this paper, a new model of strategic orientation is proposed based on the type of relationship of aa firm with its stakeholders who are considered as suppliers of key strategic resources. Relationship between the firm and its particular stakeholder is presented on an input-output like scheme and the variants of the position of the firm towards all its stakeholders serve as foundation for determining strategic orientation types. Next, the authors present orientation of firms of different strategic types towards sustainability. Research limitations/implications The paper outlines several novels problems for strategic management and organizational design theory. Originality/value The paper provides a novel treatment of strategic orientation and particular strategic types.

Requirements of students for video-annotations in lecture recordings

2014 ◽  
Vol 11 (3) ◽  
pp. 223-234 ◽  
Author(s):  
Rüdiger Rolf ◽  
Hannah Reuter ◽  
Martin Abel ◽  
Kai-Christoph Hamborg
Keyword(s):  
Focus Groups ◽  
Open Source ◽  
Design Methodology ◽  
Requirements Analysis ◽  
Recording System ◽  
Color Coding ◽  
Content Type ◽  
Turn On ◽  
Lecture Recordings ◽  
Different Types

Purpose – Improving the use of annotations in lecture recordings. Design/methodology/approach – Requirements analysis with scenario based design (SBD) on focus groups. Findings – These seven points have been extracted from the feedback of the focus groups: (1) Control of the annotation feature (turn on/turn off). (2) An option to decide who is able to see their comments (groups, lecturer, friends). (3) An easy and paper-like experience in creating a comment. (4) An option to discuss comments. (5) An option to import already existing comments. (6) Color-coding of the different types of comments. (7) An option to print their annotations within the context of the recording. Research limitations/implications – The study was performed to improve the open-source lecture recording system Opencast Matterhorn. Originality/value – Annotations can help to enable the students that use lecture recordings to move from a passive watching to an active viewing and reflecting.

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