Africa's e-commerce players must overcome hurdles

2019 ◽  
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Public Investment ◽  
New York Stock Exchange ◽  
Industry Growth ◽  
Content Type ◽  
Regulatory Frameworks ◽  
York Stock Exchange ◽  
Enabling Services ◽  
Start Ups

Subject African e-commerce. Significance Jumia, Africa’s largest e-commerce operator and first technology ‘unicorn’, raised 196 million dollars in its New York Stock Exchange (NYSE) IPO listing in April, with a current estimated sales growth of 67.6% for 2020. E-commerce in Africa is estimated to rise from an estimated 16.5 billion dollars in 2017 to 75 billion by 2025, according to McKinsey, propelled by a projected increase in consumer spending in Africa to over 2 trillion dollars by 2030. Impacts There will be exponential growth in the development of complementary, facilitative and enabling services (such as payments and logistics). Industry growth will reaffirm the link between technical infrastructure indicators and economic growth, leading to higher public investment. There will be a greater demand from civil society groups for more robust legal and regulatory frameworks around consumer protection. Start-ups with a multinational footprint will facilitate more intra-African trade and greater economic integration over the long term.

Making investment decisions using XBRL filing data

2019 ◽  
Vol 32 (4) ◽  
pp. 587-609
Author(s):  
Rimona Palas ◽  
Amos Baranes
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Investment Strategy ◽  
New York Stock Exchange ◽  
Content Type ◽  
York Stock Exchange ◽  
Directional Movement ◽  
Small Investors ◽  
Industry Membership

Purpose The Securities Exchange Commission mandated eXtensible Business Reporting Language (XBRL) filing data provide immediate availability and easy accessibility for both academics and practitioners. To be useful, this data should provide information for decisions, specifically, investment decisions. The purpose of this study is to examine whether the XBRL database can be used with models, developed in previous studies, predicting the directional movement of earnings. The study does not attempt to examine the validity of these models, but only the ability to use the data in the analysis of financial statements based on these models. Design/methodology/approach The study analyzes New York Stock Exchange companies’ XBRL data using a two-step logistic regression model. The model is then used to arrive at the directional movement of earnings between current and subsequent quarters. Additional models are created by dividing the sample into industry membership. Findings The results classified companies as realizing an increase or a decrease in earnings. The final model indicated a significant ability to predict earnings changes, on average about 65 per cent of the time, for the entire model, and 71 per cent, for the industry-based models (higher than those of previous studies based on COMPUSTAT). The investment strategy created average quarterly return between 2.8 and 10.7 per cent. Originality/value The originality of this study is in the way it examines the quality of XBRL data, by examining whether findings from prior research which relied on traditional databases (such as COMPUSTAT) still hold using XBRL data. The use of XBRL allows not only easier and less-costly access to the data but also the ability to adjust the models almost immediately as current information is posted, thus providing a much more relevant tool for investors, especially small investors.

Didi debacle shines light on China's new normal

2021 ◽  
Keyword(s):  
New York ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
The United States ◽  
New York Stock Exchange ◽  
New Normal ◽  
Content Type ◽  
York Stock Exchange ◽  
Regulatory Scrutiny ◽  
Public Offering

Significance China’s ride-hailing major Didi was targeted by the Cyberspace Administration of China (CAC) ahead of its initial public offering (IPO) on June 30. It is complying with the ongoing cybersecurity review mandated by Beijing and is battling rumours about plans to delist from the New York Stock Exchange and go private. Impacts Current investors in Chinese tech stocks need to consider this situation as a new normal, not a departure from trend. The VIE structure will likely come under greater regulatory scrutiny, but is unlikely to be dissolved. Didi may yet delist in the United States.

Do sentimental investors price rational information? Evidence from the Boston Celtics

2020 ◽  
Vol 46 (9) ◽  
pp. 1199-1214
Author(s):  
Kelly Carter
Keyword(s):  
New York ◽  
Design Methodology ◽  
Stock Exchange ◽  
Share Price ◽  
New York Stock Exchange ◽  
Sports Fans ◽  
Content Type ◽  
Specific Experience ◽  
York Stock Exchange ◽  
Valuation Process

PurposeMuch evidence exists that rational investors factor rational information into their valuation of shares. This paper aims to examine whether sentimental investors do the same.Design/methodology/approachTo investigate this issue, the author measures sentimental investors’ reaction to the surprise player transactions of the Boston Celtics, which traded on the New York Stock Exchange for 18 years. The team’s shares were bought mainly as souvenirs by sports fans, whose largely unwavering support makes them perhaps the least likely investors to be influenced by rational information. Thus, if the team’s share price changes because of the arrival of rational information, evidence that sentimental traders price rational information into their valuation of a stock will exist.FindingsAn acquired player’s salary, education and firm-specific experience with the Boston Celtics cause higher returns. This result provides evidence that sentimental traders factor rational information into their valuations of shares. On a broader scale, the findings underscore the importance of rational information to the valuation process, as even sentimental investors price rational information into a stock that is held for sentimental reasons. Moreover, the results are consistent with the nudge theory, in that the arrival of rational information encourages (i.e. nudges) sentimental investors to price the rational information as a rational investor world.Originality/valueThis study is the first to show that sentimental traders also factor rational information into the valuation process – an idea that was likely assumed prior to this study, but was never substantiated.

A comparative study on strategy disclosure between emerging markets and developed markets

2019 ◽  
Vol 11 (1) ◽  
pp. 2-22
Author(s):  
Morungwa Lumka Phala ◽  
Yaeesh Yasseen ◽  
Nirupa Padia ◽  
Waheeda Mohamed
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Emerging Market ◽  
Listed Companies ◽  
Annual Reports ◽  
New York Stock Exchange ◽  
Content Type ◽  
Johannesburg Stock Exchange ◽  
York Stock Exchange ◽  
Market Sample

Purpose This study aims to compare the extent of voluntary strategy disclosure in the annual/integrated reports of listed companies in an emerging market with the extent of strategy disclosure in the annual/integrated reports of listed companies in a developed market. Design/methodology/approach A developed market sample that was made up of the top 50 companies on the New York Stock Exchange and the Australian Stock Exchange was compared to an emerging market sample that was made up of the top 50 companies on the Johannesburg Stock Exchange and the Bombay Stock Exchange. The comparison was conducted by scoring the amount of strategy disclosure reported in the annual/integrated reports of the companies for the years 2011, 2012 and 2013. Findings The emerging market companies had average to good strategy disclosures in their annual reports, whereas the annual reports of companies in the developed market showed low strategy disclosure. Originality/value This study expanded upon the limited research available on strategy disclosure by comparing the extent of strategy disclosures in two developmental markets (the developed and emerging market).

Qihoo 360: building a “free” business model

2015 ◽  
Vol 11 (2) ◽  
pp. 163-174 ◽  
Author(s):  
Sunny Li Sun ◽  
Yanli Zhang
Keyword(s):  
New York ◽  
Business Model ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Secondary Data ◽  
Disruptive Innovation ◽  
New York Stock Exchange ◽  
Content Type ◽  
York Stock Exchange ◽  
A Company

Synopsis This case discusses Qihoo 360's free business model, how it used this free model to overpower competitors, and how the model evolved over time. Qihoo 360 is a company that took just six years to become a company listed on the New York Stock Exchange (with a market value of over US$ 2 billion). At Qihoo 360's Initial Public Offering (IPO) at the New York Stock Exchange (NYSE), Qihoo's founder Zhou Hongyi reflected on how Qihoo's free business model had brought its current success and speculates on its future challenges. Research methodology The authors used both secondary data and field interviews when preparing this case. After reading through various company reports, competitor information, and financial filings, the authors interviewed five top manager team (TMT) members of Qihoo 360, three TMT members of its competitors, and two partners of venture capital investors who have invested in these companies in Beijing or Shenzhen during the last three years. The authors collected 347 media reports related to these companies in Chinese covering seven years of history. This long span of data collection improves the interpretation of the company and helps construct the storyline of the case. Relevant courses and levels This case is suitable for an MBA course or an advanced undergraduate course in strategic management or a technology-oriented entrepreneurship course, focussing on the topic of the free business model, business model innovation, disruptive innovation, and evolution of the business model during the entrepreneurial process.

SEC approves sweeping changes to FINRA's regulatory reporting rules

2011 ◽  
Vol 12 (1) ◽  
pp. 65-69
Author(s):  
Harry J. Weiss ◽  
Yoon‐Young Lee ◽  
Bruce H. Newman ◽  
Paul R. Eckert ◽  
Claire R. Hanselmann
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Internal Audit ◽  
Decision Makers ◽  
New York Stock Exchange ◽  
Financial Industry ◽  
Content Type ◽  
Customer Complaint ◽  
Policies And Procedures ◽  
York Stock Exchange

PurposeThis paper seeks to explain Financial Industry Regulatory Authority (“FINRA”) Rule 4530, which requires members to report to FINRA certain internal and external findings of violative conduct and quarterly statistical and summary customer complaint information.Design/methodology/approachThe paper explains the background and provides an overview of FINRA Rule 4530; analyzes key provisions of the Rule, including the way it differs from legacy NASD and New York Stock Exchange Reporting Rules; and discusses next steps for FINRA members.FindingsFINRA Rule 4530 requires members to promptly report findings of internal and external violations and provides interpretive guidance regarding these requirements. The new Rule imposes obligations beyond those set forth in current NASD Rule 3070, requires reporting of internal findings, and alters the now familiar materiality standard applied to NYSE Rule 351(a).Practical implicationsThe new Rule will require members to enhance their policies and procedures to address the reporting of internal findings to define potentially reportable violations, identify decision‐makers to assess potential violations, create or modify reporting escalation procedures, and institute appropriate controls over reporting. Members may want to review their internal audit processes to reflect the new guidance regarding reporting based on internal findings of violations.Originality/valueThe paper provides practical guidance from expert securities lawyers.

The conflicting roles of the new New York Stock Exchange

2006 ◽  
Vol 7 (3) ◽  
pp. 51-66
Author(s):  
George R. Kramer ◽  
Alan E. Sorcher
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Governance Structure ◽  
Securities And Exchange Commission ◽  
Regulatory Function ◽  
New York Stock Exchange ◽  
Content Type ◽  
For Profit ◽  
York Stock Exchange ◽  
Public Offering

PurposeTo examine whether the New York Stock Exchange (NYSE) in its recent rule changes has provided the appropriate separation between its supervisory authority and the management of the Exchange.Design/methodology/approachDescribes the regulatory and governance structure proposed by the NYSE in connection with its public offering; discusses policy objections the security industry has made to the proposal, reviews responses by the NYSE and the Securities and Exchange Commission (SEC) to those objections; and discusses what steps might be on the horizon to better rationalize the regulatory and business side of the new for‐profit NYSE.FindingsThe NYSE's proposal should provide for regulatory consolidation with the NASD. The proposal heightens the conflict between a for‐profit exchange and its regulatory function. The proposal governance structure ignores the fact that NYSE LLC is the Exchange and has plenary authority over NYSE regulation. The proposal does not provide fair representation for members. The proposal does not provide appropriate treatment of market data.Originality/valueProvides a comprehensive view of recent changes to the NYSE's regulatory and governance structure and issues raised by the securities industry in response to those changes.

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