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.

Beijing's Alibaba move signals shift on IPR

2015 ◽  
Keyword(s):  
New York ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Share Price ◽  
Online Retail ◽  
Content Type ◽  
Counterfeit Goods ◽  
York Stock Exchange ◽  
The Government ◽  
Public Offering

Subject Alibaba's involvement in trade in counterfeit goods, and the authorities' response. Significance At nearly 300 billion dollars in annual sales, China has the largest online retail market in the world. Some 80% of it is handled by the Alibaba Group. In September 2014, Alibaba launched on the New York Stock Exchange (NYSE), raising 25 billion dollars in what became the world's largest ever initial public offering (IPO). Four months later, Chinese regulators went public with allegations implicating Alibaba in the sale of vast quantities of counterfeit goods, sending its share price falling and bringing one of China's most prominent private firms into public confrontation with the government. Impacts The government and Alibaba will seek a mutually face-saving exit from their confrontation. The government will want to avoid critically undermining Alibaba, whose operations provide jobs for millions of people. The transition to a consumption- and innovation-led economy will require ever-greater protection of IPR. Retailers and wholesalers will need to review their business to minimise possible involvement with counterfeit or sub-standard products.

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.

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.

Alibaba Group Initial Public Offering: A Case Study of Financial Reporting Issues

2016 ◽  
Vol 31 (4) ◽  
pp. 449-460 ◽  
Author(s):  
Qing L. Burke ◽  
Tim V. Eaton
Keyword(s):  
New York ◽  
Initial Public Offering ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Accounting ◽  
Learning Needs ◽  
York Stock Exchange ◽  
Accounting Courses ◽  
Chinese Company ◽  
Public Offering

ABSTRACT In September 2014, the Chinese e-commerce giant Alibaba Group Holding Limited issued shares on the New York Stock Exchange, making it the world's largest initial public offering. This case examines different aspects of the Alibaba Group's initial public offering, including Alibaba Group's business model, financial reporting and corporate governance, as well as the macroeconomic, political, and legal environment in which the company operates. In addition, this case will familiarize students with the risks and opportunities for Chinese companies and investors when a Chinese company lists in the U.S. This case is suitable for financial accounting and international accounting courses at the intermediate and advanced levels for undergraduates as well as graduate students. The case is scalable, and instructors can choose from multiple sections of the case and different case questions to tailor the case difficulty to their students' learning needs.

The 12.7 cm Hot Dog Corporation

1989 ◽  
Vol 36 (5) ◽  
pp. 12-13
Author(s):  
Hope Martin
Keyword(s):  
New York ◽  
Junior High School ◽  
Stock Exchange ◽  
Real Life ◽  
Eighth Graders ◽  
The United States ◽  
New York Stock Exchange ◽  
Mathematics Skills ◽  
York Stock Exchange ◽  
Hot Dog

A corporation was formed in the United States fourteen years ago that does not appear on the New York Stock Exchange or any other. It is alive and well and prospering at Northwood Junior High School in Highland Park, Illinois. The “12.7 cm Hot Dog Corporation” is owned and operated by a group of about forty-five eighth graders, who make all the executive decisions concerning the sale of hot dogs, chips, soda pop, and popcorn at home boys' and girls' basketball games and wrestling meets. I started the corporation to bring “real life” into the classroom and encourage students to use their mathematics skills to make the decisions necessary to run a successful business.

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.

The machine in the market: Computers and the infrastructure of price at the New York Stock Exchange, 1965–1975

2017 ◽  
Vol 47 (6) ◽  
pp. 888-917 ◽  
Author(s):  
Devin Kennedy
Keyword(s):  
New York ◽  
Stock Exchange ◽  
The United States ◽  
Securities And Exchange Commission ◽  
New York Stock Exchange ◽  
Technical Object ◽  
Regulatory Oversight ◽  
Market Data ◽  
York Stock Exchange ◽  
Securities Industry

This article traces the development and expansion of early computer systems for managing and disseminating ‘real-time’ market data at the most influential stock market in the United States, the New York Stock Exchange (NYSE). It follows electronic media at the NYSE over a roughly ten-year period, from the time of the deployment of a computer called the Market Data System (MDS) through debates surrounding the National Market System and the passage of the 1975 Securities Acts Amendments. Building on research at the archives of the NYSE and the Securities and Exchange Commission (SEC), this history emphasizes the regulatory and managerial contexts in which market data became computerized. The SEC viewed market automation as both necessary for the viability of the securities industry and a mechanism for expanding regulatory oversight over the venues of stock trading. Moving from the MDS to later technical projects in the late 1960s and early 1970s, this article charts the changing meaning of electronic governance in a market increasingly conceptualized as a technical object. Adding to recent work in the social studies of finance and financial technologies, this history sites early NYSE computerization programs within managerial efforts to consolidate control over the clerical labor of financial markets, and in contests between regulatory and market institutions. It concludes by exploring the differing forms of electronic governance activated in these efforts to bring computers into the market.

scholarly journals Data sovereignty and national security in China’s legal system (based on the dispute over the share allotment of the company “DiDi Taxi” on the New York Stock Exchange

2021 ◽  
pp. 99-111
Author(s):  
Yui Gao
Keyword(s):  
New York ◽  
National Security ◽  
Stock Exchange ◽  
The United States ◽  
New York Stock Exchange ◽  
Law Enforcement Agencies ◽  
Security Issues ◽  
Internet Users ◽  
York Stock Exchange ◽  
The Right

This article analyzes the modern concepts of data sovereignty, as well as the corresponding issues of their practical application. Based on the example of China as the country with the largest in the world number of Internet users and developed economy, description and critical assessment is given to the existing approaches towards data sovereignty, taking into account the international law experience. The conclusions acquired in the course of theoretical analysis are proven on the case of the company “DiDi Taxi”, the share allotment of which on the New York Stock Exchange has been terminated due to posing risks to the information sovereignty of the People's Republic of China. It is established that the modern concepts of “data sovereignty” are based on application of the methodology of previously existing branches of legal science on the storage, processing and transmission of data; therefore, the explanations developed on their basis cannot be acknowledged as universal and fully meeting the specificity of the object of regulation. Based on the case of “DiDi Taxi”, the author formulates the objective criteria that may underlie the restriction of the right of the company to freely use the following data: number of users, scope of data, and possibility of their preliminary verification). Special attention is given to the problems associated with the attempts of the United States to revise the principle of determination of the state jurisdiction of data, which has established in the international practice, based on the principle of data localization. It is noted that the establishment of such regulation is unacceptable and may lead to political and economic conflicts in the future. The obtained results give an adequate perspective on the current concept of data sovereignty and the related issues, thereby drawing the interest of law enforcement agencies and scholars dealing with the national security issues.

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.

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