scholarly journals THE SPILLOVER OF THE COFFEE: MATERIAL MISSTATEMENTS AT (UN) LUCKIN COFFEE INC.

2021 ◽  
Vol 5 (2) ◽  
pp. 106-114
Author(s):  
Gagan Kukreja
Keyword(s):  
Stock Exchange ◽  
Jel Classification ◽  
Securities And Exchange Commission ◽  
Financial Data ◽  
Annual Reports ◽  
Ethical Standards ◽  
Foreign Companies ◽  
Chinese Company ◽  
Available Information ◽  
The U.S

The research investigates alleged material misstatements in the financials of Luckin Coffee, a Chinese company listed in NASDAQ. The research is exploratory and based on publicly available information. The financial data has been obtained from their quarterly and annual reports submitted to Securities and Exchange Commission. The research shows the alleged corruption by inflating sales and profits by C-suite executives of the company. Nevertheless, before doing so, what failures in corporate governance led to this crisis? The admission of such material misstatements resulted in a massive loss to the investors and shaken the investment community’s trust once again. The research tried to determine what kind of audit procedures should have been implemented to earlier detection of fraud? What should have been done to protect stakeholders? What extra measures should the U.S. stock exchange take into consideration before listing foreign companies? What kind of ethical standards must be taught to the students/future executives to avoid such material misstatements? How can accounting bodies address such material misstatements? How can audit procedures be improved? This research will facilitate the policymakers, accounting and auditing regulators, board and various other stakeholders to deter, detect and mitigate such financial material misstatements and offers recommendations. JEL Classification Codes: M41, M42, M48, M148.

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.

scholarly journals An Empirical Analysis of the Implicit Growth Rate for Industrial IPOs Listed in Pakistan

2016 ◽  
Vol 55 (1) ◽  
pp. 15-28
Author(s):  
Muhammad Zubair Mumtaz ◽  
Zachary Alexander Smith ◽  
Ather Maqsood Ahmed
Keyword(s):  
Growth Rate ◽  
Reverse Engineering ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Investment Strategy ◽  
Cash Flows ◽  
Jel Classification ◽  
Securities And Exchange Commission ◽  
Estimation Errors ◽  
Dcf Model

This study examines the cash flow growth rate implicit by offer prices of industrial IPOs using a reverse engineering DCF model. In addition, this study also investigates the bias of implicit growth relative to the realised growth rate by considering 19 IPOs listed on Karachi Stock Exchange during the period from 1995 to 2008. We find that the estimated growth in cash flows is slightly higher than realised growth rate, which indicates that the median IPO firm is overvalued by 61.5 percent at the offering. It is observed that estimation errors increase as a result of higher underpricing and diversified ownership. In addition, post-IPO returns are smaller for issues whose implicit growth rates are biased upward. We also find that IPOs underperform in long-run employing a buy-and-hold investment strategy. The policy implication of the study is to evolve a price discovery mechanism by the Securities and Exchange Commission of Pakistan which may help to reduce the overvaluation of IPOs upto some extent. JEL Classification: G00, G30 Keywords: Initial Public Offerings, Reverse Engineering DCF Model, Valuation, Growth Rate

The saga of a Chinese company being listed on a US stock exchange – a global financial reporting case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jayanti Bandyopadhyay ◽  
Hongtao Guo ◽  
Miranda Lam ◽  
Jinying Liu
Keyword(s):  
Financial Reporting ◽  
Value Chain ◽  
Stock Exchange ◽  
Financial Statement ◽  
Annual Reports ◽  
Financial Statement Analysis ◽  
Content Type ◽  
Metal Fabrication ◽  
Academic Level ◽  
Chinese Company

Research methodology We obtained information on China Gerui from secondary published sources, including annual reports downloaded from the Securities and Exchange Commission’s (SEC) EDGAR database, news sites and newspapers, the company’s website and journal articles. One of the authors visited the China Gerui plant in Henan, China. Case overview/synopsis China Gerui, a Chinese metal fabrication company, enjoyed exponential growth because of its location, product innovation and ability to move up the value chain. At the height of its success, the company listed on the Nasdaq and had plans to raise capital to fund ambitious expansion plans. Unfortunately, four years after listing on Nasdaq, the company received a letter from the listing qualifications department notifying China Gerui that they were not in compliance with Nasdaq’s filing requirements because it had not filed its Form 20-F. Now, the company had only five days to decide whether to request an appeal of the letter. Complexity academic level This case is best suited for higher-level undergraduate accounting and finance courses such as intermediate accounting, auditing, international accounting, financial statement analysis, corporate finance and investments analysis. It is especially appropriate for graduate-level global accounting and advanced financial statement analysis courses. In these courses, the best placement is after coverage of SEC regulations and requirements for financial statement reporting and disclosure. Moreover, the case may be used as a tool to demonstrate the step-by-step process for searching and retrieving information from a public company’s filings through the SEC’s EDGAR database. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Comment letters on annual reports: Evidence from an emerging market

2021 ◽  
Author(s):  
Shuo Yang
Keyword(s):  
Propensity Score ◽  
Financial Reporting ◽  
Emerging Market ◽  
Securities And Exchange Commission ◽  
Annual Reports ◽  
Matched Sample ◽  
Disclosure Quality ◽  
Weak Institutions ◽  
Comment Letters ◽  
The U.S

This paper examines comment letters on firms’ annual reports in an emerging market. The literature primarily focuses on comment letters issued by the U.S. Securities and Exchange Commission (SEC), although many other market regulators also use SEC-style comment letters. Comment letters can potentially be very impactful in emerging markets due to weak institutions and low disclosure quality in these markets. Using comment letters in China from 2015 to 2019, I find that the market response to the receipt of comment letters is significantly negative and associated with the severity of the comment letters. The receipt (severity) of comment letters is associated with adverse regulatory consequences, CEO turnover, corrective actions to remedy financial reporting, and poor future financial performance in the propensity score matched sample (recipient sample). Overall disclosure quality in the post-review year does not increase, but some comment letter topics prompt topic-specific financial reporting changes.

Disclosure quantity and the efficiency of price discovery

2016 ◽  
Vol 15 (2) ◽  
pp. 122-143 ◽  
Author(s):  
Dennis Chung ◽  
Karel Hrazdil ◽  
Nattavut Suwanyangyuan
Keyword(s):  
Information Disclosure ◽  
Price Discovery ◽  
Stock Exchange ◽  
Empirical Support ◽  
Return Predictability ◽  
Annual Reports ◽  
Toronto Stock Exchange ◽  
Content Type ◽  
Short Horizon ◽  
Available Information

Purpose The purpose of this paper is to investigate the effect of the information disclosure quantity on the pricing efficiency of stocks. Design/methodology/approach Using a sample of large and actively traded Canadian companies listed on the Toronto Stock Exchange, the authors utilize annual reports filed on system for electronic document analysis and retrieval (SEDAR) between 2003 and 2013 to estimate the amount of publicly available information and find that the length and size of annual reports are important determinants of short-horizon return predictability from historical order flows, which is an inverse indicator of market efficiency. Findings The results show that longer and larger annual reports are associated with reduced information asymmetry, lower cost of immediacy, higher trading activity, and an overall improvement in the efficiency of price discovery. The results are robust to the inclusion of controls for various determinants of short-horizon return predictability, such as trading costs, volatility, informational effects and other firm-specific characteristics. Research Limitations/implications Collectively, the findings provide empirical support for the benefits of detailed corporate disclosure in Canada. Originality/value This is the first study to utilize the short-horizon return predictability approach to evaluate the efficiency of price discovery in relation to the amount of information disclosure.

scholarly journals ANALISIS KINERJA KEUANGAN PADA PERUSAHAAN PT MUSTIKA RATU TBK. BERDASARKAN ANALISIS RASIO LIKUIDITAS, SOLVABILITAS, DAN RENTABILITAS

2019 ◽  
Vol 3 (01) ◽  
Author(s):  
Asih Nurati ◽  
Burhanudin Burhanudin ◽  
Ratna Damayanti
Keyword(s):  
Cash Flow ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Data ◽  
Annual Reports ◽  
Financial Report ◽  
Report Data ◽  
Profitability Ratios

This study is intended to determine the financial performance of PT Mustika Ratu Tbk. by analyzing financial data through financial ratios of liquidity, solvency and profitability. The data analyzed are company financial statements which include Balance Sheet, Profit / Loss, Cash Flow PT Mustika Ratu Tbk. 2015 to 2017. This research is a quantitative research, processed data, namely financial report data of PT Mustika Ratu Tbk. taken through data on the Indonesia Stock Exchange. Financial data taken is annual reports from 2015 to 2017. Analysis of this data uses liquidity ratios, solvency ratios, profitability ratios.

scholarly journals Corporate governance: A risk management approach

2013 ◽  
Vol 10 (2) ◽  
pp. 104-113 ◽  
Author(s):  
Tracy Xu ◽  
Hugh Grove ◽  
Philipp Schaberl
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Corporate Governance ◽  
Boards Of Directors ◽  
Securities And Exchange Commission ◽  
Annual Reports ◽  
Management Approach ◽  
Rating Systems ◽  
Public Companies ◽  
The U.S

Risk management committees are now required for all U.S. financial institutions that are regulated by the U.S. Federal Reserve Bank. All U.S. public companies must now report their risk management activities for both Board of Directors and top management in their 10 K annual reports to the U.S. Securities and Exchange Commission (SEC). This paper analyzes one approach to risk management for public companies and their Boards of Directors. Since 2011, Disclosure Insight Inc. has issued risk ratings for over 1500 public companies in US. Its risk rating is based on the number, nature, and timing of 100 risk factors, which are across major categories, such as the SEC investigative activity, auditor issues, capital market events, and corporate governance issues. Our study finds significant positive abnormal risk-adjusted returns for companies with lower risk ratings and these companies also outperform the S&P500. Thus, this paper should be of interest to investors, company executives, and risk management committees, as well as SEC and other regulators. Alternatively, risk management committees in public companies could just establish their own rating systems, based upon their own key factors, as opposed to using the Disclosure Insight Inc. aggregate rating approach for all 100 risk factors.

Adios! Airways: An Assignment on Mapping Financial Statements to the U.S. GAAP XBRL Taxonomy

2010 ◽  
Vol 25 (3) ◽  
pp. 465-488 ◽  
Author(s):  
Roger Debreceny ◽  
Stephanie Farewell
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Annual Reports ◽  
Business Reporting ◽  
Instructional Resource ◽  
Mapping Process ◽  
Interactive Data ◽  
The U.S

ABSTRACT: XBRL, based on XML, is an Internet language for disclosure of business reporting language. XBRL is the technological foundation for the interactive data mandate by the Securities and Exchange Commission (SEC). The mandate requires corporate filers to disclose data in quarterly and annual reports in XBL. A key building block supporting the mandate is a substantial U.S. GAAP XBRL taxonomy that encapsulates most of the reporting concepts found in financial reporting. Filers must align their existing reports to the taxonomy. The accuracy of mapping financial statement line items to the U.S. GAAP taxonomy is of fundamental importance. Mapping errors may be as simple as mapping to an incorrect taxonomy concept, which should be discovered during review. Ineffective mapping may lead to unnecessary extensions, which hinders comparability. This instructional resource guides students through the steps in mapping financial statement line items to the taxonomy. While the case does not require students to create an extended taxonomy, it does require completion of a spreadsheet detailing the mapping process that is typical of practice. In addition, the resource provides a checklist that users can refer to during the mapping process.

scholarly journals Zmiany w raportowaniu CSR w Polsce - studium przypadku

2017 ◽  
Vol 5 (3) ◽  
pp. 5-17
Author(s):  
Anna Badura-Mojza
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Data ◽  
Social Reporting ◽  
Annual Reports ◽  
Warsaw Stock Exchange ◽  
Reporting Channels

The aim of this article is to present the changes in non-financial reporting and reporting channels of CSR data by companies listed on the main market of the Warsaw Stock Exchange within the WIG 30. Analyses show that companies are diverging from showing information in the field of CSR in traditional financial statements and decide on the disclosure of CSR in special reports and on their websites. In addition, Polish leaders of non-financial reporting, decided to prepare integrated annual reports. Although social reporting in Poland is still a new area, practice indicates on the dynamics of development in the field of reporting non-financial data.

Green Intellectual Capital on Value Relevance in Indonesia’s Manufacturing Companies

2021 ◽  
Vol 6 (3) ◽  
pp. 120-136
Author(s):  
R. Rosiyana Dewi ◽  
Etty Murwaningsari ◽  
Sekar Mayangsari
Keyword(s):  
Intellectual Capital ◽  
Capital Investment ◽  
Value Relevance ◽  
Stock Exchange ◽  
Jel Classification ◽  
Three Dimensions ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Structural Capital ◽  
High Pollution

Objective - Corporate concern for the environment is an important stakeholder demand. A company is obliged to preserve the environment with various investments, one of which is green intellectual capital to maintain the sustainability of the company, especially for companies that carry out their business activities in countries that are in conditions of high pollution such as Indonesia. The importance of green intellectual capital investment information for stakeholders can be seen from the value relevance of the information. This study aims to examine and analyze the effect of investment in green intellectual capital, which consists of the following dimensions: human, structural, and relation to value relevance. Methodology/Technique – This study will explain the causal relationship between the independent and the dependent variables through hypothesis testing based on the theory that has been formulated with data that obtained and tested through quantitative panel data testing. Findings - The results of a survey of 515 samples of data from a population of 183 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2015-2019 found that green intellectual capital with its three dimensions had a significant positive effect on value relevance. This study also proves that green structural intellectual capital has influenced more on value relevance than human and relation intellectual capital. Novelty - The measurement of variables is green intellectual capital and value relevance in this study develops previous research with related government conditions and regulations in Indonesia. Green intellectual capital investment is measured by using content analysis from disclosures in annual reports and sustainability reports, and value relevance is measured by the Olhson model with beta correction by the stock market in Indonesia. Type of Paper: Empirical. JEL Classification: G32, O34 Keywords: Green Intellectual Capital; Value relevance; Human Capital; Structural Capital, Relational Capital

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