Macroeconomic sensitivity and firm level volatility: the case of New York Stock Exchange

Purpose – This paper investigates whether the macroeconomic factors affect the firm stock returns volatility differently depending on their location in different sectors. For this purpose, daily financial time-series data for 683 firms located in nine US sectors for the period of 2000 to 2017 are employed. Research methodology – The GARCH (1,1) model was applied to each firm located in nine US sectors. The four macroeconomic factors, namely, exchange rate, treasury yield spread, oil prices, and market return, are included in both mean and variance equations of GARCH (1,1) model to estimate the effect. Research limitations – This research study is limited to the New York Stock Exchange; therefore, it can be extended to the other economies as well. Further, this study uses one firm feature that is the sectoral location of the firm; it is recommended that some other firm features should be studied to explore the volatility behaviour of firms. In the methodological part, this study does not include the lag effect, since it is recognised in the literature that the investors underreact to public information, so future research can be extended to test the underreaction hypothesis. Practical implications – This study has implications for the investors and policymakers. Since it has emerged from the findings that some sectors are more sensitive than others to macroeconomic changes, so this knowledge will help the investors to diversify their portfolio and policymakers to maintain macroeconomic discipline. Originality/Value – The main contribution of this study is that it undertakes the assumption of heterogeneous nature of firms and conducts a detailed firm level analysis by sector covering a more extended period of time to investigate the impact of four macroeconomic factors, namely, exchange rate, treasury yield spread, oil prices, and market return on firm stock returns, volatility using daily data. Further, this study contributes by including all the macroeconomic factors together as an exogenous variable in mean and conditional variance equations of the GARCH (1,1) model to investigate the effect simultaneously.

Didi debacle shines light on China's new normal

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.

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

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.

An Econometric Approach Regarding the Impact of Fiscal Pressure on Equilibrium: Evidence from Electricity, Gas and Oil Companies Listed on the New York Stock Exchange

The matter of fiscal pressure is more current than ever in most countries around the world for various reasons. In the first place, disruptive phenomena such as financial crises put tremendous pressure on worldwide economies. Secondly, high taxes trigger an overall reduction in the level of investments aiming at creating stable and well-paid jobs. Thirdly, the income generated by the majority of taxpayers is subject to excessive taxation, which may fuel tax evasion acts. On these grounds, the article is the first empirical research investigating the impact of fiscal pressure on the financial equilibrium of energy companies listed on the New York Stock Exchange. The sample included 88 electricity, gas, and oil companies from around the world, which were analyzed over a time span of 16 years, including the periods before, during, and after the 2008 global financial crisis. The methodology entailed estimating econometric models via Panel Least Squares (cross-section weights) with and without time fixed effects. Empirical results showed that fiscal pressure had a stronger impact on the short-term and long-term equilibrium of electricity and oil companies than on the equilibrium of gas companies. The study can serve as a compass for the managers of energy companies interested in estimating the evolution of company equilibrium state when considering other potential financial downturns.

Características associadas ao nível de evidenciação das receitas de contratos com clientes das companhias de capital aberto brasileiras

Objetivo: Esta pesquisa tem por objetivo identificar características associadas com o nível de evidenciação das receitas de contratos com clientes nas companhias de capital aberto brasileiras. Metodologia: Visando mensurar o nível de evidenciação, foi elaborada uma lista de verificação com base nos itens de exigências de divulgação estabelecidos pelo CPC 47. Posteriormente, foram analisadas as notas explicativas integrantes às demonstrações contábeis de 309 companhias listadas na Bolsa de Valores Brasil, Bolsa e Balcão (B3). As características utilizadas para analisar possível associação com o nível de evidenciação das receitas de contratos com clientes foram: valor da receita líquida, setor de atuação, nível de governança corporativa, empresa de auditoria e companhias brasileiras listadas na New York Stock Exchange (NYSE). A pesquisa se classifica como qualitativa, descritiva e a obtenção dos dados foi por meio documental. Resultados: Os resultados demonstraram que o nível de evidenciação das companhias é relativamente baixo na maioria dos itens da lista de verificação. Já em relação as características analisadas, o setor que apresentou a maior média de nível de evidenciação foi o de telecomunicações. As empresas que participam de algum dos segmentos governança corporativa, as auditadas pelas Big Four e aquelas que são listadas na NYSE, indicaram, na amostra analisada, uma tendência de associação com o nível de evidenciação. Em relação ao valor da receita líquida, constatou-se que as companhias que possuem uma maior receita líquida obtiveram um maior nível de evidenciação das receitas de contratos com clientes. Contribuições do Estudo: A realização da presente pesquisa contribui com o tema evidenciação contábil, visto que demonstra como as companhias de capital aberto brasileiras estão evidenciando suas receitas de contratos de clientes, mediante a adoção do pronunciamento CPC 47.

Historia zabudowań zajezdni przy ulicy Łazienkowskiej 8 w latach 1920–1975

The History of the Depot Buildings at 8 Łazienkowska Street (Warsaw) in the Years 1920–1975 As a result of World War I, the Polish lands were severely destroyed, and the population was poor. The widespread poverty, supply problems, and high prices led to the establishment of the Warsaw Municipal Supply Facilities (Miejskie Zakłady Zaopatrzenia Warszawy/MZZW). The task of the MZZW fleet was to ensure the supply of food and essential goods to the poorest social groups. Thus, the municipality bypassed intermediaries and their high margins. The articles were distributed through a network of municipal stores. The article describes the history of the buildings at 8 Łazienkowska Street, erected over a hundred years ago, now no longer extant. It was one of the first facilities built by the Capital City of Warsaw shortly after regaining independence. The described complex of buildings was designed from scratch, as the first such facility in Warsaw, meant only for trucks and not for horse traction vehicles. The second owner of the described development was the Municipal Tram and Bus Company, which took over the depot along with the rolling stock. The change of ownership was caused by the seemingly unrelated crash of the New York Stock Exchange. Before the war, Warsaw buses were parked there, the fleet of which was growing rapidly. The defensive war in September 1939 and the occupation removed buses from the streets of Warsaw. After the war, the depot – destroyed in 45% during the Warsaw Uprising – was rebuilt, becoming a symbol of the new socialist Poland. Following the example of the cities of Soviet Russia, with the help of their specialists and trolleybuses, the same service was launched in Warsaw. The depot became the first public transport base to be rebuilt after the war. A trolleybus network plan for the city of Lublin was created within its walls. Before the buildings were demolished, it was once again briefly a bus depot, and, in the end, it played a somewhat important role in the construction of the Łazienkowska Route, becoming the construction base No. 5 for the aforementioned investment.

Do the Manager's Personal Features Influence the Verbal Tone Used in Conference Calls?

The objective of this study is to evaluate whether managers’ tone of voice of Brazilian companies that publish the results in the presentation phase of the conference call is influenced by the personal characteristics of these agents. A total of 10 Brazilian companies were traded on the New York Stock Exchange (ADR) between 2002 and 2016, which made voluntary disclosure. The sample was limited to the companies with negotiations in North American market, that make the voluntary disclosure of the results by the necessity of the availability of the conference calls in English. To calculate the tone of voice, the dictionary developed by Loughran and McDonald (2011) was used. The tone was calculated based on the conference calls of quarterly disclosure of the results of the companies and related to the characteristics of the managers like gender, position and academic formation. The results verified in the Brazilian companies confirm the same ones found in international surveys, which find evidences that the personal characteristics influence the tone of voice used in the phase of presentation of the conference calls, controlling other factors like the performance of the company.