Download or read book Impact of Reporting Frequency on UK Public Companies written by Robert C. Pozen and published by CFA Institute Research Foundation. This book was released on 2017-05-16 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Beginning in 2007, UK public companies were required to issue quarterly, rather than semiannual, financial reports. But the UK removed this quarterly reporting requirement in 2014. We studied the effects of these regulatory changes on UK public companies and found that the frequency of financial reports had no material impact on levels of corporate investment. However, mandatory quarterly reporting was associated with an increase in analyst coverage and an improvement in the accuracy of analyst earnings forecasts.
Download or read book Impact of Reporting Frequency on UK Public Companies written by Robert Pozen and published by . This book was released on 2017 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate executives have long decried the undue emphasis on short-termism - defined as maximizing corporate profits in the next quarter. Instead, most corporate executives say that they want to make corporate investments from a long-term perspective - defined as enhancing corporate value over a period of three to five years (Rappaport 2006). This concern about favoring short-termism over long-termism has now spread to institutional investors (Perrin 2016). In an open letter, Laurence Fink, CEO of BlackRock, warned US companies that they may be harming their long-term value by capitulating to pressures from activist hedge funds to increase dividends or share buybacks in the short term (Fink 2015). In response, commentators and regulators have proposed a broad range of remedies to curb short-termism in corporate America (Pozen 2014). These proposals include, but are not limited to, higher taxes on short-term trading, faster filings for groups acquiring more than 5% of a company's voting stock, reduced say by institutional investors in managerial decisions, and increased voting rights for shareholders based on the length of their holding period.
Download or read book Consequences of Mandatory Quarterly Reporting written by Suresh Nallareddy and published by . This book was released on 2017 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Securities and Exchange Commission (SEC) is considering the pros and cons of moving to semi-annual reporting from quarterly reporting at least for certain segments of the market. However, documenting causal evidence on the consequences of mandatory quarterly reporting has been difficult, due to either the absence of a clear exogenous shock or older data. We exploit the start of mandatory quarterly reporting by the Financial Conduct Authority (FCA) in 2007 and the end of the requirement in 2014 in the United Kingdom to examine corporate and capital market behavior. After imposition of mandatory quarterly reporting in 2007, we find (i) a dramatic decline in the number of companies that issue reports with quantitative information (defined as including both sales and earnings numbers for the quarter); (ii) a substantial increase in companies announcing managerial guidance for the upcoming year's earnings or sales; and (iii) an increase in analyst following for all sample companies. However, using a difference-in-differences analysis, we find that the imposition of mandatory quarterly reporting has virtually no impact on firms' investment decisions. Companies that voluntarily moved back from quarterly to semi-annual reporting after 2014 have experienced a reduction in analyst coverage, but no detectable increases in their levels of corporate investments.
Download or read book The Timeliness of UK Private Company Financial Reporting written by Mark Clatworthy and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the extent to which the timeliness of UK private companies' accounting information reflects regulatory and economic influences by studying the impact of a one month shortening of the statutory regulatory filing deadline. Using the financial reporting lag and propensity to file late as measures of timeliness, we find that although reporting behaviour is largely driven by regulatory deadlines, companies conjectured to be producing accounting information for reporting to outside investors publish their accounts significantly more quickly, and are substantially less likely to file beyond the statutory deadline (late), than their counterparts lacking similar incentives. However, in terms of this reporting lag differential, the change in regulation had a homogeneous impact. We report a significant reduction in the mean and median filing time, but an increase of 46% in the proportion of firms filing late, in the year following the regulatory change. Our results are robust to the employment of a number of different estimation methods, including matching and Huber and median regression.
Download or read book The End of Accounting and the Path Forward for Investors and Managers written by Baruch Lev and published by John Wiley & Sons. This book was released on 2016-06-14 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: An innovative new valuation framework with truly useful economic indicators The End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making. While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making. Discover a new, comprehensive system of economic indicators Focus on strategic, value-creating resources in company valuation Learn how traditional financial documents are quickly losing their utility Find a path forward with actionable, up-to-date information Major corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation.
Download or read book Does Securities Regulation Improve Transparency written by Olena V. Watanabe and published by . This book was released on 2012 with total page 119 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of a transparency regulation on stock price informativeness, stock crash risk, and financial reporting quality. Specifically, it focuses on the Transparency Directive (TPD), a key securities regulation implemented by the EU countries in recent years, which strives to increase and improve the flow of firm-specific information by mandating broader disclosure requirements, including greater reporting frequency by public companies listed in the EU member countries. Using a sample firms from 25 EU countries during the 2001-2010 time period, I find robust evidence that stock price informativeness improved, crash risk declined, asymmetric timeliness of loss recognition increased, and good news timeliness declined, following the implementation of TPD. I find inconclusive evidence on the impact of TPD on accrual quality. I also find mixed evidence on the role of regulation, implementation and enforcement of TPD in explaining the relation of TPD with stock return synchronicity, crash risk, and financial reporting quality. Specifically, I find the increase in asymmetric timeliness of loss recognition and a decline in good news timeliness are driven by countries with strong TPD implementation and enforcement efforts. However, I do not find that a decline in synchronicity and crash risk is affected by the level of regulation or TPD enforcement. Overall, my study provides evidence that mandatory securities regulation aids in improving transparency.
Download or read book Performance and Perception written by Anita Reed and published by . This book was released on 2009 with total page 163 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dangerous Opportunities written by Stephanie Ben-Ishai and published by University of Toronto Press. This book was released on 2021-09-03 with total page 207 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2017 Home Capital saga represents the shortcomings of a financial system challenged by distinct, siloed regulatory frameworks that fail to communicate with each other. Home Capital is a publicly traded company that acts as a lender through the Home Trust Company, most often providing mortgages to clients rejected by traditional banks. Home Capital’s 2017 announcement that it required $2 billion to sustain a $600-million loss shook customer confidence, and fueled by allegations of corruption, the company suffered a rapid decline in stock price. The Home Capital crisis is the most recent pre-pandemic example of systemic risk in the financial sector in Canada and highlights the invaluable opportunity we have to avoid repeating past mistakes in the nearing post-pandemic economic reality. Using the 2017 Home Capital saga as a starting point, Dangerous Opportunities sheds light on the compartmentalization of regulators and its greater ramifications on board independence and corporate governance, taxation in the competitive housing sector, and the success of non-bank financial institutions in various jurisdictions. A hybrid of law and business, Dangerous Opportunities is a must-read for those interested in the underbelly of financial institutions and is an inspired read in the aftermath of the recent housing crisis, which saw many aspiring homeowners seek dangerous opportunities outside of the traditional banking system.
Download or read book Investment Governance for Fiduciaries written by Michael E. Drew and published by CFA Institute Research Foundation. This book was released on 2019-04-22 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: Governance is a word that is increasingly heard and read in modern times, be it corporate governance, global governance, or investment governance. Investment governance, the central concern of this modest volume, refers to the effective employment of resources—people, policies, processes, and systems—by an individual or governing body (the fiduciary or agent) seeking to fulfil their fiduciary duty to a principal (or beneficiary) in addressing an underlying investment challenge. Effective investment governance is an enabler of good stewardship, and for this reason it should, in our view, be of interest to all fiduciaries, no matter the size of the pool of assets or the nature of the beneficiaries. To emphasize the importance of effective investment governance and to demonstrate its flexibility across organization type, we consider our investment governance process within three contexts: defined contribution (DC) plans, defined benefit (DB) plans, and endowments and foundations (E&Fs). Since the financial crisis of 2007–2008, the financial sector’s place in the economy and its methods and ethics have (rightly, in many cases) been under scrutiny. Coupled with this theme, the task of investment governance is of increasing importance due to the sheer weight of money, the retirement savings gap, demographic trends, regulation and activism, and rising standards of behavior based on higher expectations from those fiduciaries serve. These trends are at the same time related and self-reinforcing. Having explored the why of investment governance, we dedicate the remainder of the book to the question of how to bring it to bear as an essential component of good fiduciary practice. At this point, the reader might expect investment professionals to launch into a discussion about an investment process focused on the best way to capture returns. We resist this temptation. Instead, we contend that achieving outcomes on behalf of beneficiaries is as much about managing risks as it is about capturing returns—and we mean “risks” broadly construed, not just fluctuations in asset values.
Download or read book Research Foundation Review 2017 written by CFA Institute Research Foundation and published by CFA Institute Research Foundation. This book was released on 2018 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Research Foundation Review 2017 summarizes the offerings from the CFA Institute Research Foundation over the past year—books, literature reviews, workshop presentations, and other relevant material.
Download or read book The GAAP Gap written by Robert E. Litan and published by American Enterprise Institute. This book was released on 2000 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Today's knowledge-based economy requires an entirely new system of assessing the value of companies--a system tapping the vast communication capabilities of the Internet.
Download or read book The Economics of Corporate Governance and Mergers written by K. Gugler and published by Edward Elgar Publishing. This book was released on 2008-01-01 with total page 373 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an insightful view of major issues in the economics of corporate governance (CG) and mergers. It presents a systematic update on the developments in the two fields during the last decade, as well as highlighting the neglected topics in CG research, such as the role of boards, CG and public interest and the relation of CG to mergers. Two important conclusions can be drawn from this book: the first is that corporate governance systems that better align shareholders and managers interests lead to better corporate performance; second, there is an important relationship between CG structures and the quality of firm decision-making, one of the most important being the decision to merge or take over another firm. Focusing on some of the often-neglected aspects of corporate governance such as non-profit organizations and public interest, as well as mergers and acquisitions from a CG perspective, this book will be a valuable resource for both academics and postgraduate students of finance, business and economics.
Download or read book The Routledge Companion to Accounting Reporting and Regulation written by Carien van Mourik and published by Routledge. This book was released on 2013-10-01 with total page 495 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial accounting, reporting and regulation is a vast subject area of huge global importance, with interest rising significantly in the light of the ongoing global financial crisis. The authors begin with a broad overview of the subject of accounting, setting the stage for a discussion on the theoretical and practical issues and debates regarding financial reporting, which are expanded on in the second part of the book. This includes how to define the reporting entity, recognition and measurement of the elements of financial statements, fair values in financial reporting and the costs and benefits of disclosure. The third part assesses the interest, need and theories behind the accounting, reporting and regulation industry, while parts four and five look at the institutional, social and economic aspects; with issues such as accounting for environmental management and, accounting regulation and financial reporting in Islamic countries, both issues of ever increasing importance. This authoritative Companion presents a broad overview of the state of these disciplines today, and will provide a comprehensive reference source for students and academics involved in accounting, regulation and reporting.
Download or read book The Quest for Environmental Regulatory Integration in the European Union written by Eberhard Bohne and published by Kluwer Law International B.V.. This book was released on 2006-01-01 with total page 662 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is a commonplace that pollution knows no borders, and that environmental law must allow for cross-border implementation. The European Union specifies this principle in EC directives on integrated pollution prevention and control (IPPC), on environmental impact assessment (EIA), and on the control of major accident hazards involving dangerous substances (Seveso II). This is the first book to investigate from both empirical and normative perspectives the effectiveness of these directives at the national level. It provides by far the most extensive comparative analysis and evaluation of the industrial permitting and inspections, EIA, and major accident prevention in the EU. Offering an in-depth study of the transposition and implementation of EC environmental directives in eight EU member states (Denmark, France, Germany, Italy, the Netherlands, Spain, Sweden, and the United Kingdom), the author who has played a significant role in the formulation of environmental legislation and regulation at both the national (German) and EU levelsand¿provides a stable base for an assessment of the benefits and costs of the integrated approach to environmental protection. Among the factors considered are the following: key features of national constitutional, administraand¬tive, and judicial systems which provide the framework for environand¬mental regulations and their implementation in the eight countries under study; procedures and substantive requirements transposing the IPPC, EIA and Seveso II directives into national laws; and evaluation of national deficiencies and the extent of muddling through. The empirical part of Dr Bohne's analysis draws on 138 expert interviews with public and private actors, a survey of 178 public authorities, and document analyses of selected industrial permits and environmental impact statements. His comparative analysis of procedural, organizational, and substantive integration makes it possible to identify and compare national accomplishments in regulatory integration, and offers new insights into the effectiveness and limits of EC law. The study concludes with a discussion of the implications of the findings for European governance and better regulation after the enlargement of the EU. This thoroughly researched, rigorous, and insightful study will be of great interest and value to policymakers, regulators, business people, environmental NGOs, consultants, and lawyers, as well as to students of environmental policies and European governance.
Download or read book Transnational Accounting written by NA NA and published by Palgrave Macmillan. This book was released on 2001-05-12 with total page 3500 pages. Available in PDF, EPUB and Kindle. Book excerpt: This completely revised and expanded new edition of an acclaimed resource reflects the enormous changes that have taken place in recent years in international accounting systems. Transnational Accounting, Second Edition, is the definitive guide to accounting standards in 21 countries and entities throughout the world. Written by a team of leading experts, this authoritative reference source offers easy access to the latest procedures and regulations throughout the world, as well as guidelines for their application in a range of business settings.
Download or read book Corporate Governance in the Banking Sector written by Bruno Buchetti and published by Springer Nature. This book was released on 2022-05-11 with total page 163 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book gives an overview of the most important theories on Corporate Governance, investigating the myth and the reality of it. It argues that within the banking sector exist two new agency costs (i.e., bank depositors and shareholders vs. directors and bank depositors vs. shareholders and directors). These agency problems are difficult to reduce for two reasons. First, banks are complex and opaque. Second, government implicit guarantees and the deposit insurance systems reduce the monitoring of depositors. This book also takes a deep dive into research on CG in the banking sector via a unique and innovative literature review covering the time period between 2000-2020. It finds that some specific CG characteristics affect banks: risk appetite, performance, accounting quality, compensation and corporate social responsibility disclosure. Furthermore, this publication contends that institutional investors are changing CG for the better, describing how major financial markets factors such as rating agencies and sell-side financial analysts make CG visible. Additionally, it investigates how managerial biases and irrational investors can affect CG negatively, leading to company distress. All-in-all, this book makes a threefold contribution: for regulators, it offers suggestions on how to improve banks’ supervision; for researchers, it suggests new research topics; and for practitioners, it connects CG theory with real cases of CG failure.
Download or read book International Convergence of Capital Measurement and Capital Standards written by and published by Lulu.com. This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:
