Reforms will help clean up China's securities market

2021 ◽  
Keyword(s):  
Insider Trading ◽  
Stock Price ◽  
The United States ◽  
Securities Market ◽  
Foreign Firms ◽  
Financial Fraud ◽  
Content Type ◽  
Listed Firms ◽  
Wide Range ◽  
Political Priority

Significance China's securities market has grown dramatically, but the rules that underpin its functioning have failed to keep pace and have been poorly enforced because regulators and courts lacked resources and the issue was never a political priority. Insider trading, stock price manipulation and other fraud is relatively common. Impacts A wide range of sectors and institutions will need to adjust, including investors, listed firms, traders, law enforcers and courts. Foreign firms investing in China will benefit from better protection from financial fraud. China may send judges abroad to learn from other systems; Europe is a more likely destination than the United States.

Stock price movement around the merger announcements: insider trading or market anticipation?

2014 ◽  
Vol 40 (8) ◽  
pp. 821-843 ◽  
Author(s):  
Pawan Jain ◽  
Mark A. Sunderman
Keyword(s):  
Insider Trading ◽  
Stock Price ◽  
Policy Implications ◽  
Securities Market ◽  
Price Movement ◽  
Content Type ◽  
Different Types ◽  
Time Periods ◽  
Merger Announcement ◽  
Merger Announcements

Purpose – The purpose of this paper is to examine the stock price movements for existence of informed trading prior to a merger announcement for the companies listed on the emerging markets of India for the period from 1996 to 2010. Design/methodology/approach – This study applies several event study methodologies and regression analyses to analyze the stock price movement surrounding a merger announcement. The paper divides mergers in two different types: industry merger cases and non-industry merger cases and in two different time periods: recession and boom. Findings – The results show that the information held only by insiders’ works its way into prices. The paper finds strong evidence of insider trading in the case of industry mergers and mergers during recessions. Practical implications – The results from this study have immediate policy implications for India and other developing markets as the paper provides the type of mergers and time periods when merger announcements are more susceptible to insider trading. Originality/value – The paper extends the literature on mergers and insider trading by analyzing firms trading on a developing capital market, which, unlike the developed markets, is characterized by inadequate disclosure and a weaker enforcement of securities regulations. The results support this notion and recommend Indian securities market regulators to tighten the lax regulations. In addition, the author document the divergence in price reaction to the merger announcements for different types of mergers: industry mergers and non-industry mergers, as well as for mergers during different market conditions: recession vs booming capital markets.

Does the second wave of COVID-19 undermine corporate immunity? International evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huy Viet Hoang ◽  
Cuong Nguyen ◽  
Khanh Hoang
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Fixed Effects ◽  
Management Strategies ◽  
The United States ◽  
Least Square ◽  
Content Type ◽  
The Impact ◽  
Second Wave ◽  
Practical Implications

PurposeThis study compares the impact of the COVID-19 pandemic on stock returns in the first two waves of infection across selected markets, given built-in corporate immunity before the global outbreak.Design/methodology/approachThe data are collected from listed firms in five markets that have experienced the second wave of COVID-19 contagion, namely the United States (US), Australia, China, Hong Kong and South Korea. The period of investigation in this study ranges from January 24 to August 28, 2020 to cover the first two COVID-19 waves in selected markets. The study estimates the research model by employing the ordinary least square method with fixed effects to control for the heterogeneity that may confound the empirical outcomes.FindingsThe analysis reveals that firms with larger size and more cash reserves before the COVID-19 outbreak have better stock performance under the first wave; however, these advantages impede stock resilience during the second wave. Corporate governance practices significantly influence stock returns only in the first wave as their effects fade when the second wave emerges. The results also suggest that in economies with greater power distance, although stock price depreciation was milder in the first wave, it is more intense when new cases again surge after the first wave was contained.Practical implicationsThis paper provides practical implications for corporate managers, policymakers and governments concerning crisis management strategies for COVID-19 and future pandemics.Originality/valueThis study is the first to evaluate built-in corporate immunity before the COVID-19 shock under successive contagious waves. Besides, this study accentuates the importance of cultural understanding in weathering the ongoing pandemic across different markets.

scholarly journals An Observational Cohort Study ofClostridium difficileRibotype 027 and Recurrent Infection

mSphere ◽  
2018 ◽  
Vol 3 (3) ◽  
Author(s):  
Krishna Rao ◽  
Peter D. R. Higgins ◽  
Vincent B. Young
Keyword(s):  
Logistic Regression ◽  
Independent Predictor ◽  
The United States ◽  
Public Health Issue ◽  
Clinical Microbiology Laboratory ◽  
Clinical Predictors ◽  
Content Type ◽  
Ribotype 027 ◽  
Increased Risk ◽  
Wide Range

ABSTRACTRecurrentClostridium difficileinfection (rCDI) frequently complicates recovery from CDI. Accurately predicting rCDI would allow judicious allocation of limited resources, but published models have met with limited success. Thus, biomarkers predictive of recurrence have been sought. This study tested whether PCR ribotype independently predicted rCDI. Stool samples from nonpregnant inpatients ≥18 years of age with diarrhea were included from October 2010 to January 2013 after the patients tested positive forC. difficilein the clinical microbiology laboratory. Per guidelines, the rCDI was defined as a positive test forC. difficileat >2 weeks but ≤8 weeks from the index episode. For each sample, a single colony ofC. difficilewas isolated by anaerobic culture, confirmed to be toxigenic by PCR, and ribotyped. Simple logistic regression and multiple logistic regression were used to model the primary outcome of rCDI, incorporating a wide range of clinical parameters. In total, 927 patients with 968 index episodes of CDI were included, with 110 (11.4%) developing rCDI. Age and use of proton pump inhibitors or concurrent antibiotics did not increase the risk of rCDI. Low serum bilirubin levels and ribotype 027 were associated with increased risk of rCDI on unadjusted analysis, with health care-associated CDI being inversely associated. In the final multivariable model, ribotype 027 was the strongest independent predictor of rCDI (odds ratio, 2.17; 95% confidence interval, 1.33 to 3.56;P= 0.002). Ribotype 027 is an independent predictor of rCDI.IMPORTANCECDI is a major public health issue, with over 400,000 cases per year in the United States alone. Recurrent CDI is common, occurring in approximately one in five individuals after a primary episode. Although interventions exist that could reduce the risk of recurrence, deployment in all patients is limited by cost, invasiveness, and/or an undetermined long-term safety profile. Thus, clinicians need risk stratification tools to properly allocate treatments. Because prior research on clinical predictors has failed to yield a reliable, reproducible, and effective predictive model to assist treatment decisions, accurate biomarkers of recurrence would be of great value. This study tested whether PCR ribotype independently predicted rCDI, and the data build upon prior research in showing that ribotype 027 is associated with rCDI.

scholarly journals Microevolution ofStreptococcus agalactiaeST-261 from Australia Indicates Dissemination via Imported Tilapia and Ongoing Adaptation to Marine Hosts or Environment

2018 ◽  
Vol 84 (16) ◽  
Author(s):  
Minami Kawasaki ◽  
Jerome Delamare-Deboutteville ◽  
Rachel O. Bowater ◽  
Mark J. Walker ◽  
Scott Beatson ◽  
...  
Keyword(s):  
Streptococcus Agalactiae ◽  
Core Genome ◽  
Minimum Spanning Tree ◽  
Vaccine Development ◽  
The United States ◽  
Wild Fish ◽  
Clinical Isolates ◽  
Global Trade ◽  
Content Type ◽  
Wide Range

ABSTRACTStreptococcus agalactiae(group BStreptococcus[GBS]) causes disease in a wide range of animals. The serotype Ib lineage is highly adapted to aquatic hosts, exhibiting substantial genome reduction compared with terrestrial conspecifics. Here, we sequence genomes from 40 GBS isolates, including 25 isolates from wild fish and captive stingrays in Australia, six local veterinary or human clinical isolates, and nine isolates from farmed tilapia in Honduras, and compared them with 42 genomes from public databases. Phylogenetic analysis based on nonrecombinant core-genome single nucleotide polymorphisms (SNPs) indicated that aquatic serotype Ib isolates from Queensland were distantly related to local veterinary and human clinical isolates. In contrast, Australian aquatic isolates are most closely related to a tilapia isolate from Israel, differing by only 63 core-genome SNPs. A consensus minimum spanning tree based on core-genome SNPs indicates the dissemination of sequence type 261 (ST-261) from an ancestral tilapia strain, which is congruent with several introductions of tilapia into Australia from Israel during the 1970s and 1980s. Pangenome analysis identified 1,440 genes as core, with the majority being dispensable or strain specific, with non-protein-coding intergenic regions (IGRs) divided among core and strain-specific genes. Aquatic serotype Ib strains have lost many virulence factors during adaptation, but six adhesins were well conserved across the aquatic isolates and might be critical for virulence in fish and for targets in vaccine development. The close relationship among recent ST-261 isolates from Ghana, the United States, and China with the Israeli tilapia isolate from 1988 implicates the global trade in tilapia seed for aquaculture in the widespread dissemination of serotype Ib fish-adapted GBS.IMPORTANCEStreptococcus agalactiae(GBS) is a significant pathogen of humans and animals. Some lineages have become adapted to particular hosts, and serotype Ib is highly specialized to fish. Here, we show that this lineage is likely to have been distributed widely by the global trade in tilapia for aquaculture, with probable introduction into Australia in the 1970s and subsequent dissemination in wild fish populations. We report here the variability in the polysaccharide capsule among this lineage but identify a cohort of common surface proteins that may be a focus of future vaccine development to reduce the biosecurity risk in international fish trade.

Abnormally long audit report lags and future stock price crash risk: evidence from China

2019 ◽  
Vol 15 (4) ◽  
pp. 611-635
Author(s):  
Ahsan Habib ◽  
Hedy Jiaying Huang
Keyword(s):  
Internal Control ◽  
Stock Price ◽  
Large Scale ◽  
Crash Risk ◽  
Research Database ◽  
Audit Report ◽  
Content Type ◽  
Audit Opinion ◽  
Listed Firms ◽  
International Investors

PurposeAlthough a substantial body of literature investigates the determinants of audit report lag (ARL), scant empirical evidence exists on the consequences of ARL. The purpose of this paper is to examine the association between abnormally long ARL and future stock price crash risk.Design/methodology/approachThis quantitative study employed a large scale (14,445 firm-year observations) of annual financials, audit and ownership information for the Chinese listed companies during 2002–2013 which were retrieved from the China Stock Market and Accounting Research database.FindingsThis study finds evidence that abnormally long ARL increases the risk of a future stock price crash. Furthermore, the study finds that this adverse consequence is more pronounced for firms with a poor internal control environment.Practical implicationsRecently literature started to explore the consequences of abnormal ARL such as going concern audit opinion and restatements in the subsequent periods. This paper reveals that abnormal ARL has consequences for investor wealth losses as well. This is relevant in China, where the ongoing economic growth has attracted, and will continue to attract, a growing body of domestic and international investors. Understanding what factors could expose investors to wealth losses is of paramount importance for allocating their scarce capital.Originality/valueThis study extends the scant literature on the consequences of ARL, and provides useful insights for the Chinese regulatory authorities when considering the appropriateness of the current filing deadline for listed firms.

Get-Rich Quick scheme: Malaysian current legal development

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aspalella A. Rahman ◽  
Ruzita Azmi ◽  
Rosylin Mohd Yusof
Keyword(s):  
Strict Liability ◽  
Primary Sources ◽  
Mens Rea ◽  
Financial Fraud ◽  
Sources Of Information ◽  
Content Type ◽  
Investment Companies ◽  
Quick Scheme ◽  
Wide Range ◽  
Common Facet

Purpose In Malaysia, Get-Rich-Quick scheme (GRQS) is one of the financial fraud activities prohibited under Malaysian law. The common facet of such schemes involves plans that promise unrealistic rates of returns, and this new scheme continues to proliferate every year as the list of illegal investment companies and websites are growing. Indeed, GRQS will remain proliferating as long as there are people who are easily lured by the promise that wealth can be generated with little skill, effort or time. This paper aims to explain the phenomenon of GRQS in light of the existing laws in Malaysia. This paper also highlights the current development of Australian law pertaining to GRQS for comparative purpose. Design/methodology/approach This paper mainly relies on statutes as its primary sources of information. As such, this paper analyses the scope and provisions of the relevant laws that regulate GRQS and compare the existing GRQS provisions that are equivalent with Australian law. Findings Malaysia has comprehensive laws to combat GRQS activities. However, these laws are far from perfection, and only with immediate amendments, GRQS problems can be resolved more effectively. One of the weaknesses of current Malaysian laws to tackle GRQS is the lack of more stringent punishment against the operators of GRQS as well as the participants of the scheme. A comparison with equivalent GRQS law in Australia demonstrates that Australian laws provide a wide range of punishment to the operators and prohibits participation in GRQS. More importantly, Australia regards the offense as a strict liability offense where the mens rea or guilty mind of the perpetrators is exempted. Indeed, numerous proceedings have been instituted in the Australian Court against the operators and participants of GRQS. Originality/value This paper analyses the scope of relevant laws in Malaysia to combat GRQS and examines the strengths and weaknesses of these laws. This paper also compares Malaysian law with equivalent GRQS-related laws available in Australia. This paper further suggests that Malaysia should regulate sterner punishment for operators and participants of the scheme and that the offense is categorized under a strict liability offense where the mens rea or guilty mind of the offender is exempted.

US armed UAV precedent will hinder global rules-making

2016 ◽  
Keyword(s):  
United States ◽  
Unmanned Aerial Vehicles ◽  
Policy Reform ◽  
The United States ◽  
Barack Obama ◽  
International Norms ◽  
Content Type ◽  
Intelligence Sharing ◽  
Aerial Vehicles ◽  
Wide Range

Subject Post-Obama armed UAV policy. Significance As President Barack Obama prepares to leave office in January 2017, his administration has called for the United States to lead development of a set of international norms to govern the use of armed UAVs ('unmanned aerial vehicles' or 'drones'). The international proliferation and military use of armed UAVs by nations outside the circle of trusted US allies have highlighted the urgency of formulating clearly articulated international rules to govern an otherwise vaguely defined arena of international behaviour dominated by US precedent. Impacts Congressional aversion to supporting ground interventions abroad will enable the next president further to delay UAV policy reform. A wide range of countries frustrated with restrictions from Washington may turn to China as a key supplier of armed UAVs. Failed US efforts to reform the covert drone programme may complicate intelligence-sharing with European allies.

EU and United States diverge on gene-edited crops

2018 ◽  
Keyword(s):  
United States ◽  
Gene Editing ◽  
Genetically Modified Organisms ◽  
The United States ◽  
Trade Restrictions ◽  
Content Type ◽  
New Crops ◽  
European Court ◽  
Wide Range ◽  
Global Agriculture

Subject Regulation of gene-edited organisms. Significance The European Court of Justice (ECJ) last month ruled that new processes for altering the genetic structure of organisms should be subject to existing EU legislation on genetically modified organisms (GMOs). The move calls into question whether European researchers and businesses will be able to participate in the global race to exploit the rapidly evolving technology of gene editing. Impacts Innovation in gene editing will usher in a wide range of new crops in the United States and emerging economies over the next decade. This will further enhance the position of GM products in global agriculture (particularly for staples such as soybean, cotton and maize). The EU is unlikely to apply trade restrictions upon such products.

Reform will improve foreign firms’ treatment in China

2020 ◽  
Keyword(s):  
Foreign Investment ◽  
Structural Changes ◽  
The United States ◽  
Foreign Firms ◽  
Foreign Investors ◽  
Content Type ◽  
Playing Field ◽  
Investment Law ◽  
The Law ◽  
Over Time

Subject Reform of China's foreign investment law. Significance The new Foreign Investment Law that took effect on January 1 is a response to a slowing economy and pressure from other governments, particularly the United States, to ‘level the playing field’ for foreign investors. Impacts There will not be a flood of new investment as a result of the law, but it will make a difference over time. Companies will have five years to prepare for structural changes as rules specific to foreign-invested companies disappear. The regulations contain few specifics on enforcement, indicating that Beijing is not yet ready to give teeth to the law.

Executive pay bandwagon and stock price crash risk

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hong Luo ◽  
Junfeng Wu ◽  
Wan Huang ◽  
Yongliang Zeng
Keyword(s):  
Earnings Management ◽  
Internal Control ◽  
Stock Price ◽  
Tax Avoidance ◽  
Crash Risk ◽  
Executive Pay ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose This paper aims to investigate the impact of executives’ self-interested behaviors induced by the pay bandwagon on stock price crash risk in Chinese listed firms and attempt to shed light on the influencing channels of this effect. Design/methodology/approach The empirical analysis is based on the panel data set which contains information on the executives and stock price of 11,710 firm-year observations over the period 2007–2015. The multiple linear regression models are implemented to examine whether the executive pay bandwagon affects corporate future stock price crash risk. Then, earnings management, tax avoidance and overinvestment are applied as the behavior choice of executive pay bandwagon to analyze the potential influencing channels. Findings Results indicate that the lower the executives’ pay is than the median pay level of executives in firms of similar size and industry, incentives of pay bandwagon are stronger, leading to a higher future stock price crash risk. Moreover, evidence shows that the positive relationship between executive pay bandwagon and crash risk is attenuated when firms have strong external monitoring mechanisms such as Big Four auditors, cross-listing in the Hong Kong stock exchange, high marketization process and high institutional ownership. Then, some weak evidence supports that internal governance such as internal control plays the same moderating role. In addition, based on the path test, the stock price crash effect of the executive pay bandwagon has a complete tax avoidance intermediary effect and a partial earnings management intermediary effect. Originality/value This study contributes to the executive compensation literature from a psychological perspective on the economic consequences research brought about by the pay bandwagon for China’s listed firms. Moreover, this paper provides a supplement to the literature on factors which is completely different from previous studies that affect the future stock price crash risk.

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