Company Announcements Research Articles

The Shepherd Color Company Announces Partnership with LANSCO Colors

The Shepherd Color Company Announces Partnership with LANSCO Colors

Predicting Stock Returns by Automatically Analyzing Company News Announcements

We study the impact of company news announcements on stock prices and show that these announcements affect daily excess returns. We demonstrate that daily excess return direction can be predicted with statistical significance by analyzing news announcements, using automatic natural language processing tools. We use state-of-the-art text analysis algorithms in order to automatically extract meaningful information from news announcements, thus expanding the set of tools available to researchers in the field.

Selective Disclosure: The Case of Nikkei Preview Articles

Nihon Keizai Shinbun (Nikkei for short) is a leading Japanese daily newspaper specializing in economy and business. It is also the largest vendor of Japanese financial and economic databases. During earnings announcement season, the Nikkei morning edition often publishes “preview” articles that are about companies’ sales and earnings. However, these pre-date the actual company announcements, and forecast more accurately the actual results than the existing forecasts, making the Nikkei forecasts value-relevant information. We identify 2,835 preview articles in the newspaper from 2000 to 2010. We examine the circumstances under which these preview articles are written and the impact they have on the market. Our findings show that stock price reacts positively to positive news but it does not react negatively to negative news. The market reacts to the information even before the preview articles are printed, suggesting some leakage of the information to market participants. The costs and benefits (or incentives) for companies, Nikkei, and investors are investigated using changes in returns and information content around the events. We find a positive correlation between previewing and positive news sentiment.

Journal of Diabetes News

Journal of Diabetes News

The Impact of Merger and Acquisition on Financial Performance of selected Sectors

Mergers and Acquisitions are important corporate strategy actions that aid the firm in external growth and provide a competitive advantage. The company's stock price and financial performance can be affected by various events like government announcements, innovations and company announcements. The key objective of the study is to explore the impact of merger and acquisitions on the financial performance and stock prices for the selected Indian companies for the period between 2008 and 2014. Paired t-test, correlation, coefficient of variation and comparative analysis are used as the important tools to analyze the pre-merger and post- merger financial data. For the purpose of study, the sectors namely, Banking, Steel, Oil, Automobile, Electrical and IT sectors have been selected. These sectors had mergers within the period of 2008 to 2014. The analysis indicates that the Banking and Steel sector has huge impact on their profitability after the merger. The IT sector has significant impact on the stock prices. The comparative analysis shows that Banking, Electrical, Automobile and IT sectors have positive change in profitability after merger and Steel and Oil sector have reduced profits. Similarly Steel and Oil sector become more leveraged after merger. Banking, Electric and Oil sector have improved liquidity position than others after merger. The Oil sector has more price variation after merger and resulted in poor returns. The best sector to undergo merger is banking and the best stocks to invest during the merger are IT and Automobile stocks which gave huge return to the investors.

A Comprehensive Review of Sentiment Analysis of Stocks

This paper comprehensively studies the sentiment analysis of stock market news and explains the maturity of sentiment analysis in the stock market scenario. I explain in its entirety the procedure, difficulties, and limitations concerning sentiment analysis of financial news to predict stocks. The stock market movements are regarded as highly unpredictable and a large number of factors contribute to that unpredictability. Factors such as market sentiment, government policies and company announcements are some of the major contributing factors however the list is not exhaustive. Technological advancements over the past two decades has enabled researchers and market professionals to develop mathematical models to optimize their returns and keep the risk in check. These advancements have given way to social media platforms especially Twitter to more conveniently express opinions and reviews. Narrowing it only to the stock market and financial scenario, Twitter is an attractive platform for the user community to discuss company health, company announcements, major news, and government policies etc to name a few. Companies or organizations in turn also boast their success on Twitter. This entire process of sharing news and opinions yields a large amount of financial data to be searched for an overall sentiment or a possible prediction of the stocks. This paper attempts to dive deep into the specifics of procedure, the current stage of its maturity, and the importance of Machine Learning in finance and the stock market.

NRJ Book Review: Hell and High Water: The Battle to save the Daily New Orleans Times-Picayune

Rebecca Theim, Hell and High Water: The Battle to Save the Daily New Orleans Times-Picayune (Gretna, Louisiana: Pelican, 2013). Hardcover, 320 pages, $26.95.Advance Publications has ventured into the forefront of the digital first movement in newspapering that sees the future as online, with a diminished presence in print. Advance has cut back on the publication frequency of its once major dailies in New Orleans, Cleveland and Portland, Oregon, along with smaller newspapers in Michigan and Alabama, to three or four times a week. Industry watchers are following the reaction in those markets with interest, as it could well determine whether the bold moves by Advance will start a trend away from daily publication. Judging by the experience in New Orleans, as chronicled in Rebecca Theim's remarkable Hell and High Water, much pain will be experienced by all involved. The transition there, according to Theim, was nothing less than bungled. The way Advance executives and Newhouse officials treated employees, readers and advertisers in New Orleans is almost a textbook example of ineptitude and insensitivity. The problems began when David Carr of The New York Times scooped the company announcement of the change in May 2012. Executives were caught offguard and were thus constantly on their heels in dealing with the ensuing community outrage, much of which centered on the company's longstanding pledge not to lay offemployees. The 200 or so Times-Picayune workers who lost their jobs were required to remain at work for months and, in some cases, to train their more tech-savvy replacements. Morale at the newspaper was poisoned as a result. After more workers quit than Advance wanted to lose, the company attempted to re-hire many of those it had laid off, but most of them balked at returning. The moves prompted the Advocate newspaper in neighboring Baton Rouge to begin a daily New Orleans edition, which hired many of the Times- Picayune's castoffs and quickly gained a circulation of 23,500. That caused the Times-Picayune to counter by printing a tabloid called T-P Street on the days it had ceased publication. All of a sudden, New Orleans had more newspapers than ever.While Theim focuses on the situation at the Times-Picayune, she also monitors the transition to non-daily publication at Advance's three newspapers in Alabama, which also took place in 2012, and subsequent transitions at Cleveland's Plain Dealer and Portland's Oregonian. Advance pioneered the move to non-daily publication in economically distressed Michigan, where it reduced publication at three of its eight dailies to three times a week in 2009 and cut back its Ann Arbor News to twice weekly. …

Effect of external events on newcomer participation in open source online communities

Newcomer participation is a strong determinant of the success of online communities, particularly of open source software (OSS) development communities. Most research on newcomer participation in online communities so far has been limited to understanding the socialization experiences of participants once they join a community. No study we are aware of has looked at the role of factors external to a community itself in determining participation levels. We argue that it is important to understand external factors to delineate accurate reasons for decline or growth of participation in a community. In this study, we investigate the effect of company announcements made by OSS steward firms, events which are external to a community, on participation in newcomer communities associated with the OSS. We studied activity in two communities, a Java newcomer forum and a MySQL newcomer forum, around two announcements that affected each community. We found evidence that company announcements had a substantial effect and participation either increased or decreased. Through analysis of secondary sources we conjecture that announcements indirect shape participation by influencing newcomer motivation. Announcements perceived as hostile to open source values have a significant negative effect on participation, whereas announcements perceived as friendly either significantly increase participation or have no significant effect.

Market Reaction to Bonus Announcements:Empirical Evidence from Bombay Stock Exchange

A capital market in which stock prices fully reflect all available information can be termed as informationally efficient market. A number of studies have empirically tested the response of security prices to the release of different information. The objective of this study is to find evidence of semi-strong form of efficiency in the Indian stock market. The paper examines the share price reaction to bonus issue announcements around the announcement date by using the event study methodology. Bonus announcements of companies listed on the Bombay Stock Exchange in 2010 and 2011 is taken as a sample for the study. The abnormal returns are calculated using the Market Model and t-tests is conducted to test the significance.

Chief Executive Officer departures and market uncertainty

This study investigates the effect on stock return volatility of a significant event in the life of a firm, a change in its Chief Executive Officer (CEO). Citing weaknesses in the prior literature, we bring a new approach to re-examine the issue. Firstly, we use a relatively unbiased classification system using both company announcements and media reports. Secondly, we use short-term stock return volatility as a more accurate estimator to isolate the effect of a single disclosure. We find strong evidence that the level of stock return volatility increases following announcements of CEO departures, and that the increase is significantly higher following announcements of forced departures compared to voluntary departures. The results are consistent with signalling effect theory in that forced dismissals convey previously unknown information to the market. Signed cumulative abnormal returns are also more negative for a forced CEO departure.

Biofuels Bloom In The South

Biofuels based on technologies from KiOR, Honeywell’s UOP division, and LS9 will soon be produced in the southern U.S., according to recent company announcements. Although the technologies, level o...

鉄道利用者のダイヤ乱れ遭遇時における不満足の規定要因

This research employed an extended hypothetical model that included the cognitions of attribution and importance from Oliver's (1980) expectancy-disconfirmation model. The model examined factors which might mitigate the experiences of dissatisfied passengers who encountered the types of service disruption that occur frequently on city train routes. A covariance structural analysis model was applied to questionnaire data obtained from 5383 railroad users who encountered problems. The passengers' degree of discontent was most strongly influenced by their evaluation of the responsibility attributed by the railroad company. The strong influence of the passengers' impression of the impropriety of the railroad company's announcements regarding the train service make it imperative for the railroad company to take strong corrective action. The passengers' dissatisfaction will decrease greatly when there are appropriate announcements, in addition to the alleviation of discrepancies related to time, confusion, and changes.

Industry Update: the Latest Developments in Therapeutic Delivery

The time period 6 October 2011 to 5 November 2011 was characterized by a number of major company announcements. Abbott Laboratories, a company that has long prided itself on its diversity, will split into two. The part that will retain the Abbott name will continue this tradition of diversity and the strategy of double-digit growth in earnings per share, albeit, without the pharmaceutical and biopharmaceutical research-based business. This will be spun out as another, yet to be named, publicly traded company. One firm’s strategic refocusing can, of course, facilitate another’s strategic development. This is certainly the case in the recent sale by SurModics of its pharmaceutical division to Evonik, where the former’s decision to concentrate on its device and in vitro diagnostic business opened up an opportunity for the latter to acquire additional formulation, polymer development and manufacturing expertise. Another example of this was Arrowhead’s purchase of Roche’s siRNA assets after the Swiss company decided to exit the field. As ever, the article is mainly sourced from company press releases and websites.

Analyzing determinants of value creation in domestic and cross border acquisitions in India

The present study seeks to assess the acquiring company announcement gains, and determinants thereof, in domestic and cross border acquisitions in India. For this purpose, 268 acquisitions comprising of 202 cross border acquisitions and 66 domestic acquisitions constitute the sample set. Standard event study methodology has been employed for computing the announcement returns. Further, regression analysis has been conducted to assess the sources of wealth gains in domestic and cross border acquisition. The results of event study indicate that cross border acquisitions have created significantly higher wealth gains than the domestic ones. Further, the results of regression analysis highlight that cross border acquisitions, pursued by the acquiring companies in technology intensive sector, for the target companies also in technology intensive sector, create superior wealth gains. The reason being, such cross border acquisitions provide an opportunity to the acquiring company to combine and judiciously utilize intangible resources of both the companies on a broader scale across new geographies. Thus, the study contributes to the existing literature on internalization theory by extending it to an emerging market like India.

Public Information Arrivals, Limit Order Book, and Stock Price Changes

Using time-stamped company announcements released by the Australian Securities Exchange as a proxy for public information flows, we investigate how the information content of the limit order book varies with the arrival of news. We find that order book imbalance (the difference in slopes between order-driven demand and supply schedules) predicts subsequent short-term stock returns, and that the average slope negatively influences ex post innovation in short-term volatility. More importantly, these relationships actually strengthen after the arrival of public information. Our evidence is consistent with prior theoretical proposition that instead of immediately reducing information asymmetry, public information arrivals can temporarily increase the divergence of investors’ beliefs. As this amplifies the advantages of certain informed traders, those who are patient enough appear to rely on limit orders to capture gains from trades.

CEO Departures and Market Uncertainty

This study investigates the effect on stock return volatility of a significant event in the life of a firm, a change in its CEO. Citing weaknesses in the prior literature, we bring a new approach to re-examine the issue. First, we use a relatively unbiased classification system using both company announcements and media reports. Second, we use short-term stock return volatility as a more accurate estimator to isolate the effect of a single disclosure. We find strong evidence that the level of stock return volatility increases following announcements of CEO departures, and that the increase is significantly higher following announcements of forced departures compared to voluntary departures. The results are consistent with signalling effect theory in that forced dismissals convey previously unknown information to the market. Signed cumulative abnormal returns are also more negative for a forced CEO departure.

Small cap financial reporting: Determinants of emphasis and placement of non-GAAP disclosures

This study examines the determinants of emphasis on non-GAAP disclosures in the earnings announcements of small cap companies. Two proxies of non-GAAP information emphasis are investigated—placement of the first non-GAAP disclosure and placement of the non-GAAP to GAAP reconciliation required by Regulation G. Using hand-collected data from fourth quarter press releases, we find evidence indicating that small cap firms place a higher level of emphasis on non-GAAP financial measures when GAAP earnings suggest lower value-relevance and when their shares are owned by a higher proportion of institutional investors. We also find that small cap companies decrease the level of emphasis placed on non-GAAP information as their listing tenure increases.

Large share price movements, the disclosure of news and corporate governance

PurposeThe paper aims to examine the link between firm‐level large share price movements, firm‐specific company announcements and corporate governance. Stock market regulation in the UK requires firms to disclose new price‐sensitive information immediately via official news providers. The paper investigates whether large share price movements are accompanied by firm disclosure. It also investigates whether corporate governance attributes influence the degree of disclosure by firms.Design/methodology/approachThe disclosure measure is constructed by identifying the largest abnormal daily stock returns for sample firms, and then firm‐specific announcements in the three‐day window centred on the abnormal return day are searched. Corporate governance variables known to influence disclosure practice are then collected and tested to ascertain whether they influence disclosure for positive and negative (good and bad announcements) abnormal returns.FindingsLarge share price movements are accompanied by an official share price movement in 45.2 per cent of cases. This rises to 62.9 per cent when new analyst or newspaper articles are included as potential drivers of the abnormal share price return. The higher the proportion of non‐executive directors and CEO/chair duality lead to a higher incidence of bad news disclosure, suggesting increased scrutiny works. The higher the level of CEO and board ownership the lower the level of disclosure. Finally, institutional ownership concentration appears to negatively influence the level of disclosure.Originality/valueHigher levels of corporate governance are shown to lead to better firm disclosure. At the same time, the authors find that in almost 40 per cent of large abnormal share price returns no information has come to the market to drive the share price. Thus, the paper has important messages for regulators, who need to investigate why prices often move a long way without accompanying news. Shareholders, particularly institutions, should ensure high levels of disclosure by company directors.

Large Share Price Movements, the Disclosure of News and Corporate Governance: Implications for Disclosure Rules

Purpose - This study examines the link between firm-level large share price movements, firm specific company announcements and corporate governance. Stock market regulation in the UK requires firms to disclose new Price Sensitive Information (PSI) immediately via official news providers. We investigate whether large share price movements are accompanied by firm disclosure. We also investigate whether corporate governance attributes influence the degree of disclosure by firms. Design/methodology/approach - We construct our disclosure measure by identifying the largest abnormal daily stock returns for sample firms, and then we search for firm specific announcements in the three day window centered on the abnormal return day. We then collect corporate governance variables known to influence disclosure practice, and test whether these variables influence disclosure for positive and negative (good and bad announcements) abnormal returns. Findings - Large share price movements are accompanied by an official share price movement in 45.2% of cases. This rises to 62.9% when new analyst or newspaper articles are included as potential drivers of the abnormal share price return. The higher the proportion of non-executive directors and CEO/ Chair duality lead to a higher incidence of bad news disclosure, suggesting increased scrutiny works. The higher the level of CEO and board ownership the lower the level of disclosure. Finally, institutional ownership concentration appears to negatively influence the level of disclosure. Originality/value - Higher levels of corporate governance is shown to lead to better firm disclosure. At the same time we find that in almost 40% of large abnormal share price returns no information has come to the market, to drive the share price. Thus, the paper has important messages for regulators, who need to investigate why prices often move a long way without accompanying news. Shareholders, particularly institutions, should ensure high levels of disclosure by company directors.

REAKSI PASAR DAN INFORMASI ASIMETRI TERHADAP TINDAKAN PERATAAN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

The investor’s attention on the net income number without regard to the procedures used, has encouraged management to carrry out earnings management, include within earnings management is income smooting. Income smoothing is the way to reduce earnings variability over a number of period as movement toward unexpected level of reported earning. Objective of this study is to anaylize 1) market reaction and asymetri information surounding the company announcement date 2)Effect assymetry informatin on stock price. The sample that used is the company with eckel index less than one (i.e to indicate income smoothing practice). Using purposive sampling method this study examine 39 companies listed in the Indonesian stock exchange. Market reaction is measured as cumulative abnormal return five days surrounding the companie earnng announceent date. T-test was used to examine market reaction and asymetri information surrounding the companies earnings management date. Regresion linear was used to examine effect of asymetri informationtoward share price.Result of this study indicate that 1) there is income smoothing practise in Indonesian stock exchange 2) There is significant market reaction asymetri information surrounding the companies earnings management 3)There is significant positive effect of asymetri information toward share price.