Does Antitrust Enforcement in High Tech Markets Benefit Consumers? Stock Price Evidence from FTC v. Intel

2011 ◽  
Author(s):  
Joshua D. Wright
Keyword(s):  
Stock Price ◽  
High Tech ◽  
Antitrust Enforcement

The Effects of High-Tech Companies' Strategic Alliance Announcements on the Stock Prices of the Relevant Companies: A Comparative Analysis of Indirect Benefits for Taiwan's High-Tech Industry Versus Other Industries 1998–2002

2005 ◽  
Vol 08 (02) ◽  
pp. 235-250
Author(s):  
Chiung-Ju Liang ◽  
Ming-Li Yao ◽  
Jung-Chu Lin
Keyword(s):  
Strategic Alliances ◽  
Stock Prices ◽  
Stock Price ◽  
Strategic Alliance ◽  
High Tech ◽  
High Tech Industry ◽  
Indirect Benefits ◽  
Common Trend ◽  
The World ◽  
Indirect Impact

In recent years, the formation of strategic alliances has become an increasingly common trend among developing countries around the world. In spite of this, the numerous attempts to comprehensively review the research on the correlation between these strategic alliances and stock prices over the years have, by and large, limited their discussion to how the stock price of a corporation responds to its announcement that it is forming a strategic alliance. Only a few studies have, however, discussed the announcement's indirect impact on the stock prices of investing companies that have entered into such strategic alliances. It is for this reason that we conduct an event study and develop an empirical model to measure that indirect impact on the stock prices of investing companies engaging in strategic alliances with Taiwan's high-tech industry from 1998 to 2002, while also discussing the market's different responses in their stock prices according to various industrial types that have been used to classify these investing companies.

scholarly journals The Impact of Share Repurchase on R&D Expenditure: An Empirical Study from High-tech industry

2020 ◽  
Vol 214 ◽  
pp. 02018
Author(s):  
Hongwei Cheng ◽  
Liang Yin ◽  
Xinwei Luo
Keyword(s):  
Stock Price ◽  
High Tech ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Short Term ◽  
High Tech Industry ◽  
The Sustainable Development ◽  
Stock Price Reaction ◽  
Term Performance ◽  
The Impact

After the policy was released in 2018, listed companies increased the frequency and amount of repurchases. Some studies believe that managers will give up long-term investment which is beneficial to the sustainable development of enterprises due to the short-term performance response caused by share repurchases. This paper took the repurchase firms in the high-tech industry from 2008 to 2018 as samples, it is found that the company’s share repurchase promotes R&D expenditure and will not reduce expenditure in R&D for short-term stock price reaction. Furthermore, the heterogeneity study found that in state-owned firms, the company’s share buybacks have a more significant role in promoting R&D expenditure.

Dividend Initiations by High-Tech Firms

2008 ◽  
Vol 11 (02) ◽  
pp. 201-226 ◽  
Author(s):  
Michael Lacina ◽  
Zhaohui Zhang
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Trading Volume ◽  
Abnormal Returns ◽  
High Tech ◽  
Cumulative Abnormal Returns ◽  
Dividend Initiations ◽  
Volume Reaction ◽  
Abnormal Trading Volume ◽  
Investor Reaction

We study the stock price and trading volume reactions to dividend initiations by high-tech firms relative to those by non-high tech firms. We find significant positive cumulative abnormal returns and abnormal trading volume for both high-tech and non-high tech firms surrounding dividend initiations. However, when we control for variables such as size and dividend yield, stock returns and trading volume around dividend initiations are higher for high-tech firms than for non-high tech firms. We also find evidence that stock returns and trading volume for high-tech firms are higher with increases in liquid assets, although the volume reaction to increases in liquid assets is stronger than the return reaction, perhaps indicating clientele shifts. Overall, our findings convey stronger investor reaction to dividend initiations by high-tech firms, especially those with sufficient liquid assets.

scholarly journals Employee Stock Options Or Tax Nightmares

2011 ◽  
Vol 1 (1) ◽  
Author(s):  
Raj Kiani ◽  
Dwight Call ◽  
M. Sangeladji
Keyword(s):  
Stock Price ◽  
Stock Options ◽  
Effective Means ◽  
Stock Option ◽  
High Tech ◽  
Employee Stock Options ◽  
Highly Qualified ◽  
The Past ◽  
Cash Compensation ◽  
Set Up

In the past several years, many companies, especially in the high-tech, have used incentive stock options as effective means of attracting and maintaining highly qualified employees. With properly designed employees stock options, companies have been able to compensate highly paid executives with a little or no cash out flow. Accepting stock options in lieu of cash compensation has allowed employees to postpone tax on their compensations and to convert the ordinary income to the capital gain income through a later exercise and the sales of their stock options. These benefits can be achieved, if companies set up the stock options properly and employees apply them correctly. Otherwise, employees may get stuck in incentive stock option tax traps depending on the type of stock options. One tax trap related to the Incentive Stock Option (ISO) is a danger of an Alternative Minimum Tax (AMT). The tax trap related to Nonqualified Stock Option (NQSO) is the possibility of a phantom profit. This profit, even though the stock may not have been sold yet by the employees, must be reported by employer to the Internal Revenue Service through employees W-2 form in the year the options are granted or exercised, depending on the prevailing situation. Employees, who exercise this type of options and keep the purchased stocks, may risk watching the stock price decline but still having to pay taxes based on their paper profit.

Putting the Clock Back: MicroStrategy, Inc.

2004 ◽  
Vol 19 (2) ◽  
pp. 249-260 ◽  
Author(s):  
Patricia A. Williams ◽  
Bruce S. Koch
Keyword(s):  
Stock Market ◽  
Initial Public Offering ◽  
Research Group ◽  
Stock Price ◽  
High Tech ◽  
Red Flags ◽  
Wall Street ◽  
Public Offering ◽  
Available Information ◽  
Financial Research

MicroStrategy, Inc. was one of the high-tech “darlings” of Wall Street during the stock market boom of the late 1990s. After its initial public offering (IPO) in 1998, revenue and earnings increased steadily and substantially year after year. By early March 2000, the company's stock price had soared to $333 per share. Nonetheless, there was at least one financial research group that questioned whether MicroStrategy's performance justified its high market valuation. Based on publicly available information at the time, you are asked to identify “red flags” (i.e., warnings) of possible problems with the company.

Non-GAAP measure disclosure and insider trading incentives in high-tech IPO firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bishal BC ◽  
Bo Liu
Keyword(s):  
Stock Returns ◽  
Initial Public Offering ◽  
Insider Trading ◽  
Stock Price ◽  
Positive Association ◽  
Ordinary Least Squares ◽  
High Tech ◽  
Significant Positive Association ◽  
Content Type ◽  
Public Offering

Purpose This paper aims to investigate whether the non-generally accepted accounting principles (GAAP) performance measures (NGMs) disclosure by high-tech initial public offering (IPO) firms signal firms’ efforts to maintain relatively high stock price levels before the expiration of the lock-up period to benefit insider selling. Design/methodology/approach The authors perform ordinary least squares and logit regressions using financial statement data and hand collected data on NGM disclosures for high-tech firms during the IPO process. Findings The authors find that the top executives of high-tech IPO firms with NGM disclosures are significantly more likely to sell and sell significantly more insider shares at the lock-up expiration than those of high-tech IPO firms without NGM disclosures. At the same time, while high-tech NGM firms have stock returns similar to their counterparts without NGMs for the period before the lock-up expiration, their stock returns are substantially lower after insider selling following the lock-up expiration. Practical implications By documenting the negative association between NGM disclosures and post-lockup expiration stock performance, the study highlights managerial deliberate optimism about the firm’s prospects which may not materialize. Hence, investors should take the NGM disclosures with a grain of salt. Originality/value This paper fills a notable void in the non-GAAP reporting literature by documenting a statistically and economically significant positive association between managerial equity trading incentives and NGM disclosures by high-tech IPO firms.

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