What's My Line? A Comparison of Industry Classification Schemes for Capital Market Research

2002 ◽  
Author(s):  
Sanjeev Bhojraj ◽  
Charles M. C. Lee ◽  
Derek Oler
Keyword(s):  
Capital Market ◽  
Market Research ◽  
Classification Schemes ◽  
Industry Classification

Industry classification and the efficiency of intra-industry information transfers

2014 ◽  
Vol 29 (1) ◽  
pp. 95-111 ◽  
Author(s):  
Dennis Y. Chung ◽  
Karel Hrazdil ◽  
Kim Trottier
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Design Methodology ◽  
Market Research ◽  
Content Type ◽  
Global Industry ◽  
Time Period ◽  
Industry Classification ◽  
Information Transfers ◽  
Larger Sample

Purpose – Motivated by recent studies that demonstrate the superiority of the Global Industry Classification System (GICS) relative to the Standard Industry Classification (SIC) system in capital market research, the authors revisit the stock market anomaly documented by Thomas and Zhang (TZ) (“Overreaction to intra-industry information transfers?” Journal of Accounting Research, Vol. 46, pp. 909-940) and analyze whether the anomaly based on SIC remains evident when intra-industry information transfers are based on the GICS. The paper aims to discuss these issues. Design/methodology/approach – The authors first replicate TZ and test whether stock prices of late announcers in response to earnings reported by early announcers in the same SIC industry are significantly related to subsequent price responses of late announcers to their own earnings reports. In the multivariate setting, the authors then evaluate whether the magnitude and significance of the overreaction anomaly changes under the more comprehensive GICS and across different time periods. Findings – The authors first confirm the over-reaction anomaly based on SIC as documented by TZ. Utilizing a larger sample of firms based on the GICS and extending TZ for a new time period, the authors then demonstrate that the overreaction anomaly disappears during recent years, a period that is characterized by markedly higher trading activity. Research limitations/implications – The findings provide new insights and contributions to the debate on whether or not market significantly misprices information transfers. Originality/value – The authors are first to utilize the GICS in evaluating intra-industry information transfers.

scholarly journals The Impact of COVID-19 on the China Online Video Industry

2020 ◽  
Vol 9 (2) ◽  
pp. 11
Author(s):  
Qianqian Wu
Keyword(s):  
Capital Market ◽  
Market Research ◽  
Business Models ◽  
Online Video ◽  
Short Term ◽  
The Future ◽  
News Events ◽  
The Impact

This paper is aimed at analyzing the impact of COVID-19 on the Chinese online video industry. The hypothesis is that since people had more time to spend on leisure during the quarantine, the online video industry should be positively affected. Using methods such as collecting data from consulting firm’s research reports, analyzing news events, and summarizing evidence from security firm’s capital market research reports, I concluded that the pandemics did bring a short-term increase in people’s attention to the online video industry, opened up new opportunities for creative business models, yet also posed potential threads shall the virus strike again in the future.

A Performance Comparison of US MNEs and DMCs

1995 ◽  
Vol 6 (2) ◽  
pp. 113-132 ◽  
Author(s):  
Gongming Qian
Keyword(s):  
Comparative Analysis ◽  
Capital Market ◽  
Performance Comparison ◽  
Industrial Firms ◽  
Paired Difference ◽  
Risk Return ◽  
Proxy Variables ◽  
Industry Classification ◽  
Foreign Operations ◽  
Difference Test

This study provides a comparative analysis of the risk-return performance of US MNEs and US DMCs on the basis of both aggregate and segmental samples. It covers the firms from the Fortune listing of the 500 largest US industrial firms using a ten-industry classification. Several accounting and market measures are used as proxy variables for risk and profitability. To analyse the data and test the hypotheses, the paired difference test is employed to find statistically significant differences between them. If a firm reduces the variability of its profits, then the value of its shares will increase and, as a consequence, the wealth of shareholders will be enhanced. The results show that the MNEs, on the average, have outperformed their domestic counterparts in both profitability and risk. This implies that the capital market should differentiate between its valuation of MNE and DMC shares. Foreign activities by MNEs should therefore provide their shareholders with risk-return opportunities superior to those available to shareholders of DMCs. Investors may be expected to consider MNEs as a superior investment vehicle and reward their foreign operations.

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