The Impact of The London Stock Exchange Model Code on Insider Trading in the UK

1997 ◽  
Author(s):  
David John Hillier ◽  
Andrew P. Marshall
Keyword(s):  
Insider Trading ◽  
Stock Exchange ◽  
Exchange Model ◽  
London Stock Exchange ◽  
Model Code ◽  
The Uk ◽  
The Impact

Quality and quantity of FTSE-100 segmental information reporting

2019 ◽  
Vol 32 (3) ◽  
pp. 326-343 ◽  
Author(s):  
Ghassan H. Mardini ◽  
Sameh Ammar
Keyword(s):  
Financial Reporting ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Content Type ◽  
Information Reporting ◽  
Ifrs 8 ◽  
The Uk ◽  
The Impact

Purpose This study aims to explore the impact of international financial reporting standard no. 8 (IFRS 8) on segmental information reporting (SIR) after the post-implementation review (PIR) issued by international accounting standards board (IASB). This impact is examined in relation to quality and quantity as SIR dimensions represent, respectively, the level of reported items and segments. As a complement to this, the chief operating decision maker (CODM) identity is considered to understand the patterns of SIR dimensions. Design/methodology/approach The SIR of the UK financial times stock exchange 100 (FTSE-100) listed companies over the period 2013-2016 is the research’s scope. Several criteria were developed to ensure a representative research sample. A disclosure index approach was used facilitating the use of content analysis for data collection, which pertained to the dimensions of SIR published by the FTSE-100 following IFRS 8 PIR. Findings The IFRS 8 PIR has had several implications shaping the growing trend that is underpinned by the SIR dimensions published by FTSE-100 companies. First, the SIR quantity dimension positively corresponds over 2013-2016, but it still does not meet IASB’s demands. This, secondly, also applies to the quality dimension of SIR to uncover inconsistency with the existing knowledge being held regarding the introduction of IFRS 8. More specifically, the response of the FTSE-100 to mandatory and voluntary items seems to be in transition of substitution. Third, CODM’s identity was an insightful dimension in rationalising the understanding through the aforementioned dimensions. It is undertaken by boards of directors or executive committees and the case of the latter is associated with more disclose in relation to the CODM’s identity. Practical implications These findings reveal implications to: academics undertaking further research about IFRS 8 PIR to challenge or endorse this conclusion, using similar or alternative approaches; the stakeholders’ decision-making process; and policymakers to re-think the structure of mandatory and voluntary items. Originality/value This paper provides empirical evidence on the quality and quantity of SIR published by FTSE-100 companies following IFRS 8 PIR.

Initial public offerings: evidence from the UK

2004 ◽  
Vol 30 (1) ◽  
pp. 46-62 ◽  
Author(s):  
Ashley Burrowes ◽  
Kevin Jones
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Due Diligence ◽  
London Stock Exchange ◽  
Public Offerings ◽  
The Us ◽  
The Uk ◽  
High Level ◽  
Alternative Investment

This investigation into the performance of Initial Public Offerings on the new Alternative Investment Market reveals that the expected high level of underpricing, that is usually associated with the risky nature of small, young and growing companies, is not supported by the evidence in this study. Raw and market adjusted figures reveal that IPOs listed on AIM at the London Stock Exchange appear to be only conservatively mispriced when contrasted to main board IPO listings in the US, UK and other countries. Due diligence listing requirements could be offsetting the otherwise risky nature of these small, young and growing companies. Finally AIM is discussed in terms of meeting its own targets and its ability to attract international listings.

Room for improvement: the impact of bad losses on board quality

2014 ◽  
Vol 15 (3) ◽  
pp. 255-272 ◽  
Author(s):  
Mark B. Mulcahy
Keyword(s):  
Corporate Governance ◽  
Quality Indicators ◽  
Stock Exchange ◽  
Control Sample ◽  
Firm Level ◽  
Content Type ◽  
Research Stream ◽  
The Uk ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to study the relationship between reporting a loss and changes in board quality. Low quality corporate governance is associated with adverse accounting outcomes and is characterised by the lack of non-executive and independent directors on the board. Changes in these board quality indicators in response to the reporting of a loss and conditioned by the severity of the loss are examined. Design/methodology/approach – This study uses four years of board information spanning the report of an initial loss for companies listed on the UK stock exchange. An industry and size matched control sample is used in a difference-in-difference analysis to isolate the impact of the loss from underlying changes in board quality. Findings – Overall the results indicate that more severe initial loss events precipitate improvements in board quality over and above the control sample as well as less severe loss events. Research limitations/implications – Although unambiguous, the reporting of a loss is only one measure of underperformance. Also the board quality indicators used in this study are two from several individual corporate governance variables and amalgamations used in the extent literature. Practical implications – The findings demonstrate that the relationship between corporate governance and performance is endogenous and that the majority of any improvement in board quality actually anticipates the reporting of the loss. Any celebration of improvements in governance need to be tempered by an understanding of the precariousness of the firms at which these improvements are made. Originality/value – This study contributes to a research stream that examines negative shocks, and losses in particular, as an event likely to precipitate firm-level changes in board quality, i.e. firms tend not to make improvements to board quality without the impetus to do so.

scholarly journals Demutualization in Developing and Developed Country Stock Exchanges

2015 ◽  
Vol 3 (2) ◽  
pp. 35-58
Author(s):  
Muhammad Hammad ◽  
Adil Awan ◽  
Amir Rafiq
Keyword(s):  
Hong Kong ◽  
Stock Markets ◽  
Stock Exchange ◽  
Composite Index ◽  
Stock Exchanges ◽  
Return Volatility ◽  
Developed Country ◽  
Lm Test ◽  
The Uk ◽  
The Impact

This study considers seven different stock exchanges in order to measure the impact of demutualization announcements on stock market return volatility. This is measured based on the daily index prices of all seven indices: the Toronto Stock Exchange (TSX) in Canada, the FTSE 100 in the UK, the Straits Times Index (STI) in Singapore, the Nikkei 225 in Japan, the Kuala Lumpur Composite Index (KLCI) in Malaysia, the SENSEX in India, and the Hang Seng Index (HSI) in Hong Kong, China. A dummy variable is used to differentiate between pre- and post-event data. We use the augmented Dickey–Fuller test, the ARCH LM test and GARCH (1, 1) methodology to measure return volatility due to demutualization announcements. The results show that the decision to demutualize did not affect the UK, Singapore, and Indian stock markets, where volatility is explained by other factors. It did, however, affect the Canadian, Japanese, Hong Kong, and Malaysian stock markets. Moreover, the Canadian and Malaysian market swere negatively affected, while the Hong Kong and Japanese markets reacted positively to the demutualization announcements.

scholarly journals THE IMPACT OF DIVIDEND ANNOUNCEMENT ON STOCK RETURNS AMONG THE TEN TOP COMPANIES IN PAKISTAN

2020 ◽  
Author(s):  
Zubair Tanveer ◽  
Muhammad Zul Azri Muhammad Jamil
Keyword(s):  
Stock Returns ◽  
Insider Trading ◽  
Stock Prices ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Market Abuse ◽  
Study Methodology ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

The study tested the response of stock prices around the dividend declaration dates in Pakistan stock exchange. It estimated the data of 1110 dividends announced by 91 firms of the highest ten active sectors of Pakistan Stock Exchange. To empirically investigate the relationship between stock returns and dividend announcement, the panel regression was employed by creating dummy variables for 61 days around the dividend declaration dates. Cumulative average abnormal returns and average abnormal returns were also stimated around the events with the help of event study methodology. Outcomes of the empirical analysis revealed strong evidence of market abuse in the term of insider trading and supported the argument of the information content hypothesis and semistrong form of efficient market. Moreover, the study also found a robust impact of the probable ex-dividend date. The study recommended that it is a responsibility of stock exchange regulatory authorities, whistleblowers, registered companies, and the investors collectively to detect and punish this white-collar financial crime.  

scholarly journals MARKET REACTION ON SWITCHING TO INDUSTRY EXPERT AUDITOR: EVIDENCE FROM THE UK

2019 ◽  
Vol 4 (2) ◽  
Author(s):  
Nur Aulia Rahmah
Keyword(s):  
Market Reaction ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
London Stock Exchange ◽  
Cumulative Abnormal Returns ◽  
Industry Expert ◽  
Thomson Reuters ◽  
The Uk

Penelitian ini bertujuan untuk menguji apakah terdapat sebuah hubungan positifantara cumulative abnormal returns (CAR) dan keputusan perusahaan untukmenggunakan auditor spesialis industri. Dari 2.097 populasi perusahaan yangterdaftar di London Stock Exchange selama tahun 2003-2013, terdapat 118 sampel perusahaan non-keuangan yang mengganti auditornya dan memiliki data lengkap. Metodologi studi peristiwa digunakan atas data sekunder dari laporan keuangan, database Nexis dan Thomson Reuters Spreadsheet Link. Hasil penelitian menunjukkan bahwa tidak terdapat respon pasar modal yang signifikan ketika perusahaan mengganti auditornya dari non-spesialis industri ke spesialis industri. Akan tetapi, uji t atas CAR menunjukkan bahwa secara umum pasar modal bereaksi secara signifikan terhadap pengumuman pergantian auditor. Hasil ini bermanfaat bagi manajemen dengan mengindikasikan bahwa investor peduli dengan pergantian auditor itu sendiri namun tidak mempertimbangkan spesialisasi industri auditor yang baru. Sehingga manajemen perusahaan harus memberikan perhatian kepada aspek lain yang lebih firm-specific.

scholarly journals The Effect of Corporate Financial Performance on Market Value Moderated by Sustainable Development and Good Corporate Governance

Webology ◽  
2021 ◽  
Vol 19 (1) ◽  
pp. 51-69
Author(s):  
Aimen Ali R Mjahid ◽  
Eko Ganis Sukoharsono ◽  
Djumillah Hadiwidjojo ◽  
Arm anu
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Market Value ◽  
Corporate Financial Performance ◽  
London Stock Exchange ◽  
Good Corporate Governance ◽  
Equitable Treatment ◽  
The Impact

This research aims to analyze the impact of corporate financial performance on the market value moderated by good corporate governance and sustainability development in Great Britain companies listed in London stock exchange. This research tests the causal relationships among variables including corporate financial performance; market value moderated by good corporate governance and sustainable development in UK companies listed in London stock exchange. Findings of this research are (1) Profit is reflection of the success in implementing the activities and operations of the company. (2) The result presented the current practice of good corporate governance in London stock exchange, showed that most of the companies concerning the implementation of good corporate governance principles, which include: rights of shareholders, equitable treatment of shareholders, role of stakeholders in corporate governance. Originality of this research is the Impact of CFP on firm market value has been documented in literature. Ideally, CFP on market value should be correlated, but studies on CFP and market value have yielded mixed results positive, negative and neutral impact. This research can benefit to the companies with their existing policy modifications as per requirements in the present of United Kingdom financial environment.

scholarly journals Diffusion of COVID-19 impact across selected stock markets: a wavelet coherency analysis

2020 ◽  
Vol 17 (4) ◽  
pp. 202-214 ◽  
Author(s):  
Taufeeque Ahmad Siddiqui ◽  
Haseen Ahmed ◽  
Mohammad Naushad
Keyword(s):  
Financial Markets ◽  
Time Scales ◽  
Time Scale ◽  
Stock Markets ◽  
Stock Exchange ◽  
Stock Index ◽  
The World ◽  
The Uk ◽  
The Impact ◽  
Wavelet Coherency

COVID-19 has impacted the world economy in an unprecedented manner; the financial markets indicate the same. This spontaneous event landed most of the stock markets into extreme volatility. Large capital outflow and extreme rapid fall were seen among almost all the world financial markets. Though similar trend prevailed everywhere during this pandemic, the impact could not be accumulated in absolute terms. Using the data of five stock markets, the current study endeavored to draw an impact of COVID-19 on major stock exchanges. The study uses wavelet coherency analysis on one-year daily data from June 2019 to May 2020 of five stock markets: Bombay Stock Exchange (BSE), London Stock Exchange (LSE), NASDAQ, Tokyo Stock Exchange (Nikkei), and Shanghai Stock Exchange. It is observed that there are time-variation and scale-variation in co-movements between the studied markets. During the crisis, the co-movement concentrates on a short time scale, even for two days. These results have significant implications for international investors, which will help them in portfolio diversification with time elements. All the stock markets under study have indicated co-movement at different time scales and frequencies with varying cross-power levels. However, the concentration of co-movement is found the most between the UK and the US stock markets. It is the least between Japan and the UK. In BSE, co-movement at shorter time scales started late. NASDAQ is leading only in one case, i.e., Shanghai Stock Exchange. BSE is not leading any stock index. LSE is in the leading position in all four cases. It has also been observed that co-movement started to concentrate at a shorter time scale as soon as the impact of the crisis increased.

Part II Financial Services Regulation, 11 Listing and Public Offers

2018 ◽  
Author(s):  
Walker George ◽  
Purves Robert ◽  
Blair Michael
Keyword(s):  
European Union ◽  
Financial Services ◽  
Information Disclosure ◽  
Stock Exchange ◽  
The European Union ◽  
London Stock Exchange ◽  
Financial Services Regulation ◽  
The Uk ◽  
Public Offer ◽  
The Eu

This chapter examines the regulatory framework for listing and public offers in the UK, with a particular focus on the Prospectus Directive regime that was first adopted by the European Union in November 2003 and implemented in the UK from 1 July 2005. The Prospectus Directive regime regulates information disclosure in connection with a public offer or admission to listing on a regulated market in the EU. The chapter first provides an overview of the evolution of the Prospectus Directive regime before discussing its implementation in the UK. It then considers when a prospectus is required and what it must contain and describes the listing regime in the UK, which combines admission to the ‘Official List’ with admission to trading on one of the markets of the London Stock Exchange. The chapter also explains the UK listing requirements and the ongoing obligations faced by issuers admitted to listing and trading.

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