1. Which Stock Exchange of Thailand industry group provides the most environmental disclosure?
a) Agriculture
b) Food industries
c) Resources
2. What percentage of top 30 Polish firms offer recorded or live online AGM broadcasts?
a) 33
b) 12
c) 67
3. SOX’s effect on the value of firms issuing ADRs has been:
a) Positive
b) Negative
c) Neutral
4. True or false? Larger Brazilian companies and those listed for a longer time disclose the most and least, respectively, financial and governance information on corporate websites.
5. True or false? Large firms with an IRO among the top five most highly paid employees are more likely to meet or just beat analyst expectations.
6. True or false? European firms reporting non-GAAP earnings figures should avoid the urge to accompany them with marketing jargon and spin.
7. True or false? Demutualization of exchanges has resulted in lower listing costs.
8. True or false? Quarterly earnings reporting conveys useful information to the investment community.
Answers (one point for each correct)
1. A study in the International Journal of Accounting and Financial Reporting finds Thai firms in the resources sector provide the most environmental information; agriculture and food companies offer the least.
2. A Wrocław University of Economics study finds only 33 percent offer their AGM online.
3. A Southern New Hampshire University analysis of 234 ADR announcements from 1994 to 2010 suggests the effect is neutral. On average, post-SOX investors have reacted just as positively as pre-SOX investors to ADR issue announcements.
4. Brazilian investigators find that while larger non-financial companies tend to disclose the most, those listed longest communicate least. Factors such as profitability, leverage and stock return show no link with voluntary website disclosure. What’s more, while companies listed on the BM&FBovespa’s Novo Mercado tend to be the more generous information providers, even these firms show considerable reluctance.
5. True. A University of Colorado at Boulder study also documents a relationship between abnormal executive pay dispersion and earnings management.
6. True. Investors totally see through it and react negatively, according to an Iberian research team.
7. False. Italian researchers find that while admission fees have remained roughly stable, annual fees have increased in some markets (Euronext, NASDAQ and TSX). Only the Borsa Italiana has decreased the annual fee, and then solely for the largest issuers.
8. False, at least in India. Researchers in Tamilnadu, sampling Nifty 50 companies on the National Stock Exchange, find earnings announcements have virtually no impact on the market.
How did you do?
1-2: Stand in the corner and repeat: ‘This information isn’t really useful anyway.’
3-7: Just an average guy with a nice hardwood floor.
8: Take a bow, look smug and request a salary raise.
