Samuel J. Winer and Amy N. Kroll
On December 20, 2002, the Securities and Exchange Commission (“SEC”), the National Association of Securities Dealers (“NASD”), the New York Stock Exchange (“NYSE”), the New York…
Abstract
On December 20, 2002, the Securities and Exchange Commission (“SEC”), the National Association of Securities Dealers (“NASD”), the New York Stock Exchange (“NYSE”), the New York Attorney General, and the North American Securities Administrators Association (“NASAA”) announced their Global Settlement resolving investigations at 10 large integrated securities firms into business practices involving equity research analysts. The 10 firms agreed to pay over $1.4 billion in fines and to overhaul the way in which they prepare, review, and issue equity research. These firms also agreed to change significantly the way that equity research analysts interact with other business groups, in particular investment banking. These efforts are intended to eliminate practices that were alleged to have undermined the integrity and independence of equity research produced at those firms. Most securities firms that were not parties to the settlement, and that both issue equity research and provide investment banking services, are likely to establish supervisory procedures designed to honor the spirit of the Global Settlement. Regulators, however, have not yet provided clarity as to what they will require of firms not party to the Global Settlement. Furthermore, the NYSE and NASD have proposed amendments to their existing rules addressing research‐analyst independence that will, if adopted, expand the universe of firms that need to address potential conflicts of interest of the research function to include all firms that issue research, not only those that both issue research and provide investment banking services. The proposed amendments also will expand the definition of research, which could further extend the reach of the NYSE and NASD rules. This article will attempt to provide general guidance in two of the areas addressed in the Global Settlement and in the NYSE and NASD rules and proposed amendments to those rules: (1) the separation of the equity research department from other firm functions, and (2) the compensation of equity research analysts. Please note, however, that in this time of regulatory change, even this summary guidance quickly could become obsolete once the regulators finalize their rulemaking efforts in this area.
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Samuel J. Winer, Amy N. Kroll and Arden T. Phillips
The National Association of Securities Dealers and the New York Stock Exchange recently have adopted and then amended new rules relating to research analyst conflicts of interest…
Abstract
The National Association of Securities Dealers and the New York Stock Exchange recently have adopted and then amended new rules relating to research analyst conflicts of interest. However, open questions remain, and these two self‐regulatory organizations (SROs), in collaboration with the SEC, must provide further guidance on the application of these rules to various day‐to‐day situations such as an analyst receiving a customer inquiry concerning investment banking capabilities, a firm’s participation in an investment banking syndicate after the firm’s analyst has begun research coverage of the issuer, procedures for analysts to conduct due diligence, publishing research reports on an issuer while a firm is engaged in a distribution of the issuer’s securities, and analysts’ limitations during distribution quiet periods.
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Amy N. Kroll and Valérie Demaret‐Fleming
In March 2004, the NASD and the New York Stock Exchange (the “NYSE,” together with the NASD, the “SROs”) issued a joint memorandum (the “2004 Joint Memorandum”) that provides…
Abstract
In March 2004, the NASD and the New York Stock Exchange (the “NYSE,” together with the NASD, the “SROs”) issued a joint memorandum (the “2004 Joint Memorandum”) that provides interpretative guidance on NASD Rule 2711 and the research analyst provisions of NYSE Rules 351 and 472, as amended in July 2003 (the “SRO rules”), and addresses issues raised by members regarding these rules. The SROs state in the 2004 Joint Memorandum that the guidance provided in their first joint memorandum issued in July 2002 (the “2002 Joint Memorandum”) continues to apply unless stated otherwise in the 2004 Joint Memorandum. This article will identify and discuss the major issues addressed in the 2004 Joint Memorandum and attempt to provide general guidance to practitioners seeking to understand the implications of these issues for their clients” research analysts’ activities. In analyzing the application of the SRO rules and derivative material, including the 2004 Joint Memorandum, the starting point always must be an understanding of what activities and materials the SRO rules address. The SRO rules apply to registered broker‐dealers that are members of either the NYSE or NASD (“member firm” or “member firms”) with research analysts who produce “research reports” and “public appearances” with regard to any “equity security” as defined in section 3(a)11 of the Exchange Act of 1934 (the “Act”).
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The words in the CRM (Customer Relationship Management) have become short‐hand buzz words for describing how firms foster a 360‐degree review of the customer lifecycle. The…
Abstract
The words in the CRM (Customer Relationship Management) have become short‐hand buzz words for describing how firms foster a 360‐degree review of the customer lifecycle. The primary goal of this study is to provide a synopsis of innovative CRM concepts that can assist entrepreneurial small firms develop a process to effectively communicate with their customers, such as an e‐newsletter and CD‐ROM direct mail campaign. A practitioner‐oriented model is developed that depicts the CRM process of using multiple communication channels, building loyalty, establishing customer retention tactics, and changing service offers to foster the customer experience.
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Susan C. Herring, Lois Ann Scheidt, Elijah Wright and Sabrina Bonus
Aims to describe systematically the characteristics of weblogs (blogs) – frequently modified web pages in which dated entries are listed in reverse chronological sequence and…
Abstract
Purpose
Aims to describe systematically the characteristics of weblogs (blogs) – frequently modified web pages in which dated entries are listed in reverse chronological sequence and which are the latest genre of internet communication to attain widespread popularity.
Design/methodology/approach
This paper presents the results of a quantitative content analysis of 203 randomly selected blogs, comparing the empirically observable features of the corpus with popular claims about the nature of blogs, and finding them to differ in a number of respects.
Findings
Notably, blog authors, journalists and scholars alike exaggerate the extent to which blogs are interlinked, interactive, and oriented towards external events, and underestimate the importance of blogs as individualistic, intimate forms of self‐expression.
Originality/value
Based on the profile generated by the empirical analysis, considers the likely antecedents of the blog genre, situates it with respect to the dominant forms of digital communication on the internet today, and suggests possible developments of the use of blogs over time in response to changes in user behavior, technology, and the broader ecology of internet genres.
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Suggests that most managers (other than those in marketing) take the view that too much money is spent on marketing. Adumbrates that the accountant may be able to contribute to…
Abstract
Suggests that most managers (other than those in marketing) take the view that too much money is spent on marketing. Adumbrates that the accountant may be able to contribute to improved decision making in marketing with regard to expenditure as an investment outlay rather than current expenses. Stresses, herein, that the concern for accounting is with marketing assets and their intangibility. Discusses further assets, valuation and investment and portrays these with the aid of tables and figures. Sums up by saying that a strong case can be made for recognizing many examples of marketing outlay as investments in assets rather than current operating expenses, showing new light on attitudes towards marketing decision‐making and financial reporting.
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Kirti Sharda and Leena Chatterjee
There is an increasing recognition of outsourcing firms as new organizational forms with unique systems and practices. This paper seeks to use a configurational approach to…
Abstract
Purpose
There is an increasing recognition of outsourcing firms as new organizational forms with unique systems and practices. This paper seeks to use a configurational approach to integrate learning from outsourcing literature, organization and management theory, strategic management and strategic human resource management in order to understand similarities and differences between outsourcing firms and their performance. It aims to examine if certain combinations of work designs, strategic orientations, client relations and contexts could lead to better organizational performance within a sample of outsourcing firms.
Design/methodology/approach
A combination of descriptive and exploratory research design has been used to collect data from 60 outsourcing firms across India. Using survey and semi‐structured interviews, data have been collected from the top management team and non‐managerial employees in each organization (n=836 respondents). Principal components factor analysis, Ward's minimum variance method, K‐means cluster analysis, and χ2 have been used to arrive at configurations of outsourcing firms. Kruskal‐Wallis one‐way ANOVA and Tamhane's T2‐test have been used for further hypothesis testing.
Findings
Five dominant configurations of outsourcing firms emerge, namely, clear‐eyed strategists, adapting professionals, focalizing artisans, conservative controllers, and overambitious associates. Specific configurations of outsourcing firms are associated with better performance across a variety of organizational performance parameters (average attrition, growth in employment, growth in clients, growth in offered processes and overall satisfaction with organisational performance).
Research limitations/implications
Future research could include financial performance measures and could examine potential conflicts in performance outcomes. It would also be interesting to include client perspective in future studies on outsourcing firm success. Replicating the results of this study across countries would enhance their validity and generalizability.
Practical implications
It is hoped that the findings of this paper will contribute to theory building in the field of both outsourcing and configurational research. At the same time, the study is expected to help managers who are trying to move their outsourcing firms in the direction of sustainable success through the choice of appropriate strategies, designs, inter‐organizational relations and contexts.
Originality/value
This is one of the initial studies to classify outsourcing firms using organizational level variables. While most prior studies have examined outsourcing success from the client perspective, this paper provides an important shift towards studying organizational performance from the outsourcing firm's perspective. Since configurational membership can predict which firms will perform better than others on objective and subjective performance measures, this paper provides a useful framework to managers for structuring processes and inter‐organizational relations while making informed strategic choices.