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The Handbook of News Analytics in Finance
book

The Handbook of News Analytics in Finance

by Gautam Mitra, Leela Mitra
May 2011
Beginner to intermediate
384 pages
12h 28m
English
Wiley
Content preview from The Handbook of News Analytics in Finance

4.10 CORPORATE SENIOR MANAGEMENT UNDER THE GUN

The SEC regulates the news that the senior management of publicly traded businesses in the US releases to the public. The SEC does not regulate the news that the news media publish about publicly traded businesses. This creates a difficult environment where senior management can be constantly under the gun of the news media. If you were in a war and your enemy had a constant supply of ammunition while you had only a limited supply, it would be really difficult to survive, let alone win that war.

What is worse, some Wall Street investment banks can get into the news media business really easily by creating research reports or simply by publishing earnings estimates for corporations. When a company comes out and gives its earnings estimate and an influential analyst raises that earnings estimate, the effect creates a very competitive news environment under which senior management has very little or no way to respond, due to various regulations that must be abided by.

Senior managements are constantly working under pressure from news media, including Wall Street analysts' news and regulatory agencies.

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Publisher Resources

ISBN: 9780470666791Purchase book