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.
Get The Handbook of News Analytics in Finance now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
