A great deal of volatility in publicly traded stocks occurs around events. Knowing when these events will happen, as well as any revisions to the date, time or content of those events, helps investors get in front of any risk or volatility they may present.
This white paper explores how corporate event data can be used to manage risk and aid compliance efforts. Institutional risk managers, traders and investors will come away with an overview of the risk management process, how corporate events can be used in a risk framework, and real world applications and use cases.
What are the key risk management trends the industry can expect to see over the next 12 months and how can firms adapt to these developments? The regulatory community has placed a lot of emphasis on the need for more proactive risk management to keep ahead of the market volatility and constantly changing economic and political environment, including inflation, employment numbers and rising interest rates - what will be a key investment area related to this in 2022?
Event Data in Compliance
Corporate events dates can not only help a fund avoid risk from the companies they invest in, but internally as well. Knowing the dates of risk events helps keep tabs on insider trading and internal fraud. Since most insider activity happens in conjunction with events, it is paramount to know the exact dates of these events. Armed with this information compliance teams will know when to be on the lookout for suspicious activity within their own firms.
All Wall Street Horizon data is primary sourced, publicly available information. The following products address risk/compliance:
Risk managers may think about earnings events as a function of the announcement date, changes in the date or time, and future earnings date. More details here.
With the new Interim Calendar, institutional investors and traders can access critical dates and information when public companies report key sales, production and financial information between their quarterly or semi-annual earnings announcements. Learn more.
DateBreaks - Earnings Date Revisions
DateBreaks is designed for risk managers to stay apprised of earnings date and content changes. For example, when a tech company postpones their earnings announcement by a week, it is traditionally a bellwether for weak results. Academic research suggests that the timing of specific events on the earnings calendar can foreshadow whether the company is getting ready to reveal positive or negative updates. For more information, click here.
Dividends & Distributions
Risk managers need to consider what it will mean for a stock if a company suspends, resumes, increases, decreases or leaves a dividend unchanged. Details here.
From spinoffs and buybacks to M&As and splits, Wall Street Horizon offers detailed corporate actions. Details here.
Investor Conferences & Events
Corporate events created by companies or attended by their executives can provide compelling insight on the overall financial health of the companies involved. Details here.