Harvard Case - A Tale of Two "Orientals": Lessons from Short Selling Attacks
"A Tale of Two "Orientals": Lessons from Short Selling Attacks" Harvard business case study is written by Hong Zhang, Anne Yang, Xiaojia Guo. It deals with the challenges in the field of Economics. The case study is 21 page(s) long and it was first published on : Feb 27, 2017
At Fern Fort University, we recommend a multi-pronged approach for Oriental Holdings to address the short-selling attacks and restore investor confidence. This includes strengthening corporate governance, enhancing transparency, and proactively engaging with stakeholders.
2. Background
This case study revolves around Oriental Holdings, a Malaysian conglomerate with diverse business interests, including plantation, property, and automotive. The company faced a series of short-selling attacks, which significantly impacted its share price and reputation. These attacks alleged financial irregularities and questioned the company's transparency and corporate governance practices.
The main protagonists are:
- Oriental Holdings: A family-owned conglomerate facing a crisis of confidence.
- Short sellers: Investors who profit by betting against a company's stock price.
- Investors: Individuals and institutions who hold shares in Oriental Holdings.
- Regulators: Malaysian authorities responsible for overseeing the financial markets.
3. Analysis of the Case Study
Strategic Framework: The case study can be analyzed using a SWOT analysis framework, considering Oriental Holdings' internal strengths and weaknesses, as well as external opportunities and threats.
Strengths:
- Diversified portfolio: Oriental Holdings operates in various sectors, providing some resilience to economic downturns.
- Strong brand reputation: The company has a long history and a well-established brand in Malaysia.
- Family ownership: This provides a sense of stability and long-term vision for the company.
Weaknesses:
- Lack of transparency: The company's financial reporting and corporate governance practices were perceived as opaque.
- Limited communication: Oriental Holdings did not effectively engage with investors and address their concerns.
- Vulnerability to short-selling: The company's structure and lack of transparency made it susceptible to attacks.
Opportunities:
- Emerging markets growth: Southeast Asia presents significant growth potential for businesses like Oriental Holdings.
- Technological advancements: The company can leverage technology to improve efficiency and transparency.
- Investor relations: Building stronger relationships with investors can help rebuild confidence.
Threats:
- Short-selling attacks: These can further erode investor confidence and impact the company's share price.
- Regulatory scrutiny: Authorities may investigate the company's practices, leading to potential penalties.
- Economic downturn: A global recession could negatively impact Oriental Holdings' businesses.
Financial Framework: The case study also highlights the importance of financial stability and transparency. Short-selling attacks often exploit perceived weaknesses in a company's financial reporting and governance.
4. Recommendations
Strengthen Corporate Governance:
- Independent Board: Appoint a majority of independent directors to the board to ensure greater oversight and accountability.
- Financial Transparency: Implement rigorous financial reporting standards and disclose all relevant information to investors.
- Internal Controls: Establish robust internal controls to prevent financial irregularities and ensure compliance with regulations.
Enhance Transparency and Communication:
- Investor Relations: Establish a dedicated investor relations department to proactively engage with investors, address concerns, and provide regular updates.
- Public Relations: Develop a comprehensive communication strategy to manage public perception and counter negative narratives.
- Social Responsibility: Demonstrate commitment to corporate social responsibility initiatives to enhance the company's image.
Proactively Engage with Stakeholders:
- Short Seller Dialogue: Engage with short sellers to understand their concerns and address them directly.
- Regulatory Cooperation: Collaborate with regulators to ensure compliance and transparency.
- Investor Education: Educate investors about the company's business model, financial performance, and long-term strategy.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Oriental Holdings' core competencies in diversified business operations and its mission to create long-term value for shareholders.
- External Customers and Internal Clients: The recommendations address the concerns of external investors and internal stakeholders, including employees and management.
- Competitors: The recommendations help Oriental Holdings differentiate itself from competitors by demonstrating stronger corporate governance and transparency.
- Attractiveness: The recommendations are expected to improve investor confidence, enhance the company's share price, and attract new investments.
6. Conclusion
Oriental Holdings needs to take decisive action to address the short-selling attacks and restore investor confidence. By strengthening corporate governance, enhancing transparency, and proactively engaging with stakeholders, the company can regain its reputation and achieve sustainable growth.
7. Discussion
Alternatives:
- Ignoring the attacks: This could lead to further erosion of investor confidence and a decline in the company's share price.
- Legal action against short sellers: This could be expensive and time-consuming, and may not be effective in restoring investor confidence.
Risks:
- Implementation challenges: Implementing the recommendations may require significant resources and time.
- Negative market reaction: The market may not immediately respond positively to the changes.
- Regulatory scrutiny: The company may face increased regulatory scrutiny as a result of the attacks.
Key Assumptions:
- Management commitment: The company's management must be committed to implementing the recommendations.
- Investor confidence: Investors will respond positively to the changes and regain confidence in the company.
- Regulatory support: Regulators will support the company's efforts to improve transparency and governance.
8. Next Steps
- Develop a detailed implementation plan: This should include specific timelines, responsibilities, and performance metrics.
- Communicate the changes to stakeholders: This should be done transparently and proactively to build trust and confidence.
- Monitor progress and make adjustments: The company should continuously monitor the impact of the changes and make adjustments as needed.
By taking these steps, Oriental Holdings can navigate the challenges of short-selling attacks and emerge as a stronger and more transparent company.
Hire an expert to write custom solution for HBR Economics case study - A Tale of Two "Orientals": Lessons from Short Selling Attacks
- Asian Private Equity Quest Return Case Study Solution
- Rogue Trader Daiwa Bank Management Responsibility Different Jurisprudential Systems Practices Cultures Case Study Solution
- Asiainfo Ipo Decision Case Study Solution
- Worth Risk Using Variable Interest Entity Vie Invest China Case Study Solution
- Sun Hung Kai Governance Crisis Family Firm Case Study Solution
- Shareholder Activists Corporate Strategy Case Study Solution
- Société Générale Rogue Trader Case Study Solution
- Negotiating Success Asia Adapting Multipolar World Case Study Solution
- Forty Chinese Police Fivestar Bali Conference Scam Case Study Solution
- Harder Fall Companys Ipo Fiasco Case Study Solution
- Panic Corporate Transparency Accountability Trust Case Study Solution
- Yung Kee Resolving Corporate Governance Troubles Hong Kongbased Family Business Case Study Solution
Case Description
The case focuses on the main issues faced by two US-listed Chinese companies - Orient Paper (NYSE MKT: ONP) and New Oriental Education and Technology Group (NYSE: EDU) - when they were attacked by Muddy Waters, LLC. Interestingly, the seemingly similar responses of the two "Orientals" resulted in widely disparate outcomes, offering lessons to emerging market firms eager to embrace the global capital markets. The case aims to help students understand the mechanism of short selling in the context of "bear" attacks, and expose the problems that attract short sellers' attention, as well as the actions companies can take to deal with them. It also explains the normative role that short selling plays in the market: to discipline corporate behaviour and improve market efficiency.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - A Tale of Two "Orientals": Lessons from Short Selling Attacks
Hire an expert to write custom solution for HBR Economics case study - A Tale of Two "Orientals": Lessons from Short Selling Attacks
A Tale of Two "Orientals": Lessons from Short Selling Attacks FAQ
What are the qualifications of the writers handling the "A Tale of Two "Orientals": Lessons from Short Selling Attacks" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " A Tale of Two "Orientals": Lessons from Short Selling Attacks ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The A Tale of Two "Orientals": Lessons from Short Selling Attacks case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for A Tale of Two "Orientals": Lessons from Short Selling Attacks. Where can I get it?
You can find the case study solution of the HBR case study "A Tale of Two "Orientals": Lessons from Short Selling Attacks" at Fern Fort University.
Can I Buy Case Study Solution for A Tale of Two "Orientals": Lessons from Short Selling Attacks & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "A Tale of Two "Orientals": Lessons from Short Selling Attacks" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my A Tale of Two "Orientals": Lessons from Short Selling Attacks solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - A Tale of Two "Orientals": Lessons from Short Selling Attacks
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "A Tale of Two "Orientals": Lessons from Short Selling Attacks" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "A Tale of Two "Orientals": Lessons from Short Selling Attacks"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study A Tale of Two "Orientals": Lessons from Short Selling Attacks to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for A Tale of Two "Orientals": Lessons from Short Selling Attacks ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the A Tale of Two "Orientals": Lessons from Short Selling Attacks case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "A Tale of Two "Orientals": Lessons from Short Selling Attacks" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).