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Corporate Research Project of Good Jobs First
Corporate Research BasicsCorporate Research BasicsPhilip Mattera Corporate Research Project
Corporate Research Project of Good Jobs First
General principles General principles
There’s a lot more available than you thinkMost of what is available is intended for
other kinds of users (mainly investors).A lot of info can be found online, but you
need to know where to look. Avoid Google-type needle-in-haystack searches.
Not everything is online. Sometimes you need to go to the library or a government office.
Corporate Research Project of Good Jobs First
Types of online info sourcesTypes of online info sources
Searchable free websites on the open webFree websites on the “invisible” web; e.g.
government sites such as EDGAR/SEDARIndividual subscription sites on the webLarge commercial aggregators (e.g. Nexis
and Factiva)Database services available through
university or public library systems
Corporate Research Project of Good Jobs First
Major categories of informationMajor categories of information
Basic operating and financial informationEssential relationshipsSocial (ir)responsibility record
Corporate Research Project of Good Jobs First
Types of Basic InformationTypes of Basic Information
Company profilesCompany historiesCompany operating informationCompany financialsCompany websitesPress releases and media coverage
Corporate Research Project of Good Jobs First
Basic information: Basic information: Company Profiles and HistoriesCompany Profiles and HistoriesHoovers’s onlineStock market websites such as
Yahoo FinanceAdvice for Investors (Canada)Mergent ManualsBusiness and Company Resource CenterD&B reports for private companies
Corporate Research Project of Good Jobs First
Hoover’s (Hoover’s (www.hoovers.comwww.hoovers.com) ) longer profiles by subscriptionlonger profiles by subscription
Corporate Research Project of Good Jobs First
Yahoo Finance Yahoo Finance (biz.yahoo.com)(biz.yahoo.com)
Corporate Research Project of Good Jobs First
Canadian equivalent to Yahoo Canadian equivalent to Yahoo Finance (Advice for Investors)Finance (Advice for Investors)
Corporate Research Project of Good Jobs First
Mergent ManualsMergent Manuals(academic library systems)(academic library systems)
Corporate Research Project of Good Jobs First
Business and Company Resource Business and Company Resource Center (public library databases)Center (public library databases)
Corporate Research Project of Good Jobs First
D&B Business Information ReportsD&B Business Information Reports(by subscription or pay per view on web)(by subscription or pay per view on web)
Corporate Research Project of Good Jobs First
Specialized mining industry Specialized mining industry information sourcesinformation sources
InfoMine website
MiningUSA website
Mining Journal Online
Mining Magazine online
National Mining Association website
Corporate Research Project of Good Jobs First
Operating information on public Operating information on public companies in 10-K filingscompanies in 10-K filings
Corporate Research Project of Good Jobs First
10-K Item 1- Business10-K Item 1- Business
Corporate Research Project of Good Jobs First
Main types of operating Main types of operating information in 10-Ksinformation in 10-KsDescription of businessCompetitive environmentRegulatory environmentMajor suppliers (if highly dependent)Major customers (if over 10%)Properties/facilitiesLabor information
Corporate Research Project of Good Jobs First
Main types of financial data found Main types of financial data found in 10-K filings and annual reportsin 10-K filings and annual reportsRecent performanceIncome statementsBalance SheetsHistorical performance (past 5-10 years)Segment breakdownExhibits (including loan agreements)Look for updates in 10-Q quarterly filings
Corporate Research Project of Good Jobs First
Canadian equivalents to 10-KCanadian equivalents to 10-K
Annual Information Form Description of business Risk Factors Legal Proceedings etc.
MD&A (Management Discussion & Analysis) Review of results in past couple of years
Available via SEDAR (www.sedar.com)
Corporate Research Project of Good Jobs First
Outside analysis of financial dataOutside analysis of financial data
Wall Street analyst reports
Sources: Investext (via Nexis or some academic library database services)
Look especially for reports in which an analyst initiates coverage of a company, since these have much more detail and background.
Corporate Research Project of Good Jobs First
Key resources in company Key resources in company websiteswebsites
Glossy annual reportsArchive of company press releasesFull Disclosure documents (e.g.,
transcripts of analyst conference callsBiographies of executivesLocation of plants and research centersStore directory (for retailers)
Corporate Research Project of Good Jobs First
PART II. KEY RELATIONSHIPSPART II. KEY RELATIONSHIPS
Focus on these to understand how the company works and what may be important areas of vulnerability.
For example:Parent companies and subsidiariesInstitutional shareholders & creditorsOutside directorsMajor customers and suppliers
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS:KEY RELATIONSHIPS:Parent companies & subsidiariesParent companies & subsidiaries
Directory of Corporate Affiliations (on Lexis-Nexis, some academic database systems and via direct subscription)
America’s Corporate Families or Who Owns Whom (on Dialog database service)
Corporate Research Project of Good Jobs First
Sample page from Sample page from Directory of Directory of Corporate Affiliations Corporate Affiliations on Nexison Nexis
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS: KEY RELATIONSHIPS: Outside DirectorsOutside Directors
Are supposed to be watchdogs but often act as lapdogs of top management
Since the scandals involving Enron etc., there is more emphasis on director independence
Frequently targeted in corporate campaigns, since they are ultimately responsible for company policy
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS: KEY RELATIONSHIPS: Outside DirectorsOutside Directors Key info source: Proxy Statements (also known
as Form DEF 14A) Key pieces of information:
- director biography and affiliations- transactions with company- director pay and shareholdings- board committee memberships
Also has info on annual meeting, executive compensation and shareholder resolutions
Corporate Research Project of Good Jobs First
Sample of proxy cover pageSample of proxy cover page
Corporate Research Project of Good Jobs First
Canadian equivalent to DEF14ACanadian equivalent to DEF14A
Management Information CircularPrincipal shareholdersDirector biographiesDirect shareholdingsExecutive compensation
Available via SEDAR (www.sedar.com)
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS: KEY RELATIONSHIPS: Institutional ShareholdersInstitutional ShareholdersInstitutions include: pension funds (private
and public), mutual funds and other investment firms, insurance companies, university endowments, etc.
Majority of stock in most large corporations held through institutions.
Institutions can have great power over corporate practices, though they don’t always exercise that power.
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS:KEY RELATIONSHIPS:Institutional ShareholdersInstitutional ShareholdersObtaining lists of largest holders.Holders with 5% or more will be disclosed
in the proxy statement.List of ten largest holders available from
free websites such as Yahoo Finance.Detailed (but not totally complete) lists
available from subscription services such as Vickers and Thomson.
Corporate Research Project of Good Jobs First
Sample list from Yahoo FinanceSample list from Yahoo Finance
Corporate Research Project of Good Jobs First
Sample list from Vickers Sample list from Vickers (screen showing voting authority)(screen showing voting authority)
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS:KEY RELATIONSHIPS:Wall Street AnalystsWall Street Analysts
Can have a lot of influence over stock prices and thus are key parties to try to influence in a corporate campaign
Get their reports from services such as Investext
Use Nelson’s Directory of Investment Research to find out which ones cover a company (print version or on Lexis-Nexis)
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS: CreditorsKEY RELATIONSHIPS: Creditors
Types of lenders:Single banksCredit syndicates (groups of banks)BondholdersGet most involved when a company is in
financial distress or bankruptcy, but concern about major environmental liabilities, e.g., can lead to higher interest rates for the company.
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS: CreditorsKEY RELATIONSHIPS: Creditors
Sources of information on lenders:Debt section of Notes to Financial
Statements in 10-KCredit agreements in 10-K ExhibitsD&B services will list firm’s main bankSpecialized newsletters such as
Bank Loan Report (available via Nexis)Uniform Commercial Code filings
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS: KEY RELATIONSHIPS: CustomersCustomersCompanies are secretive about their
customers.10-Ks will disclose only if company is
very dependent on a few major customers.Do a full-text search of EDGAR to find
firms that list your target company as a major supplier.
Trade publications and customer websites.
Corporate Research Project of Good Jobs First
KEY RELATIONSHIPS: SuppliersKEY RELATIONSHIPS: Suppliers
As with customers, companies tend not to disclose much about suppliers.
10-K will include a disclosure only if the firm is highly dependent on a supplier.
To determine which firms supply a particular product, see Thomas Register in libraries or ThomasNet on web.
For info on supply chains (especially for timber), see Endgame.org
Corporate Research Project of Good Jobs First
Part III. SOCIAL Part III. SOCIAL RESPONSIBILITY RECORDRESPONSIBILITY RECORDSocial responsibility profilesCourt proceedingsFederal regulatory mattersLabor relations & employment practicesWorkplace safety and healthEnvironmental complianceCampaign contributions and lobbying
Corporate Research Project of Good Jobs First
Other social responsibility issuesOther social responsibility issues
Public relationsAdvertising practicesCorporate philanthropySponsored researchExecutive compensationCorporate subsidiesTax compliance
Corporate Research Project of Good Jobs First
SOCIAL RESPONSIBILITY: SOCIAL RESPONSIBILITY: Company ProfilesCompany ProfilesKLD’s Socrates database (expensive)
SocialFunds.com’s Corporate Social Research Center
10-K sections on Legal Proceedings
Company sustainability reports/web pages
Corporate Research Project of Good Jobs First
Newmont sustainability reportNewmont sustainability report
Corporate Research Project of Good Jobs First
Types of court informationTypes of court information
Dockets (basic info and chronologies; federal: PACER; state: web, Courtlink)
Case documents (complaints, motions etc. increasingly online, especially PACER)
Written federal and state court opinions (Lexis-Nexis and Westlaw)
Selected verdicts and settlements (Lexis-Nexis and Westlaw)
Corporate Research Project of Good Jobs First
SOCIAL RESPONSIBILITY: SOCIAL RESPONSIBILITY: Federal regulatory agenciesFederal regulatory agenciesSecurities and Exchange CommissionFederal Trade CommissionConsumer Product Safety CommissionFood and Drug AdministrationGeneral Services Administration
(oversight of federal contractors)
Corporate Research Project of Good Jobs First
SOCIAL RESPONSIBILITY: Labor SOCIAL RESPONSIBILITY: Labor and employment issuesand employment issuesNational Labor Relations Board
(labor-management issues)U.S. Dept. of Labor (wage & hour,
employee benefits, etc.)Equal Employment Opportunity
CommissionPension Benefit Guaranty CorporationFAST CD-ROM
Corporate Research Project of Good Jobs First
SOCIAL RESPONSIBILITY: SOCIAL RESPONSIBILITY: Workplace safety & EnvironmentWorkplace safety & EnvironmentOccupational Safety and Health
Administration inspection databaseMine Safety & Health Administration
Environmental Protection Agency databases:Environmental Compliance History OnlineToxics Release InventoryEnvirofacts
Corporate Research Project of Good Jobs First
Mine Safety & Health Admin.Mine Safety & Health Admin.Data Retrieval SystemData Retrieval System
Corporate Research Project of Good Jobs First
Environmental Compliance History Environmental Compliance History Online (ECHO)Online (ECHO)
Corporate Research Project of Good Jobs First
SOCIAL RESPONSIBILITY: SOCIAL RESPONSIBILITY: Campaign contributionsCampaign contributionsFederal campaign contributions:Federal Election Commission websiteCenter for Responsive Politics-
Open Secrets website
State campaign contributions:Institute on Money in State Politics –
Follow the Money website
Corporate Research Project of Good Jobs First
SOCIAL RESPONSIBILITY: SOCIAL RESPONSIBILITY: LobbyingLobbyingSecretary of the Senate websiteOpen Secrets Lobbying DatabaseWashington Representatives
State-level lobbying: websites of individual state legislatures or state ethics commissions
Corporate Research Project of Good Jobs First
Staying up to date on new sourcesStaying up to date on new sources