The saga of a Chinese company being listed on a US stock exchange – a global financial reporting case study
Publication date: 30 September 2021
Issue publication date: 7 December 2021
Abstract
Research methodology
We obtained information on China Gerui from secondary published sources, including annual reports downloaded from the Securities and Exchange Commission’s (SEC) EDGAR database, news sites and newspapers, the company’s website and journal articles. One of the authors visited the China Gerui plant in Henan, China.
Case overview/synopsis
China Gerui, a Chinese metal fabrication company, enjoyed exponential growth because of its location, product innovation and ability to move up the value chain. At the height of its success, the company listed on the Nasdaq and had plans to raise capital to fund ambitious expansion plans. Unfortunately, four years after listing on Nasdaq, the company received a letter from the listing qualifications department notifying China Gerui that they were not in compliance with Nasdaq’s filing requirements because it had not filed its Form 20-F. Now, the company had only five days to decide whether to request an appeal of the letter.
Complexity academic level
This case is best suited for higher-level undergraduate accounting and finance courses such as intermediate accounting, auditing, international accounting, financial statement analysis, corporate finance and investments analysis. It is especially appropriate for graduate-level global accounting and advanced financial statement analysis courses. In these courses, the best placement is after coverage of SEC regulations and requirements for financial statement reporting and disclosure. Moreover, the case may be used as a tool to demonstrate the step-by-step process for searching and retrieving information from a public company’s filings through the SEC’s EDGAR database.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Keywords
Acknowledgements
Disclaimer. This case is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.
The authors would like to acknowledge Dr Linda A. Hall’s contribution to reviewing and providing general feedback with a focus on how well the case satisfied the stated learning objectives. Linda A. Hall, Interim Director and Professor of Accounting, the State University of New York at Fredonia, Linda.Hall@fredonia.edu. Corresponding author: Miranda Lam, Professor, Accounting and Finance, Salem State University, mlam@salemstate.edu.
Citation
Bandyopadhyay, J., Guo, H., Lam, M. and Liu, J. (2021), "The saga of a Chinese company being listed on a US stock exchange – a global financial reporting case study", , Vol. 17 No. 6, pp. 848-892. https://doi.org/10.1108/TCJ-01-2021-0021
Publisher
:Emerald Publishing Limited
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