Posted by Lin Liye, Year 4 undergrad at the School of Economics, Singapore Management University

Food for thought:

http://www.forbes.com/sites/ninaxiang/2014/04/16/accounting-fraud-is-still-widespread-among-chinese-companies/

http://www.scmp.com/business/money/markets-investing/article/1425932/chinese-companies-head-us-listings

Posted by Amy CHAN Wen Yi, Year 4 undergrad at the School of Accountancy, Singapore Management University

Accounting Fraud Is Still Widespread Among Chinese Companies

With the renewed enthusiasm shown by the market for new listings from China, one would assume that investors had turned the page on all the claims of accounting fraud over the past few years.

But do so only at one’s own risk.

There are still many U.S.-listed Chinese companies with the potential to be hit with accounting fraud that investors do not yet know about, at least according to one China-focused hedge fund manager. Continue reading →

http://www.institutionalinvestor.com/Popups/PrintArticle.aspx?ArticleID=3427665

How to Tell if a CEO Is Lying: A new approach to financial analysis measures executive evasion and candor to gauge a company’s outlook.

16 FEB 2015 – JAN ALEXANDER

William McCaffrey, chairman and CEO of MEG Energy Corp. in Calgary, Alberta, was telling analysts about the capital expenditures of his Canadian oils sands development company during its third-quarter 2014 earnings call. “What we’re doing, is we are doing ground field expansion that we are just in the early stages of design,” he said. “When we take a look at our capabilities on that, we focused — our capital programs we focused first obviously on the sustaining and maintenance and that’s really 20 percent of its street 2015 estimate our cash flow.” Continue reading →