http://www.ft.com/intl/cms/s/0/31f6073c-9af5-11e4-b651-00144feabdc0.html#axzz3OmGHjs2r

http://www.reuters.com/article/2015/01/13/us-kaisa-group-debt-bonds-idUSKBN0KM14320150113 

January 13, 2015 9:48 am

Kaisa default risks waking China property bears

Josh Noble in Hong Kong

For China’s property market bears, the default by a Hong Kong-listed developer on its US dollar bonds looks like the canary in the coal mine. More are likely to follow, they argue, as the great unravelling of the heavily indebted and chronically oversupplied sector finally gets under way. Continue reading →

http://www.koreatimes.co.kr/www/news/biz/2015/01/123_171557.html

Read the article on Hanjin Group together with “Intragroup Propping: Evidence from the Stock-Price Effects of Earnings Announcements by Korean Business Groups” (Link), “Tunneling through intercorporate loans: The China experience” (Link) and “Expropriation through loan guarantees to related parties: Evidence from China” (Link)

Updated : 2015-01-12 17:58

Increase in Hanjin Group debt raising liquidity concerns

By Lee Hyo-sik

Hanjin Group, a logistics-centered, family-controlled conglomerate, has seen its debt soar over the past few years as Korean Air and other group units borrowed money to prop up their sagging businesses.
Hanjin’s debt has grown at the fastest pace among the nation’s top 10 business groups since the 2008 global financial crisis, and has the highest debt-to-equity ratio, raising the possibility that it may face a liquidity crunch. Continue reading →

http://www.scmp.com/print/business/companies/article/1678444/solar-equipment-maker-trony-dark

Solar equipment maker Trony in the dark

Monday, 12 January, 2015, 4:00am

Eric Ng eric.mpng@scmp.com

A forensic review of energy equipment maker Trony’s accounts uncovers three sets of books with different figures and many unanswered questions

Several sets of books with varying figures, missing computers, erased data, dubious clients and suppliers – the irregularities at Trony Solar Holdings [1], whose shares were suspended from trading in June 2012 – are the stuff of a regulator’s nightmare. Continue reading →

http://www.ibtimes.co.uk/tesco-shares-could-plunge-140p-amid-jitters-over-lengthy-fraud-probes-1478714

Posted by Shaun CHEW, Year 4 undergrad at the School of Accountancy, Singapore Management University

Tesco shares have fallen to a 12-year low, but some analysts say that the embattled grocer’s stockprice could fall further. According to a range of analysts, Tesco shares are being sold-off as investors worry over why fraud investigations are taking so long to come to a conclusion. Continue reading →

http://www.scmp.com/print/business/china-business/article/1668545/investors-rush-cash-shares-linked-ling-family

http://english.caixin.com/2014-12-24/100767461.html

Read this together with “Relationship Networks and Earnings Informativeness: Evidence from Corruption Cases” (Link)

Investors rush to cash in shares linked to Ling family

Wednesday, 24 December, 2014, 5:15am

Daniel Ren in Shanghai ren.wei@scmp.com

Shares of the seven listed firms linked to the family of Ling Jihua fell yesterday as probes into the top aide to former president Hu Jintao prompted investors to cash out amid fears of a further slide. Continue reading →

http://www.nytimes.com/2015/01/10/opinion/joe-nocera-riddle-of-the-pyramids.html?ref=opinion&_r=0

The Opinion Pages | OP-ED COLUMNIST

Riddle of the Pyramids: What Is Herbalife?

JAN. 9, 2015

“We’re doing God’s work,” said William Ackman, the hedge fund manager, on CNBC this week. He was referring to his $1 billion bet against Herbalife, the company that he accuses of being an illegal pyramid scheme.

Continue reading →

http://www.nytimes.com/2009/01/08/business/worldbusiness/08satyam.html?_r=1&

Posted by CHEN Liting, Year 3 undergrad at the School of Accountancy, Singapore Management University

Discussion Questions: (1) Satyam is Hyderabad-based – do regional culture and institutional context matter (Link1, Link2, Link3)? Who are the other Hyderabad-based accounting fraud cases? (2) What does it take to restore trust after the revelation of an accounting fraud? Was Tech Mahindra of the Mahindra Group successful in their turnaround efforts at Satyam? (3) How about Satyam’s auditor PwC?

Satyam Chief Admits Huge Fraud

Ramalinga Raju, chairman of Satyam Computer Services, resigned Wednesday after disclosing he had systematically falsified accounts of the giant outsourcing company.

By HEATHER TIMMONS and BETTINA WASSENER

Published: January 7, 2009

NEW DELHI — Satyam Computer Services, a leading Indian outsourcing company that serves more than a third of the Fortune 500 companies, significantly inflated its earnings and assets for years, the chairman and co-founder said Wednesday, roiling Indian stock markets and throwing the industry into turmoil. Continue reading →

http://www.chinapost.com.tw/print/425942.htm

FAT denies Next Media allegations of asset theft by CEO
Thursday, January 8, 2015
The China Post news staff

TAIPEI, Taiwan — Far Eastern Air Transport (FAT, 遠東航空) yesterday refuted a Chinese-language magazine’s claim that the airline’s president hollowed out about NT$500 million of company assets. Continue reading →

http://www.chinapost.com.tw/print/426030.htm

Drug tycoon implicated in breach of trust
Friday, January 9, 2015
By John Liu, The China Post

Prosecutors conducted a search on the residence of Lin Rong-jin (林榮錦), the former chairman of pharmaceutical company TTY Biopharm Company (東洋製藥), on suspicion of hollowing out company assets. Continue reading →

http://www.btinvest.com.sg/personal_finance/young-investors-forum/a-re-look-at-china-stocks/

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

Amy: The BT article “A re-look at China stocks?” provided a good overview on China stock classifications and also discussed about some accounting irregularities that happened to some of the S-chip stocks. Excerpts below:

Discussion question: Do (systematic) accounting irregularities for a group of companies have negative spillover effects for others in the stock exchange, including resulting in a lower credibility and market valuation?

For example, SGX is panned as a place to raise funds in 2015: BT article on Jan 9, 2015

What type of companies tend to be impacted adversely and how to avoid the “infection”? What is the transmission mechanism (e.g. common ownership identity hidden in nominee accounts)? Will the overall market degenerate into a “lemon’s market” over time and how to solve the lemon’s problem?

A re-look at China stocks?

04 Nov 2013 17:39 by CAI HAOXIANG

A lack of confidence

Chinese companies have also chosen to list elsewhere, such as on the Singapore Exchange (SGX) and the New York Stock Exchange. However, many of these stocks have been plagued by a lack of investor confidence, making them easy targets for short-sellers. Continue reading →