Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
emerging marketsareoftenincomplete andleave out large chunksofrelevantinformation,largelyasaconsequenceof lax regulatory require ...
Theaccountingstandards thatareonthebookstodaywere originally written for manufacturing firms that dominated business 40 yearsago ...
6 Whymightthisaddtothecomplexityoffinancialstatements? Depending on what assets they invest in and how they structurethese inves ...
9 Someofthesefirmsusetheseentitiesaslegitimatedevices to reduce their cost of debt and then provide information abouttheirexiste ...
Unintended Consequences of Increased Disclosure Requirements Overthepastthreedecades,wehaveseenanincreasingfocus on information ...
complexityofP&G’sbusinesses,alargeportionofitreflects the effects of new accounting edicts and rules. FIGURE16.1NumberofPage ...
Business Mix Some firms aremore complex thanothers simply because they operate in multiple businesses, often with little in comm ...
businesses into one entity. In some cases, firms can exacerbateproblemsbycreatingsubsidiariesforeachoftheir businesses and holdi ...
complexity. For instance, the pyramid structure (described more fully in Chapter 13) favored by many Asian and European firms ca ...
allocation to existing assets, there is enough discretionintheprocessthatdifferentappraiserscan arrive atdifferent estimatesfor ...
Consideroneexample.Intheearly1990s,investmentbankers createdasecuritycalledtrustpreferredstock.Thesesecurities allowedfirmsto ge ...
REASONS FOR COMPLEXITY Firms with complicated financial statements have to bear muchoftheresponsibilityforthecomplexity,nomatter ...
whereas firms with weak corporate governance often have opaque financial statements. As we noted in the prior section, family-ru ...
Operating and Business Concerns Forsome firms, at least,there arereal costs to disclosing moreinformationtofinancialmarkets.Comp ...
Wehavesavedthemostodiousofthereasonsforcomplexity forlast.Firmssometimes createcomplex structurestofool investorsintobelievingth ...
andExchangeCommission(SEC)rangeinsizefromlessthan 200 pages toin excess of 1,000 pages.In Table 16.1, we summarizethelengthofthe ...
thanitistoanyotherpartofGE.Consequently,firms havetogotogreatlengthstoseparatethefinancial obligations and dealings ofthese subs ...
Pfizer 171 460 Citigroup 252 1,026 Intel 69 215 AIG 164 720 Johnson & Johnson 63 218 IBM 85 353 Opacity Index In the late 19 ...
Rreferstotheimpactofregulatoryopacityanduncertainty/ arbitrariness PriceWaterhousebasedthecountryscoresforeachfactoron a survey ...
Inconsistentrulesonconsolidationandtreatment of goodwill(UnitedStates,UnitedKingdom,Singapore, and South Africa). Dualbookkeepi ...
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