Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )

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 1990s, Price Waterhouse (now
PricewaterhouseCoopers) developed an “opacity index” to
measure the transparency (or absence thereof) of financial
statementsindifferentcountries.Definingopacityasthe“the
lackofclear,accurate,formal,easilydiscernible,andwidely
accepted practices,” Price Waterhouse looked at five factors.

whereiindexes the countries:

O refers to the composite O-Factor (the final score)

C refers to the impact of corrupt practices

Lreferstotheeffectoflegalandjudicialopacity(including
shareholder rights)

E refers to economic/policy opacity

A refers to accounting/corporate governance opacity