A paper presented in August at the annual meeting of the American Accounting Association in Anaheim, Calif., found that “the current Sino-phobic reaction to Chinese reverse mergers may be overblown.” In an effort to assess the performance of these often maligned companies, the study concluded that “as an asset class, Chinese reverse-merger firms (CRMs) have performed as well as or better than comparable firms already listed in the same exchanges in the United States. CRMs also perform much better than U.S. RMs on multiple dimensions, even after many CRMs were delisted or demoted due to recent scandals. The emerging picture is that, despite a higher incidence of accounting problems, the CRMs are more mature and less speculative than their U.S. counterparts.” [AT]
Comments are closed.
The Fall of Wirecard, a Tech Scandal That Rocked Germany, Reaches a Courtroom [New York Times] The fraud trial of former Wirecard CEO Markus Braun began in Munich on Dec. 8. Braun and two other former executives face charges of defrauding creditors of $3.7 billion, through false accounting from 2015 until Wirecard collapsed in June […]
People who presumably aren’t paid by the Chinese government to say “everything is great!” have told Reuters that the PCAOB’s trip to Hong Kong to finally inspect Chinese audit work went pretty well. Reuters: U.S. regulators gained “good access” in their review of auditing work done on New York-listed Chinese firms during a seven-week inspection, […]