How to Read between the Lines of Asian Financial Statements

When I was a new analyst following technology stocks for a predominantly US equity fund, one thing I noticed in doing competitor analysis was the low multiples of some Asian companies, even after taking into account the more pronounced differences in accounting systems in those days. Did low-multiple stocks necessarily present good values? Were there any systematic reasons behind the low valuation?

Later I was also given, among other things, the added responsibility of managing a quantitative international equity fund. Finding systematic patterns in company financials that were good indicators of future stock performance became even more challenging.

Still eager to find answers to these questions, I recently read Asian Financial Statement Analysis: Detecting Financial Irregularities and was completely intrigued.

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