Fraud concerns about Semi Annual instead of quarterly reporting are misplaced.
[media=https://youtu.be/RXy4k0JA9OI]
Given all we know now, companies aren't likely to bury bad news, t hey're likely to put it right in front of investors and overemphasize it while burying good news in order to manage the expectations of analyst and get them to revise their estimates downward.
An Enron situation in this kind of environment could happen, but it's rare and unlikely, given that companies have far more incentive to report bad news. The lean today is toward burying GOOD news, not bad.
Given all we know now, companies aren't likely to bury bad news, t hey're likely to put it right in front of investors and overemphasize it while burying good news in order to manage the expectations of analyst and get them to revise their estimates downward.
An Enron situation in this kind of environment could happen, but it's rare and unlikely, given that companies have far more incentive to report bad news. The lean today is toward burying GOOD news, not bad.


