Company Cross-Holdings and Investment Analysis: The Finance Version

8 Pages Posted: 12 Feb 2018

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Robert Ferguson

AnswersToGo

Neal Hitzig

City University of New York - Department of Accounting

Date Written: October 20, 1998

Abstract

In a recent paper in the Financial Analysts Journal, Sinha [1998] reviews and critiques Ferguson and Hitzig [1993] concerning the implications of cross-ownership of shares. He claims that, while our mechanisms for gen-erating our tables and circumventing consolidation requirements are cor-rect, our conclusions about how misleading are the resulting balance sheets are not. In fact, it is Sinha that is wrong, where he disagrees with us.

Keywords: cross holdings, ponzi schemes, accounting distortions

JEL Classification: G00,G10,G11,G12,G14

Suggested Citation

Ferguson, Robert and Hitzig, Neal, Company Cross-Holdings and Investment Analysis: The Finance Version (October 20, 1998). Available at SSRN: https://ssrn.com/abstract=3122123 or http://dx.doi.org/10.2139/ssrn.3122123

Robert Ferguson (Contact Author)

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Neal Hitzig

City University of New York - Department of Accounting ( email )

Flushing, NY 11367
United States

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