Company Cross-Holdings and Investment Analysis: The Finance Version
8 Pages Posted: 12 Feb 2018
Date Written: October 20, 1998
In a recent paper in the Financial Analysts Journal, Sinha  reviews and critiques Ferguson and Hitzig  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: Suggested Citation