The Misrepresentation of Earnings, a white paper that uncovers some startling information about earnings manipulation directly from those who would know - CFOs. From the abstract:
- "On earnings misrepresentation, CFOs believe that in any given period a remarkable 20% of firms intentionally distort earnings, even though they are adhering to generally accepted accounting principles."
Another article I read today titled Be careful with numbers - Why investors must read between the lines, by Accountability Research Corp., again questions the reliability of reported numbers.
All the more reasons why I'm not dependent on fundamental research.