In-Depth Analysis of Unrecognized Risks
Serious business and financial problems at public companies can go undetected by investors and other institutions with financial exposure to the company for quarters, given the complexity of financial reporting and the volume of available, raw information. Nothing is more harmful to investment returns and reputation than these sorts of hidden risks. Yet, many of these problems are discoverable, with the right tools and analysis.
Through in-depth research and analysis, the Yellow Card research team uncovers material business, legal, governance and financial statement risk before those risks are understood by the broader market. This early warning can prove extremely valuable to any institution with investment, financial or reputational exposure to a public company.
The Yellow Card service focuses on the following types of companies and issues:
- Emphasizes companies that are valued highly relative to peers and in which no analyst has previously detected serious issues;
- Focuses on accounting, legal and regulatory matters that are often overlooked or poorly understood;
- Includes multidisciplinary analysis from a team of senior accountants with public company reporting and auditing expertise; lawyers with business, securities, mergers and white collar criminal legal experience; and former securities regulators.
- Incorporates insights from Glass Lewis' other research efforts, including Glass Lewis' review and analysis of boards of directors, compensation practices and related-party transactions at more than 13,000 global public companies.
- Benefits from Glass Lewis' continuous investment in proprietary technology that enables the early detection of potential issues at public companies.