In early April, a short seller accused Chinese coffee chain Luckin (LK) of massively overstating revenues. A day later Chinese education provider TAL reported a non-material overstatement of revenues by an errant employee. Are these two instances leading indicators of financial fraud? How alarmed should US investors be?
Curious about the investment implications of the frequency of possible financial shenanigans compared to restatements of revenues and earnings due to interpretations of GAAP, we surveyed recent and relatively recent non-US IPOs targeted by independent researchers to shine some light on the situation...
For the full article, and to screen for Chinese IPOs, sign up for a free trial of IPO Pro.
