ValueReporting Revolution: Moving Beyond the Earnings Game Book

Some readers might find it hard to rustle up enthusiasm for The Value Reporting Revolution--Moving Beyond the Earnings Game for at least two reasons. One, the cover bears the logo of PriceWaterhouseCoopers which, however pre-eminent it is, remains a firm of accountants. Two, it is written by four of its number. The knee-jerk reaction would be unfair though. When it can stay away from jargon and cheerleading, this is a surprisingly enjoyable look at the business world and its principal driving forces. It cannot be often that such a volume bears comparisons with the works of Lewis Carroll and George Orwell, but in its discussion of the value of sell-side analysis they touch upon a corporate nerve becoming more raw by the day. In doing so, the authors subject to close scrutiny the independence of such analysts at investment banks and find that it doesn't pass the test. Analysts have had to adjust to the information they give so that it meets investor needs without offending their employer's clients. As a result, the meaning of the language with which they work has changed significantly. "Hold" now means "sell" while only a "strong buy" really means "buy". Lewis Carroll did something similar with Humpty Dumpty in Through the Looking Glass, and George Orwell with "Newspeak" in 1984, placing the PWC team in good literary company. "Corporate executives can decide to board the starship Internet ... or they can sit stoically in their caves, in effect chiselling disclosures on tablets of stone," it says in the chapter entitled "Can You See Clearly Now?". Someone with an ear for language and the ability to see the nub of the point wrote that. --Brian BollenRead More