“无风不起浪”——东南融通(B)

Translated title of the contribution: Investing in Longtop — the Case of Longtop Financial Technologies (B)

Mike J. Thompson (First Author), Astrid de Reuver (Participant Author)

Research output: Other contributionCase Studies

Abstract

Longtop Financial Technologies (Longtop), a company registered in the Cayman Islands, went public on the NYSE in 2007. After four years of significantly above average revenues and profits, Citron Research, a research firm that specialized in exposing fraud among Chinese stocks, posted an online report on Longtop, accusing the company of fraudulent accounting: “It is the opinion of Citron that every financial statement from its IPO to this date is fraudulent”. In May 2011, Longtop’s auditor, Deloitte Touche Tohmatsu CPA Ltd. China (Deloitte Shanghai), resigned. It said that Jia Xiao Gong, Longtop’s chairman, had admitted false profits and false cash flows recorded on the books in the previous years. On 14 December, the American Stock Exchange Committee (SEC) revoked the registration of Longtop for failing to file required annual reports and audited financial statements with the SEC. Longtop investors had already filed a lawsuit against the company to recover losses incurred on their securities being made substantially worthless as a result of allegations.
Translated title of the contributionInvesting in Longtop — the Case of Longtop Financial Technologies (B)
Original languageChinese (Simplified)
Number of pages3
Publication statusPublished - 1 Jan 2012

Case number

ACC-14-144

Case normative number

ACC-14-144-CC

Case type

图书馆案例

Update date

2016-07-02

Published by

中欧国际工商学院

Keywords

  • 投资决策
  • 投资风险
  • 治理结构
  • 财务造假
  • 退市

Case studies discipline

  • Accounting
  • Finance

Case studies industry

  • Finance and Insurance

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