Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

Forensic Accounting

SIZE IS IMPORTANT…<ul><li>Revenue: Highest ranked company only needs 16 directors</li><li>Return on assets: Overstuffed boards are less nimble</li><li>Market capitalisation: Largest with only 7 directors</li><li>Price change: The overstuffed are underperforming</li><li>Exposing creative accounting: The Bucephalus G.A.P Score</li><li>Quantifying creative accounting: Big boards get more creative</li><li>Accounting risk and Peer performance: Big boards = more risk + compare badly</li><li>Turkeys don’t fly: Stop the stuffing</li><li><a href="https://www.smartkarma.com/entities/21241" target="_blank" data-smartkarma-citation="entities:21241:1">Abertis Infraestructuras SA (ABE SM)</a>, <a href="https://www.smartkarma.com/entities/21242" target="_blank" data-smartkarma-citation="entities:21242:1">ACS Actividades de Construccio (ACS SM)</a>, <a href="https://www.smartkarma.com/entities/132" target="_blank" data-smartkarma-citation="entities:132:1">CK Hutchison Holdings Ltd (1 HK)</a>, <a href="https://www.smartkarma.com/entities/8" target="_blank" data-smartkarma-citation="entities:8:1">True Corp Pcl (TRUE TB)</a>, <a href="https://www.smartkarma.com/entities/8517" target="_blank" data-smartkarma-citation="entities:8517:1">United Co Rusal Plc (486 HK)</a>, <a href="https://www.smartkarma.com/entities/21591" target="_blank" data-smartkarma-citation="entities:21591:1">Bayerische Motoren Werke AG (BMW GR)</a>, <a href="https://www.smartkarma.com/entities/22213" target="_blank" data-smartkarma-citation="entities:22213:1">WPP PLC (WPP LN)</a>, <a href="https://www.smartkarma.com/entities/21441" target="_blank" data-smartkarma-citation="entities:21441:1">Electricite de France SA (EDF FP)</a>, <a href="https://www.smartkarma.com/entities/21085" target="_blank" data-smartkarma-citation="entities:21085:1">Naspers Ltd (NPN SJ)</a>, <a href="https://www.smartkarma.com/entities/782" target="_blank" data-smartkarma-citation="entities:782:1">General Electric Co (GE US)</a>. </li></ul>…BUT YOU DON’T HAVE TO BE A TURKEY

SIZE IS IMPORTANT…Revenue: Highest ranked company only needs 16 directorsReturn on assets: Overstuffed boards are less nimbleMarket capitalisation: Largest with only 7 directorsPrice change: The overstuffed are underperformingExposing creative accounting: The Bucephalus G.A.P ScoreQuantifying creative accounting: Big boards get more creativeAccounting risk and Peer performance: Big boards = more risk + compare badlyTurkeys don’t fly: Stop the stuffingAbertis Infraestructuras SA (ABE SM), ACS Actividades de Construccio (ACS SM), CK Hutchison Holdings Ltd (1 HK), True Corp Pcl (TRUE TB), United Co Rusal Plc (486 HK), Bayerische Motoren Werke AG (BMW GR), WPP PLC (WPP LN), Electricite de France SA (EDF FP), Naspers Ltd (NPN SJ), General Electric Co (GE US). …BUT YOU DON’T HAVE TO BE A TURKEY

ACS, Actividades de Construcción y Servicios (ACS SM)

ACS, Actividades de Construcción y Servicios

Boards Are Not Turkeys. Stop the Stuffing.