Money managers dont agree on the scope and severity of company accounting problems, according to a survey by Citigate Dewe Rogerson of 50 U.S. asset managers and analysts. A majority of respondents 59% thought accounting problems were confined to a limited number of companies, but the other 41% said there are widespread inconsistencies in the presentation of off-balance-sheet items.
More than half 54% of the portfolio managers and analysts surveyed said new regulation is needed to solve accounting problems. Another 20% expect that a combination of new regulations and changes to company practices will improve financial information. The remaining 26% think companies will respond to market demand and take voluntary corrective action.
About 30% of respondents mentioned that they or their firms held shares of companies with accounting problems. The other 70% said they never held such companies or had sold them.