CFA Institute Research and Policy Center: Publications·· 6 days agoAI Score66
CFA Institute Research: Actual Exposure of Joint Ventures at 50 Large Listed Companies Reaches $612 Billion, Far Exceeding the $351 Billion Disclosed on the Books
The Joint Venture Blind Spot: What the Equity Line Doesn’t Tell You
AI summary
The CFA Institute research team reviewed the 2025 fiscal year financial reports of 50 large global listed companies, finding that their book-disclosed investments in joint ventures totaled $351 billion, while total actual exposure reached $612 billion after reconstructing five layers of exposure. The difference stems from risks not recorded in individual line items, including shareholder loans, guarantees, and unpaid capital contributions.
Source:CFA Institute Research and Policy Center: Publications · rpc.cfainstitute.org
Valuation and Asset PricingPaper Research#Institutional Research#Valuation / Asset Pricing#US Stocks