Statement Analysis - Putting Companies Through a Linguistic Polygraph Test
“Statement Analysis is the most accurate way of determining if a person is lying in a verbal or written statement. A person cannot give a lengthy deceptive statement without revealing that it is a lie. This is because people's words will betray them.”
-Mark McClish, creator of the Statement Analysis method
HOW WE ARE USING STATEMENT ANALYSIS
Reading conference call/analyst meeting transcripts is a key part of the analyst’s job. We all use words to define our reality, and our choice of words can be revealing. The premise of Statement Analysis is that a person’s choice of specific words can reveal when there might be an attempt at deception. This Statement Analysis exercise looks exclusively at a company’s written and verbal statements. Using these hidden clues, we can dig deeper into a company’s public pronouncements for signals of potential concerns in a company’s reporting.
TIMING OF THE CALL
On December 23rd at 11am we will be hosting a conference call on Statement Analysis and how we apply it to our own financial analysis. On the call will be Mark McClish, creator of the Statement Analysis system and a federal law enforcement official for the past 26 years. We will provide the names of the companies discussed on the day of the call.
MARK MCCLISH BIO
In 1990, Mark was promoted to the position of Inspector/Instructor at the U.S. Marshals Service Training Academy located at the Federal Law Enforcement Training Center in Glynco, GA. He taught at the Training Academy for nine years serving as the lead instructor on interviewing techniques. He used this time to study deceptive statements and conduct research on deception. Based on his findings, he created the Statement Analysis techniques for detecting deception in a verbal and written statement. While assigned to the Training Academy Mark was also the lead defensive tactics instructor for the Marshals Service.
Mark retired from the Marshals Service in 2009 and started Advanced Interviewing Concepts. His company provides interviewing skills training and assists investigators in analyzing statements.
WHAT WE INTEND TO ACCOMPLISH ON THE CALL
On the call we will focus on:
- Why Statement Analysis is important.
- Mark’s process and findings.
- Provide analysis on select companies.
- Identify areas within specific corporate releases that bear closer scrutiny, and
- Compare company comments with their financial statements.
The call will last about an hour including time for Q&A.