Revisiting the Satyam fraud : a lesson in corporate governance / Mark Lokanan, Rebecca Wilson-Mah.

Format:

Book

Author/Creator:

Lokanan, Mark, author.

Wilson-Mah, Rebecca, author.

Series:

SAGE business cases.

SAGE business cases

Language:

English

Subjects (All):

Accounting--Case studies.

Accounting.

Accounting--Corrupt practices.

Physical Description:

1 online resource : illustrations.

Place of Publication:

London : SAGE Publications: SAGE Business Cases Originals, 2023.

Language Note:

English.

Summary:

This case provides a detailed description of India's largest-ever corporate accounting fraud, which occurred in 2009 at Satyam Computer Services Ltd ("Satyam"), India's fourth-largest IT company. The case highlights the ambiguity surrounding corporate governance listing standards and how senior officials working in unison with senior management can circumvent regulations to engage in illegal conduct. Drawing on data sources from public information/records, the case provides a detailed review of the corporate governance structures that were in place at Satyam prior to the resignation of the company's Chairman and CEO Ramalinga Raju and his admission of financial statement fraud in January 2009. Due to deteriorating business conditions and allegations of corruption, Satyam experienced a sharp decline in its profit position. To keep Satyam's assets, Mr. Raju proposed an acquisition, which would have eaten up Satyam's entire core cash, with two companies controlled by himself and his family members-Maytas Properties and Maytas Infrastructure. Satyam's shareholders reacted negatively to the deal, which resulted in a significant drop in the company's share price. To increase shareholders' confidence in Satyam and keep the company afloat, Mr. Raju knowingly and intentionally overstated its revenues and understated its financial position between 2004 and 2008. The case highlights that the dominant conceptualization of corporate governance best practices is losing its legitimacy and authority and challenges students to think of approaches that will address the concerns raised by Mr. Raju's action at Satyam. The case is helpful to evaluate more effective corporate governance approaches in detecting and preventing financial statement fraud.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

1-5296-1897-5

9781529618976

OCLC:

1362534284