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Toshiba's Accounting Scandal- A Spotlight on Japan Inc’s Corporate Governance Systems
Excerpts
DISGUISED PERFORMANCE
The global economic crisis in the year 2008 and an earthquake that triggered a tsunami in the year 2011 had a significant impact on the operations and businesses of Toshiba. Despite this, Toshiba’s performance improved and was profitable from the year 2010-11. In February 2015, an anonymous email sent to the regulatory authorities alleging accounting irregularities at Toshiba turned the spotlight on the company. The management was questioned by the authorities. Market participants began to look at Toshiba’s performance with suspicion. |
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RECOVERY MEASURES AND RISING ISSUES
Though no formal action was initiated against any personnel, the management of Toshiba was expected to make changes in its management structure and conduct further investigations based on the report submitted by the committee. The interim CEO and President, Masashi Muromachi, said due consideration would be given to the recommendations made by the enquiry committee...
EXHIBITS
Exhibit I: Corporate Governance Practices in Japanese Corporations
Exhibit II: Milestones in Toshiba’s Growth
Exhibit III: Financial Performance of Toshiba (2009 – 2014)
