Failure of Control Environment of Daewoo Shipbuilding & Marine Engineering Co., Ltd.

Lee, H. and Wan Eun, S. and Lee, H.-Y. and Park, G. (2019) Failure of Control Environment of Daewoo Shipbuilding & Marine Engineering Co., Ltd. Asian Case Research Journal, 23 (2). pp. 561-593. ISSN 0218-9275

Full text not available from this repository.

Abstract

In July 2015, one of the biggest shipbuilding and marine engineering companies in Korea, Daewoo Shipbuilding & Marine Engineering Co., LTD (DSME), suddenly reported operating losses of 2.73 billion USD, resulting in chaos and frustration of investors and market participants. The announcement of this huge loss was the result of an accounting fraud conducted by the management team. Adam Kim, the former CEO of the company, concealed 4.5 billion dollars of losses by manipulating the accounting performances. This case exemplifies the results of the weak control environment. This paper examines the consequences of the weak control environment and ineffective monitoring activities of DSME.

Item Type:
Journal Article
Journal or Publication Title:
Asian Case Research Journal
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400
Subjects:
ID Code:
143971
Deposited By:
Deposited On:
09 Jul 2020 11:15
Refereed?:
Yes
Published?:
Published
Last Modified:
25 Sep 2020 04:52