Corporate Governance Failure: A Case Study of Satyam

Jai Prakash Sharma Prof

Indian Journal of Corporate Governance, 2010, vol. 3, issue 2, 136-175

Abstract: Corporate Governance has become prominent over the last two decades as many countries witnessed corporates succumbing to questionable corporate policies and unethical practices, setting in motion reforms through codes and standards on corporate governance. India too had had its share of corporate scams. The recent fraud in Satyam has shattered the dreams of various investors, shocked the government and regulators alike and led to questioning the accounting practices of statutory auditors and corporate governance norms. Unethical business conduct, cooking of books of accounts, questionable role of audit committee, flawed ownership structure and other major governance flaws were noticed in the collapse of Satyam. As in USA, UK and other countries, India too needs similar kind of corporate governance reforms. Even though corporate governance mechanisms cannot prevent unethical activity by top management completely, but they can at least act as a means of detecting such activity before it is too late.

Keywords: Corporate Governance; Governance Flaws; Corporate Audit; Independent Director; Governance Reforms (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ijcgvn:v:3:y:2010:i:2:p:136-175

DOI: 10.1177/0974686220100204

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