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

Hansol Lee, Seung Wan Eun, Ho-Young Lee and Gitae Park
Additional contact information
Hansol Lee: School of Business, Yonsei University, Seoul, Republic of Korea
Seung Wan Eun: School of Business, Yonsei University, Seoul, Republic of Korea
Ho-Young Lee: School of Business, Yonsei University, Seoul, Republic of Korea
Gitae Park: Management School, Lancaster University, UK

Asian Case Research Journal (ACRJ), 2019, vol. 23, issue 02, 561-593

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.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0218927519500238
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:acrjxx:v:23:y:2019:i:02:n:s0218927519500238

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0218927519500238

Access Statistics for this article

Asian Case Research Journal (ACRJ) is currently edited by Lau Geok Theng

More articles in Asian Case Research Journal (ACRJ) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().