Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Failure of Control Environment of Daewoo Shipbuilding & Marine Engineering Co., Ltd.
AU - Lee, H.
AU - Wan Eun, S.
AU - Lee, H.-Y.
AU - Park, G.
PY - 2019/12/1
Y1 - 2019/12/1
N2 - 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.
AB - 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.
U2 - 10.1142/S0218927519500238
DO - 10.1142/S0218927519500238
M3 - Journal article
VL - 23
SP - 561
EP - 593
JO - Asian Case Research Journal
JF - Asian Case Research Journal
SN - 0218-9275
IS - 2
ER -