Posted by CHEN Liting, Year 3 undergrad at the School of Accountancy, Singapore Management University
Discussion Questions: (1) Satyam is Hyderabad-based – do regional culture and institutional context matter (Link1, Link2, Link3)? Who are the other Hyderabad-based accounting fraud cases? (2) What does it take to restore trust after the revelation of an accounting fraud? Was Tech Mahindra of the Mahindra Group successful in their turnaround efforts at Satyam? (3) How about Satyam’s auditor PwC?
Satyam Chief Admits Huge Fraud
Ramalinga Raju, chairman of Satyam Computer Services, resigned Wednesday after disclosing he had systematically falsified accounts of the giant outsourcing company.
By HEATHER TIMMONS and BETTINA WASSENER
Published: January 7, 2009
NEW DELHI — Satyam Computer Services, a leading Indian outsourcing company that serves more than a third of the Fortune 500 companies, significantly inflated its earnings and assets for years, the chairman and co-founder said Wednesday, roiling Indian stock markets and throwing the industry into turmoil. Continue reading →
In divvying up assets in bankruptcies, Hong Kong liquidators need sensitive touch
Friday, 09 January, 2015, 8:43am
Many people just can’t balance their income and expenses – liquidator Mat Ng
What’s common between fallen chief secretary Rafael Hui Si-yan, convicted inside trader Du Jun and US hedge fund Tiger Asia?
Mat Ng. The Managing director of JLA Asia, he is the liquidator currently handling Hui’s bankruptcy, selling his music record collection and other assets to repay his creditors. Ng has also worked for the Securities and Futures Commission to handle Du and Tiger Asia to compensate the investors who suffered as a result of their insider dealings.
Born in Shanghai, Ng moved to Hong Kong as a child. He grew up here before moving to Australia to attend high school and university and get a degree in accountancy. But rather than opting for mainstream accounting jobs, he focused on insolvency and liquidation. Continue reading →
FAT denies Next Media allegations of asset theft by CEO
Thursday, January 8, 2015
The China Post news staff
TAIPEI, Taiwan — Far Eastern Air Transport (FAT, 遠東航空) yesterday refuted a Chinese-language magazine’s claim that the airline’s president hollowed out about NT$500 million of company assets. Continue reading →
Drug tycoon implicated in breach of trust
Friday, January 9, 2015
By John Liu, The China Post
Prosecutors conducted a search on the residence of Lin Rong-jin (林榮錦), the former chairman of pharmaceutical company TTY Biopharm Company (東洋製藥), on suspicion of hollowing out company assets. Continue reading →
Posted by Amy CHAN Wen Yi, final year undergrad at the School of Accountancy, Singapore Management University
Amy: The BT article “A re-look at China stocks?” provided a good overview on China stock classifications and also discussed about some accounting irregularities that happened to some of the S-chip stocks. Excerpts below:
Discussion question: Do (systematic) accounting irregularities for a group of companies have negative spillover effects for others in the stock exchange, including resulting in a lower credibility and market valuation?
For example, SGX is panned as a place to raise funds in 2015: BT article on Jan 9, 2015
What type of companies tend to be impacted adversely and how to avoid the “infection”? What is the transmission mechanism (e.g. common ownership identity hidden in nominee accounts)? Will the overall market degenerate into a “lemon’s market” over time and how to solve the lemon’s problem?
A re-look at China stocks?
04 Nov 2013 17:39 by CAI HAOXIANG
A lack of confidence
Chinese companies have also chosen to list elsewhere, such as on the Singapore Exchange (SGX) and the New York Stock Exchange. However, many of these stocks have been plagued by a lack of investor confidence, making them easy targets for short-sellers. Continue reading →