The chief executive of Toshiba and two of his predecessors resigned, along with several lesser executives, over accusations that they drove the company to overstate its earnings by $1.2 billion over the last seven years. The figure is equal to about a third of the pretax profits that Toshiba reported during that period.
Questions:
1. How was the fraud exposed?
2. According to the article, why were senior executives singled out for the blame in this scandal?
3. How many directors on Toshibas’s 16-member board were removed?
4. What happened to Toshiba’s share price?
Source:
Soble, J. (2015). Scandal Upends Toshiba’s Lauded Reputation. The New York Times, July 21, (Retrievable online at http://www.nytimes.com/2015/07/22/business/international/toshiba-chief-and-7-others-resign-in-accounting-scandal.html?hpw&rref=business&action=click&pgtype=Homepage&module=well-region®ion=bottom-well&WT.nav=bottom-well)