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.
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?
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)