The Olympus scandal was exposed in 2011 by then-CEO Michael Woodford after he investigated accounting irregularities at the company. Woodford had worked at Olympus since 1981 and was promoted to CEO in 2011, but was fired just two weeks later for questioning past acquisitions and payments totaling over $2 billion. An investigation later found that Olympus had engaged in fraudulent accounting practices since the 1980s to hide financial losses, including through an illegal Tobashi scheme. In the scandal's aftermath, several former Olympus executives were arrested and the company saw leadership and board changes while its reputation was damaged.
ABSTRACT In 2011, Japan was shocked by the revelation of a fraud at.pdfalokkesh1
ABSTRACT: In 2011, Japan was shocked by the revelation of a fraud at one of its most
prominent companies, Olympus. What was more shocking was that the fraud was perpetrated by
its Chairman of the Board and past president, Tsuyoshi Kikukawa, in collusion with several other
Board members and officers. The whistleblower was Michael Woodford, a British citizen and
the Company’s first non-Japanese president and CEO. Woodford had held the post of president
for just six months before he was precipitously fired at a Board of Director’s meeting on October
14, 2011. The case has been successfully used in both undergraduate and graduate courses that
include intermediate financial accounting, advanced accounting, auditing, and forensic
accounting. It demonstrates how poor governance structures allowed company executives and
directors to circumvent accounting rules and hide investment losses for over two decades. The
accounting topics include (1) methods of accounting for investments in financial instruments, (2)
recognition and measurement of goodwill at the time of acquisition, and (3) consolidation
accounting. The case requires students to link economic events to business decisions, and
understand the financial reporting ramifications of those decisions. The case also requires
students to critically analyze corporate governance mechanisms, and to consider the external
auditor’s responsibility for detecting and communicating financial statement fraud. Keywords:
Olympus; goodwill; fair-value accounting; corporate governance; financial reporting fraud;
auditing. INTRODUCTION Michael Woodford had made the trip from Olympus’s Tokyo
headquarters to Haneda Airport countless times before. He enjoyed the comfortable confines of
the company’s Lexus sedan, and the ride usually gave him time to chat with his driver and
friend, Nick. Today, however, neither Nick nor the Lexus were anywhere in sight, and he found
himself in the back seat of a Tokyo cab. Only moments before, he concluded a meeting at a
popular cafe with a Saurav K. Dutta is an Associate Professor and Dennis H. Caplan is an
Assistant Professor, both at the University at Albany, SUNY; and David J. Marcinko is an
Associate Professor at Skidmore College. We thank the editor, associate editor, and two
anonymous reviewers for their helpful insights, comments, and suggestions. We acknowledge
our students and, in particular, Jim Halley, who completed the case and provided us with
valuable feedback. We are also grateful to Jennifer Pickett for teaching this case and allowing us
to administer the postcase questionnaire to her class. Published Online: April 2014 459 reporter
for the Financial Times, to whom he had explained the circumstances surrounding his abrupt
dismissal from his position as president and CEO of Olympus. Woodford himself could scarcely
believe the series of events that had unfolded since his appointment as Olympus’s president in
April 2011. Now, only six months later, the Board had suddenly .
Question Based on the description in the case above, give your .pdfsales84
Question:
Based on the description in the case above, give your recommendation so that Olympus can
improve its management control system! Olympus Corporation is a Japanese company engaged
in the field of optics and images such as the manufacture of cameras, microscopes,
thermometers, memory cards and camera lenses. Olympus was founded on October 12, 1919 in
Tokyo, Japan. While their headquarters in America are in Allentown, Pennsylvania and in
Europe they are headquartered in Hamburg, Germany. Olympus also has fantastic revenues with
an average annual sales of USD 10 billion and employs more than 35,000 people worldwide. The
first product produced by Olympus was a microscope which was introduced in Japan in 1920.
Since then, Olympus has been a provider of precision microscopes and microscopy systems for
the clinical laboratory, science, engineering, education, food, agriculture, fisheries, animal
husbandry and research industries. When it first opened for business in 1919 under the name
Takachiho Seisakusho by Takeshi Yamashita, the Olympus Corporation was not known for
photographic equipment. Instead, the company was designed to manufacture microscopes, and
still today the Olympus Corporation is a world leader in the manufacture of medical microscopes
and medical imaging equipment and instruments - endoscopes in particular. Olympus launched
its first line of cameras in 1936, and played a founding role in the digital photography revolution.
Headquartered in Tokyo, Olympus has estimated annual sales of $10 billion and employs 35,000
people. Olympus management structure regarding corporate governance (CG) practices, is not
drastically different from that of Western multinational corporations (MNCs), but there are some
important differences based on the themes of independence, objectivity and oversight. Olympus
adopted a corporate structure with an auditor system based on Japanese Company Law. In
Western multinational corporations, the hierarchy is arranged in such a way that apart from the
general shareholders (who ostensibly hold the highest power), then on the other hand there is the
Board of Directors (BOD) who holds the highest power, with the Audit Committee having the
responsibility to report to them. In contrast, Japanese Company Law The Board of Audit is at the
same level as the Board of Directors, although it has auditing authority above it. The Olympus
Board of Directors has 15 members, including three outside directors. The fact that the BOD
internally gave biased reports would later prove to be a source of ire for foreign investors.
Interestingly, usually in public companies the ratio of outsiders to insiders should be greater, but
not in Japanese companies, in fact many Japanese companies do not have non-executive
independents (outsiders) in their BOD. In 2011 there was a scandal that was quite shocking so
that Olympus was categorized / branded as one of the companies that had a bad management
accounting system in the history of co.
QuestionBased on the description in the case above, give your rec.pdfsales84
Question:
Based on the description in the case above, give your recommendation so that Olympus can
improve its management control system!
Olympus Corporation is a Japanese company engaged in the field of optics and images such as
the manufacture of cameras, microscopes, thermometers, memory cards and camera lenses.
Olympus was founded on October 12, 1919 in Tokyo, Japan. While their headquarters in
America are in Allentown, Pennsylvania and in Europe they are headquartered in Hamburg,
Germany. Olympus also has fantastic revenues with an average annual sales of USD 10 billion
and employs more than 35,000 people worldwide. The first product produced by Olympus was a
microscope which was introduced in Japan in 1920. Since then, Olympus has been a provider of
precision microscopes and microscopy systems for the clinical laboratory, science, engineering,
education, food, agriculture, fisheries, animal husbandry and research industries. When it first
opened for business in 1919 under the name Takachiho Seisakusho by Takeshi Yamashita, the
Olympus Corporation was not known for photographic equipment. Instead, the company was
designed to manufacture microscopes, and still today the Olympus Corporation is a world leader
in the manufacture of medical microscopes and medical imaging equipment and instruments -
endoscopes in particular. Olympus launched its first line of cameras in 1936, and played a
founding role in the digital photography revolution. Headquartered in Tokyo, Olympus has
estimated annual sales of $10 billion and employs 35,000 people. Olympus management
structure regarding corporate governance (CG) practices, is not drastically different from that of
Western multinational corporations (MNCs), but there are some important differences based on
the themes of independence, objectivity and oversight. Olympus adopted a corporate structure
with an auditor system based on Japanese Company Law. In Western multinational corporations,
the hierarchy is arranged in such a way that apart from the general shareholders (who ostensibly
hold the highest power), then on the other hand there is the Board of Directors (BOD) who holds
the highest power, with the Audit Committee having the responsibility to report to them. In
contrast, Japanese Company Law The Board of Audit is at the same level as the Board of
Directors, although it has auditing authority above it. The Olympus Board of Directors has 15
members, including three outside directors. The fact that the BOD internally gave biased reports
would later prove to be a source of ire for foreign investors. Interestingly, usually in public
companies the ratio of outsiders to insiders should be greater, but not in Japanese companies, in
fact many Japanese companies do not have non-executive independents (outsiders) in their BOD.
In 2011 there was a scandal that was quite shocking so that Olympus was categorized / branded
as one of the companies that had a bad management accounting system in the history of
co.
ABSTRACT In 2011, Japan was shocked by the revelation of a fraud at.pdfalokkesh1
ABSTRACT: In 2011, Japan was shocked by the revelation of a fraud at one of its most
prominent companies, Olympus. What was more shocking was that the fraud was perpetrated by
its Chairman of the Board and past president, Tsuyoshi Kikukawa, in collusion with several other
Board members and officers. The whistleblower was Michael Woodford, a British citizen and
the Company’s first non-Japanese president and CEO. Woodford had held the post of president
for just six months before he was precipitously fired at a Board of Director’s meeting on October
14, 2011. The case has been successfully used in both undergraduate and graduate courses that
include intermediate financial accounting, advanced accounting, auditing, and forensic
accounting. It demonstrates how poor governance structures allowed company executives and
directors to circumvent accounting rules and hide investment losses for over two decades. The
accounting topics include (1) methods of accounting for investments in financial instruments, (2)
recognition and measurement of goodwill at the time of acquisition, and (3) consolidation
accounting. The case requires students to link economic events to business decisions, and
understand the financial reporting ramifications of those decisions. The case also requires
students to critically analyze corporate governance mechanisms, and to consider the external
auditor’s responsibility for detecting and communicating financial statement fraud. Keywords:
Olympus; goodwill; fair-value accounting; corporate governance; financial reporting fraud;
auditing. INTRODUCTION Michael Woodford had made the trip from Olympus’s Tokyo
headquarters to Haneda Airport countless times before. He enjoyed the comfortable confines of
the company’s Lexus sedan, and the ride usually gave him time to chat with his driver and
friend, Nick. Today, however, neither Nick nor the Lexus were anywhere in sight, and he found
himself in the back seat of a Tokyo cab. Only moments before, he concluded a meeting at a
popular cafe with a Saurav K. Dutta is an Associate Professor and Dennis H. Caplan is an
Assistant Professor, both at the University at Albany, SUNY; and David J. Marcinko is an
Associate Professor at Skidmore College. We thank the editor, associate editor, and two
anonymous reviewers for their helpful insights, comments, and suggestions. We acknowledge
our students and, in particular, Jim Halley, who completed the case and provided us with
valuable feedback. We are also grateful to Jennifer Pickett for teaching this case and allowing us
to administer the postcase questionnaire to her class. Published Online: April 2014 459 reporter
for the Financial Times, to whom he had explained the circumstances surrounding his abrupt
dismissal from his position as president and CEO of Olympus. Woodford himself could scarcely
believe the series of events that had unfolded since his appointment as Olympus’s president in
April 2011. Now, only six months later, the Board had suddenly .
Question Based on the description in the case above, give your .pdfsales84
Question:
Based on the description in the case above, give your recommendation so that Olympus can
improve its management control system! Olympus Corporation is a Japanese company engaged
in the field of optics and images such as the manufacture of cameras, microscopes,
thermometers, memory cards and camera lenses. Olympus was founded on October 12, 1919 in
Tokyo, Japan. While their headquarters in America are in Allentown, Pennsylvania and in
Europe they are headquartered in Hamburg, Germany. Olympus also has fantastic revenues with
an average annual sales of USD 10 billion and employs more than 35,000 people worldwide. The
first product produced by Olympus was a microscope which was introduced in Japan in 1920.
Since then, Olympus has been a provider of precision microscopes and microscopy systems for
the clinical laboratory, science, engineering, education, food, agriculture, fisheries, animal
husbandry and research industries. When it first opened for business in 1919 under the name
Takachiho Seisakusho by Takeshi Yamashita, the Olympus Corporation was not known for
photographic equipment. Instead, the company was designed to manufacture microscopes, and
still today the Olympus Corporation is a world leader in the manufacture of medical microscopes
and medical imaging equipment and instruments - endoscopes in particular. Olympus launched
its first line of cameras in 1936, and played a founding role in the digital photography revolution.
Headquartered in Tokyo, Olympus has estimated annual sales of $10 billion and employs 35,000
people. Olympus management structure regarding corporate governance (CG) practices, is not
drastically different from that of Western multinational corporations (MNCs), but there are some
important differences based on the themes of independence, objectivity and oversight. Olympus
adopted a corporate structure with an auditor system based on Japanese Company Law. In
Western multinational corporations, the hierarchy is arranged in such a way that apart from the
general shareholders (who ostensibly hold the highest power), then on the other hand there is the
Board of Directors (BOD) who holds the highest power, with the Audit Committee having the
responsibility to report to them. In contrast, Japanese Company Law The Board of Audit is at the
same level as the Board of Directors, although it has auditing authority above it. The Olympus
Board of Directors has 15 members, including three outside directors. The fact that the BOD
internally gave biased reports would later prove to be a source of ire for foreign investors.
Interestingly, usually in public companies the ratio of outsiders to insiders should be greater, but
not in Japanese companies, in fact many Japanese companies do not have non-executive
independents (outsiders) in their BOD. In 2011 there was a scandal that was quite shocking so
that Olympus was categorized / branded as one of the companies that had a bad management
accounting system in the history of co.
QuestionBased on the description in the case above, give your rec.pdfsales84
Question:
Based on the description in the case above, give your recommendation so that Olympus can
improve its management control system!
Olympus Corporation is a Japanese company engaged in the field of optics and images such as
the manufacture of cameras, microscopes, thermometers, memory cards and camera lenses.
Olympus was founded on October 12, 1919 in Tokyo, Japan. While their headquarters in
America are in Allentown, Pennsylvania and in Europe they are headquartered in Hamburg,
Germany. Olympus also has fantastic revenues with an average annual sales of USD 10 billion
and employs more than 35,000 people worldwide. The first product produced by Olympus was a
microscope which was introduced in Japan in 1920. Since then, Olympus has been a provider of
precision microscopes and microscopy systems for the clinical laboratory, science, engineering,
education, food, agriculture, fisheries, animal husbandry and research industries. When it first
opened for business in 1919 under the name Takachiho Seisakusho by Takeshi Yamashita, the
Olympus Corporation was not known for photographic equipment. Instead, the company was
designed to manufacture microscopes, and still today the Olympus Corporation is a world leader
in the manufacture of medical microscopes and medical imaging equipment and instruments -
endoscopes in particular. Olympus launched its first line of cameras in 1936, and played a
founding role in the digital photography revolution. Headquartered in Tokyo, Olympus has
estimated annual sales of $10 billion and employs 35,000 people. Olympus management
structure regarding corporate governance (CG) practices, is not drastically different from that of
Western multinational corporations (MNCs), but there are some important differences based on
the themes of independence, objectivity and oversight. Olympus adopted a corporate structure
with an auditor system based on Japanese Company Law. In Western multinational corporations,
the hierarchy is arranged in such a way that apart from the general shareholders (who ostensibly
hold the highest power), then on the other hand there is the Board of Directors (BOD) who holds
the highest power, with the Audit Committee having the responsibility to report to them. In
contrast, Japanese Company Law The Board of Audit is at the same level as the Board of
Directors, although it has auditing authority above it. The Olympus Board of Directors has 15
members, including three outside directors. The fact that the BOD internally gave biased reports
would later prove to be a source of ire for foreign investors. Interestingly, usually in public
companies the ratio of outsiders to insiders should be greater, but not in Japanese companies, in
fact many Japanese companies do not have non-executive independents (outsiders) in their BOD.
In 2011 there was a scandal that was quite shocking so that Olympus was categorized / branded
as one of the companies that had a bad management accounting system in the history of
co.
The 21st century has proven to be as economically tumultuous as the two preceding centuries. Between a pandemic, wars, technological developments, progress in civil rights, and breakthroughs in science and medicine, the old order has been swept away, sometimes giving way to freer forms of governing and sometimes not. This period has seen multiple financial crises striking nations, regions, and—in the case of the Great Recession—the entire global economy. All financial crises share certain characteristics, but each tells its own unique story with its own unique lessons for the future. Due to these lessons we were able to experience a smoothened run of economy during the covid-19 syndemic that halted the logistics industry at once and created bottle-necks, hurdles and even complete shut-downs in other sectors while creating a need of overtime for front-line workers who are fighting against the virus on the forefront.
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Essay on Ethics And Enron
ENRON
Introduction
Enron was the country s largest trader and marketer for electric and natural gas energy. Its core business was buying energy at a negotiated price and later, selling the energy when prices increased. As an energy broker, Enron provided a service by allowing producers to negotiate a certain price while Enron took the risk that prices would fall below what it bought energy. Buyers of energy also benefited because Enron could ensure the supply of energy. In 2000 Enron was listed number five on the Fortune 500. What happened to the company which was among the most admired for vision and quality thinking? Enron was the company that held virtual assets and not the real assets, such as power stations, which were capital...show more content...These promises changed the position of Merrill Lynch from equity to debt. But Enron showed it as cash income and did not show that amount was really a loan to be repaid. Enron was not legally required to reflect any of its debt of the SPE (Bohlman, 2005).
World Com
Introduction
WorldCom, now named MCI, recently emerged from bankruptcy protection after reporting accounting irregularities of $11 billion. During the late 1990s there was formidable pressure on WorldCom to preserve historic levels of cash flow and EBIDTA (earnings before interest, depreciation, taxes, and amortization) while new telecommunications orders were in decline as well as continued pressure on existing price points. It was during this period that WorldCom began many of the fraudulent accounting practices. The SEC Report (2003) on WorldCom identified fraudulent behavior in three main areas: the unauthorized movement of line costs to capital
The 21st century has proven to be as economically tumultuous as the two preceding centuries. Between a pandemic, wars, technological developments, progress in civil rights, and breakthroughs in science and medicine, the old order has been swept away, sometimes giving way to freer forms of governing and sometimes not. This period has seen multiple financial crises striking nations, regions, and—in the case of the Great Recession—the entire global economy. All financial crises share certain characteristics, but each tells its own unique story with its own unique lessons for the future. Due to these lessons we were able to experience a smoothened run of economy during the covid-19 syndemic that halted the logistics industry at once and created bottle-necks, hurdles and even complete shut-downs in other sectors while creating a need of overtime for front-line workers who are fighting against the virus on the forefront.
Paper Writing Service - HelpWriting.net 👈
✅ Quality
You get an original and high-quality paper based on extensive research. The completed work will be correctly formatted, referenced and tailored to your level of study.
✅ Confidentiality
We value your privacy. We do not disclose your personal information to any third party without your consent. Your payment data is also safely handled as you process the payment through a secured and verified payment processor.
✅ Originality
Every single order we deliver is written from scratch according to your instructions. We have zero tolerance for plagiarism, so all completed papers are unique and checked for plagiarism using a leading plagiarism detector.
✅ On-time delivery
We strive to deliver quality custom written papers before the deadline. That's why you don't have to worry about missing the deadline for submitting your assignment.
✅ Free revisions
You can ask to revise your paper as many times as you need until you're completely satisfied with the result. Provide notes about what needs to be changed, and we'll change it right away.
✅ 24/7 Support
From answering simple questions to solving any possible issues, we're always here to help you in chat and on the phone. We've got you covered at any time, day or night.
Essay on Ethics And Enron
ENRON
Introduction
Enron was the country s largest trader and marketer for electric and natural gas energy. Its core business was buying energy at a negotiated price and later, selling the energy when prices increased. As an energy broker, Enron provided a service by allowing producers to negotiate a certain price while Enron took the risk that prices would fall below what it bought energy. Buyers of energy also benefited because Enron could ensure the supply of energy. In 2000 Enron was listed number five on the Fortune 500. What happened to the company which was among the most admired for vision and quality thinking? Enron was the company that held virtual assets and not the real assets, such as power stations, which were capital...show more content...These promises changed the position of Merrill Lynch from equity to debt. But Enron showed it as cash income and did not show that amount was really a loan to be repaid. Enron was not legally required to reflect any of its debt of the SPE (Bohlman, 2005).
World Com
Introduction
WorldCom, now named MCI, recently emerged from bankruptcy protection after reporting accounting irregularities of $11 billion. During the late 1990s there was formidable pressure on WorldCom to preserve historic levels of cash flow and EBIDTA (earnings before interest, depreciation, taxes, and amortization) while new telecommunications orders were in decline as well as continued pressure on existing price points. It was during this period that WorldCom began many of the fraudulent accounting practices. The SEC Report (2003) on WorldCom identified fraudulent behavior in three main areas: the unauthorized movement of line costs to capital
1. Donna Moulton
AC-221-B
Professor Pannese
Ethics Paper
Due: 10/29/15
Olympus Scandal 2011
Olympus Corporation is a Japanese optical equipment manufacturer, who products range
from cameras and audio to medical and surgical, to science and industrial equipment, they are
publically traded on the Tokyo Stock Exchange. Olympus employs about 40,000 people world
wide. Tsuyoshi Kikukawa became president of the Olympus Corporation in 2001, since then the
company’s’ revenues have increased almost double from ¥467 billion to ¥847 billion with the
company’s profits reaching ¥35 billion. Olympus’s accounts for the year-end of March 31, 2011
totaled net sales of $10.6 billion and the total shareholders equity was $3.3 billion and assets of
$13.3 billion and intangible assets were $2.2 billion.
The Olympus scandal was brought to light by Michael Woodford, Michael started
working for the Olympus Corporation as a salesman in 1981 and then later became the managing
director of the British medical subsidiary from there he later moved on to become the chief
executive of Olympus Corporation, a position he would not hold for very long. Woodford was
chief executive for two weeks when he would expose “One of the largest and largest running
loss-hiding arrangements in Japanese corporate history.” The Wall Street Journal. He was fired
from his position on October 14th 2011 for blowing the whistle on the Olympus corporation.
Olympus’s scandal can be traced back all the way to the late 1980’s and 1990’s. The
downward spiral of accounting fraud started when Olympus sustained large financial losses due
to Japans weak currency, these losses were concealed using a known practice called the Tobashi
2. scheme, this scheme of financial fraud makes a client’s financial losses hidden by an investment
which switches hands between fake portfolios or clients. By the year 2008 Olympus Corporation
purchases and acquires 3 European companies from Michael Woodford’s region, Woodford
should have been the one in control of making the European purchases but the entire process was
ran and controlled by the Tokyo office. While purchasing these companies Olympus pays more
than they are worth and middleman fees account for 30%, these deals end up exceeding the cost
of $2 billion. Michael Woodford attempted to resign from the company after the strange
purchases but later was promoted to oversee the entire European business for Olympus. Soon
after in 2011 Michael Woodford would become the new President and Chief operating officer.
Upon settling into his new position 3 months later a Japanese magazine named Facta soon writes
about the allegations of corporate irregularities and this article is brought to Woodford’s
attention. Again this time two months after the Facta article Woodford is emailed by German
colleagues who also tell him about the allegations against Olympus. Michael Woodford decides
to do some investigating of his own into the company he has been so loyally working for since
his twenties, he writes internal emails multiply times to the board of directors and the CEO but
each time he receives a response it is either a run around or is met with a polite refusal.
Following the refusals Woodford then contacts Tsuyoshi Kikukawa and meets with him to discus
the claims and allegations against the company and soon after Tsuyoshi Kikukawa resigns from
his position of CEO but remains a chairman of the board. October 1st 2011 Michael Woodford is
then promoted to CEO by a board of directors vote, Tsuyoshi Kikukawa’s previous role in the
company. The company then releases a press release about Woodford that states "the Board have
been extremely pleased with the progress made under Mr. Woodford's leadership in this role,
which has exceeded the expectations at the time of his appointment". Woodford now settling into
3. his new CEO role in the company continues to seek answers to the allegations against the
Olympus Corporation and since he continues to face dead ends and he decides to appoint an
outside audit practice to go over and investigate all the Olympus accounts. October 14th 2011
two days after appointing the PwC audit practice Michael Woodford is terminated from his CEO
position following a short board meeting. Upon being terminated from the role of CEO for
Olympus Michael Woodford discloses his concerns about the Olympus Corporation allegations
publicly blowing the whistle on the company. In the next following weeks the Olympus
Corporation makes admissions about the now public scandal, after the scandal is brought to light
Kikukawa and Mori take their leave and resign from their positions of chairman of the board,
other officials and board members make known that they will also be resigning in 2012. During
the month of December Michael Woodford upon hearing that members of the board have
resigned in their positions then decides to try and regain his role as CEO of the Olympus
Corporation but fails doing so due to lack of company support due to Olympus arranging to
weaken voting power by making stock arrangements. Following that the Olympus corporation is
then raided by law enforcement and 7 arrests are made in the Tokyo headquarters: ex-president
Tsuyoshi Kikukawa, former executive vice-president Hisashi Mori, former auditor Hideo
Yamada, former bankers Akio Nakagawa and Nobumasa Yokoo, and two others. After the
arrests Michael Woodford takes Olympus to court with a claim of damages but later settle out of
court for a sum of around £10 million.
“In an October 11 letter to Olympus’s chairman, Woodford described “a catalogue of
calamitous errors and exceptionally poor judgment which...has resulted in the destruction of
shareholder value of $1.3 billion.” Payments of $687 million, about a third of the Gyrus
acquisition cost, and estimated to be the largest M&A fee ever paid, were made to a Cayman
Islands special purpose investment vehicle that disappeared from view shortly after receiving the
final payment. This information was based on an investigation by PricewaterhouseCoopers,
which had been hired by Woodford. The recipients of the payments were said to be a U.S.
brokerage house and its subsidiary.”-
4. Since the scandal the Olympus Corporation has seen steady revenue with an increase in
revenue this past year with a total of 1,937.2 million dollars, with their cost of goods sold
reaching 742.2 million dollars, with assets of 9,971.6 million and total liabilities of 6,772.5
million, making this company still very lucrative despite their 2011 scandal. Compared to
Olympus Corporations competitors though we see that they are lagging behind in sales, Canon
their top competitor had a total revenue of 31,074.1 million and a total cost of good sold of
15,555.0 million, Canon’s total assets for 2014 were 37,188.2 million and their total liabilities
were 12,359.1 million and a net profit margin of 6.8% vs Olympus’s 1.9% net profit margin.
Although Olympus as a company is doing better since the scandal came out in 2011, they are not
seeing the sales numbers that their competitor Canon is reaching. This could be caused by a
multitude of factors. The lower numbers can be due to the tarnished reputation of the company,
brand awareness vs. brand loyalty , and because Olympus Corporation is a smaller company
thank Canon.
Bibliography:
5. "Olympus President: Will Do Utmost To Avoid Delisting"(subscription). The Wall Street
Journal. Dow Jones. 7 November 2011. Retrieved 20 October 2015.
"OLYMPUS | Information: Olympus appoints Michael C. Woodford to serve as President and
CEO". Olympus Corporation. Archived from the original on 20 October 2015.
Negishi, Mayumi (16 February 2012). "Former executives, bankers arrested over Olympus
fraud". Reuters. Archived from the original on 20 October 2015.
Verschoor, Curtis C. "Olympus Scandal Shows Need For U.S. Standards." Strategic
Finance 93.8 (2012): 12-61. Business Source Premier. Web. 29 Oct. 2015.