A big camera firm, Olympus, is in deep trouble. It involved in financial report management. The company tried to cover billions of losses. The most scaring part is that the problem existed for many years now, and the secret passed on from CEO to CEOs. Even the auditors were involved. This brought a problem to the Keiretsu. Should the Keiretsu continue to exist, or should the Japanese market opens to other firms. Because the Keiretsu exist, the secret can be kept for so many years, everyone's benefit is involved. And this could be a down side of the Japanese market. In US, a dozen of laws were passed after the Enron scandal, it is highly possible that Japanese government will also implement new laws to fix the financial report management problem. Michael Woodford, formal Europe olympus CEO, was fired because he stepped up against the financial report management. When Mr. Woodford met the formal vice-CEO, and asked him who he worked for, the formal vice-CEO answer the CEO, not the BOD or shareholders. Now, the Olympus stocks have dropped 75%, how far will it go? No one knows. One thing is clear, the company is facing a lot of charges of bad practice, and legal issues.
Ref:
Japan NewLine
http://www.nytimes.com/2011/11/22/business/global/olympus-says-its-panel-sees-no-link-to-criminals.html
No comments:
Post a Comment