Asia's Enron: Satyam (Sanskrit Word for Truth)
Journal of Forensic & Investigative Accounting, Vol. 4, Issue 2, 2012
34 Pages Posted: 11 Jun 2013
Date Written: 2012
In this paper, we analyze the 2009 scandal of Satyam, one of India’s largest information technology companies and provider of computer software and business process outsourcing to large companies around the world; including General Motors, Nestlé, and General Electric. We discuss financial and non-financial red flags. Specifically, we apply five financial fraud prediction measures and examine corporate governance elements. The results of our analyses suggest the importance of integrating financial and non-financial indicators. Supplementing financial indicators with non-financial red flags enables us to present the reverse KISS principle by Hilb (2005).
Keywords: corporate governance, financial fraud
JEL Classification: G30
Suggested Citation: Suggested Citation