Asia's Enron: Satyam (Sanskrit Word for Truth)

Journal of Forensic & Investigative Accounting, Vol. 4, Issue 2, 2012

34 Pages Posted: 11 Jun 2013

See all articles by Elisabetta Basilico

Elisabetta Basilico

International Center of Corporate Governance

Hugh Grove

University of Denver

Lorenzo Patelli

University of Denver - School of Accountancy

Date Written: 2012

Abstract

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

Basilico, Elisabetta and Grove, Hugh and Patelli, Lorenzo, Asia's Enron: Satyam (Sanskrit Word for Truth) (2012). Journal of Forensic & Investigative Accounting, Vol. 4, Issue 2, 2012, Available at SSRN: https://ssrn.com/abstract=2277512

Elisabetta Basilico (Contact Author)

International Center of Corporate Governance ( email )

Pestalozzistrasse 2
P.O. Box 634
St. Gallen, 9001
Switzerland

Hugh Grove

University of Denver ( email )

School of Accountancy
Denver, CO 80208-2685
United States
303-871-2026 (Phone)
303-871-2016 (Fax)

Lorenzo Patelli

University of Denver - School of Accountancy ( email )

2101 South University
Boulevard, Suite 355
Denver, CO 80208-8921
United States
303.871.2959 (Phone)
303.871.2016 (Fax)

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