Toshiba’s capitalization grew by nearly $ 1 billion after the resignation of the company because of a corruption scandal. Management of the Japanese company is accused of falsifying financial statements that revealed inflated earnings. If the new leadership does not carry out the necessary reforms, Toshiba waiting for delisting from the Tokyo Stock Exchange.
The scandal surrounding the financial statements of the Japanese corporation Toshiba has reached its climax. In one day, the company’s capitalization increased by ¥ 100 billion ($ 800 million), from the data of trading. So the market reacted to the resignation of the principal leaders of Japanese corporations. Company President Hisao Tanaka, as well as two vice-presidents, Norio Sasaki and Atsutosi Nishida, announced his resignation at a press conference on the audit scandal, which stretches from the beginning of the year. It is reported by the Japanese edition of NHK.
Earlier this year, Japanese regulators have revealed that some units Toshiba provided falsified data its operations by publishing information on its own reduced costs. In May, the company has asked for an independent investigation to verify the methods of accounting, the results of which were released in July and were the focus of an organized press conference.
As the audit, in their financial reports, the Japanese corporation generally overestimated their own profit ¥ 151,8 bn (USD 1.2 billion). The auditors noted that the violations were admitted in statements for six years “in a systematic manner».
As the President of Toshiba Hisao Tanaka, he was not aware of the scandal that took place around the financial inconsistencies. The report, he added, only refers to inflating the figures and other information is not there.
Tanaka, who took office only last three years, does not recognize their involvement in the falsification, because they do not remember to issue clear guidelines for overstatement of data on income in the financial statements, Japanese media reported.
However, Toshiba executives apologized for the situation. “It is very unfortunate that this happens in companies involved in corporate governance, which began to develop rapidly”, – said a member of the Liberal Democratic Party of Japan Akira Amari, reports local newspaper Nikkei. “The image of the brand Toshiba will now have to rebuild every day,” – admitted Hisao Takano.
However, this will have a new management of the company in the person acting Masashi Muromachi leader Toshiba, whose appointment took place during a press conference. “We must make every effort to holders of our shares to avoid financial losses,” – he said. He noted that to return to a stable state companies need help financial institutions, drew attention to the newspaper Nikkei.
In addition, Muromachi said about the need to reform the corporate culture, one of the rules that is not to go against the boss.
The reason to change this rule also gave independent audit, which revealed a blatant case: in late 2008, CEO Atsutosi Nishida ordered his subordinates to change the reported $ 148 million (¥ 18 4 billion) loss of $ 4 million (¥ 500 million) profit.
Chief Cabinet Secretary Suga Ёsihide called for disclosure of accurate information concerning the problems of the company Toshiba.
The work at the helm of Toshiba put before Muromachi very complex problem, experts say, because the company was faced with many challenges: the human factor, loss of confidence and the need for fundamental change, not counting the fact that the manipulation of financial statements may face “sanctions”. In particular, if Toshiba does not hold the necessary changes within 18 months, the company is waiting for delisting from the Tokyo Stock Exchange, reported Bloomberg.
The problem lies in the Japanese business culture, says Professor Warwick Business School Loyzos Heraclius.
«The corporate culture in Japan and hierarchical It based on the long history, based on loyalty, hard work, diligence and avoid embarrassment for the group. These values, together with market pressures sometimes lead to such resignations “, – he said.
Toshiba struggling with issues covered in recent years, many Japanese have tehfirmy, believes analyst at consumer research in the field of electronics consulting firm Euromonitor International Carissa Chua. “Except for the cameras, Japanese companies are no longer able to compete with giants like Samsung and Lenovo, – she says. – Even without the scandal, Japanese electronics companies to produce already begun to lose their Korean and Chinese competitors. ”
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