No. 2005–57 ROYAL AHOLD: A FAILURE OF CORPORATE GOVERNANCE AND AN ACCOUNTING SCANDAL By Abe de Jong‚ Douglas V. DeJong‚ Gerard Mertens‚ Peter Roosenboom March 2005 ISSN 0924-7815 Royal Ahold: A Failure of Corporate Governance and an Accounting Scandal Abe de Jong* Department of Financial Management Erasmus University Rotterdam a.jong@fbk.eur.nl Douglas V. DeJong Tippie College of Business University of Iowa douglas-dejong@uiowa.edu Gerard Mertens Department of Financial Management Erasmus
Premium Stock market Stock Governance
have been a number of cases of high profile corporate collapses and fraud scandals. In essence‚ the unethical behaviour of corporations affects us all‚ such as shareholders’ lost financial investments‚ employees who lost their jobs‚ other companies that provided goods and services to the company‚ as well as the economic impact on domestic and international communities. In this paper I will focus on the case study of Royal Ahold and the large accounting fraud that took place within the company. The issues
Premium Governance Corporate governance Business ethics
com/locate/jaccpubpol Investor relations‚ reputational bonding‚ and corporate governance: The case of Royal Ahold Abe de Jong a‚ Douglas V. DeJong b‚*‚ Gerard Mertens a‚ Peter Roosenboom a b a Department of Financial Management‚ RSM Erasmus University‚ Netherlands Tippie College of Business‚ University of Iowa‚ Iowa City‚ IA 52242‚ United States Abstract Royal Ahold (Koninklijke Ahold NV) was one of the major success stories in the 1990s and is one of the major failures‚ suffering a complete
Premium Stock market Stock Hypermarket
EDUCATION Vol. 22‚ No. 4 November 2007 pp. 641–660 Europe’s Enron: Royal Ahold‚ N.V. Michael C. Knapp and Carol A. Knapp ABSTRACT: Royal Ahold‚ N.V.‚ is a large multinational company based in The Netherlands that was founded in 1887 by Albert Heijn. Three generations of the Heijn family oversaw the company’s retail grocery business. In 1989‚ the company hired a professional management team. The new management team expanded Royal Ahold’s operations by purchasing grocery chains around the globe‚
Premium Grocery store
Ahold: Royal Dutch Disaster Session 7 Management Accounting & Controls Date 24-Feb-03 Issue: $500 million fraud What: Global food retailer with over 9‚000 stores and 278‚000 employees in 4 continents 2002 Sales -72 billion Euros up from 66 billion in 2001 Current outstanding loans of 13 billion euros due to 7 years of acquisitions People: Cees Van der Hoeven – CEO since 1993 (joined Ahold’s executive boar as CFO in 1985) Michiel Muers 1997 – CFO graduated in business studies and economics Jim
Premium Board of directors Corporate governance Financial audit
Roberto Benabid 2E10 Contents Part I: Rationale statement The stocks of Colruyt and Ahold were chosen for several reasons. In terms of collecting determinants of shares ‚ the stocks of Colruyt in combination with Ahold’s shares were chosen because they are both located in the same sector however active in different countries. With this
Premium Stock market Stock
Libor Scandal What is Libor and why does it matter? Libor stands for London Interbank Offered Rate. “It is considered to be an average interest rate which is estimated by some leading banks in London that they would be charged if borrowing from other banks.” Libor rate is considered to be the primary benchmark for short term interest rates around the world. It is the average cost of borrowing and is estimated on a daily basis by a group of banks as mentioned above. Libor rate gained momentum around
Premium Finance Hedge fund Bank
SCANDALS IN 2000S Named scandals Named scandals in India Scandal Year reported Scope Location Key players Summary 2012 Indian coal mining controversy 2012 185‚591.34 crore (US$33.78 billion) nation Comptroller and Auditor General of India‚ the coal ministry‚ many electricity boards and private companies coal blocks allotted‚ not auctioned‚ leading to estimated losses as per the Comptroller and Auditor General of India [1][2][3] Karnataka Wakf Board Land Scam 2012 200‚000 crore
Premium States and territories of India Bharatiya Janata Party Uttar Pradesh
Ahold vs. Tesco Case Analysis Group 5: Rayan Alqubaysi‚ Yuchen (Jason) Jin‚ Laura Payne‚ Lei Wang Introduction of Case ● Alpha Plus Asset Management- investment decision ● Analyzed history‚ business strategy‚ recent performance and future goals ○ ○ Differences in stock prices with similar ROEs How should cash position be taken into account when assessing performance? Porter’s Five Forces of Competitive Position Ahold Threat of new entrants (Market) Bargaining power of customers (Products) Bargaining
Premium Asset Balance sheet Generally Accepted Accounting Principles
RISKS IDENTIFYING THE RISKS IN MY: *FAMILY – My family is undergoing several problems. One of those is my parent’s health‚ my mom has a Vertigo which affects her daily lifestyle and my dad has an Arthritis which hinders him to work efficiently. *FRIENDS – My friends and I are very happy with each other‚ but despite of our harmonious relationship sometimes we have some misunderstanding because of our different beliefs. But arguments bring us closer together. *SCHOOL –I don’t have a good relationship
Premium Psychology