Olympus corporation scandal 2011 and corporate governance failures Coursework

Olympus corporation scandal 2011 and incorporated organization failures - Coursework Examplecounting standards for accounting investments , poor work out by institutional investors , non-existence of strong take-over codes and the role of statutory auditors to certify the accuracy of company accounts (Tricker & Tricker 2014176). This research essay will examine how Olympus Corporation was organised , will discuss in-detail about the prevention of much(prenominal) scams in future in Japan by suggesting suitable measures by strengthening the existing corporate governance codes of Japan.The Olympus Corporation (hereinafter will be referred as OC) scandal was related to financial reporting, which offers an opportunity to give way some light how both practical and theoretical issues were the causes for the reform in the Japanese corporate governance model. Japans continuous reluctance to appoint independent directors- the concept which was introduced in the U.S. on the pressures fr om orbicular institutional investors in the 1990s was one of the reasons for the failure of corporate governance in Japan. The main level of the corporate governance should address risk management and conflicts of interest instead of concentrating mainly on enhancing act of the business (Schreck 200957). In the absence of independent monitors to make any probable monitoring of management, it is really not practical to make corporate governance more vibrant. A good operating environment would imply updated information disseminations, strong implementation, especially through private litigations and entrusting active roles to external auditors (Woodford 20122).OC establi shed a tobashi design to transform its losses off the balance sheet of Olympus. A A tobashi scheme is a financial scam where the losses incurred by a company are camouflouged by an investment firm by transfering them between other fake or genuine clients or the portfolios. Cayman based companies were acquired by paying abnormal acquisition and management fees. When Michael Woodford, a British, who was appointed CEO of