Procomp Informatic: Stepping on Ethical Landmines in Asia

Procomp Informatic: Stepping on Ethical Landmines in Asia

  • Case
  • Teaching Notes
  • Supplementary Resources
Abstract

In 2004, the collapse of Procomp Informatics Ltd., a major Taiwanese chip maker in the high-tech world, was regarded by Taiwan’s market watchdogs as similar to the scandal of the giant US energy company Enron in 2001. Procomp defaulted on a bond payment and filed for bankruptcy despite a huge cash balance recorded in its books. It was discovered that the company’s chairwoman together with its executives and overseas sales agents had colluded in overstating sales revenue, manipulating stock prices, illegally leveraging assets and arranging bonds through fictitious companies. This incident left thousands of company shareholders with massive financial losses. The case has raised further concerns about corporate governance and risk management of public companies in Taiwan. It has spotlighted the need for credibility of ...

You are not authorized to view Teaching Notes. Please contact your librarian for access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles