Maloney, Suzanne (2015) Forge Group Ltd case study (B): director duties, management compensation and ownership, risk, and ethics. IMA Educational Case Journal, 8 (1).
Abstract
The demise of Forge Group Ltd (FGL) is used to examine corporate governance, management compensation and ownership, risk, and ethics. Forge Group Ltd was a successful engineering company that collapsed within 12 months of a share price peak. The importance of good fundamental internal reporting is demonstrated by giving students the benefit of hindsight. The visceral feel of a corporate collapse with real investors losing money highlights the relevance and value of accounting and basic financial management.
This case and companion case A analyze FGL’s collapse. Case A focuses on the “numbers” by examining the financial statements, working capital management, and growth. Case B focuses on directors’ duties, management compensation and ownership, risk, and ethics. Independently or together, the cases can form the basis for a discussion about the governance of corporations, including reporting, transparency, risk, compensation, and ethics.
Basic-level students would be expected to explain and discuss key corporate governance concepts such as director duties, management compensation and ownership, risk, and ethics. Intermediate-level students would be expected to apply concepts such as director duties, management compensation and ownership, risk, and ethics to a real-world scenario. And advanced-level students would be expected to critique and draw conclusions on the application of director duties, management compensation and ownership, risk, and ethics to a real-world scenario.
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| Item Type: | Article (Commonwealth Reporting Category C) |
|---|---|
| Refereed: | Yes |
| Item Status: | Live Archive |
| Additional Information: | Files associated with this item cannot be displayed due to copyright restrictions. |
| Faculty/School / Institute/Centre: | Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021) |
| Faculty/School / Institute/Centre: | Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021) |
| Date Deposited: | 25 May 2016 04:55 |
| Last Modified: | 19 Sep 2017 23:47 |
| Uncontrolled Keywords: | financial statement analysis; take-overs; risk; corporate governance; ethics; management compensation |
| Fields of Research (2008): | 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150105 Management Accounting |
| Fields of Research (2020): | 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350105 Management accounting |
| URI: | http://eprints.usq.edu.au/id/eprint/28425 |
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