Forge Group Ltd case study (B): director duties, management compensation and ownership, risk, and ethics
Article
Article Title | Forge Group Ltd case study (B): director duties, management compensation and ownership, risk, and ethics |
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ERA Journal ID | 41678 |
Article Category | Article |
Authors | |
Author | Maloney, Suzanne |
Journal Title | IMA Educational Case Journal |
Journal Citation | 8 (1) |
Number of Pages | 9 |
Year | 2015 |
Place of Publication | United States |
ISSN | 1940-204X |
Web Address (URL) | http://www.imanet.org/resources-publications/ima-educational-case-journal-(iecj)/issues/Volume%208,%20issue%201 |
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. |
Keywords | financial statement analysis; take-overs; risk; corporate governance; ethics; management compensation |
ANZSRC Field of Research 2020 | 350105. Management accounting |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Commerce |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q3416/forge-group-ltd-case-study-b-director-duties-management-compensation-and-ownership-risk-and-ethics
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