Corporate Frauds in Emerging Markets: Cases Involving Malaysia Companies
Malini Kanjanapathy

Malini Kanjanapathy Maisarah Bt Mohamed Hashim International Business School, Universiti Teknologi Malaysia.
Manuscript received on 06 May 2019 | Revised Manuscript received on 18 May 2019 | Manuscript Published on 23 May 2019 | PP: 865-867 | Volume-7 Issue-6S5 April 2019 | Retrieval Number: F11500476S519/2019©BEIESP
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Abstract: Despite the established need of business ethics for companies, the wave of corporate scandal is still in rise in Malaysia. Malaysia is unique as an Asian country due to its institutional environment. Survey conducted by KPMG from 2013-2014 shows that fraud is still a major issue in Malaysia. The survey shows that 89% of Chief Executive of Malaysian PLC acknowledge that fraud has risen over the past 3 years. Fraud investigation by Ernst and Young (2013) also confirms that Malaysia is inclined to corporate frauds [1][9][15]. The reason for choosing Malaysia as the background of this study is because Malaysia is able to project growths in its economics. According to Department of Statistics Malaysia (2013), Malaysia’s GDP has increase to 6 percent per year [6][11]. In Malaysia, Transmille Group Bhd’s audit has caused public to be doubtful in the ability of accountants in checking and verifying the accounts. This is due to the fact that there is accounting irregularities and fraud in the company’s accounts. The company has overstated its accounts in two consecutive years in 2005 and 2006. The company was making loss and this loss was not detected by its auditors Deloitte & Touche. Apart from that, the audit of Ocean Capital Bhd which also was audited by Deloitte & Touche. Deloitte & Touch didn’t inform Ocean Capital’s shareholders that the company is making loss since the year 2000.
Keywords: Markets Companies Corporate Environment.
Scope of the Article: Marketing and Social Sciences