Royal Ahold: A Failure of Corporate Governance and an Accounting Scandal

A. de Jong, D.V. DeJong, G.M.H. Mertens, P.G.J. Roosenboom

Research output: Working paperDiscussion paperOther research output

1342 Downloads (Pure)

Abstract

Royal Ahold (Koninklijke Ahold NV) was one of the major success stories in the 1990s and is one of the major failures, suffering a complete meltdown, in 2003.We investigate the strategy, accounting transparency and corporate governance of Ahold; elements which jointly drive the firm s performance over this period of time.In general, the corporate governance, accounting transparency, strategy and firm performance relationships are complex.There is not a fully specified model available to address the inter-relationships, including the endogeneity problem.The econometrics are difficult and constrained not only by the lack of a fully specified theory but also by data availability. Our clinical study overcomes these problems by providing an in-depth analysis of the inter-relationships among corporate governance, accounting transparency and strategy that lead to Ahold s downfall.We provide insights into these relationships and their complexity that present theory and empirical studies cannot address.
Original languageEnglish
Place of PublicationTilburg
PublisherAccounting
Number of pages57
Volume2005-57
Publication statusPublished - 2005

Publication series

NameCentER Discussion Paper
Volume2005-57

Keywords

  • international economics
  • financial economics
  • financial reporting
  • law and economics
  • corporate governance
  • regulation

Fingerprint

Dive into the research topics of 'Royal Ahold: A Failure of Corporate Governance and an Accounting Scandal'. Together they form a unique fingerprint.

Cite this