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

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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

Fingerprint

Corporate governance
Scandal
Transparency
Interrelationship
Econometrics
Empirical study
Endogeneity
Firm performance

Keywords

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

Cite this

de Jong, A., DeJong, D. V., Mertens, G. M. H., & Roosenboom, P. G. J. (2005). Royal Ahold: A Failure of Corporate Governance and an Accounting Scandal. (CentER Discussion Paper; Vol. 2005-57). Tilburg: Accounting.
de Jong, A. ; DeJong, D.V. ; Mertens, G.M.H. ; Roosenboom, P.G.J. / Royal Ahold : A Failure of Corporate Governance and an Accounting Scandal. Tilburg : Accounting, 2005. (CentER Discussion Paper).
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de Jong, A, DeJong, DV, Mertens, GMH & Roosenboom, PGJ 2005 'Royal Ahold: A Failure of Corporate Governance and an Accounting Scandal' CentER Discussion Paper, vol. 2005-57, Accounting, Tilburg.

Royal Ahold : A Failure of Corporate Governance and an Accounting Scandal. / de Jong, A.; DeJong, D.V.; Mertens, G.M.H.; Roosenboom, P.G.J.

Tilburg : Accounting, 2005. (CentER Discussion Paper; Vol. 2005-57).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Royal Ahold

T2 - A Failure of Corporate Governance and an Accounting Scandal

AU - de Jong, A.

AU - DeJong, D.V.

AU - Mertens, G.M.H.

AU - Roosenboom, P.G.J.

N1 - Subsequently published in Journal of Accounting and Public Policy, 2007 (rt) Pagination: 57

PY - 2005

Y1 - 2005

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AB - 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.

KW - international economics

KW - financial economics

KW - financial reporting

KW - law and economics

KW - corporate governance

KW - regulation

M3 - Discussion paper

VL - 2005-57

T3 - CentER Discussion Paper

BT - Royal Ahold

PB - Accounting

CY - Tilburg

ER -

de Jong A, DeJong DV, Mertens GMH, Roosenboom PGJ. Royal Ahold: A Failure of Corporate Governance and an Accounting Scandal. Tilburg: Accounting. 2005. (CentER Discussion Paper).