Corporate governance in corporate scandals. Analysis of the 1MDB and wirecard cases

Abstract

In many situations, company managements make decisions and implement strategies that do not promote behaviour aimed at long-term value creation, far less at sharing this value with the good performance of the firm. These failures can be so far-reaching that they are known as corporate scandals. This paper aims to identify which aspects of corporate governance failures allow these behaviours, so far removed from the so-called "codes of good conduct", to penetrate companies. For the analysis we will take the cases of Wirecard and 1MDB as examples.