Accounting fraud and bankruptcy: The case of wirecard AG
- Title
- Accounting fraud and bankruptcy: The case of wirecard AG
- Creator
- Baranidharan S.; Ajekwe C.C.M.; Nakitende M.G.
- Description
- This chapter examines the scandal at Wirecard AG, a German payment processing and financial services company, that became one of the most valuable companies on the German stock exchange in the 2010s. From 2010 to 2018, Wirecard reported consistent revenue growth and profitability. In 2019, the company reported revenues of 2.8 billion ($3.2 billion). As of September 2018, its market capitalization was over 24 billion ($27 billion). In late 2019, the Wirecard scandal was discovered through investigative reports by the Financial Times, which raised questions about Wirecard's accounting practices. The company faced a major scandal in 2020 when it was revealed that 1.9 billion ($2.1 billion) was missing from its balance sheet. Subsequent investigations revealed a massive accounting fraud that had been going on for years. Subsequently, the company filed for bankruptcy. Multiple Wirecard executives, including its CEO, were charged with fraud and market manipulation. German regulators and auditors were criticized for failing to detect and prevent the fraud. 2023, IGI Global.
- Source
- Theory and Practice of Illegitimate Finance, pp. 222-244.
- Date
- 2023-01-01
- Publisher
- IGI Global
- Coverage
- Baranidharan S., CHRIST University (Deemed), India; Ajekwe C.C.M., Benue State University, Nigeria; Nakitende M.G., Uganda Martyrs University, Uganda
- Rights
- Restricted Access
- Relation
- ISBN: 979-836931191-2; 979-836931190-5
- Format
- Online
- Language
- English
- Type
- Book chapter
Collection
Citation
Baranidharan S.; Ajekwe C.C.M.; Nakitende M.G., “Accounting fraud and bankruptcy: The case of wirecard AG,” CHRIST (Deemed To Be University) Institutional Repository, accessed February 23, 2025, https://archives.christuniversity.in/items/show/18221.