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Board structure changes after accounting fraud: the case of Schneider Electric

Benedicte Millet-Reyes (Department of Economics, Finance, and Real Estate, Monmouth University, West Long Branch, New Jersey, USA)
Nancy Uddin (Department of Accounting, Monmouth University, West Long Branch, New Jersey, USA)

Publication date: 29 June 2021

Issue publication date: 24 August 2021


Theoretical basis

The impact of corporate governance on internal controls and quality of financial disclosures.

Research methodology

Analysis of a real financial fraud event for a non-US multinational corporation. The case relies on accessing and analyzing annual reports for the firm, both before and after the fraud. Additional information on industry governance characteristics are provided in the case itself so that students can compare the firm to the industry.

Case overview/synopsis

This business case is centered on the analysis of Schneider Electric, a French multinational corporation, which had to restate their financial statements in 2011 because of accounting fraud. Following this event, Schneider undertook major changes in their board structure to improve internal control mechanisms. This pedagogical business case familiarizes students with international differences in ownership and board structure and emphasizes potential corporate governance changes after financial statement fraud.

Complexity academic level

Managerial finance, corporate finance, international finance, auditing. This case is more appropriate for upper-level undergraduate and graduate courses.



Disclaimer. This case is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.


Millet-Reyes, B. and Uddin, N. (2021), "Board structure changes after accounting fraud: the case of Schneider Electric", , Vol. 17 No. 3, pp. 406-418.



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