
12 | Chapter 2
To retain controlling stake over a company
after public oer of its shares.
To get higher performance bonuses, other
monetary incentives and promotions.
To squeeze out minority share holders.
Financial Statement Frauds
to Induce Banks and Financial
Institutions
The most common objective of committing -
nancial statement frauds is to induce banks and
nancial institutions, to give credit facilities be-
yond the real borrowing capacity of the com-
pany. For this purpose, controlling share holders
falsely project higher net worth and equity base
of the company, inate turnover and tailor other
parameters that banks and nancial ...