Etihad Etisalat Company (Mobily)
In November 2014 Saudi telecom company Etihad Etisalat (Mobily) cut its profits and revenues for 2013 and for the first half of 2014 due to excessive booking of revenues. An unprecedented scandal hit the business community in Saudi and $9.1 billion of Mobily’s market value was wiped out. The scandal sparked an investigation by the Capital Market Authority (CMA) in order to send a strong signal to incoming foreign investors. Mobily CEO and Managing Director Khalid Al Kaf was removed from his position. Board members and senior executives might be prosecuted for insider trading violations. The Mobily shock would have a long-lasting impact on market.
Mobily case helps participants understand behavior biases of corporate leaders, which might be reflected in their narratives. The case also helps board reflect its role in responding to an accounting scandal and in monitoring management. For example, how board and management could have done differently to minimize the negative impact? How well do we understand the CMA regulatory objectives, requirements and consequences?
Etihad Etisalat, Services, Telecommunications
2015
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
Foxconn, a Fortune Global 500 giant and the world's largest electronics manufacturer, made headlines in 2023 by announcing a shift to a five-day, eight-hour workweek in its Chinese factories - a significant departure from its long history of exten...
Boards are playing an increasingly active part in shaping change efforts.
September 2024 marks a turning point in corporate management and a drama in the management world, which began with an essay by Paul Graham, patron of Silicon Valley's leading startup incubator, Y Combinator.Graham coins a new paradigm, the founder...
As businesses navigate market disruptions, technological innovations and an increasingly turbulent world, leaders will frequently find themselves taking control of a team in the aftermath of a crisis. Inheriting such a challenging environment ofte...
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications