Electronics giant Tyco International Ltd is yet another example of a bankruptcy caused by executive scandal and corporate excess. The collapse of Tyco, one of the world’s largest corporations with 240,000 employees, send shockwaves throughout the US and global economy.
Tyco International Ltd is a Swiss security Systems Company incorporated in Switzerland, with United States operational headquarters in Princeton, New Jersey. Tyco registered huge profits largely by means of acquisitions and financial manipulations. Its booming earnings reports and escalating stock value for much of the past decade were not the products of growing productive capacity, but were instead achieved through accounting tricks and outright fraud.
Tyco International underwent a severe change in 2002 when it was found that it’s Chief Executive Officer, David Kozlowski, and Chief Financial Officer, Mark Swartz, had been accused of stealing nearly $150 million from the company. When the CEO resigned after the accusations and the stock plummeted, and Tyco filed for bankruptcy shortly thereafter.
Since this time, the company has been doing everything in its power to turn itself around.