Failure in corporate governance is common. Recent examples of failures in the United States include:

Enron – lack of full disclosure of off-balance-sheet debt and manipulation of energy markets.

WorldCom – capitalizing over $7 billion that should have been written off as operating expenses.

Global Crossing – hiding its overinvestment and operating losses while still promoting the stock.

Adelphia – management looted the firm through loans from the firm backed by the firm’s own stock.