Corporate Governance and Corporate Governance Index: A Study on Toyota Company Recall Scandal

Abstract

Companies involved in the scandal within the company or person acting on behalf of the company alleged or actual wrongdoing. The purpose of this study was to investigate factors affecting Toyota's corporate governance index during the Toyota recall scandal. The analysis of Toyota's financial statements from 2007 to 2011 was carried out and analyzed by research. The findings and analysis indicate that Toyota's corporate governance index is primarily influenced by Tobin's Q and release rate. The study also shows that Toyota should take the lead in putting business ethics and customer safety first, rather than cost savings, seeking more benefits and more market share. In addition, Toyota should still do corporate governance to produce high-quality products so that the company can return to normal levels and get rid of the scandal.