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The One.Tel Collapse: Lessons for Corporate Governance

2011; Wiley; Volume: 21; Issue: 4 Linguagem: Inglês

10.1111/j.1835-2561.2011.00151.x

1835-2561

Reza Monem,

Insurance and Financial Risk Management

Australian Accounting ReviewVolume 21, Issue 4 p. 340-351 The One.Tel Collapse: Lessons for Corporate Governance Reza Monem, Reza MonemSearch for more papers by this author Reza Monem, Reza MonemSearch for more papers by this author First published: 14 December 2011 https://doi.org/10.1111/j.1835-2561.2011.00151.xCitations: 12 Reza Monem, Deptartment of Accounting, Finance and Economics, Griffith University, 170 Kessels Road, Nathan, QLD 4111, Australia. Phone: +61 7 373 53598 (Australia); email: [email protected] Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onEmailFacebookTwitterLinkedInRedditWechat Abstract One.Tel was a major corporate collapse in Australia in 2001. At the time of its collapse, it was the fourth largest telecommunications company in Australia with more than two million customers and operations in eight countries. Analyses of quantitative and qualitative data from diverse sources suggest that One.Tel's collapse is a classic case of failed expectations, strategic mistakes, wrong pricing policy, and unbridled growth. The company's meteoric rise and fall was associated with serious deficiencies in its corporate governance, including weaknesses in internal control, financial reporting, audit quality, board's scrutiny of management, management communication with the board, and poor executive pay-to-performance link. Thus, the collapse of One.Tel has several important lessons on the role of corporate governance in preventing corporate collapse. 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