ALL INDIA MANAGEMENT ASSOCIATION

A
SYNOPSIS ON

“ACCOUNTING SCANDAL
(CASE STUDY OF
LEHMAN BROTHERS HOLDING INC 2008)”

SUBMITTED BY

NAME :

ENROLLMENT NO :

NODAL CENTRE CODE:

ADDRESS FOR CORRESPONDENCE:

Submitted in partial fulfillment of the requirements for qualifying

Post Graduate Certificate in Management (Public Accounting)

2021

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 CONTENTS OF SYNOPSIS

CONTENTS PAGE NO.

1. Working Project Title………………………………………….…………...3

2. Introduction to topic...……………………………………..…………..…...4

3. Objectives and Scope of the study……………….………………………….5

4. Research Methodology …………………………………………………….6

5. Proposed contents of Dissertation…………………………………………. 7

7. Work Plan……………………………………………………………………8

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 1. WORKING PROJECT TITLE

“ACCOUNTING SCANDAL
(CASE STUDY OF
LEHMAN BROTHERS HOLDING INC 2008)”

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 2. INTRODUCTION TO TOPIC

The role of financial inclusion in the economic and financial discourse has gained a
lot of interest both among the academia and practitioners. Despite financial inclusion
becoming prominent in the financial literature there is no commonly accepted
definition of financial inclusion (Tita and Aziakpono, 2017). The absence of a
universal accepted definition is a result of multidimensional nature of financial
inclusion and various approaches in different jurisdictions. The term financial
inclusion involve transactions, payments, savings, credit and insurance being
distributed in a responsible and sustainable way. In broader terms, the term financial
inclusion can be defined as the process of bringing the weaker and vulnerable
members of society into the ambit of organised financial system which ensures that
they access timely and adequate credit and other financial products at affordable price.
Financial inclusion describes a situation where the bulk of financial services reach a
sufficiently large share of the population (Olaniyi and Adeoye, 2016). Financial
inclusion initiatives are generally multi-pronged and are designed predominantly to
address all the systemic and institutional inadequacies, at the same time urging
individuals to overcome barriers at their personal level (Kempson et al., 2004). The
deepening of financial inclusion in different countries is being done through charters
or codes of practice by financial institutions, directives issued by central banks and or
national vision statements underpinned by government legislation. Financial inclusion
initiatives are receiving support from governments as well as international bodies
including the World Bank, International Monetary Fund, G20 and AFDB among
others (Frost and Sullivan Report, 2009)Accounting scandals have served as
reminders of the low points in corporate history. These scandals involve cheating
investors, duping stakeholders, and rendering many people jobless while trying to
maintain the brand name and goodwill of the company. They are intentional
manipulation of accounts.

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OBJECTIVES AND SCOPE OF THE STUDY

OBJECTIVES

 To construct a composite financial inclusion index for India

 To empirically analyze the determinants of financial inclusion in India by

checking for long-run relationship between the independent variables and the
financial inclusion index.

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 5. RESEARCH METHODOLOGY

METHODOLOGY : Secondary Data

EXPLANATION OF THE METHOD:

The first objective requires to create a financial inclusion index (FII). To achieve this

objective the paper uses Principal Component Analysis (PCA) which is a method that helps

to create an index by incorporating several variables.

The second objective requires to analyze the impact of some variables on financial

inclusion in India from 1991 to 2018. The variables used in the analysis are – GDP growth

rate, number of internet users, inflation rate as measured by CPI, age dependency ratio,

and gross secondary school enrolment ratio.

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For the first objective of constructing a financial inclusion index, the study uses five variables to
construct the index. The variables are - number of bank employees, number of bank branches,
amount of credit, amount of deposit and number of saving bank accounts. The data is collected for
Scheduled Commercial Banks (SCBs) from Basic Statistical Returns (BSR), Reserve Bank of India
(RBI) for the time period 1991 to 2018.

The second objective is to analyse the determinants of financial inclusion in India.

The five determinants that the study uses are – GDP per capita (for analysis GDP growth rate
will be used), Inflation rate as measured by Consumer Price Index (CPI), Gross secondary
school enrollment ratio, Age Dependency ratio and internet users. The source of data on these
variables is World Development Indicators database and the time period for which it is
collected is 1991 to 2018.

Table 1: Objective and Data source of variables used in the study

Variables Objective Data Source

Number of saving bank To construct FII Basic Statistical Returns
accounts (BSR), RBI
Number of bank employees To construct FII Basic Statistical Returns
(BSR), RBI
Number of bank branches To construct FII Basic Statistical Returns
(BSR), RBI
Amount of deposit To construct FII Basic Statistical Returns
(BSR), RBI
Amount of credit To construct FII Basic Statistical Returns
(BSR), RBI
Age dependency ratio To analyze the impact on World Development
financial inclusion Indicator database
Number of internet users To analyze the impact on World Development
financial inclusion Indicator database
Inflation rate (CPI) To analyze the impact on World Development
financial inclusion Indicator database

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 GDP per capita To analyze the impact on World Development
financial inclusion Indicator database
Gross Secondary School To analyze the impact on World Development
Enrollment ratio financial inclusion Indicator database

Variables used to create Financial Inclusion Index

Accessibility to basic banking services is an important dimension of financial

inclusion. The number of saving bank accounts is an important indicator of accessibility

dimension and for that reason is included in the financial inclusion index. Individuals without

saving bank account indicate lack of access to formal financial services, which reflects in

their limited opportunities for saving, investing, and accessing credit. Saving bank accounts

are equally important for facilitation of financial transactions and create a financial history.

This in turn helps in accessing other financial products and services like loans and insurance.

Saving accounts allows individuals to manage their money effectively and participate in

saving and investing. As a result, including the number of savings bank accounts in the

financial inclusion index is a helpful approach to gauge how much access to essential

financial services there is and to spot any gaps.

The second indicator which has been used in creating the index is the number of bank

branches. It is a good indicator of the penetration dimension of the financial inclusion as it

reflects the physical presence of formal financial institutions in a particular area or region.

Bank branches can make it easier for people to acquire financial services, especially if they

have limited access to digital or internet banking options. Additionally, bank branches may

assist clients grow their financial aptitude and enhance their financial literacy by offering

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crucial financial education and support. For various financial services and goods including

loans, insurance, and investment products, bank branches can serve as a crucial distribution

channel. As a result, including the number of bank branches in the financial inclusion index

might provide light on the extent of a certain area's or region's access to formal financial

institutions and services. Additionally, it can be used to pinpoint geographic regions where

there may be a dearth of physical access to banking services and where improvements to

financial inclusion may be necessary.

Another key indication of financial inclusion is the number of bank employees.

Larger banks may be able to offer more individualised services, which can increase client

confidence and trust in conventional financial institutions. Additionally, banks with greater

employees may be better able to assist clients with more complicated financial demands, such

as small business owners or people with a wider variety of financial assets. These consumers

might need more specialised help and guidance, which a bigger number of bank workers can

offer. Indicators of employment growth and economic expansion can also be found in the

number of bank workers. There may be an increase in demand for banking services and a

corresponding rise in employment opportunities as the banking industry develops and more

people have access to formal financial services. As a result, incorporating the number of bank

employees in the financial inclusion index can shed light on how well formal financial

institutions are able to serve clients with a variety of demands while also giving a more

comprehensive view of the economic effects of financial inclusion.

The next indicator is the amount of deposits. Because it shows how much people are

utilising official financial systems to save money, the deposit amount can be a significant

indicator of financial inclusion. A higher volume of deposits may be a sign of better financial

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security and trust in established financial institutions. Additionally, having access to a savings

account and the ability to make regular deposits can assist people in increasing their savings

and strengthening their financial stability. For those with low incomes, who might have fewer

financial resources and might be more susceptible to unforeseen financial costs or economic

shocks, this can be especially crucial. The quantity of deposits might also reveal information

about the general level of economic activity in a given area or region. Higher levels of

deposits could indicate increased economic activity and investment, which would be

advantageous for nearby companies and jobs. As a result, including the volume of deposits in

the financial inclusion index can offer crucial insights into how much people use formal

financial services to save money and strengthen their financial resilience. It can also offer a

wider perspective on the economic impact of financial inclusion.

The last indicator used in the financial inclusion index formation is the amount of

credit. Because it shows how readily available formal credit facilities are to both individuals

and enterprises, the amount of credit can be a significant measure of financial inclusion. By

allowing people to start enterprises, invest in education, and buy assets like homes or cars,

formal credit facilities can significantly contribute to economic growth and the reduction of

poverty. Furthermore, having access to credit can assist people and organisations manage

cash flow and deal with unforeseen expenses, which can be especially crucial for those who

are low-income or have erratic income sources. Access to credit can also assist people in

developing credit histories, which can enhance their future credit access and support greater

financial inclusion. Insights regarding the general level of economic activity in a certain area

or region can also be gained from the credit amount. Greater economic growth and

investment may be linked to higher levels of credit, which may benefit employment and

other economic indicators. As a result, incorporating the loan amount in the financial

inclusion

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index can offer crucial insights into how much access people and enterprises have

to formal credit facilities and can also offer a broader perspective on the

economic impact of financial inclusion.

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 6.PROPOSED CONTENTS OF DISSERTATION
1. Introduction
2.Objective of the study
3.Review of Literature
4.Methodology (Details of methodology will be used in studying and collecting the data
and issue will be described)
5.Data analysis and interpretation
6.Findings and Recommendation
7.Conclusion
8. Limitations of the study
References
Appendix

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 7. WORK PLAN
Study of the concept 1days
Framing of objective and scope 1 days
Conducting the Survey 30 days
Organizing the data 2days
Data analysis, Suggestion & Conclusion 2 days

Reporting 1 days

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