Enron s Financial Fraud And Corporate Fraud - 1700 Words

Years ago, a series of financial frauds and collapses was occurs in United States. Includes Enron, Global Crossing, Worldcom, Healthsouth, AIG and Lehman Brothers scandals. In the American capital market, the investors abandoned a number of large listed companies leads to the bankruptcy for those companies. The corporate frauds not only deceive investors, but also make oneself paid a heavy price. At the same time, it not only harm the capital market, but also caused a significant impact on American that resulted in regulation changes. These purpose of corporate fraud and reason are different, which Enron’s financial fraud is typical event and influence accounting filed lots. Because Enron is the beginning of the series of financial frauds in American, and secondly is form growth to the bankruptcy of Enron, has attracted American media and public, the third reason is Enron’s event also lead to the world top five accounting firm Arthur Anderson collapses. Enron was one of the world biggest electricity and Gas Company, before it announced bankrupt. The sales amount in 2000 was reached 101 billions American dollar, and the company was rewarded as the most innovate companies in United States in six year terms. However the truth make Enron’s famous all over the world is that company was bankrupt in several weeks in 2002 after it was disclosed the company’s institutionalization of systematic financial fraud scandals for years. Since then, Enron was a symbol of corporate fraudShow MoreRelatedFailure And Fraud Of Enron1161 Words   |  5 Pagescharacteristics such as failure and fraud that have been linked through time. However, although failure and fraud are connected in several various ways, one tends to come before the other. Generally failure is the absence of achieving success and fraud is committing an unlawful act that is driven by failure or to result in failure. Failure has driven fraud for countless reasons either for financial pro sperity or personal supremacy. In many cases the direction of failure and fraud is mainly subjected to theRead MoreEnron Scandal And Its Impact On The Economy Essay1305 Words   |  6 PagesThe Enron scandal was the largest corporate financial scandal ever when it emerged. It took the economy the better part of a year to recover from the damage the Enron controversy caused to the US as a whole. Enron is not fully responsible, but it was a large contributor to the collapse of the stock market in the early 2000’s. In the year following the 9/11 hit to our country and economy the DOW lost close to 4500 points; down to 7500 from almost 12000, it did gain some back, but considering the greatRead MoreThe Ethical Dimension Of The Demise Of Enron Corporation1474 Words   |  6 PagesThis paper explores the ethical dimension of the demise of Enron Corporation an reflection of author, placed in hypothetical situations. Accounting Fraud and Management philosophy will be the main discu ssion topics, along with the motivations of fraud. The fall of Enron can be directly attributed to a violation of ethical standards in business. This makes Enron unique in corporate history for the same actions that made Enron on of the fastest growing and most profitable corporations, at the turnRead MoreEnron Of Natural Gas Pipelines Enron1144 Words   |  5 Pagesof natural gas pipelines Enron was formed through a merger of Houston Natural Gas, and Nebraska pipeline company Internorth. Enron went on to create energy derivatives and in 1990 formed Enron Finance Corp. By 1996 Enron had also formed Enron Capital and Trade Resources increasing their growth from $2 billion to $7 billion and increasing division employment from 200 to 2,000. In 1999 Enron entered the technology market by creating Enron Online (EOL). 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Greed and personal vendettas are what have led our country to understand and gain more knowledge about these corporations and the corrupt CEOs that have brought them to their demise. â€Å"White collar crime is defined as various crimes, as embezzlement, fraud, or stealing office equipment, committed by business or professional peopleRead MoreRelationship Between Ethics And Business Performance1181 Words   |  5 PagesAlthough the relationship between ethics and business performance is still the subject of controversy, the Enron case is a demonstration that the lack of ethical behavior is inseparable from the competitive disadvantage. The question is not so much whether the disaster could be avoided if the company had adopted from the beginning, transparency criteria. The main thing to know as citizens, so far reputed and honest, have managed to create an environment to bring their managers to take ethically reprehensibleRead MoreRelationship Between Ethics And Business Performance1278 Words   |  6 PagesAlthough the relationship between ethics and business performance is still the subject of controversy, the Enron case is a demonstration that the lack of e thical behavior is inseparable from the competitive disadvantage. The question is not so much whether the disaster could be avoided if the company had adopted from the beginning, transparency criteria. The main thing to know as citizens, so far reputed and honest, have managed to create an environment to bring their managers to take ethically reprehensibleRead MoreCorporate Scandals And Allegations Of Fraud1111 Words   |  5 PagesCorporate scandals and accusations of fraud have amplified intensely over the last decade. The cost of fraud has reached over $400 billion dollars a year, not to mention the loss of investments and jobs. Corporation fraud involves creative, complex methods in which to overstate revenues, understate expenses, over value assets, and underreport liabilities. To hide financial problems, management will manipulate stock prices, minimize taxable income, and maximize compensation. â€Å"It s been my experience†¦