Saturday, October 5, 2019

Enron Research Paper Example | Topics and Well Written Essays - 5000 words

Enron - Research Paper Example The company regularly featured into the most innovative firms categories across America (McLean & Elkind, 2003).   The first investigations was of their complex and private networking with off-shore partners and then into their accounting practices. Enron bankruptcy is also known as largest audit failure in the history of America. The bankruptcy further led to the Arthur Andersen’s dissolution, which at that time were world’s fifth largest accountancy and audit partnerships. Before Enron bankrupted in the year 2001, its annual revenues increased from around 9 billion dollars in 1995 to more than 100 billion dollars in 2000. The audit after the investigation revealed that the company’s financial conditions were covered largely by systematic, institutionalized as well as creatively planned ethical and accounting fraud (Deli & Gillan, 2000). Thomas (2002a) examined the drop of the stock prices of the firm, which was less than 1 dollar per share by 2001 from 90 dollars per share, before the investigation. It was also found that Enron revised its annual financial statements over the past five years in order to cover its 586 million dollar losses. It was declared bankrupt on 2nd December, 2001 (Bartlett & Glin ­ska, 2001). The current research paper will analyze the event’s details included conflicts in interests, management as well as accounting fraud. The analyzing will consist of both corporation’s perception and individual’s perception. The broader perspective of the research paper is to examine the scandal from multiple perspectives. The background of the paper has provided a summary of the scandal and situation of the company before and after the scandal. The paper will throw light on the business model that was implemented by Enron and culture, legal and moral implications of the business model that impacted the company in its later stages. Special light on the transformational and trait leadership in

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