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3000字英文论文-enron paper研究生商科论文,美国英朗公司丑闻事件调查:A Research on Enro

3000字英文论文-enron paper研究生商科论文(由英国论文网提供)-A Research on Enron scandal

Executive summary.
During that years, Enron had a great achievement in many ways.In the stock marketing, Enron just like a legend, the stock keep rose all the time peak at more than 90 US dollar per share. Its stock became almost all the analysts‘ recommendation to their clients. In the USA energy market, Enron always was the leader of the whole market. Under Kenneth Lay’s direct, Enron experienced a significant growth in energy service industry. After Lay merged Houston Natural Gas and InterNorth, several years later Jeffry Skilling and Andrew Fastow joined in Enron corporation. Here they started a new age of Enron, a “golden time” of Enron, of themselves but a disaster of public, of shareholders, of employees.
Skilling started to use mark to market accounting which lead to the big flaw. This method requires that make the future profit be estimated as current value of net future cash flows then the contracts was signed. By using the method, Enron benefit from it, their financial performance was keep increasing when they signed new contract. In another words, they actually made profit form all the new project. They showed the future income on the balance sheet.
Moreover, new projects were incessant signed by Andrew Fastow in secret ways. People may wondering how did he signed that much contracts. During that time he was the CFO of Enron, meanwhile, he was operate other two companies LJM1 & LJM2 which was fund for the purpose of create new projects and new contracts.
Eventually, their business tricks had a deadly exposure to the public. Enron corporation collapsed in one month. The stock nosedived to less than 1 US dollor per share by the end of 2001. Shareholders lost nearly $11 billion. Employees lost their jobs and their retirement fees. Some experts said that Enron just like a skyscraper built on sands. However, the point was not the single person, it was about the corporate culture, governance oversight and deregulations. Enron was the combination of problems and crimes. Such as, balance sheet was doctored, corporate conception was twisted and misunderstanding the meaning of innovation.
In Enron’s case, even it was a completely disaster, we could learn a lot from it. A closer look of Enron, there were many flaw if investor could pay more attention on the balance sheet. If the governments could pay more attention on accounting oversight, the scandal will stop at the primary situation. Governances need to be updated. For shareholders, there were few voices advised them before the scandal. Few analysts had told their clients there must some wrong with Enron’s performance and it will influent the price eventually. They did not take that advice. The consequence was certain money lost. For corporate, the problem is not to avoid the issue like Enron, companies need to enhance their corporate management and building a healthy culture behind corporate. These conceptions should be deeply concerned not just doing it on the surface. Corporate should start to how to take social responsibility and rise their business onto ethical level, not only make profit.



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