Fall of EnronEnron encountered a ma

Fall of Enron
Enron encountered a major scandal in 2001 that made global news, led to the company’s bankruptcy, triggered the dissolution of Arthur Anderson, and prompted widespread discussion on agency problems, ethics, and stricter regulation of the financial sectors. The scandal emerged due to lies told by executive management, auditing fraud, and withheld information in order to save their reputation, and Enron’s image as one of the most successful companies of the world.
Enron was founded in 1985 as an energy company, dealing in electricity, natural gas, petroleum, paper, and pulp. During the course of its operations it had altered its operational patterns, moving from energy commodity futures to broadcast times on TV, weather futures, and Internet Bandwidth. Its reputation rose rapidly as one of the most innovative, well managed, and profitable companies. This made the company one of the most sought after in the stock market, with the companies share trading above $90 in mid-2000. This was an altered reality as the company had been experiencing problems and only been able to maintain its image with the help of extensive accounting fraud. Enron had been revising its financial statements for the five years, prior to its bankruptcy, investigation of which found that Enron had faced losses in excess of $586 million. When news broke of Enron’s fraud the price of the stock dropped to less than $1, causing shareholders to lose more than $11 billion, and the company filed for bankruptcy in December 2001.
The Enron debacle showcased an evolving issue in Financial Markets; management at companies and investment firms now earn far larger compensations on profits generation and underwriting securities,than brokerage fees. This has created a conflict of interest in the positions of whether the objective is to generate as much money, through any means, or divulge actual pertinent information to shareholders.

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Fall of EnronEnron encountered a major scandal in 2001 that made global news, led to the company’s bankruptcy, triggered the dissolution of Arthur Anderson, and prompted widespread discussion on agency problems, ethics, and stricter regulation of the financial sectors. The scandal emerged due to lies told by executive management, auditing fraud, and withheld information in order to save their reputation, and Enron’s image as one of the most successful companies of the world.Enron was founded in 1985 as an energy company, dealing in electricity, natural gas, petroleum, paper, and pulp. During the course of its operations it had altered its operational patterns, moving from energy commodity futures to broadcast times on TV, weather futures, and Internet Bandwidth. Its reputation rose rapidly as one of the most innovative, well managed, and profitable companies. This made the company one of the most sought after in the stock market, with the companies share trading above $90 in mid-2000. This was an altered reality as the company had been experiencing problems and only been able to maintain its image with the help of extensive accounting fraud. Enron had been revising its financial statements for the five years, prior to its bankruptcy, investigation of which found that Enron had faced losses in excess of $586 million. When news broke of Enron’s fraud the price of the stock dropped to less than $1, causing shareholders to lose more than $11 billion, and the company filed for bankruptcy in December 2001. كارثة إنرون عرضت قضية تطور في "الأسواق المالية"؛ الإدارة في الشركات والاستثمار من الشركات الآن كسب تعويضات أكبر بكثير على توليد الأرباح والاكتتاب في الأوراق المالية، من رسوم السمسرة. وهذا أوجد تضارب في المصالح في مواقف ما إذا كان الهدف هو توليد الكثير من المال، من خلال أي وسيلة، أو الكشف عن المعلومات ذات الصلة الفعلية لحملة الأسهم.