Question

In: Accounting

What are some of the corporate governance issue addressed in the PBS documentary "Bigger Than Enron"?

What are some of the corporate governance issue addressed in the PBS documentary "Bigger Than Enron"?

Solutions

Expert Solution

Failure of a large level company Eron raised serious questions on corporate governance of the company & capital market as well. As we know that Eron had a good position in the market and also was leading company but failure of this company made everybody surprised.

So let’s see various corporate governance issues;

1. Presence and effectiveness of watchdogs because inspite of existence of SEC all went wrong. Thus this question is very impportant that was this supreme body able to monitor the affairs of the corporation?

2. Was there is any illegal & unethical link between officers of supervisory body and official of the company?

3. Was watchdogs overburdened? So due to such overburden supreme body was not able to monitor eeficiently.

4. Question was raised on the responsibility and work style of the board of directors.

5. Were auditors performed their duties effectively?

6. Were auditors truly identified real faults about the company?

7. Were auditors communicated true & fair image of the company to relevant stakeholders?

8. Questions were raised on the performance of credit rating agencies. As we know that credit rating have solid impact on the capital market.

9. Operating efficiency of investment bankers also questioned due to failure of Eron.

So overall we can say that failure of Eron rasied multiple question on the corporate governance and these questions were quite reasonable because if these faults are not fixed in proper way then it may leads to more negative results in future time.


Related Solutions

Was the financial crisis caused by factors that are much bigger an stronger than corporate governance?...
Was the financial crisis caused by factors that are much bigger an stronger than corporate governance? - Use the evidence from academic literature to answer it (briefly cite), debate in the area of corporate governance. look for complexity, differing opinions, nuance and contradiction, the best answer will not be straightforward, but they will be clearly expressed and argued, do not try to simply agree with what you perceive to be the views of the lecturer
What is corporate governance? What are some of the corporate governance measures designed to ensure that...
What is corporate governance? What are some of the corporate governance measures designed to ensure that the best interest of shareholders are served? Provide examples.
What corporate governance issues that AMAZON faces and how they are addressed in the current year?
What corporate governance issues that AMAZON faces and how they are addressed in the current year?
What is corporate governance? What is the role of corporate governance?
What is corporate governance? What is the role of corporate governance?
Identify a major corporate governance issue. Corporate governance is the corporation's ability to govern itself through...
Identify a major corporate governance issue. Corporate governance is the corporation's ability to govern itself through the board, through shareholders, through its leadership, etc. Provide a specific example and answer the questions below. 1) Major corporate governance issue? 2) How does the situation connect to corporate governance? 3) Evaluate applicable legislation, grassroots movements, and the role of the SEC. 4) What recommendations would you make to improve or correct this situation? Please help being very specific during all four questions.
I have a question. The question says " Based on the video, "Bigger than Enron", discuss...
I have a question. The question says " Based on the video, "Bigger than Enron", discuss three different components of the Sarbanes-Oxley Act(SOX) that were a result of recent fraudulent events. ?What does this question mean? Is this the major purpose of Sarbanes-Oxley Act? Please help me. Thanks!
What is one emerging issue facing corporate governance? (400 words)
What is one emerging issue facing corporate governance? (400 words)
Evaluate the Enron Fraud and assess the impact of subsequent changes to corporate governance, accounting and...
Evaluate the Enron Fraud and assess the impact of subsequent changes to corporate governance, accounting and regulations on financial reporting standards
As seen in the PBS Nature documentary ‘What Plants Talk About’, in the rainforest of British...
As seen in the PBS Nature documentary ‘What Plants Talk About’, in the rainforest of British Columbia there is a species of conifer (Douglas fir) in which the trees are connected underground by their roots and mycorrhizal fungi. The fungi connects the trees into a resource sharing community. Which organisms are the biggest beneficiaries in this community? mushrooms seedlings of the Douglas fir lichens growing on these trees elderly Douglas fir
Hi, I have a question. The paper say, " The video "Bigger than Enron" 's states...
Hi, I have a question. The paper say, " The video "Bigger than Enron" 's states Enron's collapse was more than the story of just one company. What does this statement mean? How-far reaching are the implications of a corporate fraud of this magnitude? Please provide examples of inured parties and explain how they are affected." ?I understand the first question saying that Enron's scandal affect a lot of business. But I don't know understand the rest of the question....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT