To see the other types of publications on this topic, follow the link: Enron Scandal.
Journal articles on the topic 'Enron Scandal'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Enron Scandal.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Grove, Hugh, and Maclyn Clouse. "Corporate Governance Principles and Sustainability." Corporate Governance and Sustainability Review 1, no. 2 (2017): 13–19. http://dx.doi.org/10.22495/cgsrv1i2p2.
Full textAbstract:
With 21st century U.S. frauds destroying well over one trillion of market capitalization and now with Valeant’s 2016 market cap destruction of $86 billion, the question must again be asked: where were the gatekeepers (boards of directors, regulators, sell-side financial analysts, and auditors) to protect investors? Many of these frauds were caught only by short sellers, such as Jim Chanos (shorting Enron in 2000 and Valeant in 2014), Andrew Left (shorting Valeant in 2015), and buy-side financial analysts. Sir David Tweedy, the former chair of the International Accounting Standards Board, has commented: “The scandals that we have seen in recent years are often attributed to accounting although, in fact, I think the U.S. cases are corporate governance scandals involving fraud” (Tweedy, 2007). This paper is a case study using the Valeant $86 billion market cap destruction in 2016 to emphasize the timeless nature of such corporate governance scandals. This scandal was even larger than the infamous $78 billion market cap destruction scandal of Enron which occurred 15 years earlier in 2001. These scandals appear here to stay as the new normal so these gatekeepers should be doing everything they can to analyze the ongoing fraud problems. Accordingly, as a case study, this paper develops lessons learned from this $86 billion Valeant scandal to emphasize the importance of sustainable corporate governance principles as a pathway to avoid malpractices in the future.
2
McLean, Bethany. "Commentary: The smartest guys in the room – covering the Enron saga." Pacific Journalism Review : Te Koakoa 14, no. 1 (April 1, 2008): 15–31. http://dx.doi.org/10.24135/pjr.v14i1.920.
Full textAbstract:
Fortune magazine Bethany McLean profiles her expose on the 2001 Enron financial scandal...
"I thought I'd just start by telling you the story of Enron from my own perspective. It is funny that Helen Clark used the word 'antediluvian' and the director of the enforcement of the US securities regulator SEC recently made a comment that many people in the market today weren't around at the time of the Enron collapse. That made me feel like a bit of a dinosaur..."
3
Boje, David M., Grace Ann Rosile, Rita A. Durant, and John T. Luhman. "Enron Spectacles: A Critical Dramaturgical Analysis." Organization Studies 25, no. 5 (June 2004): 751–74. http://dx.doi.org/10.1177/0170840604042413.
Full textAbstract:
Enron shows us dramaturgy gone amuck. In this article, critical theory and postmodern theory are crossed to form a critical dramaturgyresulting in two main contributions. First, critical dramaturgy is differentiated from other forms of dramaturgy, showing how ‘spectacle’ is accomplished through a theatrical performance that legitimates and rationalizes, and casts the public in the role of passive spectators. Second, critical dramaturgy has important connections with public relations theory. While contemporary public relations is concerned with the building of relationships, critical dramaturgy looks at how corporate theatrical image management inhibits relationships by erecting the barrier of the metaphorical proscenium. The Enron scandal is viewed as the collapse of a corporate spectacle illusion into megaspectacle fragments. These fragments include the naming of Enron, the Valhalla Rogue Traders scandal, the Gas Bank, Greenmail, Cowboy Capitalism, the Skilling–Mark rivalry, and the Masters of the Universe theme. Intertextual analysis demonstrates how these fragments contribute to the ‘Greek Mega-tragedy’ of the Enron megaspectacle. The article integrates several corporate theatre processes relevant to understanding four types of spectacle: concentrated, diffused, integrated, and megaspectacle. The value of the critical dramaturgy conceptual work is to lift the romantic veil of spectacle theatrics to reveal the antenarrative fragments of stories marginalized and backgrounded.
4
Bhasin, Madan Lal. "Creative Accounting Practices at Satyam Computers Limited: A Case Study of India’s Enron." International Journal of Business and Social Research 6, no. 6 (June 27, 2016): 24. http://dx.doi.org/10.18533/ijbsr.v6i6.948.
Full textAbstract:
<p>Satyam Computers were once the crown jewel of Indian IT industry, however, the debacle of Satyam raised a debate about the role of CEO in driving a company to the heights of success and its relation with the board members and core committees. The scam brought to the light the role of corporate governance (CG) in shaping the protocols related to the working of audit committees and duties of board members. The Satyam scam was a jolt to the market, especially to Satyam stockholders. This paper attempts an in-depth analysis of India’s Enron, Satyam Computer’s “creative-accounting” scandal. In public companies, this type of ‘creative’ accounting leading to fraud and investigations are, therefore, launched by the various governmental oversight agencies. The accounting fraud committed by the founders of Satyam in 2009 is a testament to the fact that “the science of conduct is swayed in large by human greed, ambition, and hunger for power, money, fame and glory.” Scandals have proved that “there is an urgent need for good conduct based on strong corporate governance, ethics and accounting & auditing standards.” The Satyam scandal highlights the importance of securities laws and CG in emerging markets. Indeed, Satyam fraud “spurred the government of India to tighten the CG norms to prevent recurrence of similar frauds in future.” Thus, major financial reporting frauds need to be studied for ‘lessons-learned’ and ‘strategies-to-follow’ to reduce the incidents of such frauds in the future. The increasing rate of white-collar crimes “demands stiff penalties, exemplary punishments, and effective enforcement of law with the right spirit.”</p><h2> </h2>
5
Petrick, Joseph A., and Robert F. Scherer. "The Enron Scandal and the Neglect of Management Integrity Capacity." American Journal of Business 18, no. 1 (April 22, 2003): 37–50. http://dx.doi.org/10.1108/19355181200300003.
Full text
6
Grove, Hugh, and Milan Čupić. "ICN pharmaceuticals: corporate governance analysis." Corporate Ownership and Control 7, no. 4 (2010): 73–89. http://dx.doi.org/10.22495/cocv7i4p6.
Full textAbstract:
ICN Pharmaceuticals, Inc. (today Valeant Pharmaceuticals International) was a drug developer and manufacturer, known in the medical field for its development of Ribavirin, an antiviral compound used to treat various viral infections. However, ICN will probably be remembered mostly as an example of problematic and inefficient corporate governance. Changes in the management structure of ICN occurred almost at the same time when corporations, like Enron, WorldCom, Tyco, were dealing with financial scandals caused by problems in corporate governance. Since ICN was not a powerful corporation and found a way to deal with its problems, it was not subject of any big financial scandal. Nevertheless, it is interesting how ICN managed to operate, in some years even successfully, with so many corporate governance problems and how Milan Panic managed to stay at the top of ICN for 42 years, in spite of his numerous expensive law suits, scandals and bad decisions.
7
Wirianata, Henny, and Sofyan S. Harahap. "PERSEPSI DOSEN DAN MAHASISWA AKUNTANSI TERHADAP PROFESI AKUNTAN PUBLIK PASCA ENRONSTUDI KASUS PADA LIMA PTS DI JAKARTA BARAT." Media Riset Akuntansi, Auditing dan Informasi 7, no. 3 (December 24, 2007): 367. http://dx.doi.org/10.25105/mraai.v7i3.763.
Full textAbstract:
<p class="Style1"><em>This study is a developed from DeZoort, et al (1997), Yeni (2001) and Abdullah and Selamat </em><em>(2002), The objective is to know the perception of lecturers and students on public accountant </em><em>profession post Enron scandal and to know whether there is a significant difference between them. </em><em>Data is collected from questioners given to 5 private universities in West Jakarta with 210 respon-</em><em>dents consist </em>of <em>55 full-time lecturerrespondents and 155 accounting undergraduate students who </em><em>have taken or is taking auditing subject. The study shows that not all lecturers and students know </em><em>Enron Corporation scandal. In spite of that, lecturers and students who know and do not know, </em><em>have positive perception in public accounting profession post Enron and there is no significant </em><em>difference between them. While t-test result indicates that there is a significant difference percep-</em><em>tion between lecturers' and accounting undergraduate students', especially in ethic and responsi-</em><em>bility aspects, but not in knowledge and skill aspects. The result also shows lecturers have more </em><em>positive perception than students do.</em></p><p class="Style1"><em>Key </em><strong><em>words: </em></strong><em>Enron Corporation, academics, perception, public accountant profession, accounting </em><em>lecturer, accounting student</em></p>
8
Ailon, Galit. "Mapping the cultural grammar of reflexivity: the case of the Enron scandal." Economy and Society 40, no. 1 (February 2011): 141–66. http://dx.doi.org/10.1080/03085147.2011.529331.
Full text
9
Neuman, Eric J. "THE IMPACT OF THE ENRON ACCOUNTING SCANDAL ON IMPRESSIONS OF MANAGERIAL CONTROL." Academy of Management Proceedings 2005, no. 1 (August 2005): S1—S6. http://dx.doi.org/10.5465/ambpp.2005.18783289.
Full text
10
Chandra, Uday, Michael L. Ettredge, and Mary S. Stone. "Enron-Era Disclosure of Off-Balance-Sheet Entities." Accounting Horizons 20, no. 3 (September 1, 2006): 231–52. http://dx.doi.org/10.2308/acch.2006.20.3.231.
Full textAbstract:
The scandal that followed Enron's failure to disclose billions of dollars of debt held by off-balance-sheet entities (OBSEs) prompted investor interest in these entities and motivated auditors to request more accounting guidance. The SEC responded by issuing Financial Release No. 61 (FR-61) to remind managers to follow SEC guidance for disclosures on liquidity and capital resources in the Management's Discussion and Analysis section of the annual report. FR-61 identifies disclosure objectives but does not require specific disclosures. We study how the OBSE-related disclosures of companies that sponsored OBSEs before Enron changed after Enron/FR-61. We find that while OBSEs were widely used by S&P 500 firms before Enron/FR-61, a majority of these firms either did not disclose their OBSEs or, if they did, provided little useful information. After Enron/FR-61, OBSE disclosure levels increased significantly but not uniformly across firms. The pattern of increases suggests that FR-61 reduced regulatory uncertainty and increased the perceived minimum level of required OBSE disclosure. Our results are consistent with the view that general guidance (of the type found in principles- or objectives-based accounting standards) may result in underdisclosure or a large disparity in level of disclosure, and that reminders of responsibility and suggestions to consider specific disclosures partially remedy both problems.
11
Handley-Schachler, Morrison, and Steven Li. "International effects of the Andersen accounting and auditing scandals: Some evidence from the UK, US and Australian stock markets." Corporate Ownership and Control 4, no. 3 (2007): 220–32. http://dx.doi.org/10.22495/cocv4i3c1p5.
Full textAbstract:
In this paper, we use event study methodology to examine the effect of two highly publicized accounting failures, at Enron and WorldCom both audited by Arthur Andersen, on the total stock returns of some companies in the UK also audited by Arthur Andersen. The results vary substantially between countries. We find no evidence of a significant impact in the UK or US. There is some evidence of negative abnormal returns at the time of the Enron scandal in Australia. However, this reaction was very short-lived and the negative abnormal returns on the stocks of Andersenaudited companies had been fully recovered within a week. Our results suggest that sharing an auditor with a firm that has issued corrections to accounts which have previously received an unqualified audit opinion does not significantly affect market perceptions of firms’ value, which suggests that the choice of auditor has little, if any, impact on market perceptions of the reliability of published financial information.
12
Azibi, Jamel, Hubert Tondeur, and Mohamed Tahar Rajhi. "Auditor choice and institutional investor characteristics after the Enron scandal in the French context." International Journal of Economics and Accounting 2, no. 1 (2011): 32. http://dx.doi.org/10.1504/ijea.2011.038962.
Full text
13
Schaeffer, Pamela. "A Compromised Press Delivers Not-So-Hot News." Theology Today 59, no. 3 (October 2002): 384–95. http://dx.doi.org/10.1177/004057360205900304.
Full textAbstract:
Economic shifts in the field of journalism have eroded commitment to principles basic to the integrity of the profession, principles that are also at the heart of Christian ethics: truth-telling and justice, suspicion of privilege, compassion, and support for people who are poor and weak. This declining commitment is exemplified by three major stories missed or downplayed by the press in recent years—the scandal of sexual abuse of minors by Catholic priests, the financial improprieties that underlay the downfall of Enron, and the threat to national security posed by the growth of radical Islam and other international forces fomenting anger against the United States.
14
Teck, Tan Seng, Selvamalar Ayadurai, William Chua, Tan Peng Liang, and Shahryar Sorooshian. "Sensemaking Corporate Social Responsibility, Reflexive Organisational Change and Moral Transpose, the Case of Volkswagen ‘Diesel Dupe’ Crisis." Journal of Management and Sustainability 10, no. 1 (February 7, 2020): 66. http://dx.doi.org/10.5539/jms.v10n1p66.
Full textAbstract:
The world has witnessed corporate scandals of monstrosity magnitude. The Enron Scandal, the Nike Sweatshop scandal and the recent Johnson and Johnson baby talc in 2018 are some dishonors that reshaped the business world and reinvigorated the importance of business ethics. Indeed, supranational and national movements such as the Global Reporting Initiatives have responded to these scandals by imposing stricter corporate reporting to instill greater transparency and corporate responsibility. Ironically, despite unwavering efforts, corporations are still blatantly flouting regulations. The Volkswagen “diesel dupe” crisis is a stark reminder of the inherent weakness of current regulations. Despite Volkswagen’s staunch adherence to those stringent reporting guidelines, they breached ethics to the core, creating a tsunami of vehicle recalls, massive social, political and legal repercussions. Volkswagen’s cheat device is a ‘creative destruction’ that challenged the fundamental usefulness of corporate reporting. Corporate social responsibility has evolved tremendously, now taking the form of positivistic reporting patterns. Corporations are measured by their ecological, social and economic performance where they flamboyantly table those data and information to garner stakeholders’ support and legitimacy. However, a pragmatic approach towards corporate social responsibility is self-defeating. It erodes and dilutes a corporation’s ability to make sense, communicate and adapt to their externalities. Instead, corporations boast of their corporate prowess and triple bottom line. Using Volkswagen as a subject, this paper exposes the inherent weaknesses of a positivistic corporate reporting approach to social responsibility. A positivistic approach such as this cannot engender a truthful, honest and open posture in business corporations. Instead, this paper exemplifies that a meaningful sensemaking corporate social responsibility instills reflexive organisation change and moral transpose within corporations. This paper underlines this reflexive organisational change and moral transpose in Volkswagen as they encounter the diesel crisis. This study is novel and greatly enhances previous literatures in corporate social responsibility by instilling an appropriate model to underline these momentous reflexive organisational changes and moral transformations in Volkswagen.
15
Dibra, Rezart. "Corporate Governance Failure: The Case Of Enron And Parmalat." European Scientific Journal, ESJ 12, no. 16 (June 28, 2016): 283. http://dx.doi.org/10.19044/esj.2016.v12n16p283.
Full textAbstract:
Corporate governance is a central and dynamic aspect of business. The term governance is derived from the latin word gubernare, meaning to steer. It usually applies to the steering of a ship. Thus, this implies that corporate governance involves the function of direction rather than control. Corporate governance has come to the forefront of academic research due to the vital role it plays in the overall health of economic systems. Corporate governance was long ignored as a matter of potential importance for the development of a nation’s economy. The wave of U.S. corporate fraud in the 1990s was attributed to deficiencies in corporate governance. The recent 2008-2009 global financial crisis, triggered by the unprecedented failure of Lehman Brothers and the subprime mortgage problems, renewed interest on the role of corporate governance in the financial sector. The development of a strong corporate governance framework is important to protect stakeholders, maintain investor confidence in the transition countries, and attract foreign direct investment. This paper looks at the collapse of Enron and the Parmalat, which was a particular Italian scandal. Parmalat, Enron, and other American firms such as Tyco and WorldCom all have a number of fudging at their core – efforts to make the companies look healthier than they were. Parmalat’s collapse began in November when its auditor raised questions about a $135 million derivatives profit. After additional evidence of accounting misstatements, the company’s chief executive and founder, Calisto Tanzi, resigned on the 15th of December. Four days later, the company disclosed the fake Bank of America letter. On the 23rd of December, Italian investigators stated that the company had used dozens of offshore companies to report non-existent assets to offset themselves. This was as much as $11 billion in liabilities. Also, this is in addition to the fact that Parmalat might have been falsifying its accounting figures for as long as 15 years.
16
Kartin, Ang Prisila. "Kerangka Pemberantasan Korupsi Di Usa Dan Dampaknya." JEMAP 1, no. 1 (July 16, 2018): 110. http://dx.doi.org/10.24167/jemap.v1i1.1587.
Full textAbstract:
United States is well-known as a superpower country. Among all the countries in the world United States has the best economic strength, military power, and political power. But it is not in line with the Corruption Perceptions Index which indicates how corrupt their public sectors are seen to be. The rampant corruption in United States happened in both of government sector and the private sector. Some cases that have occurred are the Watergate Scandal, Lockheed Scandal, Enron, WorldCom, and Xerox. Various cases of corruption in the United States indicate that superpower country supported by strong economic, military and political conditions does not necessarily make the cases of corruption / frauds in the country to be disappear. United States needs to make efforts to eradicate corruption in the country to suppress possible corruption cases.Various efforts made by the United States in the form of law issuance and the establishment of corruption eradication agencies are expected to help overcome the problem of corruption in the world. The United States, as the axis of the world's economy and politics, has caused many countries to be affected by the enactment of anti-corruption laws. The global awareness in eradicating corruption is expected to bring a positive climate for the global economy to realize a prosperous world community
17
Nelson, Karen K., Richard A. Price, and Brian R. Rountree. "The market reaction to Arthur Andersen's role in the Enron scandal: Loss of reputation or confounding effects?" Journal of Accounting and Economics 46, no. 2-3 (December 2008): 279–93. http://dx.doi.org/10.1016/j.jacceco.2008.09.001.
Full text
18
Awang, Naqiah, Nur Syafiqah Hussin, Fatin Adilah Razali, and Shafinaz Lyana Abu Talib. "Fraud Triangle Theory: Calling for New Factors." Insight Journal 7, no. 1 (December 23, 2020): 54–64. http://dx.doi.org/10.24191/ij.v7i1.62.
Full textAbstract:
The famous financial scandal of Enron, WorldCom and 1 Malaysia Development Berhad has harmed the auditor’s reputation as the protector of shareholders’ rights. Auditors have done their part by conducting systematic audit procedures and “What Could Go Wrong” analysis in assessing the possible risk area to assist fraud detection in the client’s financial matters. However, fraud cases never seem to decline. Regardless of any safeguarding measures established, fraud incidents can just occur and be worsened by economic downturn and prolonged inflation especially after the pandemic ends. Additionally, the characteristic of the modern business environment, technology sophistication and new generation traits had challenged Cressey Fraud Triangle Theory on its validity and relevancy. Therefore, associating all these possible challenges into consideration, this study aims to review prior literature related to the evolution of Cressey fraud theory to propose a new insight in considering relevant motivation factors that drive fraud penetrations. From the review, the study discovered the need for a detailed evaluation and research on the essential fraud element in constructing an all-rounded fraud prevention mechanism.
19
Sun, Jiachen, and Peter Gloor. "E-Mail Network Patterns and Body Language Predict Risk-Taking Attitude." Future Internet 13, no. 1 (January 14, 2021): 17. http://dx.doi.org/10.3390/fi13010017.
Full textAbstract:
As the Enron scandal and Bernie Madoff’s pyramid scheme have shown, individuals’ attitude towards ethical risks can have a huge impact on society at large. In this paper, we compare risk-taking attitudes assessed with the Domain-Specific Risk-Taking (DOSPERT) survey with individual e-mail networking patterns and body language measured with smartwatches. We find that e-mail communication signals such as network structure and dynamics, and content features as well as real-world behavioral signals measured through a smartwatch such as heart rate, acceleration, and mood state demonstrate a strong correlation with the individuals’ risk-preference in the different domains of the DOSPERT survey. For instance, we found that people with higher degree centrality in the e-mail network show higher likelihood to take social risks, while using language expressing a “you live only once” attitude indicates lower willingness to take risks in some domains. Our results show that analyzing the human interaction in organizational networks provides valuable information for decision makers and managers to support an increase in ethical behavior of the organization’s members.
20
Naqiah Awang, Nur Syafiqah Hussin, Fatin Adilah Razali, and Shafinaz Lyana Abu Talib. "Fraud Triangle Theory: Calling for New Factors." Insight Journal 7 (March 3, 2021): 54–64. http://dx.doi.org/10.24191/ij.v7i0.87.
Full textAbstract:
The famous financial scandal of Enron, WorldCom and 1 Malaysia Development Berhad has harmed the auditor’s reputation as the protector of shareholders’ rights. Auditors have done their part by conducting systematic audit procedures and “What Could Go Wrong” analysis in assessing the possible risk area to assist fraud detection in the client’s financial matters. However, fraud cases never seem to decline. Regardless of any safeguarding measures established, fraud incidents can just occur and be worsened by economic downturn and prolonged inflation especially after the pandemic ends. Additionally, the characteristic of the modern business environment, technology sophistication and new generation traits had challenged Cressey Fraud Triangle Theory on its validity and relevancy. Therefore, associating all these possible challenges into consideration, this study aims to review prior literature related to the evolution of Cressey fraud theory to propose a new insight in considering relevant motivation factors that drive fraud penetrations. From the review, the study discovered the need for a detailed evaluation and research on the essential fraud element in constructing an all-rounded fraud prevention mechanism.
21
Kulhari, Deepika. "Examination of Historical Advancement of Corporate Governance in India– Contemporary Issues and Way Forward." Qubahan Academic Journal 1, no. 3 (June 24, 2021): 14–19. http://dx.doi.org/10.48161/qaj.v1n3a73.
Full textAbstract:
In the Era of Globalised world, the importance of Fair Corporate Governance policies has been recognized by different countries. From collapse of Wallpaper Group Coloroll in UK, Enron Scandal in US and Satyam Scam in India, all of these countries have witnessed some of the largest Corporate Scams. With the help of good Corporate Governance Policies, a country can protect its economy and investment made therein. It encourages shareholders to invest in capital market and ensure safety of their investment. In India, the corporate governance and its basic pillars on which governance stands i.e. Transparency, Accountability and Fairness, were introduced through Clause 49. This was done only after it was recommended by the Kumar Mangalam Committee. Yet, subsequently the shocking event of Satyam Scam & other Corporate Governance failure continues to hit Indian economic on various occasions.
This paper will analyse the past experience of some of the famous scams happened in India specifically in past one decade and the lessons learnt thereby. The paper furthermore discusses the current legal issue and the challenges faced by Corporate Governance practices in India.
Keywords - Corporate Governance, Corporate Scam, SEBI.
22
Alharasis, Esraa Esam, Maria Prokofieva, Rateb Mohammad Alqatamin, and Colin Clark. "Fair Value Accounting and Implications for the Auditing Profession: Historical Overview." Accounting and Finance Research 9, no. 3 (August 14, 2020): 31. http://dx.doi.org/10.5430/afr.v9n3p31.
Full textAbstract:
This paper explores the link between the introduction of fair value measurements (FVM) and the development of the Global Financial Crisis (GFC) in 2008-9. The paper aims to provide an historical analysis of the development of the Enron scandal with a focus on fair value accounting (FVA) and provides a narrative literature review of the subsequent economic downturn, its effect on the auditing profession and audit fees arrangements, implications for FVA, and response of global institutions and standard setters. It provides a theoretical explanation of the underlying antecedents using existing accounting theories. For each reviewed stream of research, the paper establishes the theoretical underpinning and discusses its application supported by the context. The content analysis using NVivo software was employed to analyse existing research and available published information. Based on the comprehensive literature review, the study arrives at two main findings. First, the paper concludes with the controversial use of FVM and establishes a direct connection between Enron’s collapse, the GFC, and improper FVM practices. Secondly, the study identifies the current pricing strategy for audit as an industry response to the abuse of external audit arrangements regarding FVA. Supported by the literature review findings, the paper contributes to the audit research by providing deep insights into the connection between FVA practices, the GFC and development of the audit profession. The paper addresses the lack of foundational research in FVA and establishes a solid background for further studies on FVA and audit profession development in general.
23
Licht, Amir N. "Cross-listing and corporate governance: Bonding or avoiding?" Corporate Ownership and Control 1, no. 4 (2004): 36–48. http://dx.doi.org/10.22495/cocv1i4p3.
Full textAbstract:
In their seminal survey of corporate governance, Shleifer and Vishny distill the issue into a blunt question: "How do [the suppliers of finance] make sure that managers do not steal the capital they supply or invest it in bad projects?" The Enron/Arthur Andersen debacle and the ensuing wave’s of scandal vividly proved that American investors may face this question in the most acute form. To the extent that corporate governance issues play a role in the cross-listing decision, it is a negative role. Generally speaking, the foreign issuer regime "cuts corners" exactly on the issues of corporate governance relating to corporate insiders. The notion that issuers may want to improve their corporate governance by subjecting themselves to a better regulatory regime through cross-listing—say, on an American market—is appealingly elegant. If an American firm could use an NYSE listing to bond its insiders to better governance standards, why couldn’t foreign firms do the same? In an oft-cited 1999 article, Jack Coffee argues that they do just that: In other cases, however, the cross-listing may not entail corporate governance improvements. The cross-listing literature refers to differences in investor protection in three separate respects. In practice, however, foreign issuers can easily obtain an exemption from corporate governance listing requirements. The notion that corporations can self-improve their corporate governance by opting into a foreign country’s legal and regulatory regime through cross-listing has made considerable inroads into the legal and finance literature.
24
Boubaker, Sabri. "Editorial: Advances in corporate governance practices." Corporate Board role duties and composition 17, no. 1 (2021): 4–6. http://dx.doi.org/10.22495/cbv17i1editorial.
Full textAbstract:
Corporate governance has gone through three decades of profound changes in terms of new regulations, new practices, and environmental conditions. Many countries drafted guidelines for best corporate governance practices following Cadbury report (Cadbury, 1992). These practices were mainly related to the board of directors (composition and functioning), internal controls, and internal audit. The Enron scandal followed by the collapse of Arthur Andersen, one of the big five audit firms, and the enactment of the “Public Company Accounting Reform and Investor Protection Act” (Sarbanes-Oxley law) in 2002 were other milestones in the evolution of corporate governance. This law brought about significant changes related to public company accounting oversight, auditor independence, financial disclosure, and corporate responsibility. The financial crisis in 2008 started in the United States and has shaken the world economy. This crisis was due to weak corporate governance that led to fraudulent financial reporting and excessive risk-taking. Grove and Victoravich (2012) consider CEO duality, lack of board independence, weak management control systems, short-termism, weak codes of ethics, and opaque disclosures among the main drivers of this crisis. The COVID-19 has consistently shown that firms with better corporate governance and corporate social responsibility practices were the most resilient entities during the first quarter of the pandemic (Ramelli & Wagner, 2020). All these topics are addressed in this collection of high-quality research papers of this year’s first issue of Corporate Board: Role, Duties, and Composition.
25
Cao, Qiang, Nanwei Hu, and Lizhong Hao. "Does client industry importance affect auditor independence?" Managerial Auditing Journal 35, no. 4 (September 14, 2019): 575–95. http://dx.doi.org/10.1108/maj-02-2019-2179.
Full textAbstract:
Purpose The purpose of this paper is to examine whether client industry importance affects auditor independence. Design/methodology/approach This study analyzes audit firm merger data from China Stock Market and Accounting Research and uses a difference-in-difference model to find whether client industry importance is associated with auditor independence. This study uses discretionary accruals and propensity to issue modified audit opinions as proxies for auditor independence. Findings Results show that the greater the decline in client industry importance, the more significant the increase in auditor independence. In addition, the magnitude of decline in client overall importance is also positively associated with the extent of increase in auditor independence; however, this result disappears after controlling for client industry importance. Research limitations/implications The authors acknowledge that this study has limitations. First, audit firm mergers provide a unique research setting. However, the findings of this study in such setting may not be generalizable to other situations. Second, this study has a limited sample size because of data availability, which could impact the robustness of the results. Originality/value Results from this study are important because investors and regulators have increasing concerns over auditor independence since the Enron scandal. To the best of the authors’ knowledge, this study is the first to examine the impact of client industry importance on auditor independence and in a unique setting of audit firm merger to separate auditor independence from auditor competence, and hence controlling for self-selection bias. Results of this study provide evidence that client industry importance has significant influence over auditor independence.
26
Dey, R. Mithu, and Lucy Lim. "Audit fee trends from 2000 to 2014." American Journal of Business 33, no. 1/2 (April 3, 2018): 61–80. http://dx.doi.org/10.1108/ajb-10-2016-0033.
Full textAbstract:
Purpose Setting audit fees is a persistent source of stress for auditors who must, on one hand, comply with the increasing government regulations that generally cause costs to rise; and on the other hand, respond to client pressures to keep audit fees down. In the post-scandal environment of Enron, WorldCom, and the demise of Arthur Andersen, policy makers have introduced additional costs for auditors by increasing regulations and creating a new industry watchdog – the Public Company Accounting Oversight Board (PCAOB). In this environment of constant pricing-cost tension for the auditor, the purpose of this paper is to examine audit fee trends over an extended period, 2000-2014. Design/methodology/approach The authors calculate the unexpected audit fees using the audit fee model. The authors examine audit fee trends while controlling for changes due to inflation, auditor wages, and other audit fee determinants. Findings The key findings indicate that audit fees increased in response to the promulgation of new audit regulations requiring additional audit work, the Sarbanes-Oxley (SOX) Act of 2002 and Auditing Standard No. 2 in 2004. Additionally, the authors find that audit fees decreased after new regulations alleviating audit work, namely the passage of Auditing Standard No. 5 in 2007, and remained unchanged when new regulations had a minimal impact on audit work, namely the Dodd-Frank Act of 2010. Practical implications The findings of this research are relevant to audit clients, auditors, and regulators as they weigh the cost and benefits of significant new audit regulations and their impacts on audit fees. Originality/value Using the more recent US data, the results in this paper show how events changed audit fee trends in recent years. The findings indicate that audit fees increased after the passage of new audit regulations such as the SOX Act of 2002, Auditing Standards No. 2 in 2004, and decreased after the passage of Auditing Standards No. 5 in 2007.
27
Kenny, Patrick. "Corporate Governance in the U. S.: Post-Enron." German Law Journal 4, no. 1 (January 1, 2003): 53–59. http://dx.doi.org/10.1017/s2071832200015741.
Full textAbstract:
[Editors’ Comment: The following is the text of Mr. Kenny's remarks at the Second European Corporate Governance Conference, which was organized by the Vlerick Management Institute and the University of Gent, Belgium, and held at the Belgian National Bank, Brussels, 28 & 29 November 2002. The conference, which was convened by Professor Lutgart Van den Berghe of the University of Gent, was dedicated to the intensive debate over the marks and characteristics of “European Capitalism” in light of the international corporate governance debate, which has been affected by the recent earthquakes in the confidence of investors, shareholders and stakeholders precipitated by the corporate scandals of Enron, Worldcom, Global Crossing and others. The conference also took note of the impact of America's new Sarbanes-Oxley legislation, which seeks to respond to the wave of corporate scandals, on the international corporate governance debate.
28
Feldmann, Dorothy A., and William J. Read. "Auditor Conservatism after Enron." AUDITING: A Journal of Practice & Theory 29, no. 1 (May 1, 2010): 267–78. http://dx.doi.org/10.2308/aud.2010.29.1.267.
Full textAbstract:
SUMMARY: Corporate scandals and the resulting passage of the Sarbanes-Oxley Act (SOX) in 2002 significantly affected the auditing profession. The quality of financial statement audits was called into questioned and the media and regulators held audit firms responsible. Several studies found evidence of an increase in the issuance of going-concern opinions after the passage of SOX relative to earlier time periods (Geiger et al. 2005; Nogler 2008; Myers et al. 2008). Auditors, it appears, behave more conservatively when the profession is in the headlines. We replicate and extend this research to determine whether the heightened conservatism continues or whether it fades as time passes. We examine audit opinions issued 12 months or less prior to a bankruptcy filing for 565 companies from 2000–2008. Our findings indicate that while the proportion of going-concern modifications increases sharply in 2002–2003 compared to 2000–2001, it declines in the periods that follow, ultimately returning to its pre-Enron level.
29
Jones, Michael, and Patricia Stanton. "Negative accounting stereotype: Enron cartoons." Accounting History 26, no. 1 (February 2021): 35–60. http://dx.doi.org/10.1177/1032373220981424.
Full textAbstract:
A sample of editorial cartoons published following the wave of accounting scandals in the United States culminating in the collapse of Enron and the demise of the auditors Arthur Andersen LLP was examined to explore the portrayal of accounting, accountants and auditors. The nature and importance of the cartoons was also investigated. While the examination revealed what cartoonists had to say about accounting, accountants and auditing, the purpose was to ascertain the stereotypes conveyed. The cartoonists working from established preconceptions of accounting and accountants redefined and reshaped accounting stereotypes. They replaced the dull but honest image with a negative one, the fraudulent accountant. However, the image of the male accountant survived. As social critics, the cartoonists focused on the consequences on employees and stockholders but neglected to address the consequences for business institutions.
30
Blythe, Stephen E. "The In Pari Delicto Defense for Auditors in Professional Negligence Cases: Imputation of Managers’ Unlawful Acts to the Client Firm." Accounting, Economics and Law - A Convivium 5, no. 2 (July 1, 2015): 193–226. http://dx.doi.org/10.1515/ael-2013-0057.
Full textAbstract:
AbstractThe Enron scandal, the Sarbanes-Oxley Act and the 2008 financial crisis have resulted in new laws and regulations regarding auditor liability and an evolution of some of the old ones. One of the older laws is the in pari delicto defense: in a lawsuit brought by a corporation alleging that its auditor was negligent in failing to detect a manager’s fraud, the auditor may be able to use that defense if the manager’s fraud is imputable to the company. Since a bankruptcy trustee or a receiver steps into the shoes of the bankrupt company it represents, a similar defense (the Wagoner Rule) may also be applicable if a trustee or a receiver files a negligence lawsuit against the company’s auditor. However, in pari delicto is inapplicable when: (1) the wrongful acts of the manager are so adverse to the corporate client that the manager is deemed to have totally abandoned the corporation for its, or a third party’s, sole benefit (unless the manager is also the sole shareholder, or the company has incurred a short-term benefit because of the fraud); (2) the corporate client had at least one innocent manager or shareholder who could have prevented or stopped the fraud if he had known about it; (3) the auditor does not deal with the corporate client in good faith and engages in unlawful conduct; or (4) the plaintiffs are totally innocent shareholders (but in this case, the in pari delicto defense is still applicable with respect to culpable shareholders). The State of New York has been on the cutting edge in the evolution of the in pari delicto defense, and this defense is strongest there. Other states recognizing the defense include New Jersey, Pennsylvania, and (in dicta) Delaware (only if the company has engaged in actual wrongdoing). Finally, these are examples of recent evolution of in pari delicto: (a) the Sarbanes-Oxley Act’s prohibition of management from interfering with or deceiving the auditor; such statutory violations of management could be used by the auditor at trial in proving the applicability of the in pari delicto defense and (b) the new constraints on off-balance sheet leases, expected to be released shortly by the Financial Accounting Standards Board, may decrease management’s ability to deceive the auditor in the first place.
31
Earley, Christine E., and Patrick T. Kelly. "A Note on Ethics Educational Interventions in an Undergraduate Auditing Course: Is There an “Enron Effect”?" Issues in Accounting Education 19, no. 1 (February 1, 2004): 53–71. http://dx.doi.org/10.2308/iace.2004.19.1.53.
Full textAbstract:
In light of recent accounting scandals and the ensuing “crisis in confidence” facing the public accounting profession, there is a new challenge to accounting educators: how to effectively incorporate ethics into accounting courses, and increase the moral reasoning abilities of their students. Providing accounting students with the ability to reason effectively with respect to moral dilemmas may help to minimize future judgment errors in accounting and auditing settings. This article describes several different educational interventions that were adopted in an undergraduate auditing course. Students' moral reasoning was assessed both at the beginning and the end of the course to determine whether their moral reasoning scores improved based on the interventions. This was done over two semesters: one occurring in 2001 (“pre-Enron”), and one occurring in 2002 (“post-Enron”). Accounting context-specific scores were collected in both semesters (using Thorne's [2000] Accounting Ethical Dilemma Instrument [AEDI]), and general moral reasoning scores (Rest's [1979] Defining Issues Test [DIT]) were also collected in the post-Enron semester. Results indicate increases in AEDI scores, which were robust over both semesters. There was no corresponding increase in DIT scores, which is consistent with previous research; however, students' DIT scores were not significantly different than AEDI scores, which is contrary to the findings of Thorne (2001). In addition, the educational interventions appear to be equally effective in both the pre-Enron and post-Enron semesters, indicating the absence of an “Enron effect.”
32
Blair, Margaret M. "Post-Enron Reflections on Comparative Corporate Governance." Journal of Interdisciplinary Economics 14, no. 2 (April 2003): 113–24. http://dx.doi.org/10.1177/02601079x03001400202.
Full textAbstract:
In the heated debate of the last fifteen years over which of the world’s many different corporate governance systems are best, the shareholder primacy advocates thought they had won at the turn of the century. Now, in 2002, the helium has come out of the formerly high-flying technology and information infrastructure sectors that were leading the U.S. economic expansion in the 1990s, and the Enron fiasco and accounting scandals at numerous other U.S. corporations have exposed deep flaws in the system that had been held up as the model for all the world to follow. Many possible lessons can be drawn. At least one is that the high-powered incentives provided by stock option compensation may produce perverse behavior that can, in turn, undermine institutional arrangements that support and foster mutual trust and cooperation. The study of corporate governance must focus on more than just how to get management to maximize value for shareholders. It must also be about the human institutions that bind people together in cooperative relationship over long periods of time.
33
Conroy, Stephen J., and Tisha L. N. Emerson. "Changing Ethical Attitudes: The Case of the Enron and ImClone Scandals*." Social Science Quarterly 87, no. 2 (June 2006): 395–410. http://dx.doi.org/10.1111/j.1540-6237.2006.00387.x.
Full text
34
Koehn, Daryl. "Transforming our Students: Teaching Business Ethics Post-Enron." Business Ethics Quarterly 15, no. 1 (January 2005): 137–51. http://dx.doi.org/10.5840/beq20051517.
Full textAbstract:
Abstract:Teachers and managers strive to be determining causes, leading those whom we instruct or supervise to act in some ways rather than others. If we are seeking to be causes, then we ought to admit our mission and monitor how well we are doing. Yet, instead of owning up to our failures, we hide behind claims such as “some students are unteachable because their habits are bad,” or “we have little time to affect our students who are being indoctrinated by other business school professors to believe that narrow self-interest does and should rule the world.” Perhaps it is we who have failed our students, not the reverse. Examining our business ethics pedagogy is crucial because regulation is not by itself going to prevent future scandals. This paper presents three structures for teaching business ethics in a liberal arts, transformative way. While no pedagogy comes with a guarantee, these approaches at least have the potential to transform students because they force students to have “some skin in the game.”
35
Chukwujioke Agbim, Kenneth. "Effect of Ethical Leadership on Corporate Governance, Performance and Social Responsibility: A Study of Selected Deposit Money Banks in Benue State, Nigeria." International Journal of Community Development and Management Studies 2 (2018): 019–35. http://dx.doi.org/10.31355/20.
Full textAbstract:
NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose............................................................................................................................................................................. This study seeks to examine the effect of ethical leadership on corporate governance, corporate performance and corporate social responsibility in selected Nigerian deposit money banks. Background............................................................................................................................................................................. Business ethics, corporate governance and corporate social responsibility developed as movements to check unethical and corrupt practices in organizations and by extension improve the performance of the organizations. However, the application of these measures has not yielded the desired results. This is evident in the number of top executives of corporate giants like Enron of the United States of America and Satyam of India that have been embroiled in unethical practices. In Nigeria, the corporate corruption and scandal involving top management of deposit money banks has given rise to mergers, acquisition and failure of some of the banks. Thus, this study argues that there is a missing link in the application of these measures. That missing link is ethical leadership. Methodology............................................................................................................................................................................. The study employed survey research design. Stratified sampling technique was employed to select the respondents that completed the questionnaire. The generated data were analyzed using linear regression. Contribution............................................................................................................................................................................... The study established that a robust organization can be developed by main-streaming corporate governance, corporate performance and corporate social responsibility using a nurtured ethical leader. Findings..................................................................................................................................................................................... The results reveal that ethical leadership has significant positive effects on corporate governance, corporate performance and corporate social responsibility. Recommendations for Practitioners......................................................................................................................................... Management should show more commitment in the selection and development of leaders and followers. All the stakeholders should be equally involved in the formulation of corporate governance principles. A nurtured ethical leader should be employed to mainstream corporate governance, corporate performance and corporate social responsibility through the organizational culture. Recommendation for Researchers............................................................................................................................................ The use of objective measures or better still subjective measures is suggested as a way of generalizing the present findings. Impact on Society...................................................................................................................................................................... The findings of this study will expose deposit money bank stakeholders to the consequences of ethical and unethical practices. It will create in bankers the need to abide by ethical leadership and to be whistle-blowers. The findings are expected to engender more stern monitoring measures by the banks’ regulatory agency. These measures are further expected to ensure the reinvention of the banks’ organizational culture so much so that they will contain the core values of code of ethics, corporate governance, performance and social responsibility. The outcome of the study is expected to make the regulatory agency more proactive rather than being reactive to deposit money bank matters. This will consequently put a stop to the fall in the taxes accruable to government in the event of bank failure. Future Research......................................................................................................................................................................... To generalize the findings for the whole of Nigeria, similar study should be conducted in other geopolitical zones of the country.
36
Eaton, Sarah B. "Crisis and the Consolidation of International Accounting Standards: Enron, The IASB, and America." Business and Politics 7, no. 3 (December 2005): 1–18. http://dx.doi.org/10.2202/1469-3569.1137.
Full textAbstract:
This paper examines the interplay between leading international and American accounting authorities over the span of a critical four-year period, 2001–2005. Historically, US regulators and private-sector accounting institutions have taken a cautious approach to International Financial Reporting Standards (IFRSs), citing the superior rigor and overall quality of their own Generally Accepted Accounting Principles (GAAP). During the past four years, however, the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) have each become markedly receptive to the International Accounting Standards Board's (IASB) efforts to harmonize accounting standards worldwide based on IFRSs. Why? This paper offers an explanation that highlights the role of the high-profile American corporate scandals (2001–2002) in precipitating a shift in US accounting authorities' views of the optimal form of accounting rules, an issue that has stood in the way of trans-Atlantic accounting standard convergence. Prior to the accounting scandals, the highly-detailed rules that are characteristic of US GAAP were widely seen to be the most effective form of accounting rule. Since 2002, a normative shift has taken place such that the SEC now endorses objectives-oriented rules that are conceptually aligned with the principles-based standards promulgated by the IASB. The analysis is framed by insights from contemporary International Relations theory which emphasize the influence of scope conditions on patterns of governance.
37
Florou, Annita. "The design of bonuses and its implications for investment choices." Corporate Ownership and Control 1, no. 2 (2003): 150–55. http://dx.doi.org/10.22495/cocv1i2p12.
Full textAbstract:
n the wake of Enron and other high profile corporate scandals executive compensation has become a key strategic issue for market participants and regulators all around the world. This paper readdresses a very significant, and often controversial issue, namely the impact of managerial bonuses on corporate investment decisions. In doing so, it critically examines two related sets of hypotheses, the “fixed-target” and “ratcheting-target” hypotheses. The comparison of the above predictions reveals a contradiction, which in turn consists a subject of future empirical research.
38
Ravenscroft, Sue, and Paul F. Williams. "Rules, rogues, and risk assessors: Academic responses to Enron and other accounting scandals." European Accounting Review 14, no. 2 (January 2005): 363–72. http://dx.doi.org/10.1080/09638180500124889.
Full text
39
Azibi, Jamel, and Mohamed Tahar Rajhi. "Auditor's choice and earning management after Enron scandals: empirical approach in French context." International Journal of Critical Accounting 5, no. 5 (2013): 485. http://dx.doi.org/10.1504/ijca.2013.058690.
Full text
40
Dupré, Ruth. "Moose Pastures and Mergers: The Ontario Securities Commission and the Regulation of Share Markets in Canada, 1940–1980. By Christopher Armstrong. Toronto: University of Toronto Press, 2001. Pp. x, 424. $60.00." Journal of Economic History 63, no. 1 (March 2003): 291–92. http://dx.doi.org/10.1017/s0022050703511809.
Full textAbstract:
Christopher Armstrong's book is concerned with a topic of remarkable timeliness following the wave of financial scandals—Enron et al.—which shook the American economy in 2002. The timing of the book could not have been better as it deals with crucial issues: information asymmetries, investor protection against manipulations of information, scope and type of regulation needed to insure “full, true, plain disclosure,” and the behavior and ethics of brokers, promoters, and other insiders. The fact that it covers Ontario in the four decades since World War II shows that the issues are perennial and never likely to be outmoded.
41
Lamb, William B., and Michael Fritz. "We Know We’re Mad About Enron, But What Do We Really Know About Scandals?" Proceedings of the International Association for Business and Society 14 (2003): 38–42. http://dx.doi.org/10.5840/iabsproc2003149.
Full text
42
Abatecola, Gianpaolo. "Prioritizing Short-Termism in Behavioural Strategy: Lessons from Enron – 20 Years On." International Journal of Business and Management 14, no. 4 (March 8, 2019): 60. http://dx.doi.org/10.5539/ijbm.v14n4p60.
Full textAbstract:
What are the risks of prioritizing short-term goals in corporate strategy against more long-term oriented (and hopefully sustainable) corporate performance? Through a qualitative case study narrative recalling some aspects of the sadly famous, but still insightful, bankruptcy of the Enron Corporation in the US (2001), this article aims at contributing to shed light on this lively research question within the international research on and practice of behavioural strategy. Given that, also currently, the seasons of corporate scandals do not seem to have ended, the main motivation behind this work is that the lessons which we could have learned after almost 20 years since the Enron seminal disaster occurred, can still probably have a value. In parallel, the main conceptual contribution offered by our case perspective is that, while the massive past and recent Enron’s coverage has mostly devoted attention to the aspects of fraud and its associated business ethics, our analysis is, instead, focused on the corporate strategic orientation mainly deriving from the macho culture of the top executives. Of course, we are aware that concentrating on the latter cannot avoid acknowledging also the importance of the former. Furthermore, the case can also offer a methodological contribution; in fact, while much of the research in corporate governance has been implemented through quantitative techniques, scholars have also recently claimed that additional qualitative research is complementarily needed to reach a more exhaustive big picture on how executives behave.
43
Stein, Mitchell J., Steven E. Salterio, and Teri Shearer. "“Transparency” in Accounting and Corporate Governance: Making Sense of Multiple Meanings." Accounting and the Public Interest 17, no. 1 (April 1, 2017): 31–59. http://dx.doi.org/10.2308/apin-51746.
Full textAbstract:
ABSTRACT Calls for greater transparency of accounting and financial information in the aftermath of Enron and other accounting scandals appeared to offer the opportunity for greater public accountability within financial reporting. Our analysis however suggests that different emergent meanings from various groups such as senior managers, investors, regulators, and other gatekeepers were associated with these calls, indicating an underlying “taken for grantedness” concerning the need for increased transparency. We examine these emergent meanings of transparency and their effects on broader issues of accountability within financial reporting. Our analysis, employing sensemaking, shows the mobilization of “transparency” to construct meanings to make sense of and rationalize complex, ambiguous, and uncertainty events around the accounting scandals and the subsequent financial crises. This meaning construction permitted action that “restored” confidence in financial markets and in doing so served the interests of senior managers who defined their own public accountability. Our analysis also suggests that accountants and regulators need to provide higher forms of sensegiving around such crises to offer alternatives to senior managers' accounts of transparency and financial reporting.
44
Tewari, Ankur Ratnam, and Lokesh Ramnath Maharajh. "Exploring Reflections of Lecturers on Ethics in the Accounting Curriculum: A Case Study of Ukzn and Unizulu, South Africa." International Journal of Financial Research 12, no. 4 (March 18, 2021): 65. http://dx.doi.org/10.5430/ijfr.v12n4p65.
Full textAbstract:
The accounting profession has changed considerably over the past twenty years or so. This has led to the new accounting curriculum undergoing many changes such as increased financial fraud coverage, laws relating to financial crime and globalisation and financial security issues. However, there have been many financial scandals in the 21st century in the African and American context. Several notable incidents of ethical misconduct such as Enron, Klynveld Peat Marwick Goerdeler (KPMG), and Satyam (which negatively impact the world economy) are examples of misuse of accounting to cover the truth. Lack of ethics is believed to be responsible for most of these scandals. This study, therefore, aims at understanding the reflections on the issue of ethics in teaching accounting. The study followed a case study approach and involved a small sample of accounting lecturers from UKZN and UNIZULU. The study's findings suggest that special topical issues on ethics should be taught in each accounting course. For example, in the auditing course, ethical procedures should be touched upon, and students should be sensitized about accountants' ethical behaviour.
45
Lynda, Soltani. "Determinants of Audit Opinion after the Scandals of Enron: Empirical Validation in the French Context." International Journal of Business and Management 11, no. 5 (April 18, 2016): 219. http://dx.doi.org/10.5539/ijbm.v11n5p219.
Full textAbstract:
<p>This study examines the effect of regulatory changes on audit quality in the French context. The evaluation of the risks and the anomalies carried out by the auditors brings them control relating to the financial statements of the company in order to express an opinion on the effectiveness, the regularity, the sincerity and the faithful image of these documents, in a large complexity of the organizations the objective of this research consists in studying the effect of the evolutions of the regulation as regards legal audit on the estimate of the probability of having an opinion of audit with reserve which reinforces the independence of the auditor.</p>A list of hypothesis related to the approached problems is proposed followed by an overview of the different theoretical propositions which are in place. From a sample of French companies in the SBF 250 over the period 2002-2011, the results show that the analysis of the conditions of receiving a qualified audit opinion is determined by: the variables of the financial health of the company, the inventory receivables which indicate the complexity of the audited firm and the characteristics of the audit.
46
Scrimgeour, Frank, and Geeta Duppati. "Corporate governance in the public sector: Dimensions; guidelines and practice In India and New Zealand." Corporate Ownership and Control 11, no. 2 (2014): 364–77. http://dx.doi.org/10.22495/cocv11i2c4p2.
Full textAbstract:
Corporate governance is obviously a matter of global concern and has gained tremendous importance in recent years in the context of globalisation of economies and financial markets. The financial crisis of 2008 and the 2012 European crisis involving Greece, Italy and Spain revealed corporate governance failures in financial institutions and corporations, leading to systemic consequences (Classens and Yurtoglu, 2013). Earlier, two major scandals: Enron and WorldCom in the USA resulted in the enactment of Sarbanes Oxley Act, 2002 as a measure to ensure and restore investors’ confidence in business in particular and the interest of society at large. This lead to corporate governance reforms worldwide impacting corporate board composition, conduct, and responsibility at the legal and regulatory levels.
47
Zgarni, Amina, and Hassouna Fedhila. "Discretionary Loan Loss Provisions, Earnings Management and Capital Management in Banks." Asian Social Science 15, no. 7 (June 30, 2019): 144. http://dx.doi.org/10.5539/ass.v15n7p144.
Full textAbstract:
The two past decades have been marked by a multitude of financial scandals (the Enron failure, WorldCom. etc.) mainly caused by the practices of earning management that have challenged the financial reporting quality disclosed. The purpose of this research is to study the determinants of discretionary loan loss provisions in banks. To achieve this objective, we selected a sample of the main Tunisian banks over the period from 2001 to 2014. The estimation results shows that the banks are opting for earnings management practices through the discretionary loan loss provisions in order to align with international standards, in particular with respect to regulatory capital. In opposition, we found a non-significant relationship between earnings before taxes and provisions and discretionary provisions.
48
Amit Pusti. "Comparison of Perception of Ethics Among the Accounting Professionals, Accounting Educators and Accounting Students." Think India 20, no. 1 (February 13, 2017): 29–40. http://dx.doi.org/10.26643/think-india.v20i1.7777.
Full textAbstract:
The concept of ethics in accounting education has gained paramount importance in todays world. The accounting professionals had experienced controversially the deepest crisis regarding their professions with the discovery that accountants had acceded in notable fictitious financial reporting by corporate giants such as Enron, WorldCom, Tyco, Satyam and the like. The accounting profession in India has started focussing more on accounting ethics at undergraduate and postgraduate levels due to various corporate scandals, especially Satyam scam in India and other scams in the world. Through the close survey of various corporate scams, it is apparently clear that business professionals are likely to be involved in the corporate scandals, their ethical behaviour can be used to measure ethical conduct. Commerce or business students are to become future leaders in business field and their behaviour largely affects the performance of businesses as well as the economic development of the society. Because of the scandals, professionals trustworthiness and objectiveness have raised questioned. The various corporate scams have led to increase the demand for accounting ethics within the professionals and students who are in commerce or business education. The purpose of the study is to explore the perception of ethics of accounting students, teachers, and professionals. For the purpose, we sent a questionnaire to accounting professionals, teachers, and students through email and hard copy to collect their views and we have used the z score test to make a comparison of the perceptions of ethics among the accounting groups. The result shows significant differences among accounting students, teachers, and professionals regarding perception of accounting ethics.
49
Na'im, Ainun. "Special Purpose Vehicle Institutions: Their Business Natures and Accounting Implications." Gadjah Mada International Journal of Business 8, no. 1 (June 20, 2013): 1. http://dx.doi.org/10.22146/gamaijb.5626.
Full textAbstract:
Special Purpose Vehicle (SPV) is an instrumental institution used for specific purposes by firms. The SPV is useful for tax planning, risk management, project financing and company restructuring. SPVs have benefits for economy and business, and involve usually large size of projects that vary from about US$100 to US$500 million per project. However, SPVs have also some bad records. Huge business, finance, and accounting scandals involve the use of SPVs. The drawbacks of SPVs are due to lack of regulatory measures relating the application of SPVs, so that SPVs are used for hiding identities, debts and hiding non-productive assets. SPVs are used to deceive investors so that they can not judge the value and risks of the firms and investments correctly.The huge financial and accounting scandals such as Enron involved the use of SPVs for not reporting or undervaluing debt and overvaluing net worth. In Indonesia, there are some transactions that are under public scrutiny that use SPVs, such as the sales of the government stocks of BCA Bank, and PT Indosat. There are also many successful and beneficial uses of SPVs in Indonesia as well, such as those in energy development, oil refinery, and telecommunication projects.
50
Tripathi, Nilmani. "India Stepping for IFRS: A Critical Review." IRA-International Journal of Management & Social Sciences (ISSN 2455-2267) 4, no. 2 (September 7, 2016): 423. http://dx.doi.org/10.21013/jmss.v4.n2.p11.
Full textAbstract:
<div><p><em>The Asian crisis of 1990, the US accounting scandals like that of Enron, World com, Adelphia, European scandals of Ahold and the present economic crunch all have enforced the importance of effective corporate governance mechanism and global GAAP. All these activities have forced the development of some universal reporting standards i.e. IFRS. The benefits which Indian companies hope to reap after IFRS adoption are numerous. But no benefits can be drawn without facing some crucial challenges. The current shaken market confidence globally may present significant challenges to organizations. Adoption of IFRS could result in an added considerable volatility in reported earnings and some performance specific measures like EPS and P/E Ratio. Entities will have to clarify reasons for this IFRS related volatility apart from other macroeconomic factors. This paper talks about some such challenges and impact of IFRS implementation in some sectors of the Indian economy. The sectors mainly touched upon are that of retail, technology, telecom and power. The paper closes with two small cases of JK Paper and Wipro who have gone for the adoption of IFRS. The cases will aid in understanding the implementation issues of IFRS.</em></p></div>