People's confidence was put in question for such an important matter. It showed common people, who are not connected to everyday financial news the way in which money can be made through illicit means under the rules and regulations of the state and of the accountancy system. Moreover it broke the trust of investors, of employees, and of stock owners. This can have a long-term effect as investing companies will be seen with more circumspect eyes by the public and by the authorities.
Another major effect the Enron scandal had on the population of the city was emotional. As stated above, the Enron company was considered to be one of the most important symbols of the American business environment. However, in 2006, its assets were sold worldwide, and thus its name shattered (Thomas, 2006). It was perceived as a shameful deed and one America will probably be identified with for decades to come.
Despite these feelings which remain unquantifiable, there are effects which can be measured in numbers. In this sense, one of the most important aspects of the Enron case was the social one. More precisely, given that parts of the shareholders were employees, it was them who actually lost most of the money when the company failed for bankcrupsy. In this sense, "The expected payments to Enron's lenders fall well short of other bankruptcies. Bondholders in the WorldCom bankruptcy, the only Chapter 11 case larger than Enron's, are to receive 36 cents on the dollar" (The New York Times, 2003). Thus, comparing with the...
Credit Risk Management Banks are an important part of the economy of any nation. Traditionally, the banks operate as financial intermediaries serving to satisfy the demand of people in need of various forms of financing. Through this, banks enable people to purchase home and businesses to expand. These financial institutions therefore facilitate investment and spending that are responsible for fueling the growth of the economy. In spite of their vital role
This presented the troubling consideration that many of the current standard-bearers for physical excellence were the product of performance enhancing drug use. Moreover, this cast a dark shadow on what have been regarded as some of the game's greatest recent accomplishments, which had been achieved through cheating. In that vein, Canseco's claim was succeeded by an admission that seemed to justify this reproach. Mark McGwire, Canseco's former Oakland Athletic teammate,
.." And "The probability that my peers would undertake the same action is...." It is the difference in the responses given to these two questions, as captured on a seven point Likert scale, that is the measure of the social desirability response bias. (Tyson: 1992; Cohen et al.: 1995, 1996, 2001). Many studies have been done on the role and correlation between moral development and ethical decision making as it applies
How Nigerians Can Influence the Change We Desire Introduction There is a general belief that poor corporate governance has been the vulnerable point of numerous companies in both developing and developed countries. This is especially the case with Nigeria, where in spite of being vastly blessed with resources such as oil and a huge labor force, continued to be adversely impacted by corruption. Good governance is a significant step in facilitating market
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