We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Interpretation of the Enron Story - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Interpretation of the Enron Story"
McLean and Elkind stated in chapter 15 that "all that mattered was that the stock was going up." How is this simple statement indicative of Enron's complex management strategy Please support your answer with examples.
Critics have identified the complicated management approach as one of the culprits that caused the firm's collapse…
Download full paper
Polish This Essay
Interpretation of the Enron Story
Read TextPreview

Extract of essay "Interpretation of the Enron Story"

Download file "Interpretation of the Enron Story" to see previous pages... Considering the unpredictable circumstances and calculated risks, Enron was successful on paper. This was reflected in the financial reports suggesting the extent of growth in the financial capability of the company.
Specifically, the level of stocks reported by the company has skyrocketed. The information provided by the Enron 10-K annual report suggests that it was only in 1997 that the company experience a decline.
Let us write or edit the essay on your topic "Interpretation of the Enron Story" with a personal 20% discount.. Try it now
The growth, however, can overcome such deficit. The best years of the company was observed from 1998 to 2000. Based on the information, the stock performance of Enron illustrated a positive growth of 37%, 56%, and 87% positive growth during the years mentioned in succession. Positive growth was also recorded from 1993-1995 which showed increase in stock ranging from 5%-25% (Healy and Palepu, 2003).
The growth in stock is generally perceived as an advantage for the company. Increasing the stocks means that more investors become willing to invest in Enron. This will improve the financial resources of the company because the market capital also expands. Accordingly, this performance was fuelled by the intricate schemes of Enron in managing its operations.
By 1995 accountants at Arthur Andersen knew Enron was a high-risk client who pushed them to do things they weren't comfortable doing. James Hecker wrote a parody to that effect in 1995. Discuss and analyze this parody and how it applies to Enron Accounting and Arthur Anderson.

James Hecker was a partner of Enron based in Houston. Hecker became known for the parody of the Eagle's song Hotel California. Hecker made an analogy of the song as the likely situation that is observed between Andersen and Enron. Although the parody was written in 1995, it became an immediate source of reasoning for investigating Andersen for the Enron debacle. It has to be noted that Hecker also testified against Andersen further strengthening the evidences against the trouble auditing firm.
According to Hecker, Andersen had knowledge on the nature of Enron's operations. The company even branded Enron as a high risked firm that is willing to do all means required to achieve its goals. Moreover, Hecker described the relationship of the Andersen employees to Enron. In the exact words, Hecker said: "Managers in the doorway, thinking out of the box. And I was thinking to myself, I'll bust by butt and then I'll bust my rocks (Schepp, 2002)." This satire showed how generously the employees of Andersen working for Enron were compensated and provided with great incentives.
Moreover, Hecker described Enron as a lovely face and a fragile place. Basically, Hecker has knowledge on the true status of the company. Physically, Enron appears to be growing as it's financial reports suggest growth. On the other hand, Hecker had a premonition that the company was troubled inside. Hecker even mentioned in the satire that the managers will soon bring their alibis to court. Precisely, Hecker highlighted the events that will happen years later.
Enron's malfeasance led to the creation of the Sarbanes-Oxley Act. Please briefly describe the law and discuss its implications. Do you think it will eliminate future "Enron Like" scandals

As U.S. witnessed the biggest corporate downfall in Enron, several policy makers have exerted efforts to prevent such from happening again. In response to the situation, the Sarbanes-Oxley Act was passed to emphasise management accountability. The Act ...Download file "Interpretation of the Enron Story" to see next pagesRead More
Cite this document "Interpretation of the Enron Story"
  • APA
  • MLA
(“Interpretation of the Enron Story Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Interpretation of the Enron Story Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1503466-interpretation-of-the-enron-story
(Interpretation of the Enron Story Essay Example | Topics and Well Written Essays - 1000 Words)
Interpretation of the Enron Story Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1503466-interpretation-of-the-enron-story.
“Interpretation of the Enron Story Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1503466-interpretation-of-the-enron-story.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Interpretation of the Enron Story"
Interpretation of a story
Themes A. Mortality 1. Feelings from a common man’s point of view just before death. 2. Feelings from the viewpoint of an individual undergoing the process of death. 3. Feelings of afterlife. 4. Feelings associated with a person who is already dead. B. Family C.
11 Pages(2750 words)Research Paper
Critical Interpretation of the story Last Night by James Salter
The story ‘Last Night’ by James Salter is a short fiction that exposes the futility of living a painful life and love between couples. It also reveals the power of desire among loved ones and the succeeding disappointments.
3 Pages(750 words)Essay
Such trends are however established by collective impacts from individual members of the society. Political environments also identify collective positions that are sometimes so intense to determine people’s behaviors at personal levels. The greatest sense in the phrase is however noted in social set-ups in which culture and traditional beliefs are significant in people’s lives.
4 Pages(1000 words)Essay
The enterprise helped Enron grow its sales by 7 percent per year and its shareholder returns by 27 percent per year between 1988 and 1995 (Best practice and beyond: knowledge strategies 1998, p. 21-22) A little-noticed but remarkable side effect of this revolutionary development came in the energy sector.
8 Pages(2000 words)Essay
Interpretation of the story Rock Springs
At the beginning of story, beginning of his life as a human being, man is adrift and uprooted with no permanent place or relationships; no responsibility towards each other or even to the self. Each one is a loser. They are uneducated (ignorant), un-ambitious and lack the sense of responsibility. Relationships are a matter of convenience.
5 Pages(1250 words)Essay
s a scandal that took place in the business world and it took me longer than usual to understand the gravity of the situation that took place in America. In my opinion, the government was not expecting too much from the companies in the USA as the event of Enron scandal had
1 Pages(250 words)Essay
Littering is a serious environmental issue in very many states because it has negative impacts (Hill, p. 97). The sound bite in this case is “Singapore: Litter free.” Here, we see a litter bin
2 Pages(500 words)Essay
d party auditing firm, it instead entered into a business relationship with Enron that is considered to have a conflict of interest and eventually connived to cover the frauds committed by Enron. The relationship is already wrong at the beginning because Andersen lost its
1 Pages(250 words)Essay
Cosmopolitanism, according to the reading, implies the idea that human beings, Japanese in this scenario, originated from a common
2 Pages(500 words)Essay
teractions have become on the rise thus prompting curiosity of people from all over the world to adopt and understand the culture of other people from other regions. Cultural aspects have been used to influence the field of economics through the production of commodities and
2 Pages(500 words)Essay
Let us find you another Essay on topic Interpretation of the Enron Story for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us