Adelphia Communications Corporation: Financial Statements

1544 Words Mar 2nd, 2014 7 Pages
Financial Statements

The company that I have chosen to portray in my key assignment is the Adelphia Communications Corporation. The Adelphia Communications Corporation was a cable television company headquartered in Coudersport, Pennsylvania. It was owned by John Rigas and was founded in 1952; Adelphia became one of the largest cable companies in the United States. In 2002 Adelphia Corporation filed bankruptcy as a result of internal corruption. Shortly after filing bankruptcy the company headquarters was moved to Greenwood Village, Colorado.
Time Warner Cable and Comcast officially acquired the majority of Adelphia’s revenue-generating assets in July, 2006. The remaining assets were in real estate and they
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Board members began conducting their own investigation to see what the money was used for. By spring, they involved the authorities who took the case to a grand jury.
Adelphia Communications Corporation clearly broke all the rules and laws that govern business today. The chief executive should have taken more responsibility for the actions of the people that run the company. Adelphia could have hired outside auditors to keep detailed records of all internal and external activities that involve the finances and resources of the company. By hiring outside companies to handle the books and finances there are unbiased opinions and accountability has to be adhered to. Establishing a rule that company employees or owners cannot purchase their own stock at lower prices or that the purchase be made through reputable companies so that there is an undisputable paper trail to follow. All this goes back to the code of ethics that the company has put into place and that they are expected to follow. It is truly integrity and honesty issue, if you cannot trust the founders of the company then the company is destined for failure.
Another recommendation for the Adelphia Company would be to have cyber security officers monitoring all the computerized activity that was taking place on a daily basis. Cybercrime of today is very sophisticated and occurs more since the computer has become a
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