Enron 's Financial Fraud And Corporate Fraud

Better Essays
Years ago, a series of financial frauds and collapses was occurs in United States. Includes Enron, Global Crossing, Worldcom, Healthsouth, AIG and Lehman Brothers scandals. In the American capital market, the investors abandoned a number of large listed companies leads to the bankruptcy for those companies. The corporate frauds not only deceive investors, but also make oneself paid a heavy price. At the same time, it not only harm the capital market, but also caused a significant impact on American that resulted in regulation changes. These purpose of corporate fraud and reason are different, which Enron’s financial fraud is typical event and influence accounting filed lots. Because Enron is the beginning of the series of financial frauds in American, and secondly is form growth to the bankruptcy of Enron, has attracted American media and public, the third reason is Enron’s event also lead to the world top five accounting firm Arthur Anderson collapses. Enron was one of the world biggest electricity and Gas Company, before it announced bankrupt. The sales amount in 2000 was reached 101 billions American dollar, and the company was rewarded as the most innovate companies in United States in six year terms. However the truth make Enron’s famous all over the world is that company was bankrupt in several weeks in 2002 after it was disclosed the company’s institutionalization of systematic financial fraud scandals for years. Since then, Enron was a symbol of corporate fraud
Get Access