How Corporate Scandals Crush the Company, Investors, and Economy

1333 Words5 Pages
Tracing back the history of accounting scandals, major corporate scandals not only hurt the economy but also crush investors’ confidence on investing in companies. For example, the Enron scandal, the WorldCom scandal, and so on. The majority of corporate scandals are created by greedy corporate senior officers. One way to create a scandal is “cooking the books”. Cooking the book is an accounting term which means making false financial statements in order to meet the number that investors or banks expected. In this case, Richard Scrushy is one of the greedy Chief Executive Officers (CEO). According to Washington Post, Richard Scrushy, was a self-made son of the new South, a former teenage parent who hauled himself up from a menial job to become an emperor of the new economy (Steve Barnette, Washington Post). Richard Scrushy, the CEO and the founder of HealthSouth Corporation, was one of the most successful and respected business men in the state of Alabama. This is a story of a fallen American dream. HealthSouth Corporation is the United States’ largest inpatient rehabilitative hospital. HealthSouth provides the services of rehabilitative care to patients recovering from all kinds of conditions. It started in 1984, the company was originally named Amcare Inc. By the end of 1990, HealthSouth expanded to 50 facilities all over the United States. HealthSouth reach $400 million in annual revenue in 1992. By the end of 1999, HealthSouth became a four billion dollar company with
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