Corporate governance ppt

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Corporate governance ppt

  1. 1. Case StudyonENRON Corporation-Failure Sreedhar Eden Raman Abhishek
  2. 2. Introduction About ENRONCorporation Founded in 1985 One of the worlds leading electricity, natural gas, communications and pulp and paper company. Enron was almost universally considered one of the countrys most innovative companies.
  3. 3. Company TurnoverIts annual revenues rose from about $9 billion in 1995 to over $100 billion in 2000.Share Prices rose from $3.5 in 1995 to $90 in 2000.Employment rose from 685 in 1987 to 20000 in 2001.
  4. 4. The Causes of Enron’s Bankruptcy At the end of 2001 it was revealed that its reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. The drop of Enrons stock price from $90 per share in mid-2000 to less than $1 per share at the end of 2001. Enron fall to bankruptcy on December 2, 2001. The end of 2001, caused shareholders to lose nearly $11 billion.
  5. 5. Continue…. Truthfulness Interest Enron and the reputation of Arthur Andersen Mark to market SPE—Special Purpose Entity
  6. 6. The Two parties Responsible forENRON Fraud Individuals’ Angle Corporation’s Angle
  7. 7. Conclusion There should be a healthy corporate culture in a company. A more complete system is needed for owners of a company to supervise the executives and operators and then get the idea of the company’s operating situation. “Mark to market” is a plan that Jeffrey Skilling and Andrew Fastow proposed to pump the stock price, cover the loss and attract more investment. Maybe business ethics is the most thesis point people doing business should focus on.
  8. 8. . ANY Questions????
  9. 9. . Thank You… ALL

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