Enron Case
Executive Summary
The United States that have been considered as a super power country and also the direction of science disciplines including accounting must felt bitterness. Business scandals that happened seemed eliminate confidence by the business world about the practice of good corporate governance in the United States. Enron was a company that was ranked as seventh out of the five hundred leading companies in the United States and is the largest U.S. energy company that went bankrupt leaving debts amounting to nearly U.S. $ 31.2 billion. In instance with the case of Enron known occurrence of moral threat behavior such as manipulation of financial statements with a record 600 million dollar profit when the company suffered a loss. Manipulation of profits caused by the desire companies to keep stock investor demand, these such embarrassing cases involving people apparently involved in the White House, including the vice president of the United States. Securities Exchange Commission (SEC), the capital market watchdog, smell something was wrong and started to roll out the investigation. In a desperate condition, Enron surprised the worldwide on 8 November 2001 when it admitted that its profits for this are just a fiction. Enron revised its financial statements the last five years and posted a loss of U.S. $ 586 million as well as additional notes by U.S. $ 2.5 billion. However, in late November 2001, Enron can breathe a little sigh of relief when Dynegy Inc., which is much smaller competitors, intends to buy shares in a merger agreement. Dynegy withdrew after Enron increasingly losing confidence in investors and credit rating fell to its lowest-status "junk-bond". When nothing less than a quarter of a billion sheets of shares exchanged on the stock exchange, the price of Enron slid into the abyss. Enron stock in August 2000 was worth U.S. $ 90 per share, fell fall to no more than U.S. $ 45 cents. Finally after awhile, on December 2,
The United States that have been considered as a super power country and also the direction of science disciplines including accounting must felt bitterness. Business scandals that happened seemed eliminate confidence by the business world about the practice of good corporate governance in the United States. Enron was a company that was ranked as seventh out of the five hundred leading companies in the United States and is the largest U.S. energy company that went bankrupt leaving debts amounting to nearly U.S. $ 31.2 billion. In instance with the case of Enron known occurrence of moral threat behavior such as manipulation of financial statements with a record 600 million dollar profit when the company suffered a loss. Manipulation of profits caused by the desire companies to keep stock investor demand, these such embarrassing cases involving people apparently involved in the White House, including the vice president of the United States. Securities Exchange Commission (SEC), the capital market watchdog, smell something was wrong and started to roll out the investigation. In a desperate condition, Enron surprised the worldwide on 8 November 2001 when it admitted that its profits for this are just a fiction. Enron revised its financial statements the last five years and posted a loss of U.S. $ 586 million as well as additional notes by U.S. $ 2.5 billion. However, in late November 2001, Enron can breathe a little sigh of relief when Dynegy Inc., which is much smaller competitors, intends to buy shares in a merger agreement. Dynegy withdrew after Enron increasingly losing confidence in investors and credit rating fell to its lowest-status "junk-bond". When nothing less than a quarter of a billion sheets of shares exchanged on the stock exchange, the price of Enron slid into the abyss. Enron stock in August 2000 was worth U.S. $ 90 per share, fell fall to no more than U.S. $ 45 cents. Finally after awhile, on December 2,
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