What are the most significant implications of the Enron collapse for global corporate governance

Introduction Enron, the seventh top company in the fall in States until 2001, it collapsed because its decision maker officers: the straits executive officer, the chief accomplishment officer and the chief finance officer used the irradiation: the chronicle mensuration of market to market to accommodate the pecuniary phenomena. Market to market is an accounting principle that the focus of its pecuniary value is the demo market price; however, the Enrons supreme directors breakaway directors did non inspect the problem of the pecuniary situation. Sarbanes-Oxley jurisprudence highlights the responsibility of furrow directors to supervise accounting affairs; similarly, Smith, the Management consultant from the U.S.A (2007) emphasized that to conform the financial phenomena is not for legal way. Sarbanes- Oxley legislation is a regulation for corporal governance. In Order to invade the rift between directors and accountants, independent directors have to work in audit committee, likewise, executive officers could not change the accounting example to overwhelm up the financial problems. Therefore, the responsibilities of independent directors and choosing the disclosure and liquid accounting standard are important elements to manage a company.

The responsibilities of independent directors Wallison, the codirector of American Enterprise institutes broadcast on financial markets deregulation (2006) believed that independent directors is an important discontinue of corporate governance .He stated that independent directors and the contortion of financial stipulation are problems in some companies. Cornfrod, the Bard college profess or (2004, p.7) argued that independent direc! tors failed to avoid the collapse of company at sometimes. These independent directors miss in their management job. Eichenwarld, the New York Times diary keeper (2003), cited in Hamon that independent directors intended to do insider trading and fraudful behavior. free-living directors, lacked of the...If you requirement to get a full essay, order it on our website: OrderEssay.net

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