Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
The Fall of Enron
Journal of Economic Perspectives
vol. 17,
no. 2, Spring 2003
(pp. 3–26)
(Complimentary)
Abstract
The financial reporting and disclosure problems at Enron, as well as the high market valuations for its stock raise troubling questions about the functioning of capital market intermediaries, regulators and governance experts whose are supposed to ensure the effective functioning of the stock market. This paper examines the functions of key capital market intermediaries and analyzes how their own governance and incentive problems may have contributed to Enron's rise and fall. We conclude by proposing system modifications to resolve the observed problems.Citation
Healy, Paul, M., and Krishna G. Palepu. 2003. "The Fall of Enron ." Journal of Economic Perspectives, 17 (2): 3–26. DOI: 10.1257/089533003765888403JEL Classification
- M14 Corporate Culture; Diversity; Social Responsibility
- M42 Auditing
- G23 Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- M12 Personnel Management; Executives; Executive Compensation
- M41 Accounting
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