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 movement officer and the chief finance officer used the mechanism: the chronicle mensuration of market to market to accommodate the fiscal phenomena. Market to market is an accounting principle that the focus of its pecuniary value is the demo market price; however, the Enrons free living directors breakaway directors did non inspect the problem of the fiscal situation. Sarbanes-Oxley decree highlights the tariff of furrow directors to supervise accounting affairs; similarly, Smith, the Management advisor 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 take the rift between directors and accountants, individual directors have to work in audit committee, likewise, execu tive officers could not change the accounting bar to overwhelm up the financial problems. Therefore, the responsibilities of independent directors and choosing the disclosure and sheer(a) accounting standard are important elements to manage a company.

The responsibilities of independent directors Wallison, the codirector of American Enterprise institutes political program on financial markets deregulation (2006) believed that independent directors is an important break in of corporate governance .He stated that independent directors and the contortion of financial stipulation are problems in some companies. Cornfrod, the Bard college professor (2004, p.7) argued that inde pendent directors failed to avoid the collap! se 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. breakaway directors, lacked of the...If you requirement to get a full essay, order it on our website: OrderEssay.net

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