Andrew Fastow The Enron Corporation And The Pioneer Of...

In 1990 Enron market value increased from $3.5 billion to $35 billion by the end of 1999 (Ivey Business Journal, 2016). During this time Andrew Fastow was the chief financial officer of the Enron Corporation and the pioneer of the financial implication that brought Enron crumbling down. In this nine-year time frame this feat was admired by companies around the globe. Andrew received a CFO Magazine award for his work at Enron and had lavish parties celebrating the results of the quarterly earnings (Ivey Business Journal, 2016). Unbeknownst to Andrew Fastow, just three years after raising the value of Enron by nearly $32 billion, his ethical decisions would cost him his freedom. Andrew Fastow fashioned a great deal of off-balanced documentation that immensely misrepresented Enron’s debts and essentially overstated the firm’s earnings and net worth (Seijts, Gerard, 2002). With the documentation created by Andrew the company essentially hid billions of dollars from the public and its shareholders. The collapse resulted in 30,000 employees losing their jobs and an economic down fall (Accedo Verlagssgesellschaft Munchen, 2013). One of the main issues with the Enron case is that even though Andrew Fastow thought what he was doing by creating the off-balanced sheets was a great and new inventive way, he should have known that this was unethical. Though the company may have bolstered their stock and gained a significant amount of money, when the truth was revealed manyShow MoreRelatedThe Collapse Of Enron Corporation1547 Words   |  7 Pagesthe Enron Corporation and how the collapse of Enron Corporation consequence affected the United states financial market. Enron Corporation was the seventh largest company in the United States, and had the biggest audit failure. In this Research paper, it describes the reason of Enron Corporation collapse, including details of the internal/ external management, accounting fraud, and conflict of interest. Enron is the largest bankruptcy in America history! The Collapse of Enron Corporation andRead MoreEnron Case Study5921 Words   |  24 PagesEnron Case Study [pic] Part A: Problem Focused Analysis and Recommendations. 1. Brief Case Background. List key events, use timeline. Case Background At one time Enron was one of the world’s largest producers of natural gas, oil, and electricity. It also appeared to be one of the most profitable companies, taking shareholders from $19.10 in 1999 to $90.80 by the end of 2000. Enron’s top management answered to a Board of Directors whose responsibility was to question and challenge new partnershipsRead MoreCorporate Governance : The Top Level Managements3102 Words   |  13 Pageseconomic policy. However, over the years, many such corporate governance failures have been a root cause in the company’s demise. The top level managements’ misleading actions have been detrimental to their organization. International scandals such as Enron, Worldcomm, and Tyco International, have created a stir in the economy and harmed their company. Many top level staffs were fired, accused and even tried in court, with a majority of them facing prison sentences even till now. Recent Corporate Scandals