How Corporate Scandals Crush the Company, Investors, and...

Tracing back the history of accounting scandals, major corporate scandals not only hurt the economy but also crush investors’ confidence on investing in companies. For example, the Enron scandal, the WorldCom scandal, and so on. The majority of corporate scandals are created by greedy corporate senior officers. One way to create a scandal is â€Å"cooking the books†. Cooking the book is an accounting term which means making false financial statements in order to meet the number that investors or banks expected. In this case, Richard Scrushy is one of the greedy Chief Executive Officers (CEO). According to Washington Post, Richard Scrushy, was a self-made son of the new South, a former teenage parent who hauled himself up from a menial job to become an emperor of the new economy (Steve Barnette, Washington Post). Richard Scrushy, the CEO and the founder of HealthSouth Corporation, was one of the most successful and respected business men in the state of Alabama. This is a story of a fallen American dream. HealthSouth Corporation is the United States’ largest inpatient rehabilitative hospital. HealthSouth provides the services of rehabilitative care to patients recovering from all kinds of conditions. It started in 1984, the company was originally named Amcare Inc. By the end of 1990, HealthSouth expanded to 50 facilities all over the United States. HealthSouth reach $400 million in annual revenue in 1992. By the end of 1999, HealthSouth became a four billion dollar company withShow MoreRelatedHow The Financial Framework Is Important For Quality Or Performance Financial Information1481 Words   |  6 Pagesrelevant examples. Finally, there is a critical analyse on how the financial framework is performing to satisfy similar users needs and how deplorable incident might affect users and their decision makings. In 1938 Sanders, Hatfield and Moore states that accounting statements were prepared to satisfy the needs of all the users’ that showed curiosity about its information. But, it was demonstrated especially for the management of the company, investors, creditors and the government. Whereas, Finney andRead MoreRetail Banking Industry6573 Words   |  27 PagesPolitical 4 2.2.2 Economic 5 2.2.3 Social-Cultural 8 2.2.4 Technological 10 2.2.5 Environmental 11 2.2.6 Legal 11 2.3 Summary of the PESTEL analysis 11 3. Porter’s Five Forces on retail banking industry. 12 3.1 Rivalry among Existing Companies 13 3.2 Entry barrier 14 3.3 Supplier power 16 3.4 Buyer power 17 3.5 Availability of Substitute products 19 3.6 Summary of the Porter’s 5 Forces analysis 20 4. Conclusion 21 5. Method Evaluations and Writing Limitations 22 6. ReferenceRead MoreMahfuz7742 Words   |  31 Pagesthe first glints of the Management Century appeared on the horizon, you could do worse than Chicago, May 1886. There, to the recently formed American Society of Mechanical Engineers, Henry R. Towne, a cofounder of the Yale Lock Manufacturing Company, delivered an address titled â€Å"The Engineer as an Economist.† Towne argued that there were good engineers and good businessmen, but seldom were they one and the same. He went on to assert that â€Å"the management of works has become a matter of suchRead MoreWall Street14268 Words   |  58 PagesSheen A young, smart and very motivated stock broker (seller) who dreams of making millions of dollars. Gordon Gekko†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.Michael Douglas A very rich, ruthless and immoral stock trader and â€Å"corporate raider,† which is a person who buys and sells companies, often with horrible results for company workers. Darien Taylor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Daryl Hannah A young and beautiful interior decorator with very expensive taste, who is a friend of Gekko’s, and who soon becomes Bud’s girlfriend. Carl Fox†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreInvestment and Economic Moats46074 Words   |  185 Pageseasy to use and makes buying good companies at bargain prices automatic, enabling you to successfully beat the market and professional managers by a wide margin. The Little Book of Value Investing, where Christopher Browne, managing director of Tweedy, Browne Company, LLC, the oldest value investing firm on Wall Street, simply and succinctly explains how value investing, one of the most effective investment strategies ever created, works, and shows you how it can be applied globally. The LittleRead MoreGeneral Electric60506 Words   |  243 PagesChapter 1 explores the concepts surrounding organizational strategy. It begins with an explanation of the term strategy and offers a basis for how to identify a company’s particular strategy. Next, it explores the importance of striving for competitive advantage in the marketplace and examines the role strategy plays in achieving this advantage. The chapter then explores the idea that strategy is partly proactive and partly reactive. Next, a discussion on strategy and ethics is given. This is followedRead MoreMarketing Mistakes and Successes175322 Words   |  702 Pagesnot unique. Information Boxes and Issue Boxes are included in each chapter to highlight relevant concepts and issues, or related information, and we are even testing Profile Boxes. Learning insights help students see how certain practices—both errors and successes—cross company lines and are prone to be either traps for the unwary or success modes. Discussion Questions and Hands-On Exercises encourage and stimulate student involvement. A recent pedagogical feature is the Team Debate ExerciseRead MoreCoca-Cola: International Business Strategy for Globalization10128 Words   |  41 Pageswe chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Colas operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countriesRead MoreContemporary Issues in Management Accounting211377 Words   |  846 PagesAccounting: European Perspectives (Oxford University Press, 1996) and Management Accounting in the Digital Economy (Oxford University Press, 2003). He has written numerous articles in scholarly publications and serves on the editorial boards of several journals. He has undertaken managemen t accounting-related fieldwork in a variety of global enterprises and has presented his research to corporate executives and academic audiences in Europe, Asia, and North America.  ¨ Christopher S. Chapman is headRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesphase of the human experience, render it impervious to generalized pronouncements and difficult to conceptualize broadly. As the essays in this collection document in detail, paradox pervades the time span we call the twentieth century, no matter how it is temporally delineated. Never before in history, for example, had so many humans enjoyed such high standards of living, and never had so many been so impoverished or died of malnutrition and disease. If the period from the 1870s is included in