scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 617
Enron was one of Americas largest companies The fall of it reduced confidence in the overall market and therefore drove down stock prices across the board The honest employees that had nothing to do with or tried to stop the scandal were affected because they lost their jobs Creditors such as JP Morgan Chase and City Group were hurt because they were not paid back for the loans they gave Enron The companys stock went down to literally nothing after the scandal was uncovered As a result all of the people and institutions that held shares lost all of their investments The beneficiaries of the Enron scandal were the companys top executives like CEO Kenneth Lay and CFO Andrew Fastow They were compensated heavily through stock options and sold most of their shares before the fall and made millions However most of them ended up being sentenced to prison Employees at Arthur Anderson Corporation also benefitted from the scandal Enron hired Arthur Corp to help them report false financial information in return for several million dollarsThe media followed along and publicized the success of Enron Yet it did not check the facts it was basing its stories onInstitutional investors and their agents fueled Enrons fire by investing money into the fake company These investors were so caught up in making money that they neglected to research why the company was doing so wellThe Litigation Reform Act made it harder for shareholders to sue corporations The Act was vetoed by President Clinton but the veto was overturned by congress This Act made it harder for people stop Enron even if they were aware of its corruption The executive compensation at Enron was based too heavily on stock options Higher market prices for Enrons stock meant higher pay for those with a lot of shares This is what motivated top executives to manipulate the financial records and overstate earnings They should have been focusing on profits not
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA