Newswise — A decade ago this week, the collapse of once high-flying energy company Enron in the wake of massive accounting fraud soon became a symbol of an era that also saw major bookkeeping-related shenanigans at U.S. corporate giants WorldCom and Tyco International. With the 10th anniversary of Enron’s bankruptcy filing on Friday, Dec. 2, three Florida State University faculty members with expertise on the Enron saga are available to speak with the news media regarding the accounting scandals of the early 2000s, the long-term impacts of resulting regulatory reforms, and the continuing need for companies to incorporate ethics into their business models. · Allen Blay, assistant professor of accounting: (951) 616-7051; [email protected]Blay has expertise in independent auditing, the regulatory authority of the federal Public Company Accounting Oversight Board, and auditor independence. “In the time period since the collapse of Enron, a variety of regulations have been put into place to increase the quality of audited financial statements and improve investor confidence. These regulations have had varied success and varied economic implications for both the auditors and the companies being audited.”
· Randall Holcombe, FSU’s DeVoe Moore Professor of Economics: (850) 644-7095; [email protected]’s areas of specialization are public finance and the economic analysis of public policy issues. He is the author of 12 books and more than 100 articles in academic and professional journals. Holcombe also served as a member of former Florida Gov. Jeb Bush’s Council of Economic Advisors from 2000 to 2006.
“While there may have been a regulatory failure, the Enron case shows that the market works to weed out this type of unethical behavior. Yes, the management at Enron behaved unethically and dishonestly, and yes, the regulators didn’t stop them (or even know what they were doing). What stopped their unethical behavior was the market mechanism, which bankrupted them. It wasn’t the regulators who put an end to their unethical behavior, but the impersonal response of the market system, which rewards businesses that add value to the economy and punishesthose that do not. Market forces put Enron out of business, not government regulators, and the Enron case serves as an example to other companies and to the general public.”
· William P. Anthony, professor of management and FSU’s DiSantis Professor of Business Administration Emeritus: (850) 644-7844; [email protected]Anthony conducts seminars and workshops throughout the United States on a variety of management topics for managers in business, government and not-for-profit organizations. He is an expert on the Enron collapse and can speak on the need for stronger ethics programs in companies that is tied to top management team decision-making.
“Top management needs to better incorporate ethics in its strategic decision making.”
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