THE RISE AND FALL OF ENRON

Abstract

Enron Corporation is a textbook example that many managers of nowadays corporations should learn from. As most dominant energy trader it managed to become market ruler, but very soon experienced a crash on the same. Causes of the rise and fall are given in further text and empiricalresearch helped us to come to their knowledge. Fall of Enron began by announcing unexpected amortization and surprising conflicts of interest that have shocked the public and led to investigate the business and financial books of Enron. Enron’s complex and in some cases unraveling financial statements have made major problems. New reports and shocking revelations destroyed confidence in the market and the faith of investors in Enron. Regardless of the number of attempts to rescue Enron filed for bankruptcy in December 2001.