The Trend towards Corporate Voluntary Disclosures

Business & Finance, Accounting, Financial
Cover of the book The Trend towards Corporate Voluntary Disclosures by Reka Goch, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Reka Goch ISBN: 9783638475266
Publisher: GRIN Publishing Publication: March 3, 2006
Imprint: GRIN Publishing Language: English
Author: Reka Goch
ISBN: 9783638475266
Publisher: GRIN Publishing
Publication: March 3, 2006
Imprint: GRIN Publishing
Language: English

Research Paper (undergraduate) from the year 2005 in the subject Business economics - Controlling, grade: 2,0, Schmalkalden University of Applied Sciences, 12 entries in the bibliography, language: English, abstract: Introduction Recent scandals, like the Enron Bankruptcy, undermined the investors trust in the information given by the corporations. Enron, one of the biggest consolidated group in the US and in the world, became famous all over the world by the surprisingly bankruptcy in December of 2001. Even a few weeks before the petition of bankruptcy analyst recommended to buy Enron stock and thousands of investors lost their savings or their pension backups. By creative balancing Enron succeeded to take advantage of gaps in the Generally Accepted Accounting Principles (GAAP). Financial data in the annual business report was manipulated so that investors who relied on this information made wrong investment decisions. Likewise investors and analyst trusted in the confirmation of the accounting firm Arthur Andersen & Partner which was authorized to prove the correct balancing of Enron. The Enron Bankruptcy is just one example, many bankruptcies like the ones of Sunbeam, Waste Management or Global Crossing had followed yet. 'Creative balancing' gained currency among other listed corporations and the value and the profitability of blue chips were overvalued. Scandals like this emphasize the importance of the given information for the entire stakeholders, critically the investment community, because they have a deep impact on the investment decisions. Corporations are more and more forced to offer corporate voluntary disclosures which fulfill the 'call for evidence of activities' (cf. Pricewaterhouse- Coopers, 2000b, p. 1) made by the business environment and to regain public trust. Additionally, the globalization of markets has a strong influence on the corporations' orientation. More and more corporations become international and listed. Thus, the competition on capital market increases and the constant need for capital requires a better explanation on the business performance. To help investors with their capital allocation decisions, corporations have to provide a more reliable, relevant, and useful information on a voluntary basis. In general, investors should get a better understanding of the corporation by more transparency. So, the traditional reporting in a vast number of corporations, based on financial data, is added by voluntary disclosures with the hope to hasten the process of the stock markets recognition of their corporate value. ...

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Research Paper (undergraduate) from the year 2005 in the subject Business economics - Controlling, grade: 2,0, Schmalkalden University of Applied Sciences, 12 entries in the bibliography, language: English, abstract: Introduction Recent scandals, like the Enron Bankruptcy, undermined the investors trust in the information given by the corporations. Enron, one of the biggest consolidated group in the US and in the world, became famous all over the world by the surprisingly bankruptcy in December of 2001. Even a few weeks before the petition of bankruptcy analyst recommended to buy Enron stock and thousands of investors lost their savings or their pension backups. By creative balancing Enron succeeded to take advantage of gaps in the Generally Accepted Accounting Principles (GAAP). Financial data in the annual business report was manipulated so that investors who relied on this information made wrong investment decisions. Likewise investors and analyst trusted in the confirmation of the accounting firm Arthur Andersen & Partner which was authorized to prove the correct balancing of Enron. The Enron Bankruptcy is just one example, many bankruptcies like the ones of Sunbeam, Waste Management or Global Crossing had followed yet. 'Creative balancing' gained currency among other listed corporations and the value and the profitability of blue chips were overvalued. Scandals like this emphasize the importance of the given information for the entire stakeholders, critically the investment community, because they have a deep impact on the investment decisions. Corporations are more and more forced to offer corporate voluntary disclosures which fulfill the 'call for evidence of activities' (cf. Pricewaterhouse- Coopers, 2000b, p. 1) made by the business environment and to regain public trust. Additionally, the globalization of markets has a strong influence on the corporations' orientation. More and more corporations become international and listed. Thus, the competition on capital market increases and the constant need for capital requires a better explanation on the business performance. To help investors with their capital allocation decisions, corporations have to provide a more reliable, relevant, and useful information on a voluntary basis. In general, investors should get a better understanding of the corporation by more transparency. So, the traditional reporting in a vast number of corporations, based on financial data, is added by voluntary disclosures with the hope to hasten the process of the stock markets recognition of their corporate value. ...

More books from GRIN Publishing

Cover of the book Evolution of the English Language by Reka Goch
Cover of the book Il Tragico nella teoria estetica di Schiller by Reka Goch
Cover of the book Wertorientierte Anreizgestaltung by Reka Goch
Cover of the book History and its relevance for understanding Jonathan Swift's satirical works by Reka Goch
Cover of the book Financial analysis easyjet plc by Reka Goch
Cover of the book Solidarity in Athol Fugards Township Plays by Reka Goch
Cover of the book The Relationship Between Preferred Websites and Reading Motivation in College Students by Reka Goch
Cover of the book The Impact of Reformation on the Historical and Social Development of Christianity in South-South Nigeria by Reka Goch
Cover of the book Consociational Democracy in Lebanon (1945-1975) by Reka Goch
Cover of the book Sir Ernest Shackleton - A charismatic leader in times of changes by Reka Goch
Cover of the book Differentiation between inpatriation and expatriation: Factors of success and failure of inpatriation by Reka Goch
Cover of the book The Use of Irony in Jane Austen's 'Pride and Prejudice' by Reka Goch
Cover of the book 'At the edge of art and insanity' by Reka Goch
Cover of the book Underpricing effect in Poland, Hungary and Czech Republic by Reka Goch
Cover of the book Grammatik und Lyrikverstehen by Reka Goch
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy