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 Teaching Collocations in Foreign Language Classes: Why and How by Reka Goch
Cover of the book The differing foreign policy perspectives of Senators John McCain, Hillary Rodham Clinton and Barack Obama by Reka Goch
Cover of the book Is there too much music? by Reka Goch
Cover of the book Analysis of Shelley's 'Ode to the West Wind' by Reka Goch
Cover of the book Comedy and Burlesque in Henry Fielding and Jane Austen by Reka Goch
Cover of the book Channel Design for the European Trade with Beverages - A Case Study about Beer-Mixtures by Reka Goch
Cover of the book Against Raz' Notion of Second Order Reasons by Reka Goch
Cover of the book The power of love to change the attitude to life as exemplified in Jane Austen's Pride and Prejudice by Reka Goch
Cover of the book The British Empire through the eyes of lexicography by Reka Goch
Cover of the book Pan-European Real Estate Investment and Market Opportunities by Reka Goch
Cover of the book Kunst und Kunstpolitik in der DDR by Reka Goch
Cover of the book Competence to conclude international investment agreements - Exclusive to the European Union or vested in Member States? by Reka Goch
Cover of the book Shakespeare's 'A Midsummer Night's Dream' by Reka Goch
Cover of the book There Is No Business Like Show Business by Reka Goch
Cover of the book How was the behavior of the US in Foreign Policy from 1917 till the end of the Vietnam War and what are the different possibilities? 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