A Case of Dementia ?
the company?
The only reason for a private company to stay in business is
its profitablity and earnings net of the expenses are indicators
of profitability.
The earnings per share measures how effective the management uses
the investments of the stockholders to generate them satisfactory
returns from their capital.
So when Jefrey Skilling, the Chief Executive of ENRON
claimed that he had no motive to inflate the company's earnings
to mislead the investors for two reasons:
1. the company was strong;
2. he was already a wealthy man.
people knowledgeable of how the accounting/financial systems are
manipulated to exactly present the financial condition that they
would like people to see are simply not convinced.
Read the entire news:
Skilling has no recollection of key Enron maneuvers
posted by cathy at 5:11 PM
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