Enron unravelled

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This is an edited version of a new case study written primarily for classroom discussion. In this shortened form, supplemented by a commentary on the corporate governance implications by Matthew Allen, it provides insights for EBF readers into – among other things – financial engineering as a means of supporting the share price, the reporting of financial exposure, and the need for independent audit oversight to protect shareholders. The case won the European Case Clearing House/ Business WeekEuropean Case Award 2004 in the Finance, Accounting and Control category.

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