Abstract
For years, Enron was the peacock of Wall Street. In the era of deregulation, Enron was transformed from a boring pipeline operator to a risk-taking, worldwide trader of many different products. Enron was hailed as the business model of the future and Arthur Andersen was its auditors and supporters. On 16 October 2001, Enron released its disastrous third-quarter financial report, revealing more than $600 million in losses and a $1.2 billion reduction in shareholder equity. When the market learned that Enron made great losses and top managers had been profited for years at the company’s expense, Enron’s stock price and credit rating spiraled downward. Enron was soon filed for bankruptcy.
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© 2005 Pervez Ghauri, Amjad Hadjikhani and Jan Johanson
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Eriksson, C., Lindvall, J. (2005). Reputation as Opportunity and Risk. In: Ghauri, P., Hadjikhani, A., Johanson, J. (eds) Managing Opportunity Development in Business Networks. Palgrave Macmillan, London. https://doi.org/10.1057/9780230379695_12
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DOI: https://doi.org/10.1057/9780230379695_12
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