Cause of the Dot-com NASDAQ crash………..…………………………………...page Effect of the Bubble Bursting……………………………………………………….page Successful Dot.com Companies..……..………………….………………………… page Unsuccessful Dot.com Companies………….…………………………………....... page Conclusion………………………………………………………..……………....... page References………………………..……………..…………………………………...page THE BUBBLE DECADE Introduction: World Wide Web The World-Wide-Web was developed by British engineer Time Berners- Lee in 1989; the World-Wide-Web
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Executive Compensation and the Dramatic Increase in Corporate Accounting Scandals According to one estimate‚ the total median CEO pay at the nation’s 350 largest publicly-owned firms grew from $2.7 million annually in 1995 to $6.8 million in 2005. The overall increase in CEO pay has outstripped inflation and the growth in non-managerial pay over the same period. Equally important is the trend in the composition of CEO performance-based pay which includes stock and stock option grants. Median
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One of the most widespread laws that were passed after the 2001 financial corruption of Enron‚ along with several other scandals‚ such as WorldCom and Tyco caused the implementation of the Sarbanes-Oxley Act (SOX) of 2002. These corporations sent a financial shockwave throughout our country crashing the markets. As a result‚ the people were no longer confident in the financial markets and their work ethics. They wanted to understand how effective it would be upon its implementation. This paper will
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Worldcom appears to be an ethically challenge company. The ethical consideration involved in the company decision to loan executives’ money to cover margin calls on their purchases of shares of company stock is a clear case of conflict of interest. Conflict of interest is morally wrong and will cause harm to the stockholders and stakeholders and therefore be an injustice towards them. The main business ethical issue in the Worldcom case was the false reports and the idea that issues were held "secret"
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clients’ desire to maximize profits‚ particularly in the era of quarterly earnings reports. Andersen has been alleged to have been involved in the fraudulent accounting and auditing of Sunbeam Product Waste Management‚ Baptist Foundation of Arizona‚ WorldCom and Enron. On June 15‚ 2002‚ Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron‚ resulting in the Enron scandal. Nancy Temple (Andersen Legal Dept.) and David Duncan (Lead Partner for the Enron
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In his paper‚ Carson points out 4 main arguments that we can derive from the recent corporate scandals (e.g. Enron‚ WorldCom). The arguments pointed out revolve around the flaws and inadequacy in current business approaches such as the stakeholder theory‚ shareholder theory and incentives system in corporations currently. In my response paper‚ I will make use of ethical theories such as Kantian ethics‚ Utilitarianism‚ Rawl’s theory of justice etc. to analyse the arguments made in the paper and to
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The company I chose to analyze is WorldCom. This company based in Mississippi had recognized that for several years it has been bloating or increasing their earnings through booking about $3.8 billion expenses as long-term investments rather than operating costs. They did that by posting operating expenses such as salaries and wages as long-term investments on the balance sheet while those costs should have been expensed and posted to the income statement. When they did that‚ they overstated assets
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------------------------------------------------------------------- -7- * SOX coverage at Business/Economics colleges of the USA----------------------------- -8- * How business schools need to prepare future accountants ------------------------------- -9- 4. Conclusion----------------------------------------------------------------------------------------11- 5. Notes--------------------------------------------------------------------------------------------- -12- Introduction The profession of
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Corporate greed leads to unethical employee behavior and down fall. My first reaction was why didn’t he leave MCI like his mentor did? Mr. Pavlo knew that the bad debt was uncollectable‚ financial targets and expectations from his superiors and upper management were unrealistic‚ still he decided not to walk away! This case is a best example of how ethical behavior at top management plays such an importance role in the success or failures of its employees and the organization as a whole. MCI’s
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INTRODUCTION The collaborations between companies have been one of the most critical changes in industrial field during the last three decades. Through outsourcing and taking off ‘non-core’ activities‚ corporate borders have been pulled back and large companies are increasingly cooperated with other companies to access resources and devote themselves to activities outside their own boundaries. Business cooperative relationship between companies is regarded as ‘hybrid’ organizational forms (Borys
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