Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Summary of where the professional ethics in enron scandal were not followed
Ethical Problems and Recent Corporate Scandals
Ethical Problems and Recent Corporate Scandals
Don’t take our word for it - see why 10 million students trust us with their essay needs.
The 1st of February of 2008 Yahoo! received an unsolicited $44.6 billion bid from Microsoft to, together, better tackle the industry and compete against Google. Microsoft offered a bid of $31 per share, which was higher than Yahoo!’s closing share price that same day. Yahoo! believed that Microsoft’s offer was “substantially undervaluing the brand, audience, investments, and growth prospects”. Yahoo! wanted $37 per share. YHOO’s closing price the day Microsoft placed the bid was $28.38. Soon the public was informed of the unsolicited bid and chances grew of Microsoft and Yahoo joining to become Google’s biggest competitor. As of February 14th, YHOO’s share price had risen to $29.98. The share price had been increasing daily as more individuals were highly interested in buying YHOO stock. As more people wanted to buy YHOO stock, it became more valuable.
After the bid was received, Yahoo! rejected the unsolicited bid as it did not meet their expectations. Microsoft then upped the bid to $33 per share, which raised the offer by $5 billion. However, Yahoo! still felt that it undervalued the entire company, so they rejected the offer again. This was followed by a set of events that would result in YHOO’s share price to decrease. The decision to reject Microsoft’s offer was agreed upon by Yahoo!’s Board of Directors. The first time Microsoft decided to withdraw its offer was May 5th that same year. As a result, YHOO’s shares dropped to $23.05 at opening price and closed at $24.37 as nobody wanted to buy the shares and many wanted to sell. Several days after the withdrawal was made public, some shareholders initiated a proxy fight with Carl Icahn leading the group. The billionaire investor believed that the Board of Directors had n...
... middle of paper ...
...he communicated this to the Compensation Committee, who then agreed to give him a $50 million loan. They hoped that this would make Ebbers focus solely on managing the company. The Board of Directors were not informed of the loan at the time. These actions are not typical in large firms, as they always have to have the shareholder’s interest in mind. Giving out excessive amounts of money for loans is wasting the shareholder’s money. Ebbers kept on getting loans and guarantees during 1999 and 2002.
The Board members became aware of the $50 million loan but did not protest because the sale of stock would be damaging to the price, they believed that Ebbers could repay the loans and that they were not going to be long-term, and that the company’s stock price could recover fast. They were focusing on trying to manage the stock price rather than the business itself.
The stock price is currently 103.31, down from a recent high of 121.50. The P/E ratio is declining at 28 and beta at .67, which is expected to grow closer to 1.0. A recent earnings surprise last December yielded a 15% difference from the lower expectations and the latest earnings reports late last month also surprised investors. Estimates for the 2000 fiscal year are being raised by a large majority of analyst who believe that earnings per share will increase and the stock price will reach close to 150.
Bear Stearns went from a market value of billions to being worth $2 a share in a few weeks. They would have been acquired for that very price if a legal screw up did not force their acquirers to up their ante to $10 per share. The mighty can fall quick but lawyers will make money either way even if they screw up.
John Rigas started Adelphia Communcations in 1952 with the help of two partners, but soon bought it out. The company was taken public in 1986 and as a result would have to abide by the regulations of the SEC. By the early 2000s, Adelphia was one of the top cable companies in the United States. This was the peak of a corporation that would begin a downward spiral over the first half of 2002 as a result of fraudulent use of the company’s assets at its’ shareholders expense. Members of the Rigas family drove the company to bankruptcy through rampant spending of company funds on personal expenditures (Barlaup, 2009). These expenditures included the likes of gross misuse of the company’s aircraft for personal trips by members of the Rigas family and the construction of a personal golf course on the family’s private land (Markon, 2002). This was accomplished after careful manipulation of the company’s reported numbers and fabrication of transactions within the company. Co-borrowing and self-dealing were commonplace in this time period that resulted in over 2 billion dollars’ worth of debt. All this was done under the nose of shareholders and culminated in an insurmountable debt that would lead the company to bankruptcy and to the imprisonment of multiple members of the Rigas family (Barlaup, 2009).
Dennis Kozlowski was living his dream as a multimillionaire and if anyone got in the way of his dream to create his empire then they would be stepped on like a bug. This is what happened to Jeanne Terrile at Merrill Lynch. Terrile smelled something funny coming from Tyco and when she acknowledged that something was wrong, she was shut down quickly. Nobody knows for sure if Kozlowski paid off the CEO of Merrill Lynch, David Komansky, or not and nobody knows what they talked about. The fact is that Jeanne Terrile was replaced and the stock recommendation for Tyco soon changed after their talk. Terrile decided to do what she thought was right and make sure to notify people of what she thought of the company. Because of Terrile’s ethical decision
During the mid 2000’s until late 2012, media mogul Rupert Murdoch’s newspaper company, News Corp, conceived one the biggest scandals in media history to date. Speculation of phone hacking occurred in November of 2005 when the Royal’s officials reported possible voice mail phone hacking to the police because News of the World released a story about Prince William hurting his knee. The victims of the phone hacking scandal not only included the Royal family but also politicians, celebrities, people who were murdered, and family members of soldiers who died during combat totaling the victim list to 3,870. The entire duration of the investigation revealed not only disturbing information about the conducts committed by journalist, but the conspiring with private investigators and the London police enforcement, also known as the Scotland Yard, to cover up corruptions on all ends (CNN, 2012).
...e General Dynamics higher so that led me to purchase this stock. For the stock NXP, it was rumored that Apple could be adding near field communication chips so I researched it and stumbled onto NXP. I can do things over again I would want the website to not fail on my portfolio that was in the top ten for the whole year and then reached the top 3 and then number one right as the glitch occurred.
The $55 value is on the lower range of the analyst eztimates, with a best guess estimate of $67.94. Since the value of the stock had been below $45 for 4 months, the offer of 55 dollars represented a 29% premium to investors. Bollenbach knew that management would be resistant of any attempt to be acquired, regardless of price, because of failed previous attempts to negotiate a friendly merger at year end 1996. The 55-dollar benchmark created an expectation for ITT management to achieve that level, or higher and the premium is enough to demonstrate to investors it is a real offer. Their support will be key as they will have a vote deciding the fate of the poison pill provisions which need to be removed to make the deal necessary.
Looking at both companies’ outstanding shares, Apple has more outstanding shares of common stock on the open market than Microsoft. We can assume that Apple increases its stock issuance of outstanding shares to reduce the stock price thus making Apple’s stocks affordable (Miller-Nobles, Mattison and Matsumura 669).
This did not last long because just a quickly as they rose so did they fall. Within a year their stocks were down to little of nothing, and their name was not one someone wanted to be associated with. The downward spiral can be contributed to the organization culture and improper checks and balances.
Leveraged buyouts may have turned huge profits for investors, but many of the lower class citizens detested these buyouts and the negative impacts on their lives. The job cuts and increased unemployment are both commonly seen after a leveraged buyout, because the new company experiences a lot of debt. Even though Kravis stated, “it is not [their] intention to dismember the company or have any mass firings of employees” , the management along with KKR still released many employees and sold off large parts of the company. Although it was done to help the company try to overcome the debt, people were not happy.
Google Inc. (GOOG) starting in year 2008 ($679.69) through ending year 2012 ($702.24) has risen to only 3 percent in 5 years. This percentage is small in nature, but its overall performance remains at a continuous growth. In comparison, Yahoo! Inc. (YHOO) starting in year 2008 ($23.80) through ending year 2012 ($18.55) has decreased to -22 percent in 5 years.
Microsoft is a computing software company. Microsoft was made and founded on April 4th 1975 by two young men who were captivated by computers. Their names were Bill Gates and Paul Allen. The homebase was in Redmond, Washington. Microsoft became one of the most famous and successful companies in the world. “Microsoft was one of the pioneers responsible for bringing the personal computer into the lives of millions of people.” (Musolf). The company has had such a great impact that now the name “Microsoft” is now virtually synonymous with computer software.
And then there's Microsoft themselves. After Bill Gates handed over CEO to Steve Ballmer, all hell broke loose as humans raged about him. During the first twenty years of Microsoft, they were considered an evil monopolistic empire, destroying all competitors that came their way. Back then, if you wanted word processing software, you used Office. Want a computer o...
Within Adelphia, there were assessments in regards to the company being over-leveraged. While knowing this, the Rigas family continued to work together and cover their tracks “to conceal the borrowings and inflate earnings” (Markon and Frank); rather than combating such issue of leveraging resulting in the fall of stock prices from the recession- in the late 1990s and early 2000s. Additionally, it seemed that employees and management of the company were ignorant to the fact of Adelphia being susceptible to such fraud. While many employees continued to add on to the fraud that the Rigas were committing, management did nothing to be able to stop such activity. They did not consider such activity or have controls set in place to detect such