CORPORATE FAILURE: WHY DO CORPORATIONS FAIL Causes & Reoccurring Issues Introduction About the research This research will be focused primarily on the area of corporate failures. The aim here will be to investigate the causes & symptoms of these failures, the reoccurring themes and the roles of regulation, incentive schemes, ethics, corporate culture and economic factors in these failures. This research will also focus on prediction models and how effective they are in predicting future failures. The rationale for this topic stems from the history of corporate failures & frauds and the fact that the global economy is still fragile, following from the financial crisis of 2008, the collapse of banks and other financial institutions globally. Non-financial institutions have also collapsed due to some of the factors already identified above. In literature several aspects have being tied to result in these failures and corporate governance was identified as the major one (Kumar N, 2013) . Thornburgh tied the Enron and WorldCom failures to a complete breakdown in governance (Wells J...
The article that I will be summarizing is “Half of Teens Think They’re Addicted to Their Smartphones” written by Kelly Wallace. This article is about how teens are addicted to their smartphones and how it is becoming a problem. The text is stating facts about how many teens and adults use their smartphones. Teens depend on their phone greatly which can make it hard to get off of it. This does worry people. Teens also say they check their phone hourly, so they also feel that they need to respond to texts and social networking messages immediately. Teens are not the only ones that are addicted though. Even parents have trouble getting off the phone to enjoy life. If you have this trouble and feel like you want to get on
The presence of systemic risk in the current United States financial system is undeniable. Systemic risks exist when the failure of one firm may topple others and destabilize the entire financial system. The firm is then "too big to fail," or perhaps more precisely, "too interconnected to fail.” The Federal Stability Oversight Council is charged with identifying systemic risks and gaps in regulation, making recommendations to regulators to address threats to financial stability, and promoting market discipline by eliminating the expectation that the US federal government will come to the assistance of firms in financial distress. Systemic risks can come through multiple forms, including counterparty risk on other financial ...
Meyer compares poems to songs. He says that we have to listen several times a song before we hear it all and before we understand it. The title of a poem provides a sense of what the poem is about. It can tell you about the poem’s subject, tone, and genre. While reading poetry we need to pay attention to elements such as speaker, image, metaphor, symbol, rhyme, and rhythm. Also, Meyer defines doggerel as a “derogatory term used to describe poetry whose subject is trite and whose rhythm and sounds are monotonously heavy-handed”. It is characteristic of children’s game rhymes. In addition, by characterizing poetry as “undefinable” and “unmistakable”, Robinson says that it can have different purposes, subjects, emotions, styles, and forms.
Using the definition of Ucbasaran D. et al, I would only count business failure as “the cessation of involvement in a venture because it has not met a minimum threshold for economic viability as stipulated by the entrepreneur” (2012). Ending ventures and strategies is a long lasting manoeuvre that a stakeholder will not see any return from. Often unethical accounting ventures have the most disastrous effect and although CEOs have been replaced for this, many companies have not survived the scandals. If the venture was heavily invested in, this can lead to irreparable damages. An example of this business failure is the scandal of Enron in 2001 in which unethical actions of the financial directors impacted the business, losing $63.4 billion in assets. The financial directors misled the shareholders by hiding millions of dollars of debt and misdirecting the committee on high-risk accounting practices, leading to the bankruptcy of the company. Other businesses such as Hollinger International, WorldCom and Tyco all found their CEOs to be altering accounts, (accounting-degree.org,
In modern day business, there can be so many pressures that can cause managers to commit fraud, even though it often starts as just a little bit at first, but will spiral out of control with time. In the case of WorldCom, there were several pressures that led executives and managers to “cook the books.” Much of WorldCom’s initial growth and success was due to acquisitions. Over time, WorldCom discovered that there were no more opportunities for growth through acquisitions when the U.S. Department of Justice disallowed the acquisition of Sprint.
Cloud Forensics is a related sub discipline of Network Forensics, a sub discipline of Digital Forensics. Cloud computing is largely operated from networks across various locations as data is stored by cloud service providers (CSP) in various data centers around the world in order to ensure availability. Cloud computing has become an attractive storage solution for many corporations because utilization can reduce IT costs and mitigate the risk of nonavailability or data loss.
In "thinking outside the idiot box", Dana Stevens responds to Steven Johnson's New York Times article in which Johnson believes that watching television makes you smarter. Indeed, Steven Johnson claimed that television shows have become more and more complex over the years in order to follow the viewers need for an interesting plot instead of an easy, linear story. However, Dana Stevens is opposed to this viewpoint. Stevens is not against television, he does not think it makes you smarter nor that it is poisenous for the brain, he simply states that the viewer should watch television intelligently. That is to say that, viewers should know how much television they should watch and what to watch as well.
Television has come a long way since it was first introduced. Originally, it was thought that the masses that watch television enjoyed the more simple shows that would tell you exactly what was going on from start to finish. In Steven Johnson’s article, “Watching TV Makes You Smarter”, Johnson argues that this is actually not the case. In fact, Johnson argues that much more people enjoy shows that involve multi threading, or multiple plots that are all connected.
The "subprime crises" was one of the most significant financial events since the Great Depression and definitely left a mark upon the country as we remain upon a steady path towards recovering fully. The financial crisis of 2008, became a defining moment within the infrastructure of the US financial system and its need for restructuring. One of the main moments that alerted the global economy of our declining state was the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and after this the economy began spreading as companies and individuals were struggling to find a way around this crisis. (Murphy, 2008) The US banking sector was first hit with a crisis amongst liquidity and declining world stock markets as well. The subprime mortgage crisis was characterized by a decrease within the housing market due to excessive individuals and corporate debt along with risky lending and borrowing practices. Over time, the market apparently began displaying more weaknesses as the global financial system was being affected. With this being said, this brings into question about who is actually to assume blame for this financial fiasco. It is extremely hard to just assign blame to one individual party as there were many different factors at work here. This paper will analyze how the stakeholders created a financial disaster and did nothing to prevent it as the credit rating agencies created an amount of turmoil due to their unethical decisions and costly mistakes.
In previous years the big financial institutions that are “too big to fail” have come to realize that they can “cheat” the system and make big money on it by making poor decisions and knowing that they will be bailed out without having any responsibly for their actions. And when they do it they also escape jail time for such action because of the fear that if a criminal case was filed against any one of the so called “too big to fail” financial institutions it...
"Change is hard because people overestimate the value of what they have and underestimate the value of what they may gain by giving that up" (Belasco & Stayer, 1993). Is the concept of “too big to fail" an accurate term in today’s economy, or does it depend on a company’s ability to undergo change and reinvent itself? More than a decade ago, it seemed almost impossible that the seventh largest company in the Unites States, Enron, would decline so quickly. As change agent, I will analyze the demise of Enron, conceptualize the reasoning behind their failure to undergo the change, and evaluate what changes would have had to take place in order to prevent the company from going bankrupt.
Bibliography: Turnbull, S. (1997). Corporate governance: its scope, concerns and theories. Corporate Governance: An International Review, 5 (4), pp. 180--205.
The Asian Financial Crisis which exposed the corporate governance weaknesses was a wake-up call for all the policymakers, standard setters as well as the companies (OECD, 2014). The parties that involved and affected from the crisis started to realize the importance of having strong corporate governance practices in their countries. Consequently, the Asian economies along with the OECD established the Asian Roundtable on Corporate Governance in 1999, in order to support the enhancement of corporate governance rules and practices (OECD, 2014).
Solomon, J (2013). Corporate Governance and Accountability. 4th ed. Sussex: John Wiley & Sons Ltd. p.7, p9, p10, p15, p58, p60, p253.