1. Introduction WorldCom, the telecommunications giant, once was the largest telecommunications company in the world, with more than $30 billion annual revenue, $104 billion in assets and more than 20 million customers. John Sidgmore (2002), Ebbers’ successor after the scandal, said “WorldCom is a key component of our nation’s economy and communications infrastructure.” However, the giant collapsed in 2002. 2. The Main Issue: Earnings Management 3.1 Definition of Earnings Management
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Over time, many unethical accounting scandals existed. The WorldCom scandal is one of the most known unethical scandals. WorldCom submitted the largest bankruptcy filing in United States’ history after admitting improperly accounting for more than $3.8 billion dollars in expenses (Moberg, 2012). The company used acquisitions to spurt large growth. Two of WorldCom’s acquisitions included MCI Communications and MFS Communications (UUNet). This caused WorldCom to appear more favorable on Wall Street
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The Board of Directors: Tower Simulation Sophia Zhidro, Troy Alexander, Jessica Zawada, Yunjie Yang, and Beihao Xu Worcester Polytechnic Institute Abstract As the board of directors, once we received our assigned roles for the simulation we knew that our role would be critical for the assignment. With little instructions from the instructor we delved into our tasks and began meeting on a regular basis to become a unified team. Through the textbook materials and media exposure, it is evident
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Transformation at Harley – Davidson Four wheels move the body, two wheels move the soul – Harley Davidson. During Teerlink's tenure as Harley's Chief Financial Officer, was the organization structure flat or tall? Centralized or decentralized? It is important for us to get an understanding of this two critical terms, Flat organizational structure – organization has few levels as possible. Managers
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American International Journal of Contemporary Research Vol. 2 No. 2; February 2012 CLICO’s Collapse: Poor Corporate Governance Wayne Soverall1 Abstract The corporate collapse on January 30, 2009 of CLICO, the largest conglomerate in Trinidad and Tobago and the Caribbean, is the worst financial shock experienced by the region to date. Today, more than two years later, its devastating effects are still being felt as the government continues to struggle with the bailout to stabilize the financial
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order to provide easy access to deliver the products. In addition, more than 70% of the sales are exported to US, EU countries, Japan and others. Scandle 1 Problem Malaysia, just like other developing countries, is unable to run away from the corporate scandals that have been emphasized by the media. After all the recommendation and efforts contributed by the various parties to eliminate these scandals, however it is still happening and there is no sign of stopping or reduction of the fraud in
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This case study highlights a major threat. Be Boards of directors that are under Regulatory and legal pressure today, they can Lose sight of the need for a suitable Its responsibilities range Those of management. The cross is a board To solve it as if it works when the range Hold management problem rather than Responsible for solutions. The board should demand that senior management As leaders plan to follow rules Those imposed by Sarbanes-Oxley; For meeting
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Chapter 1 Introduction Corporate governance (CG) is an important effort to ensure accountability and responsibility and is a set of principles, which should be incorporated into every part of the organization. The need for corporate governance arises from the potential conflicts of interest among stakeholders in the corporate structure. These conflicts of interest often arise from two main reasons. First, different stakeholders have different goals and preferences. Second, the stakeholders have
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How businesses are organised to achieve their purpose P3 Organisations such as Tesco and Apple are organised in structures, they are organised in structures because it is to divide up work; so that the workers know what they are doing and to establish lines of control. In the organisational structure the lines connected together tells us that they report to someone that they need to report to, for example the board of directors has the highest power in the business. In the organisational structure
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of mobile telecommunications corporate governance firms in Zimbabwe. By Mugombe Godfrey Background and Introduction The purpose of this study is to provide insight into the association between business performance of the telecommunications sector in Zimbabwe and corporate governance practices as prescribed in the Organization for Economic Cooperation and Development (OECD). It is widely believed that better corporate governance manifest itself in enhanced corporate performance and lead to higher
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