Failure of measurement system? some lesson from fall of Enron corp

  • Authors:
  • Jiří Strouhal;Carmen Bonaci;Dumitru Matis;Razvan Mustata

  • Affiliations:
  • Department of Financial Accounting and Auditing, University of Economics Prague, Prague 3, Czech Republic;Department of Accounting, Babes-Bolyai University Cluj Napoca, Cluj Napoca, Romania;Department of Accounting, Babes-Bolyai University Cluj Napoca, Cluj Napoca, Romania;Department of Accounting, Babes-Bolyai University Cluj Napoca, Cluj Napoca, Romania

  • Venue:
  • WSEAS TRANSACTIONS on SYSTEMS
  • Year:
  • 2010

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Abstract

The current financial crisis makes us all remember both previous economic crisis that have marked our history and large bankruptcies, that were intensely debated through trade literature, all having similar elements with what we are nowadays experiencing. We trying to prove that we learn nothing from history would be pointless since we have repeatedly watched history repeating itself over and over again. This is even more obvious where capital markets are concerned, their tendency of relearning the same lesson seeming to be one of their most intriguing characteristics. We believe a short incursion into the past might help us look into the present with different eyes. This paper develops an analysis into the past, focusing on similarities with the current financial crisis and still believing in lessons that could and should be learnt.