Assignment task: Enron Fall - The fall of the energy giant in 2001 showed the world how an agency problem arises.
The company's chairman Kenneth Lay, the CFO, and CEO Jeffrey Skilling were selling shares based on false accounting reports which made it seem as though the stock was more valuable. Many stockholders lost millions as the value of Enron shares plummeted.
Was Agency Theory outlined clearly?
- Were those aspects of Agency Theory that pertained to the situation identified and expanded upon?
- Were these aspects developed effectively in the context of the situation considered?