Who discovered aol backdating contracts Cam4dating
We also did additional analyses on the cases that were excluded from the immediate and intermediate impact analyses due to missing data to determine the immediate and intermediate impact on market capitalization. To obtain information about the recent enforcement actions SEC has taken to address accounting and auditing irregularities, we collected information on SECs enforcement process, reviewed available SEC information, and analyzed SECs enforcement activity involving accounting irregularities from January 1, 2001, to February 28, 2002. Standard and Poors affirmed Enrons medium grade rating, which indicated that Enron had adequate capacity to meet its financial commitments.
We then identified and collected information on 919 financial statement restatements announced by 845 public companies from January 1, 1997, to June 30, 2002, that involved accounting irregularities[Footnote 2] resulting in material misstatements of financial results. After being delisted from NYSE, Enron trades on the over the counter under the ticker symbol ENRNQ.
Wiley Online Library requires cookies for authentication and use of other site features; therefore, cookies must be enabled to browse the site.
Among the restating companies that we identified, the number of large company restatements had grown rapidly since 1997.[Footnote 6] The average (median) size by market capitalization of a restating company increased from 0 million (3 million) in 1997 to billion (1 million) in 2002.[Footnote 7] In addition, of the 125 public companies that announced restatements due to accounting irregularities in 2002, 54 were listed on Nasdaq and 53 were listed on NYSE, which generally lists more large companies than any other stock market.[Footnote 8] The 845 restating companies we identified had restated their financial statements for many reasons--for example, to adjust revenue, costs or expenses, or to address securities-related issues. On December 2, 2001, Enron and 1,500 of its subsidiaries filed for Chapter 11 bankruptcy protection under the federal bankruptcy code.[Footnote 110] On October 17, 2001, the day after Enron initially announced a large loss, the Securities and Exchange Commission (SEC or Commission) began an investigation by requesting in writing information from Enron.
From January 1997 to June 2002, issues involving revenue recognition (misreported or nonreported revenue) accounted for almost 38 percent of the 919 announced restatements; revenue recognition was also the primary reason for restatement each year. By October 19, 2001, Enron had notified Arthur Andersen that SEC had begun an inquiry regarding Enrons SPEs and the involvement of Enrons CFO.