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Before the Enron Collapse: What Corporate CFOs Around the World Said About the Status of Accounting and Disclosure Practices

Author

Listed:
  • James R. Barth

    (Auburn University, and Milken Institute, 1250 Fourth Street, Santa Monica, CA 90401, USA)

  • Susanne Trimbath

    (Milken Institute, 1250 Fourth Street, Santa Monica, CA 90401, USA)

  • Glenn Yago

    (Milken Institute, 1250 Fourth Street, Santa Monica, CA 90401, USA)

Abstract

Corporate Chief Financial Officers (CFOs) in many countries at different levels of development and in various parts of the world considered financial statement disclosure and corporate corruption to be serious corporate problems long before the Enron debacle. This paper presents the results of a survey of CFOs conducted across 40 countries during the fall of 2000 and the spring of 2001. Most of the respondents, including those in the United States, considered the lack of adequate disclosure of information by companies to be a bigger issue than either corrupt business practices or a lack of effective accounting guidelines. Only in the United Kingdom did more CFOs consider the lack of effective accounting guidelines to be an issue of more concern than the lack of disclosure.

Suggested Citation

  • James R. Barth & Susanne Trimbath & Glenn Yago, 2003. "Before the Enron Collapse: What Corporate CFOs Around the World Said About the Status of Accounting and Disclosure Practices," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 6(04), pages 433-440.
    • Handle: RePEc:wsi:rpbfmp:v:06:y:2003:i:04:n:s0219091503001158
    DOI: 10.1142/S0219091503001158
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    References listed on IDEAS

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    1. Ole‐Kristian Hope, 2003. "Disclosure Practices, Enforcement of Accounting Standards, and Analysts' Forecast Accuracy: An International Study," Journal of Accounting Research, Wiley Blackwell, vol. 41(2), pages 235-272, May.
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    Cited by:

    1. Benjamas Jirasakuldech & Donna Dudney & Thomas Zorn & John Geppert, 2011. "Financial disclosure, investor protection and stock market behavior: an international comparison," Review of Quantitative Finance and Accounting, Springer, vol. 37(2), pages 181-205, August.
    2. David DeBoskey & Peter Gillett, 2013. "The impact of multi-dimensional corporate transparency on us firms’ credit ratings and cost of capital," Review of Quantitative Finance and Accounting, Springer, vol. 40(1), pages 101-134, January.
    3. Mehrzad Azmi Shabestari & Kevin Moffitt & Bharat Sarath, 2020. "Did the banking sector foresee the financial crisis? Evidence from risk factor disclosures," Review of Quantitative Finance and Accounting, Springer, vol. 55(2), pages 647-669, August.
    4. Elizabeth Gordon & Elaine Henry & Marietta Peytcheva & Lili Sun, 2013. "Discretionary disclosure and the market reaction to restatements," Review of Quantitative Finance and Accounting, Springer, vol. 41(1), pages 75-110, July.

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    More about this item

    Keywords

    Accounting transparency; disclosure; corrupt business practices;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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