Enron: Widespread myopia

Nihel Chabrak, Nabyla Daidj

Research output: Contribution to journalArticlepeer-review

15 Citations (Scopus)

Abstract

This article looks at the Enron affair in terms of what investors and experts fail to take into account to being able to predict Enron collapse. The authors show how analysts could have predicted Enron's difficulties in view of the incoherence observed in its strategic decisions, from the viewpoint of the theory of resource-based and competence-based approaches. Certainly, it was hard to suspect that numbers could lie on account of the financial manipulation doubled by the rhetorical discourses of executive managers who succeeded in imposing a flourish image of their company. The authors' view takes on a political dimension by illustrating the contradictions of the system that sustain the widespread myopia, where everyone is purely alienating himself.

Original languageEnglish
Pages (from-to)539-557
Number of pages19
JournalCritical Perspectives on Accounting
Volume18
Issue number5
DOIs
Publication statusPublished - Jul 1 2007
Externally publishedYes

Keywords

  • Accounting practices
  • Alienation
  • Capitalism
  • Contradictions
  • Diversification
  • Enron
  • Ideology
  • Reification
  • Resource-based and competence-based approaches
  • Rhetoric
  • Strategic diagnosis

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Sociology and Political Science
  • Information Systems and Management

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