Skilling was a fast and talented man and as soon as he gained power at Enron he came up with another innovative idea. He claimed that a company does not need assets to exist physically that are on paper. He came up with a new technique called “mark to market accounting” in which the company can quote profit figures that are expected to achieve in the future which means the actual or present figures can be replaced with future or expected figures and these expected figures were accepted as present figures.
This immediately shot up stock prices and the company made huge profits. According to Skilling actual balance sheets are inconvenient and he even abused anyone who demanded to see the actual balance sheets of the company. This eventually gave rise to insider trading and the situation got even complex since the employees got involved in fraudulent transactions. Thus, Skilling had a manipulative mind that was further encouraged by the innovative culture of Enron and his behavior was manipulative that contributed in shaping the culture at Enron and gave rise to frauds and negligence that went unchecked eventually leading towards a gradual decline (Pasha, 2006).
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