Post-Enron changes are slow and modest
As we had earlier surmised, the negative consequences that many were expecting from the Enron debacle have been rather modest, thus far. Of course, there are lingering doubts about corporate governance and accounting standards, but the main focus of investor attention is again on interest rates, inflation/deflation and earnings growth potential. It is interesting to note how the saga has been removed from the front pages and turned into a sort of television serial by the media – complete with a standard cast of characters. As such, it is well on the way to being classified as an aberrant case. Meanwhile, the accounting firm, Arthur Andersen, is being radically restructured. The entire process is intended to show that the bad elements have been identified, isolated and purged. The rest of the corporate world will then be presented as healthy and clean, needing only some minor corrective measures. Not everybody will buy this story, but
