Скачать или смотреть Company Fraud WorldCom Investigation - Summay of Finding

In the 1990s, the principal business strategy of WorldCom’s Chief Executive Officer, Bernard J. Ebbers, was growth through acquisitions. The currency for much of that strategy was WorldCom stock, and the success of the strategy depended on a consistently increasing stock price. WorldCom pursued scores of increasingly large acquisitions. The strategy reached its apex with WorldCom’s acquisition in 1998 of MCI Communications Corporation (“MCI”), a company more than two-and-a-half times WorldCom’s size (by revenues). Ebbers’ acquisition strategy largely came to an end by early 2000 when WorldCom was forced to abandon a proposed merger with Sprint Corporation because of antitrust objections.

At that point, WorldCom’s continued success became dependent on Ebbers’ ability to manage the internal operations of what was then an immense company, and to do so in an industry-wide downturn. He was spectacularly unsuccessful in this endeavor. He continued to feed Wall Street’s expectations of double-digit growth, and he demanded that his subordinates meet those expectations. But he did not provide the leadership or managerial attention that would enable WorldCom to meet those expectations legitimately.

https://www.sec.gov/Archives/edgar/da...

Song: 1973 - Brune E.