But in the case of Enron, Zingales says that while there was sufficient accounting transparency, what was lacking were the incentives for uncovering negative information about a company.
Anxious legislators have proposed a five-bill package, the "Consumer Prescription Protection Act, " that's designed to even the score, as well as to regulate PBMs and force more accounting transparency (detailing, for example, the rebates they receive from pharmas).
What do they need to do now in order to clean up their accounting and transparency?
Getting institutional investors to come to the roadshows of Chinese companies looking to list in the U.S. is just one of the problems in the wake of the scandals over accounting and transparency issues highlighted by Longtop and Muddy Water.
FORBES: When Will China Get Another Baidu? Could Be A While!
The short sellers moved in and with their success in uncovering a number of transparency and accounting issues at these reverse mergers, were able to drive down the prices of quite good companies with no problems, reasoned Williams.
FORBES: Go Public, Take Private, Make A Deal: The Big Debate in China
The ambitious plan will overhaul accounting systems to allow public transparency and phase out the use of tax havens in five years.
One school reckons that the government should give ever more autonomy to its enterprises and managers, and hope that this will lead to more transparency and cleaner accounting.
Curiously, certain European banks and insurance companies have opposed the transparency that would result from such accounting.
The Recovery Board, the Recovery Accountability Transparency Board will have a full accounting including the actual reports that you can point and click to and see them for yourself by October 30th, I believe.
The paper calls ceaselessly for greater transparency in share trading and more honest accounting by German business.
High corporate transparency means no hidden surprises in the accounting, so investors are willing to pay a premium for its stock.
Some of these risks, according to Upendra Choudhary, senior vice president of credit services at Amba Research, include trading risk (some of these markets are thinly traded and have low liquidity), political risk and transparency risk (some areas have no or at least confusing accounting standards).
But as an avowed advocate of transparency and budget rules, he may at least minimise the obfuscation and dubious accounting that have characterised recent budgets.
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