Interpretation of the Enron Story

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McLean and Elkind stated in chapter 15 that "all that mattered was that the stock was going up." How is this simple statement indicative of Enron's complex management strategy Please support your answer with examples.
Critics have identified the complicated management approach as one of the culprits that caused the firm's collapse…

Introduction

Considering the unpredictable circumstances and calculated risks, Enron was successful on paper. This was reflected in the financial reports suggesting the extent of growth in the financial capability of the company.
Specifically, the level of stocks reported by the company has skyrocketed. The information provided by the Enron 10-K annual report suggests that it was only in 1997 that the company experience a decline. The growth, however, can overcome such deficit. The best years of the company was observed from 1998 to 2000. Based on the information, the stock performance of Enron illustrated a positive growth of 37%, 56%, and 87% positive growth during the years mentioned in succession. Positive growth was also recorded from 1993-1995 which showed increase in stock ranging from 5%-25% (Healy and Palepu, 2003).
The growth in stock is generally perceived as an advantage for the company. Increasing the stocks means that more investors become willing to invest in Enron. This will improve the financial resources of the company because the market capital also expands. Accordingly, this performance was fuelled by the intricate schemes of Enron in managing its operations.
By 1995 accountants at Arthur Andersen knew Enron was a high-risk client who pushed them to do things they weren't comfortable doing. James Hecker wrote a parody to that effect in 1995. ...
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