"In the near future, someone will build a better Enron–a legitimate company with the means and integrity to revolutionize markets. That person will want to use Corporate Aftershock as his business manual and had better hope that government regulators are reading it as well."
–Ross M. Miller, author, Paving Wall Street, coauthor, What Went Wrong at Enron
"During periods of crisis, it’s important for us to have an unemotional and objective analysis that can help us better understand the consequences of policy alternatives before the political process overwhelms sensible choices. Fraud and deceit are not common characteristics of our highly successful market economy. This volume recognizes this and presents a well-thought-out alternative that needs to be read and understood by all voters."
–Joel Stern, Managing Partner
Stern Stewart & Co.
"The effects of recent corporate and accounting scandals continue to be felt in financial markets and the economy. Predictably, these events have touched off a cry for Washington to ‘do something so it never happens again.’ The cry has already been answered, but the pressure for more regulation continues. This book, centered on the granddaddy of recent scandals, the Enron implosion, argues forcefully that this reflexive call-the-cops response may do more harm than good. Many skilled contributors dissect a variety of accounting, corporate governance, and financial management issues that have arisen in the aftermath of Enron and similar events. The articles in the book provide helpful perspective not only on what went wrong but on the important market forces that created firms like Enron and that will not soon go away. The book is a useful antidote to the steady diet of recrimination and scapegoating that have dominated recent public debate about these matters. It will also be useful to specialists in accounting and risk management who have been left to cope with the issues that have emerged in the wake of these seismic events."
–Sam Peltzman, Professor of Economics
Graduate School of Business, University of Chicago
"The greatest tragedy of the Enron debacle is not likely to be the consequences of its bankruptcy, but from the erroneous institutional reforms that will take hold if its causes are not well understood. This thorough and thoughtful set of essays touches on all aspects of Enron, from accounting practices, to disclosure requirements, to trading strategies, to corporate governance, rate regulation, and much more. It is essential reading for those who want to walk the fine line between complacency in the face of failure and overreaction through excessive regulation."
–Richard A. Epstein, professor of Law
University of Chicago, senior fellow, Hoover Institution
About the Author
CHRISTOPHER L. CULP, PhD, is an Adjunct Professor of Finance at the University of Chicago’s Graduate School of Business, a Principal at CP Risk Management LLC and Chicago Partners LLC, and a Senior Fellow in Financial Regulation at the Competitive Enterprise Institute. He is the author of three other books, Risk Transfer, The ART of Risk Management, and The Risk Management Process, all published by Wiley, and co-editor (with Merton H. Miller) of Corporate Hedging in Theory and Practice from Risk Publications. He holds a BA in economics from The Johns Hopkins University and a PhD in finance from the University of Chicago’s Graduate School of Business.
WILLIAM A. NISKANEN, PhD, has been chairman of the Cato Institute since 1985. Previously, he was acting chairman of President Reagan’s Council of Economic Advisors. One of the most highly regarded microeconomists in the nation, Niskanen has taught economics at the University of California at Berkeley and Los Angeles. He has also served as director of economics at Ford Motor Company and as a defense analyst for the Pentagon, the RAND Corporation, and the Institute for Defense Analyses. He holds a BA from Harvard and a PhD in economics from the University of Chicago.
