Fixing Corporate America
from the not-so-hard dept
We’ve certainly seen a large number of big name companies facing all sorts of problems recently – and it’s hurting investors. It’s become clear (in case you hadn’t realized it before) that you simply can’t trust financial statements to be anywhere near an accurate representation of a business. With that in mind, Fortune has come up with a number of suggestions to fix the system that are worth thinking about. They talk about improving basic accounting practices, really separating analysts from bankers, and giving the SEC some real power, among other things. It certainly seems clear that something needs to be done.
Comments on “Fixing Corporate America”
Clearly we have some work to do in fixing these problems. But I would argue that these solutions don’t attack the real problem, they simply plug holes. The real issue is that Wall Street motivates companies to focus on quarterly results at almost any cost. I’m all for results, but should we be looking for long term results rather than short term gains. Maybe I’m just being naive.