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- W2475473260 abstract "After the collapse of Enron, WorldCom and the associated corporate scandals in the United States, it is useful to reflect on how vigorously the system of American corporate governance was proffered as the cure for post-crisis Asian ‘crony capitalism’. Legal predictability and financial transparency were the stolid Anglo-Saxon virtues that were supposed to help resolve the problems that culminated in the East Asian financial crisis of 1997. The crisis unleashed a flurry of interest in financial architecture and institutional re-engineering not only because it created a political opportunity for change, but also because it seemed that East Asian developmentalism had gotten its comeuppance. Now, however, former Treasury Secretary Lawrence Summers’ dramatic claim that: ‘the single most important innovation shaping that market [the American capital market] was the idea of generally accepted accounting principles. The transparency implicit in the generally accepted accounting principles (GAAP) promotes efficient market responses to change, and it supports stability’ (Summers 2000: 10) seems faintly ridiculous. The ability of Enron management to undermine and corrupt the independence of their auditors, the then-prestigious but now defunct accounting firm Arthur Andersen, revealed the gaps in GAAP and showed how transparency could be turned into opacity (Demski 2003). Yet, just as it was a mistake to dismiss East Asian developmentalism after the 1997 crisis, it would also be an error to overreact to Enron-like developments." @default.
- W2475473260 created "2016-08-23" @default.
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- W2475473260 date "2007-01-01" @default.
- W2475473260 modified "2023-10-14" @default.
- W2475473260 title "Institutionalizing Creative Destruction: Predictable and Transparent Bankruptcy Law in the Wake of the East Asian Financial Crisis" @default.
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- W2475473260 doi "https://doi.org/10.1057/9780230590342_9" @default.
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