The CEO of Enron was responsible for Enron’s scandal. Discuss motivation(s) of the CEO’s engagement in earnings manipulations based on ‘Agency relationship‘

Video case on Enron Scandal’s Scandal

Answer the questions below after watching the video documentary. (Web link of video is provided on the attached Writer Instructions document)

1. The CEO of Enron was responsible for Enron’s scandal. Discuss motivation(s) of the CEO’s engagement in earnings manipulations based on ‘Agency relationship‘

2. To prevent Enron’s scandal again, firms need to improve their governance mechanism. Discuss two(2) ways to enhance the effectiveness of the governance mechanisms. Your answer should be related to Enron’s scandal (For example, you need to discuss how your suggested governance mechanism prevents Enron’s scandal).