Shares continue to suffer as Enron bites
The Enron scandal has sent accountancy-related shares on a downward spiral, as nervous investors continue to harbour doubts about the profession.
Just last week, Martin Read, chief executive of accounting software vendor Logica and accounting recruitment specialist Michael Page both saw their share prices drop over 10% as a knock-on effect of Enron.
On 13 December, the day after Andersen admitted to errors in the Enron audit, the Accountancy Age/ADVFN index dropped 4%. Xansa, which looks after BT’s accounts, lost 15p after the news, while accounting software company Mysis dropped 17%.f
Overseas, Accenture fell more than 7% that day as confused investors remained unsure about the consulting company’s relationship with Andersen.
Accountancy firm Tenon plunged dramatically on the news, reaching a low of 62p. At the beginning of September, shares had been valued at 137.50p. Since then, the company’s shares have remained below 80p.
Shockwaves from Enron continue to hit all sectors. Recent victims of accounting fears include cable giant Global Crossing, facing a lawsuit by investors after it went bankrupt. Last week, US markets fell despite news of a possible economic recovery. According to analysts, investors are still worried they will discover accounting ‘errors’ in balance sheets