In the wake of Enron and other corporate scandals, U.S. consumers are gaining a deep distrust of the way businesses report their results, two new polls conclude.
According to the monthly UBS/Gallup poll of 1,001 investors, 89% of those surveyed in February said they were familiar with Enron’s bankruptcy and the accounting irregularities leading to the Houston energy company’s downfall. Moreover, 62% of the respondents believe accounting concerns are widespread in business today. And about half that number suggested that they would be less likely to invest in stocks as a result of their concerns over accounting practices. Meanwhile, a poll of 363 investors conducted in February by Opinion Research Corporation for TowersGroup Inc., a New York public relations firm, indicated that 43% said they have less confidence in the stock market in the wake of Enron.