HOW COMPANIES LIE: Why Enron Is Just the Tip of the Iceberg

Elliott and Schroth argue that corporations have become so accustomed to "managed mendacity" as a means of manipulating investors' perception of their value that the stock market has become little more reliable than a casino; "at least in Las Vegas," they grumble, "you get a good meal and free drink." The idea that corporations lie to the public stopped being newsworthy long before Enron's spectacular implosion, and this slim volume—a batch of ideas for several op-ed pieces strung together into one long essay—only rarely goes beyond an extended restatement of the obvious. The most useful material for individual investors, a list of 18 questions they should ask about a company when contemplating buying stock, is covered in the introduction. Most of what follows is a skimpy account of Enron's fraudulent practices, gimmicks like a to-do list for cheating CEOs, alarmist warnings about "digital business warfare" and tacked-on rants about the airline industry. The two corporate strategists do come up with some original twists on the obvious premise—companies should stop lying to the public—but their proposals, including a federal insurance fund to reimburse investors who fall victim to stock manipulation and an "audit tax," which would fund the transfer of corporate auditing from a client-customer relationship to a neutral, SEC-administered process, may be too outlandish even for today's outraged investors. Readers possessing anything beyond a basic understanding of the stock market won't need this book, and those specifically interested in Enron would be better off waiting for more detailed accounts certain to come in the months ahead. (July 2)

Forecast:This title's strength lies in its status as first to market. Specific Enron books from several publishers are in the works. Gossip-hungry biz news hounds are this book's best chance for success; serious readers may hold off.