Journal of
Marketing Development and Competitiveness
Scholar Gateway
Abstracts prior to volume 5(1) have been archived!Issue 5(1), October 2010 -- Paper AbstractsGirard (p. 9-22)Cooper (p. 23-32)Kunz-Osborne (p. 33-41)Coulmas-Law (p.42-46)Stasio (p. 47-56)Albert-Valette-Florence (p.57-63)Zhang-Rauch (p. 64-70)Alam-Yasin (p. 71-78)Mattare-Monahan-Shah (p. 79-94)Nonis-Hudson-Hunt (p. 95-106) 
JOURNAL OF LEADERSHIP, ACCOUNTABILITY AND ETHICS
How Lehman Brothers Used Repo 105 to Manipulate Their Financial Statements
Author(s): Agatha E. Jeffers
Citation: Agatha E. Jeffers, (2011) "How Lehman Brothers Used Repo 105 to Manipulate Their Financial Statements," Journal of Leadership, Accountability and Ethics, Vol. 8, Iss. 5, pp. 44 - 55
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The questionable accounting technique, known as Repo 105, allowed Lehman Brothers to temporarily appear healthier in the eyes of its investors, creditors and other interested parties. These material transactions had the ability to affect the decisions of prudent persons. Nevertheless, Lehman failed to disclose these transactions in the notes to their financial statements and in their filings to the SEC. In this paper, an examination is made of whether Repo 105 transactions were properly recorded and disclosed in Lehman’s financial statements and whether Lehman’s executives behaved ethically. To answer these questions, an examination is made of Generally Accepted Accounting Standards, the Sarbanes-Oxley Act and the Institute of Management Accountants standards. Our findings suggest that Lehman behaved unethically. Implications of our findings are discussed and suggestions are made for future research
