AUD Adelphia Corporation

Cable moguls arrested

for corporate looting

• Introduction of Adelphia corporation
• Asymmetric information
• our story and problem
• Conclusion

Adelphia corporation

Adelphia corporation was established in 1952 by John Rigas and his brother .

in the 1990s, Adelphia has added digital cable, high-speed Internet access, local and long distance telephone service, voice messaging, and other related services to its repertoire of home and business offerings In the 2002s , Adelphia corporation has significant trouble when its fraudulent financial dealings and accounting practices were exposed.

Asymmetric information

• When one party often doesn’t know enough about other party to make accurate decision that is called Asymmetric information.
• Lack of information creates problems in the financial system on two fronts :
• Before the transaction is interned into and After the transaction is interned into .