NEW YORK, June 28: The Xerox Corporation, the Stamford (Connecticut) based US office supply corporation joins Enron and the WorldCom in revealing on Thursday it would revise its revenue figures. It fell victim to the so called “creative” accounting practice which brought down Enron and the WorldCom.

The accounting corporate scandals are dragging the US economy down as the Wall Street braced for another rough and tumble day when it opened on Friday.

Shares of the Xerox corporation plunged 31 per cent in Europe on Friday after the office equipment maker said it would restate its revenues.

Xerox traded at $5.51 via the Instinet electronic brokerage system, down from New York’s $8 closing on Thursday after Xerox said it expected a revenue restatement of around $2 billion over the five-year period between 1997 and 2001.

“The signals this sort of story sends to the market are very bad and investors will react bearishly,” said Tom Hougaard market strategist at spread betters City Index.

“The effect this news will have on investors in the US is important as they will start to ask (more) questions about corporate reliability,” Hougaard added. Contract was down 19 points to 9,247 points after an early high of 9,310, indicating little appetite from investors to chase the Dow much at the opening after Thursday’s 150-point jump.

“This looks pretty ugly and I can’t imagine after the Enron and the WorldCom scandals.”