Disclosure
From Geography
Contents |
Definition
Disclosure means a revelation and openess. In life, especially in business, people talk about disclosure-costs. Managers often prefer discretion over discosure, for several reasons. This can lead to different problems in business. On the other hand is it less likely for private information to leak, because managers are more careful.
The author's speak
"In effect, disclosure-related costs introduce noise by extending the range of possible interpretations of withheld information to include news which is actually favorable. Therefore, traders are unable to interpret withheld information as unambiguously ‘bad new’ and thereby discount the value of the firm to the point that the manager is better served to disclose what he knows." (Ball and Brown, 1986)
References
Ball, R. and Brown, P. (1968). "Journal of Accounting and Ecnomics". University of Pennsylvania, Philadelphia.
Contributors
PUBLISHED BY: --IrisVanDiest --IrisVanDiest 16:10, 20 October 2012 (CEST)
