CORPORATE DISCLOSURE: A REVIEW OF ITS (DIRECT AND INDIRECT) BENEFITS AND COSTS

Etienne Farvaque, Catherine Refait-Alexandre and Dhafer Saïdane

Post-Print from HAL

Abstract: This paper reviews the literature on corporate disclosure. Policymakers often support corporate disclosure but more contrasted views have emerged in the academic literature, showing that even if disclosure can actually benefits to shareholders, it is costly and it may trigger pernicious effects. Disclosing information is expensive (communication and audit costs, competitors access strategic information, and induced managers' suboptimal behavior). It also generates informational costs, as firms can disclose false, manipulated, too complex or too extensive information. And disclosure can reduce actors' incentives to look for information about the firm, and therefore can lead to an (potentially destabilizing) illusion of knowledge.

Keywords: JEL Classification: G10; G30 Disclosure; Governance; Financial Stability (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Published in International Economics, 2011

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Corporate disclosure: a review of its (direct and indirect) benefits and costs (2016)
Journal Article: Corporate disclosure: A review of its (direct and indirect) benefits and costs (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03126778

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().