LE ROLE DE L'INFORMATION FINANCIERE ET DE LA DIVULGATION VOLONTAIRE
THE ROLE OF FINANCIAL INFORMATION AND THE VOLUNTARY DISCLOSURE

Summary/Abstract: Mandated and voluntary disclosures reduce information asymmetry among market participants, which in turn lowers the cost of capital and facilitates the channeling of investment into the most productive projects. However, a corner solution of maximum disclosure is not observed because direct, proprietary, and litigation costs of disclosure and benefits of disclosure vary across countries. Institutional factors like the code-law and common-law legal systems and the stakeholder and shareholder corporate governance models create differential demands for public disclosure of financial information. Thus, systematic international variation in accounting standards and information disclosure is observed.

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