Why We Need to Update Financial Reporting for the Digital Era
JUNE 8, 2018
This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. So, investors, and therefore managers, might be adjusting their approach to risk accordingly. Therefore, companies see little value in disclosing the details of their current and planned projects in their financial disclosures, even if those disclosures can reduce the information asymmetry between investors and managers.