Munich Personal RePEc Archive

Communication of companies with their surroundings - the manipulation of information and information asymmetry

Bojańczyk, Mirosław (2010): Communication of companies with their surroundings - the manipulation of information and information asymmetry.

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Abstract

Creative accounting, the bankruptcy of many companies, and ongoing litigations made rapid rebuilding of investor relations imperative. Growing importance of institutional investors, who have high information needs, also impacted this process. Thus, the needs for communication with investors and reducing information asymmetry problems have become key issues in the capital markets. The traditional model of reporting was based largely on information relating to past events (financial accounting). Commonly, there was inadequate consideration of non-financial information impacting the development of goodwill in the future. Some information was published with considerable delay. This facilitated the use of confidential information by those who had previous access to it.

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