Timely public disclosure of company information: a likely precondition for optimal long-term corporate and national outcomes

The article advocates corporate disclosure regulation on fairness, efficiency, governance, and national interest grounds. It suggests that relevant empirical research points to timely disclosure of listed company information as a precondition for attainment of optimal long-term corporate and economic outcomes. While company managers and large institutional investors have strong incentives to exchange information privately, listed company communication models based on favoured institutional relationships or relative levels of power and wealth are unlikely to lead to efficient markets, strong corporate performance, sound governance practices, or sustained economic growth. Market observations and interdisciplinary research consistently link superior corporate and national outcomes to high-quality listed company disclosure, protection of minority shareholder rights, broad investor participation, and public trust in financial markets