Transparency and disclosure (T&D) of information trigger the interest all stakeholders, including investors in a company. Cognizance company’s financial health before investing is very necessary. Disclosure firm’s reports reflects performance. A protects investors’ other stakeholders’ interests long-term sustainability. Owing to importance T&D health, this paper investigates impact on d...

For a sample of 1866 privatizations from 37 countries, we estimate the impact of disclosure standards and legal institutions that discipline auditors on the method chosen to divest state-owned enterprises. The agency conflict between minority and controlling shareholders can impede a government from privatizing by selling its stake to diffuse investors in the public capital market with a share-...

Financial markets derive their political and societal legitimacy from ability to produce fair accurate prices. However, reviewing the literature on how stock exchanges price securities, we find an inherent tension between market organization disclosure, which is borne out by this special issue's historical case studies.

We show real effects in the banking sector that emanate from transparency in the industrial sector. Transparent financial reporting by industrial firms facilitates access to arm’s-length financing from capital markets and diminishes these firms’ reliance on banks. Banks, as a result, face increased competition in their product markets and seek to offset their lost rents by – (i) taking on more ...

The intensity of recent turbulence in financial markets has surprised nearly everyone. This paper searches out the root causes of the crisis, distinguishing them from scapegoating explanations that have been used in policy circles to divert attention from the underlying breakdown of incentives. Incentive conflicts explain how securitization went wrong, why credit ratings proved so inaccurate, a...

The world of finance faces the computational performance challenge of massively expanding data volumes, extreme response time requirements, and compute-intensive complex (risk) analyses. Simultaneously, new international regulatory rules require considerably more transparency and external auditability of financial institutions, including their software systems. To top it off, increased product ...

financial markets over the last decade, large capital flow reversals can occur quite quickly, considerably shortening the time policymakers have to respond. As a consequence, and motivated in part by the recent crises in Europe (1992), Mexico (1994–95), and Asia (1997–98), researchers are taking a fresh look at the determinants of currency and banking crises and are attempting to develop early ...