A. Explain how the disclosure of accounting
practices are influenced by differences in corporate financial
governance in a country.
Development of the disclosure system is closely associated with the development of accounting systems. Disclosure standards and practices are influenced by financial resources, legal systems, political and economic ties, the level of economic development, education, culture, and other influences.National differences in disclosure is driven largely by differences in corporate governance and finance. In the United States, Britain and other Anglo-American countries, equity markets provided most of the funding that the company needs to be very advanced. In these markets, ownership tends to spread widely among many shareholders and investor protection is emphasized. Institutional investors play an increasingly important role in these countries, demanding financial returns and increasing shareholder value.In most other countries (like France, Japan and some emerging market countries), share ownership remains highly concentrated and the bank (or the owner and family) has traditionally been a major source of corporate financing. These banks, and the other in obtaining more information about the company's financial position and activities.
VOLUNTARY DISCLOSURE
Some studies show that managers have incentives to reveal information about the company's current performance and future time voluntarily. In a recent report, the Financial Accounting Standards Board (FASB) describes a FASB project on business reporting which supports the view that the company will benefit from the capital market by increasing voluntary disclosure. The report outlines how companies can describe and explain its investment potential to investors.A number of rules, such as accounting and disclosure rules, and approval by a third party (such as auditing) can improve the functioning of the market. Accounting rules to try to reduce the ability of managers in record economic transactions in a manner that does not represent the best interests of shareholders. Disclosure rules establish provisions to ensure that shareholders receive timely, complete and accurate.
MANDATORY DISCLOSURE PROVISIONS
Stock exchanges and government regulatory agencies generally require that foreign companies listed stocks to provide financial and non financial information similar to that required for domestic firms. Any information that was announced, which was distributed to shareholders or reported to regulatory agencies in the domestic market. However, most states do not monitor or enforce the implementation of the provisions of "suitability disclosure between the (jurisdiction)."Protection of shareholders differ from country to country. Anglo-American countries such as Canada, Britain and the United States to provide protection to shareholders who are widely and strictly enforced. In contrast, the protection to the shareholders received less attention in some other countries like China for example, prohibiting insider trading (trading that involves the inner circle), while weak law enforcement make the enforcement of these rules are almost non-existent.
REPORTING AND DISCLOSURE PRACTICES
Disclosure rules are very different around the world in some ways like the statement of cash flows and changes in equity, related party transactions, segment reporting, the fair value of financial assets and liabilities and earnings per share. In this section attention is focused on:
1. Disclosure of information to see the future "information look to the future" that includes:
(a) the forecast revenue, profit and loss, profit and loss per share (EPS), capital expenditures, and other financial post
(b) information regarding the performance or prospective future economic position that is not too sure when compared with the projected post, fiscal period, and the projected number of
(c) statements of management plans and objectives of future operations.
Most companies in each country presents a disclosure of information about plans and goals manjemen. Conversely fewer companies that disclose prophecy, from the lowest two companies in Japan and the highest 31 companies in the United States. Most forecasts in the U.S. and Germany regarding capital expenditure, not profits and sales.
2. disclosure of segment
Investors and analysts will request information regarding operating results and financial industry segments classified as significant and increasing. Example, financial analysts in the United States has consistently been asked disagregat report data in the form of a much more detailed than they are now. International Financial Reporting Standards (IFRS) also discussed the highly detailed segment reporting. This report helps the users of financial statements to better understand how the parts of a company affects the whole enterprise.
3. Cash flow statement and fund flow
IFRS and accounting standards in the United States, Britain, and a large number of other countries require the presentation of cash flows.
4. Disclosure of social responsibility
Today the company is required to demonstrate a sense of responsibility to a bunch of so-called interested parties (stakeholders) - employees, customers, suppliers, governments, activist groups, and the general public.Information regarding the welfare of employees has long been a concern for labor organizations. Problem areas of concern related to working conditions, job security, equality of opportunity, workforce diversity and child labor. Employee disclosure also preferred by investors because it provides valuable input regarding labor relations, cost, and productivity.
5. Specific disclosures for non-domestic users of financial statements and the accounting principles usedFinancial statements may contain specific disclosures to accommodate the non-domestic users of financial statements. Such disclosure is:a. "Re representation for the convenience" of financial information to non-domestic currencyb. Repeated presentation of the results and financial position is limited by the two accounting standards keompokc. A complete set of financial statements prepared in accordance with a second group of accounting standards, and some discussion about the differences between the accounting principles that are widely used in the primary financial statements and a few other sets of accounting principles.Many companies in countries that do not use English as primary language translation also perform throughout the annual report of the home country language into English. Also, some companies prepare financial statements in accordance with accounting standards more widely accepted than domestic standards (particularly IFRS or U.S. GAAP) or in accordance with both domestic and a second group of standard accounting principles.
CORPORATE GOVERNANCE DISCLOSURES
Corporate governance related to the internal tools used for running and controlling a firm - responsibility, accountability and the relationship between the shareholders, board members and managers are designed to achieve corporate objectives. The problems of corporate governance include the rights and treatment to the shareholders, the board's responsibilities, disclosure and transparency and the role of the parties concerned. Corporate governance practices has gained the attention of regulators, investors and analysts.
DISCLOSURE REPORTS ANNUAL MARKET IN DEVELOPING COUNTRIES
Disclosure of the company's annual report on emerging market countries are generally less extensive and less credible than the reporting companies in developed countries. For example, the disclosure of which is insufficient and misleading and neglected consumer protection cited as the cause of the East Asian financial crisis in 1997.
Low level of disclosure in emerging market countries is consistent with the system of corporate governance and finance in these countries. Less developed equity markets, banks and internal parties such as family group to channel most of the funding needs and generally not too much of a need for public disclosure of credible and timely manner, when compared with the more advanced economies.
However, investor demand for information about the company in a timely and credible in emerging market countries more and more regulators to respond to this demand by creating more stringent disclosure provisions and increase surveillance efforts and enforcement.
Sources: Mom teaching materials MEIFIDA Ilyas, SE, MSi.AKUNTANSI INTERNATIONAL
B. Understand the important issues that affect the management decision to make the disclosure decision.
BASIC CONCEPTS MANAGEMENT DECISION
Management needs the information as a basis for their decision making. Information systems have an important role in providing information to all levels of management. Each activity and different management decisions require information that is different. Therefore to be able to provide relevant and useful information to management, the information system developers must understand in advance the activities carried out by management and the type of decision.
1. TYPE OF MANAGEMENT Management activities associated with its level in the organization is divided into 3 sections:
a. Strategic planning: a top-level management activities, the environmental evaluation process outside the organization, implementation of organizational goals and determining strategies.
b. Management control: the system to assure that the organization has already established a strategy to effectively and efficiently. This is a tactical level (tactical level), that is how middle management tactic to execute strategic planning can be done successfully. Run tactics are usually short term ± 1 year. Management control process consists of: the creation of the work program, budget preparation, execution and measurement, reporting and analysis. c. Control of operations: The system to assure that each particular task has been carried out effectively and efficiently. This is an application program specified in manajemen.Pengendalian control operations carried out under the management control process guidelines and focused on lower-level tasks.
2. TYPE MANAGEMENT DECISION
Decision-making (Decision making): is the selection of alternative management actions to achieve the target. Decision is divided into 3 types:
a. Decision programmed / structured decision: the decision repetitive and routine, so it can be programmed. Structured decision happens and is done mainly on the lower level manjemen. Example: a decision ordering products, making collection of accounts receivable, etc.. b. Decision half programmed / semi-structured: that decision can be partly programmed, partly repetitive and routine and partly unstructured. These decisions are complex and often require calculations and detailed analysis. Example: The decision to buy a more sophisticated computer systems, making the allocation of campaign funds. c. Decisions are not programmed / unstructured: a decision that does not happen again and again and not always the case. This decision occurred on the upper level management. Information for unstructured decision-making is not easy to obtain and not readily available and usually come from the outside environment. Manager's experience is very important in decision making is unstructured. The decision to merge with another company is an example of unstructured decisions are rare.
3. TYPE OF INFORMATION
Role of information systems is now not only as collectors of data and process them into information such as financial reports, but has a more important role in providing information for management functions of planning,
allocations of resources, measurement and control. Reports from information systems to provide information to management about the problems that occur within the organization to be useful evidence in justifying the action taken. Information system provides three different types of information: a. Information data collection (Scorekeeping information): information in the form of accumulation or collection of data to answer questions. Useful for the manager to evaluate the performance of personnel, personnel. b. Information Briefing attention (attention directing information): helps management to focus on issues that deviate, irregularities. This information helps middle management to see the distortions that occur. c. Troubleshooting information (Problem Solving information): information to help managers make decisions to solve the problems it faces. Problem solving is usually associated with a decision that was not repeated and that the situation requires the analysis carried out by upper management.
4. CHARACTERISTICS OF INFORMATION
To support the decision to be made by management, then management needs information that is useful. For each level of management with different activities, information needs are different, the characteristics of this information include:
a. Information density: for the lower levels of management, characteristics of the information is detailed (detail) and less dense, because it is mainly used to control the operation. Moderate to higher management levels, have the characteristics of the filtered information (filtered), more compact and dense.
b. Wide Information: Under manjemen characteristics of information. Is focused on a particular issue, because it is used by the managers who have a specific task. For high-level managers, characteristics of information is increasingly widespread, as the management problems associated with the area.
c. Frequency information: Management of lower-level frequency information received is routine, because it is used by the manager who has the task is structured in a pattern that repeated over time. High-level management, the frequency information is not routine or ad hoc (suddenly), because the top management decision-making related to the pattern of unstructured and the timing is not clear.
d. Time Information: Management of lower levels, the information required is imformasi historically, because it is used by the manager in control of that check the operation of the routine tasks that have been happening. For high-level management, time to get over the future of predictive information is used to circle the strategic decision-making concerning the future value.
e. Information Access: Level down periods require information over and over again, so it can be provided by the system that delivers information in the form of periodic reports. Thus can not access information on line, but can be off line. In contrast to the higher level, the period required information is not clear, so that the top-level managers need to be provided access on line to retrieve the information whenever they need.
f. Source of Information: Due to the lower level of management focus more on the company's internal control pd, then the lower-level managers need more information with data sourced from the company's own internal, but the top-level managers are more oriented to the strategic planning issues related to the environment outside the company, so need information with external data sources in the company.
5. THE ROLE OF MANAGEMENT, by Henry Mintzberg
a. Interpersonal roles: the role of personal relationships may consist of: = figure head (figure head): the manager represents the organization for activities outside the organization.
c. Decisional role: conducted by the manager is as entreprenuer, as a person handling the disorder, as those who allocate the resources of the organization, and as a negotiator in the event of a conflict within the organization.
6. DECISION PHASE Simon (1960) introduced the four activities in the decision making process: a. Intelligence: Gathering information to identify the problem. b. Design: the design phase of the solution in the form of problem-solving alternatives. c. Choice: choose from the solution phase of the alternatives provided. d. Implementation: Phase implement the decision and report the results.
SOURCE: http://cherudin.blogspot.com/2011/04/masalah-keputusan-manajemen-dan.html
C. Identifying the purpose of accounting disclosure in the equity markets. In a competitive economy, the disclosure is a means to channel koorperasi koorperasi accountability to capital providers (investors) and to mepermudah allocation of resources to their most productive use.
Koorperasi a need to attract capital in a very large amount to finance the production and distribution activities are extensive. Therefore internal pembiyaan is highly dependent on external capital invested by the investor on a koorperasi, In return, an investor requires disclosure (tansparansi koorperasi) in which investors can assess the quality of their stock to cultivate.
Conceptual link between disclosure and cost of capital meingkat of the theory of investment behavior under conditions of uncertainty, namely:
1. In a world of uncertainty, investors look at returns on investment securities as money received as a consequence of ownership.
2. Because of the uncertainty of return is viewed in a probabilistic sense.
3. Investors use a number of different measures to quantify the expected results of a security.
4. Investors prefer a high return rate for a certain risk level or vice versa.
5. The value of a security is positively related to the flow of expected results and inversely related to the risks associated with the refund.
6. Thus, disclosure of the company will increase the probability distribution of outcomes expected by investors by reducing the uncertainty associated with the refund. So will improve performance (performance of the company) in the eyes of investors that lure investors to invest on a larger similar securities so as to reduce the cost of capital.
SOURCE: http://whindajuli.blogspot.com/2011_04_01_archive.html
D. Understanding the fundamental differences corporate financial disclosure practices in various aspects.
Development of the disclosure system is closely associated with the development of accounting systems. Disclosure standards and practices are influenced by financial resources, legal systems, political and economic ties, the level of economic development, education, culture, and other influences.National differences in disclosure is driven largely by differences in corporate governance and finance. In the United States, Britain and other Anglo-American countries, equity markets provided most of the funding that the company needs to be very advanced. In these markets, ownership tends to spread widely among many shareholders and investor protection is emphasized. Institutional investors play an increasingly important role in these countries, demanding financial returns and increasing shareholder value.In most other countries (like France, Japan and some emerging market countries), share ownership remains highly concentrated and the bank (or the owner and family) has traditionally been a major source of corporate financing. These banks, and the other in obtaining more information about the company's financial position and activities.
VOLUNTARY DISCLOSURE
Some studies show that managers have incentives to reveal information about the company's current performance and future time voluntarily. In a recent report, the Financial Accounting Standards Board (FASB) describes a FASB project on business reporting which supports the view that the company will benefit from the capital market by increasing voluntary disclosure. The report outlines how companies can describe and explain its investment potential to investors.A number of rules, such as accounting and disclosure rules, and approval by a third party (such as auditing) can improve the functioning of the market. Accounting rules to try to reduce the ability of managers in record economic transactions in a manner that does not represent the best interests of shareholders. Disclosure rules establish provisions to ensure that shareholders receive timely, complete and accurate.
MANDATORY DISCLOSURE PROVISIONS
Stock exchanges and government regulatory agencies generally require that foreign companies listed stocks to provide financial and non financial information similar to that required for domestic firms. Any information that was announced, which was distributed to shareholders or reported to regulatory agencies in the domestic market. However, most states do not monitor or enforce the implementation of the provisions of "suitability disclosure between the (jurisdiction)."Protection of shareholders differ from country to country. Anglo-American countries such as Canada, Britain and the United States to provide protection to shareholders who are widely and strictly enforced. In contrast, the protection to the shareholders received less attention in some other countries like China for example, prohibiting insider trading (trading that involves the inner circle), while weak law enforcement make the enforcement of these rules are almost non-existent.
REPORTING AND DISCLOSURE PRACTICES
Disclosure rules are very different around the world in some ways like the statement of cash flows and changes in equity, related party transactions, segment reporting, the fair value of financial assets and liabilities and earnings per share. In this section attention is focused on:
1. Disclosure of information to see the future "information look to the future" that includes:
(a) the forecast revenue, profit and loss, profit and loss per share (EPS), capital expenditures, and other financial post
(b) information regarding the performance or prospective future economic position that is not too sure when compared with the projected post, fiscal period, and the projected number of
(c) statements of management plans and objectives of future operations.
Most companies in each country presents a disclosure of information about plans and goals manjemen. Conversely fewer companies that disclose prophecy, from the lowest two companies in Japan and the highest 31 companies in the United States. Most forecasts in the U.S. and Germany regarding capital expenditure, not profits and sales.
2. disclosure of segment
Investors and analysts will request information regarding operating results and financial industry segments classified as significant and increasing. Example, financial analysts in the United States has consistently been asked disagregat report data in the form of a much more detailed than they are now. International Financial Reporting Standards (IFRS) also discussed the highly detailed segment reporting. This report helps the users of financial statements to better understand how the parts of a company affects the whole enterprise.
3. Cash flow statement and fund flow
IFRS and accounting standards in the United States, Britain, and a large number of other countries require the presentation of cash flows.
4. Disclosure of social responsibility
Today the company is required to demonstrate a sense of responsibility to a bunch of so-called interested parties (stakeholders) - employees, customers, suppliers, governments, activist groups, and the general public.Information regarding the welfare of employees has long been a concern for labor organizations. Problem areas of concern related to working conditions, job security, equality of opportunity, workforce diversity and child labor. Employee disclosure also preferred by investors because it provides valuable input regarding labor relations, cost, and productivity.
5. Specific disclosures for non-domestic users of financial statements and the accounting principles usedFinancial statements may contain specific disclosures to accommodate the non-domestic users of financial statements. Such disclosure is:a. "Re representation for the convenience" of financial information to non-domestic currencyb. Repeated presentation of the results and financial position is limited by the two accounting standards keompokc. A complete set of financial statements prepared in accordance with a second group of accounting standards, and some discussion about the differences between the accounting principles that are widely used in the primary financial statements and a few other sets of accounting principles.Many companies in countries that do not use English as primary language translation also perform throughout the annual report of the home country language into English. Also, some companies prepare financial statements in accordance with accounting standards more widely accepted than domestic standards (particularly IFRS or U.S. GAAP) or in accordance with both domestic and a second group of standard accounting principles.
CORPORATE GOVERNANCE DISCLOSURES
Corporate governance related to the internal tools used for running and controlling a firm - responsibility, accountability and the relationship between the shareholders, board members and managers are designed to achieve corporate objectives. The problems of corporate governance include the rights and treatment to the shareholders, the board's responsibilities, disclosure and transparency and the role of the parties concerned. Corporate governance practices has gained the attention of regulators, investors and analysts.
DISCLOSURE REPORTS ANNUAL MARKET IN DEVELOPING COUNTRIES
Disclosure of the company's annual report on emerging market countries are generally less extensive and less credible than the reporting companies in developed countries. For example, the disclosure of which is insufficient and misleading and neglected consumer protection cited as the cause of the East Asian financial crisis in 1997.
Low level of disclosure in emerging market countries is consistent with the system of corporate governance and finance in these countries. Less developed equity markets, banks and internal parties such as family group to channel most of the funding needs and generally not too much of a need for public disclosure of credible and timely manner, when compared with the more advanced economies.
However, investor demand for information about the company in a timely and credible in emerging market countries more and more regulators to respond to this demand by creating more stringent disclosure provisions and increase surveillance efforts and enforcement.
Sources: Mom teaching materials MEIFIDA Ilyas, SE, MSi.AKUNTANSI INTERNATIONAL
B. Understand the important issues that affect the management decision to make the disclosure decision.
BASIC CONCEPTS MANAGEMENT DECISION
Management needs the information as a basis for their decision making. Information systems have an important role in providing information to all levels of management. Each activity and different management decisions require information that is different. Therefore to be able to provide relevant and useful information to management, the information system developers must understand in advance the activities carried out by management and the type of decision.
1. TYPE OF MANAGEMENT Management activities associated with its level in the organization is divided into 3 sections:
a. Strategic planning: a top-level management activities, the environmental evaluation process outside the organization, implementation of organizational goals and determining strategies.
- The process of evaluating the environment outside the organization: external environment can affect the course of the organization, therefore it must be good at the top level management to evaluate, should be able to react to the opportunities provided by the external environment, eg new products, new markets. Besides the top-level management must be responsive to the pressures of the outside environment is detrimental to the organization and where possible convert pressure into an opportunity.
- Setting goals is what igin achieved by the organization based on a vision that is owned by management. For example, the company's goal is within 5 years became the biggest seller in the industry degan control 60% of the market.
- Determination of the strategy: top-level management to determine actions to be undertaken by organizations with a view to achieving its goals. With all the capabilities of strategic resources are deployed so that organizational goals can be achieved.
b. Management control: the system to assure that the organization has already established a strategy to effectively and efficiently. This is a tactical level (tactical level), that is how middle management tactic to execute strategic planning can be done successfully. Run tactics are usually short term ± 1 year. Management control process consists of: the creation of the work program, budget preparation, execution and measurement, reporting and analysis. c. Control of operations: The system to assure that each particular task has been carried out effectively and efficiently. This is an application program specified in manajemen.Pengendalian control operations carried out under the management control process guidelines and focused on lower-level tasks.
2. TYPE MANAGEMENT DECISION
Decision-making (Decision making): is the selection of alternative management actions to achieve the target. Decision is divided into 3 types:
a. Decision programmed / structured decision: the decision repetitive and routine, so it can be programmed. Structured decision happens and is done mainly on the lower level manjemen. Example: a decision ordering products, making collection of accounts receivable, etc.. b. Decision half programmed / semi-structured: that decision can be partly programmed, partly repetitive and routine and partly unstructured. These decisions are complex and often require calculations and detailed analysis. Example: The decision to buy a more sophisticated computer systems, making the allocation of campaign funds. c. Decisions are not programmed / unstructured: a decision that does not happen again and again and not always the case. This decision occurred on the upper level management. Information for unstructured decision-making is not easy to obtain and not readily available and usually come from the outside environment. Manager's experience is very important in decision making is unstructured. The decision to merge with another company is an example of unstructured decisions are rare.
3. TYPE OF INFORMATION
Role of information systems is now not only as collectors of data and process them into information such as financial reports, but has a more important role in providing information for management functions of planning,
allocations of resources, measurement and control. Reports from information systems to provide information to management about the problems that occur within the organization to be useful evidence in justifying the action taken. Information system provides three different types of information: a. Information data collection (Scorekeeping information): information in the form of accumulation or collection of data to answer questions. Useful for the manager to evaluate the performance of personnel, personnel. b. Information Briefing attention (attention directing information): helps management to focus on issues that deviate, irregularities. This information helps middle management to see the distortions that occur. c. Troubleshooting information (Problem Solving information): information to help managers make decisions to solve the problems it faces. Problem solving is usually associated with a decision that was not repeated and that the situation requires the analysis carried out by upper management.
4. CHARACTERISTICS OF INFORMATION
To support the decision to be made by management, then management needs information that is useful. For each level of management with different activities, information needs are different, the characteristics of this information include:
a. Information density: for the lower levels of management, characteristics of the information is detailed (detail) and less dense, because it is mainly used to control the operation. Moderate to higher management levels, have the characteristics of the filtered information (filtered), more compact and dense.
b. Wide Information: Under manjemen characteristics of information. Is focused on a particular issue, because it is used by the managers who have a specific task. For high-level managers, characteristics of information is increasingly widespread, as the management problems associated with the area.
c. Frequency information: Management of lower-level frequency information received is routine, because it is used by the manager who has the task is structured in a pattern that repeated over time. High-level management, the frequency information is not routine or ad hoc (suddenly), because the top management decision-making related to the pattern of unstructured and the timing is not clear.
d. Time Information: Management of lower levels, the information required is imformasi historically, because it is used by the manager in control of that check the operation of the routine tasks that have been happening. For high-level management, time to get over the future of predictive information is used to circle the strategic decision-making concerning the future value.
e. Information Access: Level down periods require information over and over again, so it can be provided by the system that delivers information in the form of periodic reports. Thus can not access information on line, but can be off line. In contrast to the higher level, the period required information is not clear, so that the top-level managers need to be provided access on line to retrieve the information whenever they need.
f. Source of Information: Due to the lower level of management focus more on the company's internal control pd, then the lower-level managers need more information with data sourced from the company's own internal, but the top-level managers are more oriented to the strategic planning issues related to the environment outside the company, so need information with external data sources in the company.
5. THE ROLE OF MANAGEMENT, by Henry Mintzberg
a. Interpersonal roles: the role of personal relationships may consist of: = figure head (figure head): the manager represents the organization for activities outside the organization.
- Leader (leader): manager coordinating, controlling, motivating, and supporting subordinate subordinates
- Link (liaison): connect manager personal-personal at all levels of management.
c. Decisional role: conducted by the manager is as entreprenuer, as a person handling the disorder, as those who allocate the resources of the organization, and as a negotiator in the event of a conflict within the organization.
6. DECISION PHASE Simon (1960) introduced the four activities in the decision making process: a. Intelligence: Gathering information to identify the problem. b. Design: the design phase of the solution in the form of problem-solving alternatives. c. Choice: choose from the solution phase of the alternatives provided. d. Implementation: Phase implement the decision and report the results.
SOURCE: http://cherudin.blogspot.com/2011/04/masalah-keputusan-manajemen-dan.html
C. Identifying the purpose of accounting disclosure in the equity markets. In a competitive economy, the disclosure is a means to channel koorperasi koorperasi accountability to capital providers (investors) and to mepermudah allocation of resources to their most productive use.
Koorperasi a need to attract capital in a very large amount to finance the production and distribution activities are extensive. Therefore internal pembiyaan is highly dependent on external capital invested by the investor on a koorperasi, In return, an investor requires disclosure (tansparansi koorperasi) in which investors can assess the quality of their stock to cultivate.
Conceptual link between disclosure and cost of capital meingkat of the theory of investment behavior under conditions of uncertainty, namely:
1. In a world of uncertainty, investors look at returns on investment securities as money received as a consequence of ownership.
2. Because of the uncertainty of return is viewed in a probabilistic sense.
3. Investors use a number of different measures to quantify the expected results of a security.
4. Investors prefer a high return rate for a certain risk level or vice versa.
5. The value of a security is positively related to the flow of expected results and inversely related to the risks associated with the refund.
6. Thus, disclosure of the company will increase the probability distribution of outcomes expected by investors by reducing the uncertainty associated with the refund. So will improve performance (performance of the company) in the eyes of investors that lure investors to invest on a larger similar securities so as to reduce the cost of capital.
SOURCE: http://whindajuli.blogspot.com/2011_04_01_archive.html
D. Understanding the fundamental differences corporate financial disclosure practices in various aspects.
Tidak ada komentar:
Posting Komentar