Do managers respond to increases in transparency by other firms and/or increases in the demands for transparency from investors?

Question

Quizplus · Accepted Answer

Managers are likely to respond positively to both increased transparency by other firms and increased demands for transparency from investors. This is because transparency is becoming increasingly important in the business world, and managers who fail to meet investor expectations regarding transparency are likely to suffer negative consequences in terms of reputation, stock prices, and access to capital. By contrast, managers who are transparent about their company's financials, governance, and sustainability practices are more likely to earn the trust and confidence of investors, which can in turn lead to better financial performance, lower risk, and other benefits.

Do Managers Respond to Increases in Transparency by Other Firms