One reason the government requires public corporations to disclose so much information is to:

Question

Quizplus · Accepted Answer

The government requires public corporations to disclose a lot of information to address the potential harm from asymmetric information. This means that there can be a power imbalance between investors and corporations, where the investors do not have access to all the information they need to make informed decisions. Requiring corporations to disclose information helps level the playing field and reduces the likelihood of investors being taken advantage of.

One Reason the Government Requires Public Corporations to Disclose So