Transparency
A) is consistent with confidentiality
B) is not an issue if the corporate report has reliable information
C) helps investors distinguish between good and bad quality firms
D) associates directly with the level of corruption

Question

Quizplus · Accepted Answer

Transparency helps investors distinguish between good and bad quality firms by providing them with complete and accurate information about the company's financial performance, governance structures, and other relevant factors. This allows investors to make informed decisions about where to allocate their investment dollars, and can help to promote a more efficient and effective capital market. Transparency is not consistent with confidentiality, as it involves sharing information with stakeholders rather than keeping it secret. While reliable information is important for transparency, it is not sufficient on its own to ensure that a company is being transparent. Finally, though transparency can help to reduce corruption by making it more difficult for officials or managers to hide illicit activities, it is not inherently associated with corruption or the absence of it.