Voluntary disclosure by managers is becoming an increasingly important source of information. Which of the following is least likely to be a reason for this increased disclosure?
A)Protection under Safe Harbor Rules
B)To manage investors' expectations
C)To communicate information to investors
D)To respond to increased demands by labor unions

Question

Quizplus · Accepted Answer

Increased demands by labor unions would not result in an increased disclosure by managers as labor unions typically represent employees and not investors. The other choices (A, B, and C) are all valid reasons for increased disclosure by managers. Protection under Safe Harbor Rules provides managers with legal protection when disclosing forward-looking information, managing investors' expectations is important for maintaining investor confidence, and communicating information to investors is necessary for transparency and meeting regulatory requirements.

Voluntary Disclosure by Managers Is Becoming an Increasingly Important Source