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

Question

Quizplus · Accepted Answer

Asymmetric information is a situation where one party in a transaction has more or better information than the other party. In the context of public corporations, this could mean that the management of the corporation has insider information that is not available to the general public. Requiring public corporations to disclose a significant amount of information helps address this potential harm of asymmetric information, ensuring that investors have access to the same information as management. This helps reduce information asymmetry between the management and the investors and promotes transparency in the market.

One Reason the Government Requires Public Corporations to Disclose So