Why is public disclosure of financial information less important in Japan than in other industrialized countries?

Question

Quizplus · Accepted Answer

Japan has a tradition of keiretsu, which are interlocking business groups that are highly dependent on each other for financing, supplying and providing each other with customers. This promotes the culture of confidentiality and discretion, hence, the companies do not feel the necessity of disclosing their financial information publicly. Moreover, Japanese corporations rely more on bank financing rather than capital markets, further reducing the need for extensive financial disclosure.

Why Is Public Disclosure of Financial Information Less Important in Japan