Because the supply of financial information is guided by the costs of producing and disseminating it and the benefits it will provide to the company,regulatory groups have little influence over the amount and type of financial information that companies disclose.

Question

Quizplus · Accepted Answer

This statement is false. Regulatory groups, such as the SEC in the United States, have the power to require companies to disclose certain financial information and can also establish standards for the presentation of financial information, which can influence the amount and type of information that companies disclose. Additionally, market pressures and competition can also incentivize companies to disclose more information than what is required by regulations in order to increase transparency and improve investor confidence.

Because the Supply of Financial Information Is Guided by the Costs