The _________________________________ relies on a transparent accounting system that communicates financial information to stockholders and reduces informational asymmetry.

Question

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The Anglo-Saxon model of corporate governance relies on a transparent accounting system that communicates financial information to stockholders and reduces informational asymmetry. This model is commonly used in English-speaking countries such as the United States, United Kingdom, Canada, and Australia. The European model, on the other hand, focuses on stakeholder interests and has a more collaborative approach between management, employees, and unions. The common law and government regulation models are legal frameworks that govern corporate behavior but do not specifically address accounting transparency.

The _________________________________ Relies on a Transparent Accounting System That Communicates