The degree of accounting disclosure required tends to be greater in countries with well-developed capital markets.This is because:

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Countries with well-developed capital markets tend to have more sophisticated investors who demand more information. To access capital, companies in these markets need to provide detailed accounting disclosure to instill investor confidence and attract investment. Higher levels of disclosure are necessary to give investors the information they need to make informed decisions. Therefore, these markets tend to have more stringent disclosure requirements.

The Degree of Accounting Disclosure Required Tends to Be Greater