Voluntary disclosure by managers is becoming an increasingly important source of information. Which of the following is least likely to be a reason for this increased disclosure?
A) Protection under Safe Harbor Rules.
B) To manage investors' expectations.
C) To signal information to investors.
D) To respond to increased demands by labor unions.

Question

Quizplus · Accepted Answer

Labor unions typically do not impact the decision of managers to disclose information voluntarily to investors. Safe Harbor Rules protect companies from liability when providing forward-looking information, managing expectations is common practice, and signaling information to investors can help companies attract investment.

Voluntary Disclosure by Managers Is Becoming an Increasingly Important Source