Mandatory Corporate Disclosure Rules and Securities Regulation
SECURITIES REGULATION IN AUSTRALIA AND NEW ZEALAND, 2nd Edition, Gordon Walker, Brent Fisse and Ian Ramsay, eds., LBC Information Services, 1998
33 Pages Posted: 18 Aug 2006
The objective of this paper is to provide a critical appraisal of the rationales for mandatory corporate disclosure rules. Following preliminary observations concerning voluntary disclosure, the authors commence the main discussion with an examination of various rationales for mandatory disclosure requirements based upon market failure. These rationales include protection of ill-informed investors, reduction of social waste, and monitoring of management. This is followed by an analysis of mandatory disclosure rules based upon public choice theory. Finally, the authors examine the efficient markets debate and consider the implications of this debate for securities regulation.
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