Financial reporting quality and investment efficiency

ABSTRACT

Accurate and transparent business and corporate reporting are in the spotlight today, more than ever before. National and also international market conditions and frequent company failures both highlights needs for transparency and efficiency in the process of generation and dispatching of information. Transparency is necessary in order to meet regulators and authorities requirements, while efficiency is important for enabling company executives to quickly respond to changing market conditions and meet investors and analysts needs.
The benefits of standardized and high quality financial reporting are: lower preparation costs, simplified and international access to information, standardized information recognized and understood by all recipients, high degree of required transparency by regulators, enhanced analytical capabilities and most important of all: enhancement of informed and efficient investment decisions.

KEY WORDS: information, transparent, standardized, investment, efficiency