IPO disclosures are ripe for reform current financial disclosure rules let would-be public companies shape a rosy narrative about their prospects and obscure information that investors should know
Current financial disclosure rules let would-be public companies paint a too-rosy picture while obscuring information that investors should know. Pre-IPO disclosures have grown increasingly bloated but typically lack information relevant to the likelihood of success for new business models. The auth...
| Main Authors: | , , |
|---|---|
| Format: | eBook |
| Language: | English |
| Published: |
[Cambridge, Massachusetts]
MIT Sloan Management Review
2022
|
| Edition: | [First edition] |
| Subjects: | |
| Online Access: | |
| Collection: | O'Reilly - Collection details see MPG.ReNa |
| Summary: | Current financial disclosure rules let would-be public companies paint a too-rosy picture while obscuring information that investors should know. Pre-IPO disclosures have grown increasingly bloated but typically lack information relevant to the likelihood of success for new business models. The authors propose "triggered" disclosures tailored to a company's value drivers, wherein claims about customer value and potential market size must be supported by the consistent, objective collection of baseline data |
|---|---|
| Item Description: | Reprint #63418, Summer 2022 issue, vol. 63, no. 4 |
| Physical Description: | 9 pages illustrations |