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Mandatory accounting disclosure by small private companies

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  • Benito Arruñada

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Abstract

This article analyzes how mandatory accounting disclosure is grounded on different rationales for private and public companies. It also explores technological changes, such as computerised databases and the Internet, which have recently made disclosure of company accounts by small companies potentially less costly and more valuable, thanks to electronic filing and universal online access to credit information systems. These recent developments favour policies that would expand the scope of mandatory publication for small companies in countries where it is voluntary. They also encourage policies to reduce the costs and enhance the value of disclosure through administrative reforms of filing, archive and retrieval systems. Survey and registry evidence on how the information in the accounts is valued and used by companies is consistent with these claims about the evolution of the tradeoff of costs and benefits that should guide policy in this area.

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File URL: http://hdl.handle.net/10.1007/s10657-010-9145-3
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Bibliographic Info

Article provided by Springer in its journal European Journal of Law and Economics.

Volume (Year): 32 (2011)
Issue (Month): 3 (December)
Pages: 377-413

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Handle: RePEc:kap:ejlwec:v:32:y:2011:i:3:p:377-413

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Web page: http://www.springerlink.com/link.asp?id=100264

Related research

Keywords: Financial disclosure; Company accounts; Credit registries; Business simplification; G32; K22; M48;

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Cited by:
  1. Benito Arruñada, 2010. "Institutional Support of the Firm: A Theory of Business Registries," Working Papers 508, Barcelona Graduate School of Economics.

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