Continued from last week
Asymmetry of information
The proposed regulatory changes identified in the previous part of this article reflect several deficiencies in the form and substance of reports. Irrespective of the reporting deficiencies, the motivation for entering or remaining in any market is the returns that accrue to the investment made in that market.
Except for the companies that have the obligation to report their financial results publicly, one is at a disadvantage when it comes to measuring performance by way of profits earned or even asset size by the broader financial services industry. This deficiency might be especially true about the fractured pension system in which many
