Companies that disclose financial

Facts about disclosing financial information by the companies.

Usually companies do not want to disclose financial information due to several kinds of risks in the market or the company’s policy. But there are lots of benefits side by side the risks for the companies that disclose financial information. Disclosure of financial information clearly is one of the pillars of good corporate governance. Furthermore, the digital age has created a remarkable shift in the corporate communication paradigm. As a result, companies that disclose financial information more and more use the Internet as an investor relation medium and a vehicle to publicize financial information to capital markets.

The Securities Act of 19331 and the Securities Exchange Act of 1934 require public companies to disclose material financial and non-financial information to the general public. Public disclosure of financial information by the companies and financial institutions has long provided information about business performance through the disclosure of financial statements and other information. In current years, however, a number of companies and financial institutions are focusing on disclosure of not only financial information but more widely including their management policies. Companies that disclose financial information never publicize their sensitive information to avoid any kind of security and business risks. Disclosure of financial information is always according to the Companies Ordinance and company’s policies. Companies that disclose financial information try to attract investors and creditors by showing their sound financial positions.

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