Holger Spamann named fellow of European Corporate Governance Institute - Harvard Law School harvard.edu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from harvard.edu Daily Mail and Mail on Sunday newspapers.
In order for capital markets to function well, investors need accurate information about securities. If investors do not trust firms’ disclosures, they will discount what they are willing to pay for securities, increasing the cost of capital and thereby making it more difficult, even for honest firms, to fund productive endeavors. Moreover, investment decisions based on inaccurate information distort the efficient allocation of resources in an economy.