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...

Ausführliche Beschreibung

Hauptverfasser:

Damodaran, Aswath, McCarthy, Daniel M., Cohen, Maxime C.

Format:

Elektronisch E-Book

Sprache:

Englisch

Veröffentlicht:

[Cambridge, Massachusetts] : MIT Sloan Management Review, 2022.

Ausgabe:

[First edition].

Zusammenfassung:

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.

Umfang:

1 online resource (9 pages) : illustrations

Anmerkungen:

Reprint #63418, Summer 2022 issue, vol. 63, no. 4.

Schlagworte:

Going public (Securities)