Transparency Disclosure
Transparency Disclosure
Transparency Disclosure
DISCLOSURE
A N D R E G U L AT I O N
AG ENDA DEFINITION AND CONCEPTUAL
FRAMEWORK
THEORICAL UNDERPINNINGS OF
TRANSPARENCY AND DISCLOSURE
CORPORATE PYRAMIDAL
STRUCTURES
HOSTILE TAKEOVERS AND
MARKET FOR CORPORATE
CONTROL
FAILURES IN THE MARKET FOR
CORPORATE CONTROL
ECONOMICS OF REGULATION
ROLE OF FINANCIAL &
REGULATORY INSTITUTIONS
Definition and Conceptual
Framework
TRANSPARENCY, REFERS TO THE QUALITY OF
BEING EASILY SEEN THROUGH OR
UNDERSTOOD.
T R A N S PA R E N C Y
THIS EXTENDS TO FINANCIAL REPORTS,
ORGANIZATIONAL STRUCTURES, AND
DECISION-MAKING PROCESSES.
• In the early stages of capitalism, there was a limited notion of transparency. Many
Early Mercantile Era (17th - 18th Century): businesses were small-scale and often family-owned. Transparency was primarily seen in
terms of fair trade practices and accountability to customers.
• Early forms of disclosure were rooted in ancient legal systems, where parties were expected to reveal
Early Forms of Disclosure (Ancient relevant information in legal proceedings for fairness and justice. This concept was further developed in
to Medieval Times): medieval Europe.
• The need for transparency and disclosure became evident with the growth of complex financial markets.
Emergence of Modern Securities This led to the establishment of securities regulations like the U.S. Securities Act of 1933 and the
Securities Exchange Act of 1934, which aimed to protect investors by ensuring that they had access to
Regulation (Early 20th Century): accurate and reliable information about securities.
Financial Reporting Standards and • The mid-20th century saw the establishment of accounting standards like Generally Accepted
Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). These standards
Accounting Practices (Mid-20th played a crucial role in standardizing financial reporting practices and ensuring transparency in
Century): corporate financial disclosures.
Non-Financial Disclosure and • In the latter half of the 20th century and into the 21st century, there was a growing emphasis on non-
Sustainability Reporting (Late 20th financial disclosure, particularly related to environmental, social, and governance (ESG) factors. This
expanded the concept of disclosure beyond purely financial information.
Century - Early 21st Century):
REGULATION REFERS TO THE ESTABLISHMENT
AND ENFORCEMENT OF RULES AND STANDARDS
WITHIN AN INDUSTRY OR SECTOR.