Which of the Following Is True Concerning Managerial Incentives to Disclose

question 18

Multiple Choice

Which of the following is true concerning managerial incentives to disclose information?

• A) More information increases uncertainty about financial performance.
• B) More disclosure increases the cost of capital, causing stock prices to fall.
• C) Information disclosure is usually neutral.
• D) More information usually helps managers get better access to external capital.

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Definitions:

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A period of one hundred years, often used as a measure of historical time.

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To make something suitable for a new use or purpose; to modify.

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