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You are the CFO of a publicly-traded company in a very competitive industry. You are preparing...

You are the CFO of a publicly-traded company in a very competitive industry. You are preparing the annual report and SEC filings and you are carefully considering how much information to provide. You fear that your competitors could gain some advantage if you present too much detail but you know that investors want more detail so they can evaluate the business (and management) performance. How do you handle these conflicting elements?

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Expert Solution

I would try to manage this conflict through proper disclosure of facts of the company because it would lead to complete disclosure on the part of the company even it would mean a higher reporting of profits.

I would be trying to present all such informations which are things of relevance to the shareholders but I would not be providing all such confidentiality related information which will help the competitors to gain a competitive advantage in the long run so I would be trying to manage between the two and disclose all such possible information in order to protect the interest of shareholders and other stakeholders as well

I would also try to provide with all such required information by the securities and exchange commission so that there should not be any litigation problem, as I was not trying to hide anything away so all those disclosure requirements need to be followed in order to inflate the value of the company in the long run and provide ethical platform for protection of shareholders interest.

jeff jeffy answered 1 year ago
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