Abstract

Information disclosure activities of most companies are largely limited to compliance with legal requirements and to occasional reactions to external events, such as a negative analyst report or a proxy contest. However, the absence of a carefully planned and executed disclosure strategy is shortsighted and detrimental to the company and its managers. Such a strategy of voluntary information disclosures has considerable potential for changing stakeholders' perceptions of the company and thereby its market value, for decreasing the cost of capital and consequently enhancing growth, and for improving the terms of trade with supplies and customers as well as reducing the likelihood of regulatory intervention in the firm's affairs. This article outlines the development and implementation of a disclosure strategy.