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...

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Bibliographic Details
Main Authors: Damodaran, Aswath (Author), McCarthy, Daniel M. (Author), Cohen, Maxime C. (Author)
Format: eBook
Language:English
Published: [Cambridge, Massachusetts] : MIT Sloan Management Review, 2022.
Edition:[First edition].
Subjects:
Online Access:Connect to the full text of this electronic book
Description
Summary: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.
Item Description:Reprint #63418, Summer 2022 issue, vol. 63, no. 4.
Physical Description:1 online resource (9 pages) : illustrations
Bibliography:Includes bibliographical references.