(DOWNLOAD) "Regulation S-K Item 402(S): Regulating Compensation Incentive-Based Risk Through Mandatory Disclosure." by Case Western Reserve Law Review * Book PDF Kindle ePub Free

April 09, 2021

eBook details

Title: Regulation S-K Item 402(S): Regulating Compensation Incentive-Based Risk Through Mandatory Disclosure.
Author : Case Western Reserve Law Review
Release Date : January 22, 2011
Genre: Law,Books,Professional & Technical,
Pages : * pages
Size : 348 KB

Description

"Sunlight is said to be the best of disinfectants; electric light the most efficient policeman." (1) It is axiomatic that transparency underlies the United States capital markets and the entire public company mandatory disclosure scheme. (2) Periodic reports and public offering registration documents are intended to provide potential investors and current shareholders with the information necessary to make informed decisions whether to buy, sell, or hold securities. (3) Disclosure of such extensive information comes at a price--periodic disclosure documents can reach several hundred pages, costing companies and their management and directors, significant expense and time. (4) The federal securities laws' focus on disclosure, transparency, and informed investor choice are not only important tools against investment fraud but are also thought to be important deterrents to other undesirable corporate conduct and decision making. (5) Yet, it seems that no matter how much information is currently disclosed, with each new financial or corporate scandal, even more disclosure is compelled in response. (6) It is no surprise, then, that disclosure requirements have grown as a result of the 2008 collapse of Bear Steams and Lehman Brothers.