Incentives for Disclosure Needed to Improve Corporate Governance
Date: 31 January 2012
Source: Federal Reserve Bank of New York
This Staff Report from the Federal Reserve Bank of New York argues that the existing regime for information disclosure is “primarily one of compliance”, and that to improve corporate governance, reforms should be directed toward providing incentives for disclosure, rather than mandating it. One particular regulatory development singled out as beneficial in this respect is the development of resolution regimes, or “living wills”. The paper calls for more research to be done on the relation between information, disclosure, and governance, so that regulation can better judge the balance between mandated and incentivised disclosure regimes.