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Corporate Financial Reporting: Its Roles in Capital Market

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Corporate Financial Reporting: Its Roles in Capital Market
In capital market, the financial reporting and corporate disclosure are important since they can provide useful and necessary information in order to drive the efficient market. From the given research paper, there are many researches on financial reporting and corporate disclosure. The researches examine the forces that enhance the demand for the financial reporting and disclosure in a modern capital market economy and the forces that give rise to the institution that ensure the creditability of the financial reporting and disclosure. The paper reviews on the regulation, effectiveness of auditor, and information intermediaries that are related to the financial reporting and corporate disclosure. The economic determinants and the capital market consequences of managers’ financial reporting and disclosure decision were examined in this research paper as well.
A critical challenge part in every economic is how to optimize the allocation of saving and investment opportunities. Economies that do well in optimizing the allocation between saving and investing can increase new business ideas, jobs, and wealth at the rapid speed. There are many new and existing businesses that would like to attract those saving people to fund their business. However, there is the complication in matching those saving and investment opportunities which may

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