The modern firm (if it wishes to interact globally) must open itself up
completely and provide timely, full and accurate information to all.
This is a legal must for public and listed firms the world over (though
standards vary). Transparent accounting practices, clear ownership
structure, available track record and historical performance records -
are sine qua non in today's financing world.
5. From Firms to Firms - This is really a subset of the previous axis
of dissemination. Its distinction is that while the former is concerned
with multilateral, international interactions - this axis is more
inwardly oriented and deals with the goings-on between firms in the
same territory. Here, the desirability of full disclosure is even
stronger. A firm that fails to provide information about itself to
firms on its turf, will likely fall prey to vicious rumours and
informative manipulations by its competitors.
Positive information is characterized by four qualities:
1. Transparency - Knowing the sources of the information, the methods
by which it was obtained, the confirmation that none of it was
unnecessarily suppressed (some would argue that there is no "necessary
suppression") - constitutes the main edifice of transparency.
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