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The ECGI Annual Lecture

Market Transparency and Company Disclosure


11.00 - 12.30, Friday 27 April 2012

The ECGI Annual Lecture which takes place each year following the Institute's General Assembly, will this year take place at the Royal Coin Cabinet, Slottsbacken 6, Gamla Stan, Stockholm. It is open to ECGI members and interested members of the public.  Registration is mandatory. The ECGI is grateful for the support of the Swedish House of Finance and the Swedish Corporate Governance Forum.

Lecture programme | Speaker slides | List of attendees | Video recordings

11.00 - 12.30

Market Transparency and Company Disclosure

Professor Marco Pagano
  Transparency has two dimensions that financial economists and accounting experts tend to analyse separately even though they are closely related. The first dimension concerns the process of security trading: a security market is transparent insofar as its participants are aware of each others' behaviour (e.g. know current bid and ask quotes or recent transaction prices). The second dimension of transparency instead depends on the disclosure decisions of companies: it concerns how much information investors have about company 'fundamentals'. In most cases, both forms of transparency lower transaction costs, and ultimately benefit firms via lower cost of capital and/or better access to external finance. But they may also impose some costs on firms which in some cases may opt for a degree of transparency that is socially inefficient, This in turn could create a rationale for regulatory intervention. Moreover, the two types of transparency are not independent of each other: for instance, if markets are very transparent, firms may want to be less transparent.
  Professor Marco Pagano
Professor of Economics, Facoltà di Economia, Università di Napoli Federico II
and ECGI Fellow
 

Response
Jens Henriksson
President, NASDAQ OMX Stockholm

Jens Henriksson
Moderator
Professor Erik Berglof
Chief Economist and Special Adviser to the President, European Bank for Reconstruction and Development (EBRD)
and ECGI Fellow
Professor Erik Berglof
  Q&A
(from the floor)
 

The ECGI would like to thank the Swedish Corporate Governance Forum for its sponsorship of the 2012 General Assembly and Annual Lecture