Abstract
Financial disclosure protects investors from fraud, provides the information allowing investors to make educated decisions, and facilitates capital formation. In proposing ideas to increase the efficiency and effectiveness of the current financial disclosure regulatory regime, this paper attempts to answer two primary questions: 1) Should a simplified form of financial disclosure be introduced?; and 2) How can financial disclosure, and the related body of regulations, be modernized via current technology? Academic studies focused on investor behavior and mental capacity will provide guidance in answering Question One. To answer Question Two, the paper will propose ideas resulting in increased accessibility and user-friendliness for investors, as well as the potential for reduced compliance costs for U.S. corporations in the long-term. In doing so, the paper will analyze relevant actions taken by the SEC, as well as address implementation barriers and globalization concerns. The paper is focused on the inefficiencies and opportunities for improvement within the SEC’s disclosure regulations, so the paper will only examine approaches for simplification and modernization without contradicting the policy reasons behind existing laws and regulations.
Recommended Citation
Tyler Jacobs, The Simplicity in Modernizing Financial Disclosure, 22 Tenn. J. Bus. L. 107 (2020) , DOI: https://doi.org/10.70658/4486-1457.1557https://ir.law.utk.edu/transactions/vol22/iss1/4