IPO Disclosures Are Ripe for Reform

Book description

Current financial disclosure rules let would-be public companies paint a too-rosy picture while obscuring information that investors should know. Pre-IPO disclosures have grown increasingly bloated but typically lack information relevant to the likelihood of success for new business models. The authors propose “triggered” disclosures tailored to a company’s value drivers, wherein claims about customer value and potential market size must be supported by the consistent, objective collection of baseline data.

Product information

  • Title: IPO Disclosures Are Ripe for Reform
  • Author(s): Aswath Damodaran, Daniel M. McCarthy, Maxime C. Cohen
  • Release date: June 2022
  • Publisher(s): MIT Sloan Management Review
  • ISBN: 53863MIT63418