TY - JOUR T1 - Financial Disclosure and Regulation JF - The Journal of Portfolio Management SP - 107 LP - 115 DO - 10.3905/jpm.2006.611811 VL - 32 IS - 2 AU - Moshe Levy AU - Golan Benita AU - Haim Levy Y1 - 2006/01/31 UR - https://pm-research.com/content/32/2/107.abstract N2 - A portfolio approach is used here to analyze the value of financial disclosure to stockholders and the need for disclosure regulation. This demonstrates that in a portfolio context the degree of public financial disclosure does not influence a firm's value. Hence, if disclosure is costly, firms have no incentive to disclose information voluntarily. Under partial disclosure, however, investors select inefficient portfolios, implying a substantial welfare loss; hence, we need regulation. The analysis provides a framework for determining optimal disclosure from the point of view of social welfare.TOPICS: Portfolio construction, legal/regulatory/public policy, in portfolio management ER -