Senior Execs Say Companies Should Disclose More Information

ByJohn S. McClenahen Not surprisingly, data from a new PricewaterhouseCoopers (PwC) study show sizable majorities of senior executives in multinational companies in the U.S. and Western Europe saying their firms provide a lot of information to independent directors, securities analysts and investors. However, a surprising 38% in the U.S. and 44% in Western Europe contend that if they were outside investors they would expect more information. "In the wake of corporate reporting scandals, better than 90% of top executives on both sides of the Atlantic now clearly recognize the importance of transparency for their company," says Robert Eccles, a senior fellow at PwC. "Likewise, they understand that the lack of transparency can lead to negative consequences for the capital markets ranging from a loss of investor confidence to weak economic growth." Some 70% of the U.S. executives surveyed and 71% of those in Western Europe say a lack of transparency reduces investor confidence. And 52% of the U.S. executives and 55% of those in Western Europe see a lack of transparency resulting in weak economic growth.