When new laws imposing strict penalties for misleading corporate disclosures were passed, they were hailed as initiating an era of corporate openness. As an additional benefit, given the increased amount and accuracy of information disclosed under the new laws, it was assumed that analysts' predictions of corporate performance would become more accurate. Since the passage of the laws, however, the number of inaccurate analysts' predictions has not in fact decreased.
Which of the following would, if true, best explain the discrepancy outlined above?
A) The new laws' definition of misleading information can be interpreted in more than one way.
B) The new laws require corporations in all industries to release information at specific times of the year.
C) Even before the new laws were passed, the information most corporations released was true.
D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.
E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.
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Which of the following would, if true, best explain the discrepancy outlined above?
A) The new laws' definition of misleading information can be interpreted in more than one way.
B) The new laws require corporations in all industries to release information at specific times of the year.
C) Even before the new laws were passed, the information most corporations released was true.
D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.
E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.
CR56601.02