The Information Future Of The Corporate Board
Corporate governance is in the news again. Following the high-profile reversals in the financial-services industry, pressure on boards from shareholder activists and regulators to somehow prevent such meltdowns has increased. Despite the growing availability of information about publicly traded companies - for example, via electronic filings and financial analyses on the Internet - directors traditionally rely solely on information that comes from management when they make boardroom decisions. This condition of dependence results termed as "Information asymmetry."