What is the reason given for a relatively low emphasis on public disclosure of financial information in Japan?
A)Significant reliance on bank credit for financing
B)Long-term cross-corporate ownership of stock
C)Income is not viewed as a measure of corporate performance
D)All of the above

Question

Quizplus · Accepted Answer

All of the above reasons are cited as contributing factors to the relatively low emphasis on public disclosure of financial information in Japan. Japanese corporations historically rely heavily on bank credit for financing, which can limit the level of transparency they are required to provide to external stakeholders. Additionally, long-term cross-corporate ownership of stock means that corporate performance is often evaluated based on long-term relationships rather than short-term financial results. Finally, income is not viewed as the primary measure of corporate performance in Japanese culture, leading to a decreased emphasis on financial reporting.

What Is the Reason Given for a Relatively Low Emphasis