Business Information Transparency: Causes and Evaluation Possibilities

Modeling information transparency of economic entities under uncertainty

“…The methodology of information transparency evaluation includes a wide scope of modern methods, from social research to modeling; results of many surveys and observations are studied using econometric tools. The results of critical analysis presented in the article [16] show that there are different approaches to transparency evaluation (market-based, analyst perception-based and accountingbased measures) and researchers invoke different techniques including web content analysis, verbal protocol study, principal component analysis etc. However, it is index approach that has gained popularity in this area of research.…”

“…The initial condition should be specified when t = 0. We introduce the following notation: (2) Then for t  0 we can find:…”

“…On the other hand, insufficient disclosure of information may result in an attempt to compensate for it with some other, forecasted, predicted, guessed, insider information, trustworthiness and reliability of which may not be sufficient to make an effective management decision. The authors of the article [2] point out that transparency arises under the condition of certain balance between the degree of information disclosure and the degree of its perception and understanding by users. Hence, we can make a conclusion that only limited (up to a certain level) visibility ensures high level of transparency, provided that it is the key and quality information that is disclosed, not its noises.…”

“…In general, the degree of information transparency determines the associated risk of its disclosure or concealment. According to the article [2], information visibility is determined by how responsible its providers are, that is, how consciously they assess the advantages, necessity and need to disclose certain amout and type f information. The attitude and policy of an economic entity in terms of establishing the boundaries of information transparency determine the degree of confidence it enjoys as an information provider and medium.…”

“…Information transparency is a possibility for any economic stakeholders to track the chain of actions and stages of forming the information content [1] which is important enough to make effective management decisions. On the one hand, information transparency in required scope ensures that its provider can be held accountable for the content and consequences of its disclosure, while on the other it builds trust and reliance on a company and reduces alienation between interaction parties [2]. That is, systemic information transparency determines positive expectations regarding company development, builds up confidence and improves business climate, which is always relevant in the context of competition, economic downturn, changes in socio-political and socio-economic vectors of development.…”