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Investors should resist the tyranny of quarterly earnings

In the past few months, I have discovered that almost no one supports the obligation on listed companies to produce quarterly accounts or interim management statements. The European Union is now engaged in the slow process of removing this requirement.

This issue is the tip of a large iceberg. The common reaction to every failure in financial markets has been to demand more disclosure and greater transparency. And, viewed in the abstract, who could dispute the merits of disclosure and transparency? You can never have too much information.

But you can. There are costs to providing information, which is why these obligations have proved unpopular with companies. There are also costs entailed in processing information – even if the only processing you undertake is to recognise that you want to discard it. Many people resent junk mail as they throw it away and pay to have spam filters installed on their computers. They are not convinced by the argument that you never know when you might need counterfeit Viagra or a replica Rolex.

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约翰•凯

约翰•凯(John Kay)从1995年开始为英国《金融时报》撰写manbetx20客户端下载 和商业的专栏。他曾经任教于伦敦商学院和牛津大学。目前他在伦敦manbetx20客户端下载 学院担任访问学者。他有着非常辉煌的从商经历,曾经创办和壮大了一家咨询公司,然后将其转售。约翰•凯著述甚丰,其中包括《企业成功的基础》(Foundations of Corporate Success, 1993)、《市场的真相》(The Truth about Markets, 2003)和近期的《金融投资指南》(The Long and the Short of It: finance and investment for normally intelligent people who are not in the industry)。

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