Corporate Transparency: Economic Feasibility and Regulatory Issues

The article deals with the problems of low transparency of Russian companies. The paper analyzes the impact of the regulator on the disclosure of information and incentives for the firm decision-makers to disclose information. On the basis of economic feasibility the link between the transparency of the largest Russian companies and financial results of their activities is estimated. The author concludes that the existence of intrinsic motivation to disclose information to attract external funding can be supported by government regulation of issuers.