In today’s briefing:
- Independent Directors Are Responsible for Disclosures that Have Gaps from the Investors’ Perspective
Independent Directors Are Responsible for Disclosures that Have Gaps from the Investors’ Perspective
- In many cases of bad disclosures where the capital allocation policy has not been adequately considered, the company often fails to develop a concrete growth strategy using cash.
- The reason for the misaligned disclosures with investors may be that the company lacks the process to produce projected financial statements and to estimate corporate value/share price calculated from DCF.
- If a plan containing unreasonable figures is disclosed as is, the independent outside director may not be involved in the decision making or may not be accompanied by adequate skills.
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