Information Opacity and Investment Attractiveness of Enterprises
The purpose of our research is to assess the impact of the quality of financial information on investment attractiveness. The article considers the main factors influencing the objectivity of the financial statements. The risk description is given special attention to the users of the financial statements.
Method: The article considers basic theoretical approaches that emerged in modern science to identify distortion of objectivity of the financial information. We conduct a detailed review of the articles on the research issues, which form the methodological base of the study, both primary and secondary sources of information are considered to ascertain how the distortion of information was detected and what actions should be taken to identify it. The practical significance of the research is that the aspects examined allow us to assess the extent of the problem; to the formulate ways of its elimination and control that can become the basis for the formation of favorable investment climate. The scientific value research is that it can be used by managers, auditors, investors to identify cases of intentional distortion of information in accounting; the study includes a description of typical situations in which a poor reflection of information leads to duplication of data, as well as a description of the main features of window dressing of financial statements and falsification of information used in the Russian practice.
KeywordsDistortion of information Financial statements Falsification Investment climate Investments Window dressing of financial statements
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