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The "information effect" refers to the notion that:

  1. a corporation's actions may convey information about its future prospects.

 

2. management is reluctant to provide financial information that is not required by law.

 

3. agents incur costs in trying to obtain information.

 

4. the financial manager should attempt to manage sensitive information about the firm.

Project Finance Cash Flow Forecasting Financial Reporting Financial Systems Feasibility Studies
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Question ajoutée par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date de publication: 2015/06/09
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Shahbaz Hayder
par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option1 is the right answer.

Zehab Osman
par Zehab Osman , Accountant , Aldar Consultancy Co.

no1 -----------------------------------------

Shazia Anees
par Shazia Anees , Assistant Manager Finance , Arham Trading Company

  1. a corporation's actions may convey information about its future prospects.

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