The flow of information between the investors, users, the public and issuers lacks a required level dissemination of publicly and privately available data or information, for an effective and efficient capital investment,” he observed.
“And the rules of perfect competition tell us that until you have perfect information flow, there cannot be efficiency. And where economic agents depend on past information, the market is said to be just achieving weak form efficiency, and in cases where past and publicly available information is utilized by investors, there is semi-strong form efficiency. Now, wait for this one.
Strong form efficiency is where we have reliance on past information- publicly available and privately available information. Africans are fond of secrecy. And where we have secrecy, we cannot have a perfect information flow, meaning the privately available information is kept private.
Investors are not aware. And therefore, why am I saying this? It brings to the fore the importance of disclosure and information sharing with both investors, users, the public, and all,” he said.
On behalf of the Governor Of Central Bank, Mendy addressed the paramount issue of efficiency and credibility to the Standards Committee for financial Reporting, Auditing and Corporate Governance under the auspices of the Financial Reporting Oversight Board and the Gamba Institute of Chartered Accountants and JICA.
“This milestone represents” he reiterated, “a collective commitment to strengthening the account of transparency, accountability, and good governance, essential for sustainable economic development in our country."
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