While the creation of the Internet has allowed information to flow more efficiently and effectively, it has also resulted in extreme volatility in the markets. An example of such is the oil prices, where its price can fluctuate more than 3% in a week due to a simple announcement of the performance of US economy.
This led to the importance of information and especially the "appearance" of it.
What do I mean by appearance? People form views or perceptions on every piece of information they gather and how we perceive it is different from one another. Someone's good news may someone's bad news. As such, these perceptions creates individual opinions of how the market will move, hence impacting the markets (or prices) differently.
While this might not be the only reason as to why more companies are falsely reporting their financial performance, I believe it is one of the main ......