The Impact Of Globalization And Financial Reporting On The Efficiency Of Financial Markets: An Assessment From Its Perspective
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This paper evaluates the role of financial reporting on the efficiency of financial markets along with the effect of globalization by approaching this subject from the Information Technologies (IT) point of view. The innovations in IT have revolutionized the business world and led to globalization by integrating economies. Since the economics deals with the efficient allocation of limited resources, globalization has become the universal way in the search of efficiency. Globalization is the key for opening the doors of reaching production factors available anywhere. In order to employ highly efficient production factors, information is the essential element that initiates this process. In this matter, IT provides a global meeting ground for those who need financial information. IT's pivotal role derives from the fact that financial markets rely on competent information provided by financial reporting mechanism. In order to avoid misallocation of resources in all aspects of the economy, it is highly essential that financial markets function effectively. With this respect, financial market participants should be fully equipped by high quality information. The quality of financial information will be determined by its such features as relevancy, timeliness, accessibility, and reliability. At this point, IT takes its place to enrich and assure that financial information possesses the mentioned features.