Corporate Disclosure Policies and Their Impact on Information Transparency

Abstract

This research introduces a novel computational framework for analyzing corporate
disclosure policies through the lens of information entropy and semantic network analysis, moving beyond traditional content analysis methods. We propose that information
transparency is not merely a function of disclosure volume but rather the structural
coherence, contextual relevance, and semantic accessibility of disclosed information.
Our methodology employs natural language processing techniques to deconstruct corporate disclosures into semantic networks, measuring transparency through metrics
of information density, conceptual connectivity, and contextual alignment with stakeholder information needs. We develop a transparency index that accounts for both
quantitative and qualitative dimensions of disclosure, incorporating temporal consistency, conceptual clarity, and stakeholder-specific relevance. The study analyzes 2,500
corporate disclosures from technology, financial services, and manufacturing sectors
over a five-year period, revealing that traditional compliance-focused disclosure policies often create information overload without corresponding transparency gains. Our
findings demonstrate that the most transparent disclosures exhibit specific structural
properties: moderate information density (0.45-0.65 entropy units), high conceptual
connectivity (network centrality ¿ 0.7), and strong alignment between disclosed information and stakeholder decision contexts (contextual relevance ¿ 0.8). We identify
three novel disclosure policy archetypes—contextual, structural, and adaptive—that
optimize different dimensions of transparency. The research contributes to information
systems literature by providing a computational framework for transparency assessment, offering practical guidance for designing disclosure policies that enhance genuine
information accessibility rather than merely satisfying regulatory requirements. Our
approach represents a paradigm shift from viewing disclosure as information delivery
to understanding it as information architecture designed for cognitive accessibility.