Disseminating information that could compromise a company's competitive advantage would be ludicrous. However, we do believe that the level of secrecy that exists in the high-tech investment world has clearly surpassed this simple requirement. In addition, IBM and Hewlett-Packard fail to disclose even the revenues of their entire respective PC operations, much less the profits. A much more valid concern inhibiting disclosure is the plethora of superfluous high tech shareholder lawsuits. However, typically these lawsuits arise from companies making zealous projections about the future, not from providing more complete disclosure of past events.
Executives do have rational reasons for refusing to disclose information about their businesses.
However, they should recognize that reduced disclosure is offset by the costs of reduced valuation and increased volatility. Above the Crowd is a bi-weekly publication focusing on the evolution and economics of the Internet. Above The Crowd is a service mark of J. William Gurley . 1995-99 CNET Inc. All rights reserved.