155k views
1 vote
Which stakeholders are likely to be interested in financial information about a large company with listed shares, and why?

User Rupali
by
7.8k points

1 Answer

3 votes

Final answer:

The primary stakeholders interested in a large company's financial information include shareholders, bondholders, employees, customers, suppliers, and local communities. These groups seek such data to gauge the firm's profitability, returns on investments, job security, product quality, and overall economic impact.

Step-by-step explanation:

Stakeholders likely to be interested in financial information about a large company with listed shares include a variety of groups due to different motivations. Shareholders or stockholders are the most direct stakeholders as they own the company and are primarily interested in the firm's profitability and receiving a return on their investment.

They influence the company by voting for the board of directors, who oversee the company's management.

Other stakeholders include bondholders, employees, customers, suppliers, and communities where the company operates.

They are interested in financial information for reasons ranging from assessing the company's ability to repay debts, job security, product and service quality to the firm's general impact on local economies and environments.

As the company matures and its market presence grows, information about its products, revenues, costs, and profits becomes widely available, increasing the willingness of external investors not personally acquainted with the management to invest.

This dynamic underscores the importance of disseminating financial information to a broad range of stakeholders potentially influencing firm capital.

User Shridatt
by
6.9k points