Different parties have an interest in financial information about a company. These are called stakeholders. Investors, lenders and shareholders are all possible stakeholders in Schonhardt Industries. This press release was published by the president to help improve the company’s image. Investors need to feel confident about the profitability of their investments as they involve substantial monetary withdrawals. As a result, they will be interested in receiving appropriate financial information on financial performance over a particular time to aid educated decision-making when deciding whether or not to invest in a company’s shares (Durocher & Fortin, 2021). When crucial information regarding a company’s financial attributes is hidden, investors might make decisions that are not possible if they have access to the entire information. In this instance, shareholders are included as well. The person who has invested capital in the company’s shares for the purpose of earning a profit is called a shareholder. Dividends should be paid to them as a return on their investments. Shareholders are misled into believing that investments are performing well, and they should not worry. This does not reflect the current financial position of the company. The corporation’s president may have been afraid of news releases that would reveal the true financial status of the business, which could have further damaged the already declining image.
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