Early last month, the Senate announced an inquiry with terms of reference that cover the collapse of Dick Smith Electronics.
There is a lot for senators to pore over in the float and failure of Dick Smith.
In economic theory, the failure of this Australian retailer is consistent with a dynamic economy. Businesses that do not utilise economic resources as efficiently as competitors fall by the wayside. Unfortunately, the failure is also associated with a series of ugly looking events that are inconsistent with an efficient market.
The Senate now has a good opportunity to consider issues that make Australia seem like a nasty place to invest in shares including:
- Divergent financial disclosures and untimely information for …
Read the full article at: http://theconversation.com/the-ugly-story-of-dick-smith-from-float-to-failure-55625