Horizontal Flows (Application Dimension)

  • External → Internal: Market data, regulatory requirements, investor feedback, credit ratings
  • Internal → External: Financial reports, guidance, strategic communications, dividend policies

Vertical Flows (Construction Dimension)

  • Economics → Accounting: Strategic decisions become recorded transactions, market values become book values
  • Accounting → Economics: Historical data informs future strategy, compliance constraints shape economic decisions

Cross-Quadrant Information Dependencies

Investment/Trading ←→ Corporate Finance
    ↕                    ↕
Audit/Tax        ←→ FP&A/Treasury

Key Information Asymmetries:

  • Market participants vs. company insiders
  • Management vs. shareholders
  • Current vs. future stakeholders
  • Regulated vs. unregulated information