Information and institutions in the capital market

In the capital market information and institutions are logically coordinate concepts. The paper argues that it is impossible to derive a complete view of the role played by capital market institutions without constructing a theory of information, a theory of institutions, and a theory of how the two are related. Consideration is given to existing epistomological and methological approaches to information and institutions. On this basis a new approach is outlined and its relevance to accounting demonstrated by analysing one major problem currently facing the accounting profession.