expected future cash flows

Share price is based on expected future cash flows.
Expected future cash flows are uncertain. With regards to SDL, investors presently face adverse selection and moral hazard problems. However, Directors' reputation and credibility can help to reduce these adverse selection and moral hazard problems. Cornerstone investors can help to increase Directors' credibility and reduce investors' adverse selection and moral hazard problems. Hence, more disclosures by SDL are required to reduce this uncertainty.