Still problems with the fiduciary duties

Sometimes signaling is all about covering up reality.
What can be done to alleviate the P/A problem between Investors and management?

from the age:

"Take for instance a recent University of Michigan study. Apparently there's a simple reason why annual reports are hard to read: managers, in many cases, are trying to hide something.
The study, Annual Report Readability, Earnings and Stock Returns, found that the annual reports of underperforming companies are harder to read than those of companies that are performing well."
...
"Opportunistic managers may have incentives to make the annual report harder to read, if good earnings of this year are not persistent or if poor earnings are very persistent"

A funny anecdote from the same page... :

"The old website of WorldCom, which emerged from bankruptcy due to accounting fraud as MCI Inc, is a case in point. It reportedly had a glossary of "essential terms and phrases" that included "wugga wugga" (the sound of a computer program), "blivit" (a bug in a sales pitch), "seedware" (promotional software) and WOMBAT (a bone-headed idea: a Waste Of Money, Brains And Time). "
....
"The link with deceit was made 60 years ago by George Orwell in his seminal essay, Politics And the English Language: "When there is a gap between one's real and one's declared aims, one turns, as it were, instinctively to long words and exhausted idioms, like a cuttlefish squirting out ink … Every such phrase anesthetises a portion of one's brain.""
...

So what's the effect on disclosure and the annual reports? Is increasing the demands for disclosure in the interests of investors (and society) or will it just give management another tool for covering up?

"According to deputy chairman Jeremy Cooper, issuers and advisers still had to get their heads around what disclosure actually meant. "So far, there's been a lot of 'over-disclosure' as a means of limiting liability," he said at the time."