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Review of Quantitative Finance and Accounting

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25.09.2018 | Original Research

Information disclosure, transparency ranking system and firms’ value deviation: evidence from Taiwan

verfasst von: Chien-Chi Chu, Kung-Cheng Ho, Chia-Chun Lo, Andreas Karathanasopoulos, I-Ming Jiang

Erschienen in: Review of Quantitative Finance and Accounting | Ausgabe 3/2019

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Abstract

We examine whether the implementation of the information disclosure and transparency ranking system (IDTRS) affects firms’ value deviation in Taiwan using the annual reports of the listed companies for the period 2001–2004. Using firms’ value deviation as a proxy for information disclosure, we find that reducing information asymmetry can allay moral hazard. We also document a significant difference in the level of information disclosure in the years before and after the IDTRS implementation. Stronger information transparency can strengthen investment certainty and lead to less forecasting errors.

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The 114 questions used to compile the transparency scores for each sample firm are shown in Appendix 3 (Pan et al. 2015).

In 2003–2004, the firm information disclosure score separates disclosure and nondisclosure.

We also separate these two types of firms and compare the results includes both the firms traded on Taiwan Stock Exchange and the firms traded on OTC. Both two type IDTRS of firms have similar result. Because of the limitation of length, we use the description instead of the form.

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Titel: Information disclosure, transparency ranking system and firms’ value deviation: evidence from Taiwan
verfasst von: Chien-Chi Chu
Kung-Cheng Ho
Chia-Chun Lo
Andreas Karathanasopoulos
I-Ming Jiang
Publikationsdatum: 25.09.2018
Verlag: Springer US
Erschienen in: Review of Quantitative Finance and Accounting / Ausgabe 3/2019
Print ISSN: 0924-865X
Elektronische ISSN: 1573-7179
DOI: https://doi.org/10.1007/s11156-018-0764-z

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