Corporate Information Transparency、Cash Holdings and Firms’ Value

• Main Authors: Wu, Pei-Yu, 吳珮瑜
• Other Authors: LIN, Yi-Hua
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/32015494898886067409

碩士 === 南台科技大學 === 會計資訊系 === 98 === Many fraud events such as the Asian financial crisis, Enron, WorldCom, Taiwan’s Boda case etc. make the investing public lose confidence. In 2003, Taiwan’s SEC has evaluated information transparency of all listed companies. The screening system can reduce information asymmetries between investors and companies and protect investors’ interests. If firms’ information transparency is better, they can gain more capital from capital market so they will hold less cash. Therefore, we predict that information transparency is negatively related to cash holdings. However, more cash holdings will worsen the agency problem in firms with worse information transparency. It will lead to less firms’ value. We use data from Information Disclosure and Transparence Ranking System to test our hypotheses. Our results show that the higher information transparency scores, the more cash holdings and firms’ value. However, the better TCRI scores, the less cash holdings and firms’ value are higher. This study also explored the impact of information transparency on the relationship between dividends and firm value. The results show that company's dividend payment can enhance the value of the company in firms with worse information transparency.