| Summary: | 碩士 === 國立臺北大學 === 財政學系 === 106 === As several financial frauds occurred in Taiwan in recent years, many scholars and experts turn their attention to non-financial information in their assessment of corporate risks. However, previous studies had hardly considered information transparency in their models. Therefore, this study utilizes the ratings from Information Disclosure and Transparency Ranking System (IDTRS) to test the important of information transparency for corporate risk assessment.
This study employs survival analysis with both financial and non-financial variables to explore the relationship between information transparency and corporate risk for firms listed by the Taiwan Stock Exchange and Taipei Exchange. The empirical analysis shows that good ratings on information transparency are associated with lower corporate risk and higher probability of survival. As a result, companies with poor rating on information transparency have shorter expected survival time, all else being equal. Therefore, to reduce the potential risks from information asymmetry, investors should take into account of information transparency in their assessment of companies.
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