Review of Quantitative Finance and Accounting

, Volume 53, Issue 3, pp 721–747 | Cite as

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

  • Chien-Chi Chu
  • Kung-Cheng Ho
  • Chia-Chun Lo
  • Andreas Karathanasopoulos
  • I-Ming JiangEmail author
Original Research


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.


Corporate governance Firm value deviation Information disclosure Transparency ranking system 

JEL Classification

G3 G18 G30 G34 K23 



We thank Cheng-Few Lee (the Editor) and two anonymous reviewers for helpful comments. Professor Jiang thanks the Ministry of Science and Technology of Taiwan for partial financial support (MOST 105-2410-H-155-030). This work was also supported by Shantou University under Grant “Shantou University Research Fund” (2015WQNCX031), the Humanistic and Social Science Research Base—Shantou University Research Institute for Cooperation of Guangdong and Taiwan Enterprises under Grant “Major Research Project Fund”, and the fundamental research for the central universities (2017QN034).


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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  • Chien-Chi Chu
    • 1
  • Kung-Cheng Ho
    • 2
  • Chia-Chun Lo
    • 3
  • Andreas Karathanasopoulos
    • 4
  • I-Ming Jiang
    • 5
    Email author
  1. 1.Department of Applied Economics, Business SchoolShantou UniversityShantouChina
  2. 2.School of FinanceZhongnan University of Economics and LawWuhanChina
  3. 3.Prince Mohammad Bin Salman College (MBSC)King Abdullah Economic CityKingdom of Saudi Arabia
  4. 4.Olayan School of BusinessAmerican University of BeirutBeirutLebanon
  5. 5.Faculty of Digital Finance, College of ManagementYuan Ze UniversityTaoyuanTaiwan, ROC

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