An Inverted U-shaped Relationship between Information Transparency and Idiosyncratic Risk

• 발행기관: 한국유통과학회
• 저자명: Yi Chang Chen Mao Feng Kao Hui Cheng Yu Yuwen Yang Yixuan Fu
• 간행물 정보: 『KODISA ICBE (International Conference on Business and Economics)』2017 International Conference on Business and Economics (ICBE 2017), 157~159쪽, 전체 3쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2017.07.06

영문 초록

Prior literature indicates that the endogeneity problem exists between information transparency and idiosyncratic risk, and that the results of the impact of transparency on risk are still inconclusive. This study attempts to employ a simultaneous equation model to investigate the non-linear relationship between information transparency and idiosyncratic risk. The variables of firm’s information transparency are drawn from the “Annual Report on China’s Companies’ Public Transparency” published by the China Social Science Academic Press. The finding indicates that an inverted U-shaped relationship exists between information transparency and idiosyncratic risk. The empirical result of the non-linear relation not only confirms the disclosure theory that the relationship between information transparency and idiosyncratic risk is negative, but also explains the inconsistent evidence in previous research.

목차

Abstract

1. Introduction

2. Literature Review

2. Methodology

3. Results

4. Concluding Remarks

References

키워드

Information Transparency Idiosyncratic Risk Non-Linear Relation Simultaneous Equation Disclosure Theory