Abstract:
This study focuses on whether information transparency can reduce a firms idiosyncratic risk. We measure information transparency from an annual report on the public transparency of Chinese companies. Using a simultaneous equations approach, we find that idiosyncratic risk is reduced when a firm discloses more financial and non-financial information. Our results highlight the importance of information transfer in an emerging economy.
Citation:
Yu, Hui-Cheng/Kao, Mao-Feng et. al. (2017). Firm transparency and idiosyncratic risk. In: Economics and Business Letters 6 (3), S. 81 - 87.
doi:10.17811/ebl.6.3.2017.%25p.