Information transparency and idiosyncratic risk.

This study investigates the relation between information transparency and idiosyncratic risk with the unique and nonpublic data of listed companies violating the material information disclosure rules in Taiwan. This study employs the violated companies that do not report or delay the disclosure of material information as sample of worse information transparency. The results show that the companies with worse information transparency have higher idiosyncratic risk and total risk than other companies. The negative connection between information transparency and idiosyncratic risk implies that the current regulations of material information disclosure in Taiwan work efficiently. [ABSTRACT FROM PUBLISHER]