Editing Corporate transparency (section)

== Taiwan ==
Corporate transparency in Taiwan is assessed using Information Disclosure and Transparency Ranking System (IDTRS) launched in 2003 by Securities and Futures Institute. Whole process is on voluntary basis with evaluation executed annually in two-stage process where the ranking committee and companies with possibility of expressing their opinions participate.<ref name="Luan & Tien 2019">{{cite journal |last1=Luan |first1=Chin-Jung |last2=Tien |first2=Chengli |title=The Roots of Corporate Transparency: A Mediated Moderation Model to Predict Foreign Institutional Investment |journal=Emerging Markets Finance and Trade |date=19 September 2019 |volume=56 |issue=5 |pages=1024–1042 |doi=10.1080/1540496X.2019.1658066 |s2cid=204441663 }}</ref>

[[Capital markets]] in Taiwan evolved over the recent decades from ones with insufficient protection of shareholders and stock market instability to markets with plausible transparency practices.<ref name="Luan & Tien 2019"/> Establishing IDTRS has increased the level of corporate transparency and information disclosure by Taiwanese companies. Their motivation is driven by the likelihood of their transparency ranking being made public and possible consequences of such action. Disclosing more information mediates [[information asymmetry]], prevents [[moral hazard]] and can lead to higher [[liquidity]] and lower [[cost of capital]]. Ultimately, IDTRS has been successful in stimulating companies to disclose more information, increasing firm value and improving quality of forecasts of firm's performance in stock market.<ref>{{cite journal |last1=Chu |first1=Chien-Chi |last2=Ho |first2=Kung-Cheng |last3=Lo |first3=Chia-Chun |last4=Karathanasopoulos |first4=Andreas |last5=Jiang |first5=I-Ming |title=Information disclosure, transparency ranking system and firms' value deviation: evidence from Taiwan |journal=Review of Quantitative Finance and Accounting |date=25 September 2018 |volume=53 |issue=3 |pages=721–747 |doi=10.1007/s11156-018-0764-z |s2cid=254985205 }}</ref>