Technology Intensities, Corporate Ownership and Information Transparency

Chung-Hao Hsu, Syou-Ching Lai and Hung-Chih Li

Information disclosure has been a necessary device in the activities of corporate governance, especially in the era of knowledge-based economy. In this regard, we examine the factors that influence information transparency in terms of two dimensions: technology intensities and insiders’ shareholdings. We find that industries with higher technology intensities have higher information transparency. Also, the effects of technology intensities are different in different industries. High-tech firms experiencing increase in insiders’ shareholdings are negatively associated with information transparency. However, relative to high-tech firms, when R&D intensity is high, traditional firms experiencing increase in insiders’ shareholdings are positively associated with information transparency.

Key Words: Information transparency, technology intensities, corporate ownership, R&D

Field: Accounting

DOI : http://dx.doi.org/10.21102/gefj.2015.03.81.07