Title: An empirical study of disclosure effects in listed biotechnology and medicine industry using MLR model
Authors: Chiung-Lin Chiu; You-Shyang Chen
Addresses: Department of Business Administration and Department of Information Technology, Hwa Hsia University of Technology, No. 111, Gongzhuan Rd., Zhonghe Dist., New Taipei City, 235, Taiwan ' Department of Business Administration and Department of Information Technology, Hwa Hsia University of Technology, No. 111, Gongzhuan Rd., Zhonghe Dist., New Taipei City, 235, Taiwan
Abstract: This research employs the multiple linear regression model to investigate the relationship between voluntary disclosure and firm performance in biotechnology and medicine industry in Taiwan. Using 44 firm-year observations collected from Information Transparency and Disclosure Ranking System and Taiwan Economic Journal financial database for companies listed in the Taiwan Stock Exchange and Taipei Exchange Market, the regression results reveal that there is a positive and significant relationship between voluntary disclosure and firm performance. Firms with better voluntary disclosure have better performance than do firms without voluntary disclosure. The results suggest that companies should pay more attention to voluntary disclosure as additional information. It is also considered by investors as valuable information when making their investment decision.
Keywords: voluntary disclosure; firm performance; investment decision; multiple linear regression model; MLR; biotechnology and medicine industry; Taiwan Stock Exchange; TSE; information transparency and disclosure ranking system; ITDRS.
International Journal of Computational Science and Engineering, 2019 Vol.18 No.2, pp.195 - 200
Received: 03 Dec 2015
Accepted: 04 Aug 2016
Published online: 14 Feb 2019 *