An intelligent method to forecast transparency of information disclosure of listed companies in Taiwan

Abstract

In capital markets, investors must rely on timely and reliable decision-making information to judge. Transparency of information disclosure is one of the most reliable decision-making information to investors. The more transparent information is, the stronger investor decision-making ability would be. Despite the fact that the official will release the annual evaluation results regularly, the results of evaluation will only to be announced in the following June. Thus, the results of evaluation for the investing public can't be used as an investment guideline. This study proposed an intelligent method to classify and predict the transparency of information disclosure before the annual official report. This study also excavates the hidden knowledge to the explicit rules among the Taiwan's listed company by using data mining techniques. The empirical results show that the proposed method can accurately classify and forecast the transparency of information disclosure. The proposed method is straightforward and efficient.