Corporate Governance-The Impacts of Financial Risk and Business Risk on Credit Ratings and Information Disclosure Transparency

• Main Authors: Mu-rong Wong, 翁慕容
• Other Authors: Chui-Chun Tsai
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/02111053729891442683

碩士 === 靜宜大學 === 會計學系研究所 === 95 === This research adopts business risk and financial risk data as variables issued by Taiwan Ratings Corporation to investigate 2006 Securities & Futures Institute’s information disclosure transparency result and Taiwan Ratings Corporation’s long-term credit ratings and ratings outlook results. We input those variables in discriminant analysis method to analysis 17 corporates and 23 financial holding companies and banks. The results of discriminant analysis are as follows: (1) On information disclosure transparency, 94.1% of listed corporates have been classified correctly and hit ratio on A+, A and C up to 100%. Operation performance is significant negative effect on information disclosure ranking. On long-term credit ratings and ratings outlook are 100% have been classified correctly. Degree of operating leverage, degree of product mix diversification and liquidity are significant positive effect on ratings outlook. (2) On information disclosure transparency, long-term credit ratings and ratings outlook are 91.3% of listed financial holding companies and banks have been classified correctly. Hit ratio on A+ and B level of information disclosure transparency up to 100%. Profitability, funds from operations to total debt, and total debt to total debt plus equity are significant positive effect on information disclosure transparency. According the empirical results, we must take more attention on those significantly variables when rating of information disclosure transparency, long-term credit and ratings outlook has been valued.