| Summary: | 碩士 === 中國文化大學 === 會計研究所 === 97 === The purpose of this study is to explore the impact of information transparency on information content of the credit rating. Using the 2007 corporate credit risk index (TCRI) published by the Taiwan Economic Journal (TEJ), stock abnormal return measured by the market model, and transparency degree derived from the information transparency and ranking results published by the Securities and Futures Institute (SFI), this research is empirically conducted. After controlling for the potential factors, the findings demonstrate that the interaction between high information transparency and credit rating downgrade of low-grade companies is negatively associated with the accumulated abnormal return (CAR), indicating that transparency helps investors locate the downgrade bad news. The results lend support the notion that transparency moderates the information content of the credit rating disclosures.
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