Do transparency and disclosure predict firm performance? Evidence from the Taiwan market

This study investigates whether differences in the quality of firm-level transparency and disclosure of corporate governance practices help to explain firm performance in a cross-section of companies in Taiwan. This study provides evidence that is consistent with Taiwanese regulators’ initiatives that good corporate disclosure practices play a significant role in firm performance. Finally, the results show that the back-propagation neural network approach can be successfully implemented to predict the financial market-based performance of a firm.