| dc.description.abstract | This study examines the impact of the readability of the narrative disclosure of corporate R&D activities on the investment efficiency of the companies themselves and their suppliers, a total of 116 listed companies in the semiconductor industry in Taiwan from 2010 to 2019 were used as the sample for the study. Since Taiwan′s semiconductor industry ranks second in the world in terms of total production value, which indicates that Taiwan′s semiconductor industry has a significant position in the world, and semiconductor is the industry with the highest R&D intensity, the information disclosed by its R&D activities will be relied on by different stakeholders in making decisions, therefore, the semiconductor industry is selected as the target of this study. The empirical results show that when companies improve the readability of the narrative disclosure of R&D activities, the information asymmetry with external investors can be mitigated, which in turn improves the ability of investors to monitor the company or reduces the cost of capital, which will ultimately improve the efficiency of corporate investment. This study also found that the higher the readability of the narrative disclosure of customers′ R&D activities, the higher the quality of decision information provided to suppliers, which can alleviate suppliers′ misunderstanding of customers′ future needs due to asymmetric information, and help them make more appropriate investment decisions to meet future customers′ needs, thus ultimately enhancing suppliers′ investment efficiency.
This study not only found that improving the readability of the narrative disclosure of R&D activities will improve the investment efficiency of the company, but also help the suppliers to improve their investment efficiency, which confirmed that the disclosure of R&D activities would affect the decision making of stakeholders at different levels in the supply chain besides the investors, and after adjusting the disclosure year and sensitivity analysis of the replacement investment efficiency model, the causality of this study is still confirmed. | en_US |