Information Transparency and Stakeholder Trust: Evidence from Taiwan’s Semiconductor Industry

Abstract

This study examines whether information transparency (IT) enhances stakeholder trust in Taiwan’s semiconductor industry. Using IT scores obtained from the Taiwan Economic Journal (TEJ) database for 179 publicly listed semiconductor firms (86 TWSE and 93 TPEx firms) and questionnaire evaluations from 111 senior executives, the final dataset comprises 19,869 firm–respondent observations. We estimate the relationship using quantile regression, which allows the transparency–trust relationship to vary across different trust levels. The results demonstrate that IT is positively and statistically significantly associated with stakeholder trust across all model specifications (p < .05). Robustness analyses—including subsample comparisons, alternative transparency classifications, and separate analyses of TWSE and TPEx firms—produce consistent findings. More importantly, quantile regression reveals an increasing nonlinear effect, indicating that the positive influence of IT becomes progressively stronger among firms with higher stakeholder trust, suggesting heterogeneous marginal returns to transparency. These findings provide empirical evidence that greater transparency reduces information asymmetry, strengthens corporate accountability, and reinforces stakeholder confidence. From a practical perspective, the results suggest that regulators should continue strengthening disclosure requirements, while managers should regard transparency as a strategic governance mechanism for building long-term stakeholder trust and organizational legitimacy. This study contributes to the literature by demonstrating the heterogeneous trust-enhancing effects of information transparency and by extending sustainability research through its implications for corporate governance and SDGs 9, 12, and 16.