The financial industry uses public funds to engage in investment and other activities, acting as a fund intermediary. In order to maintain the stability of financial order, improve the operation of financial institutions, and protect the rights and interests of the general public, the information transparency of company can reduce the information asymmetry between the corporate insiders and outsiders. Financial holding companies should disclose the company's major financial and non-financial information in a timely and true manner, and the overall risks that can be assumed are reasonably and assessed in order to maintain the group's steady operation. Therefore, the financial holding company has to maintain the capital adequacy ratio, coverage ratio of allowances for bad debt and information transparency. This paper uses financial holding companies in Taiwan from 2005 to 2014 as a sample, and uses the "Information Disclosure Evaluation System" established by the Securities and Exchange Commission as the proxy variable of information transparency, and uses a simultaneous equation model to explore the interrelationship between operational risk and information transparency. The empirical results of this paper find that the capital adequacy ratio has a significant negative interrelationship to information transparency, the coverage ratio of allowances for bad debt has a significant positive interrelationship to information transparency, and the coverage ratio of allowances for bad debt has a significant positive interrelationship to capital adequacy ratio.
