Research On The Correlation Between The Transparency Of Accounting Information And The Cost Of Equity Capital

"transparency" takes attation gradually since the U.S. Securities and Exchange Commission use this concept in the interpretation of "quality".Securities market in our country is growing rapidly, but the accounting information disclosure of overall listed companies is not optimistic,for example,Yunnan Green-land Biological Tech-nology Company is investigated by China Securities Regulatory Commission because of information disclosure violation.Guangxia(Yinchuan) Industry company and China United Enterprise aren't disclosed in time,so they are condemned by Shenzhen Stock Exchange.In addition,Qinghai Fengzhen industry company violates the provision when decreases shares,and criticismed by Shenzhen Stock Exchange too.Such casees are moro and more,and "transparency" has become the focus,but the research on transparency issues are deficient. "transparency"is not previously defined until now,and its evaluation results is only announced by Shenzhen Stock Exchange,the evaluation results including excellent,good, qualified and unqualified four categories altogether, This evaluation method can't match the evaluation systems of Standard & Poor's and other foreign rating agencies. therefore,it's necessary to study transparency of accounting information further.The content this paper is divided into five parts:the first part is the introduction, this paper expounds the research background, and points out the theoretical and practical significance, and then analyzes the existing research results at home and abroad detailedly. Research results mainly divided into two directions:research to the influential factors and economic consequences,this paper studies belongs to one of the economic consequences triggered by accounting information transparency, namely, research on the correlation between the transparency of accounting information and the costs of equity capital. Meanwhile, this section also introduced research ideas, research methods, innovation and deficiencies. The second part analyzes the theory about the accounting information transparency and equity capital cost, including the information asymmetry theory, principal-agent theory and efficient market theory. They explain respectively how accounting information transparency impacts the cost of equity capital. The third part describes and analysises present situation about the correlation between accounting information transparency and equity capital cost, specifically,it including basic definitions and correlation analysis of accounting information transparency and equity capital cost.Because our country has promulgated laws and regulations to restrain information disclosure, which promotes information disclosure enhance gradually. It has three aspects for accounting information transparency influences equity capital cost, but it need to do further study whether the quantitative relationship exists between them. In the fourth part, this paper analyses the correlation of accounting information transparency and the cost of capital in empirical research, selected listed company data of A-share in motherboard of Shenzhen Stock Exchange as sample, and establishes the accounting information transparency and equity capital cost correlation research model, then using SPSS software, analyzes on variables of the model including descriptive statistics,the correlation analysis, multiple altogether linear diagnosis and multiple regression analysis, the results indicate that the accounting information transparency and equity capital cost is related inversely:the higher accounting information transparency, the lower equity capital cost. The fifth part proposes countermeasures and the future research prospect. According to the conclusion of the study,this paper gives out countermeasures from the macro and micro level on how to reduce equity capital cost by improving accounting information transparency. The macroscopic level advices mainly based on market economic environment, suggest to perfect accounting information transparency measure index system and strengthen supervision, perfect civil compensation mechanism, construction of vocational analyst team; Microcosmic suggestions are mainly based on the Angle of the listed company, they can realize the accounting information transparency in the generation and transfer process by perfecting the internal management structure, strengthening the supervision of company controller, improving accountant's professional judgments. At the same time, this paper also put forward of future research prospects according to the limitations, hoping more scholars continue to study. This paper's innovation points are that:first, the paper defines the accounting information transparency, which emphasizes that transparent accounting information enables users of the information understanding the actual operating conditions of the company clearly through financial data. And points out that listed company should give attention to information quantity and quality in the disclosure process. Secondly, this paper fixes empirical research model, the modle selects the information disclosure results of Shenzhen Stock Exchange to'measure accounting information transparency, uses residual income discount model calculate the equity capital cost, choose the financial leverage coefficient, net assets yield, book to price ratio, stock liquidity as control variables, the revised model can better analyzes the correlation of the accounting information transparency and the correlation of equity capital costs.