Information Disclosure Quality Research On The Influence Of The Cost Of Equity Capital

Information disclosure system of listed companies in capital market development has an important role, it can protect the legitimate rights and interests of investors, is conducive to the operation and management of listed companies, to ensure stable operation of the securities market. Because investors are not directly involved in the operation and management of listed companies, only through information disclosure of listed companies to understand the financial position and operating results of listed companies, cash flow, etc., and used to make investment decisions. Therefore listed companies must undertake the disclosure obligation, disclosing all decision-making information what can affect users. Information disclosure of listed companies is mainly to alleviate the existence of asymmetric information situation, Full and accurate disclosure of information of listed company can reduce the degree of information asymmetry to affects investor’s decision, to guide capital flows to capital market, ensured the effective operation of capital market.At present, the listed company information disclosure status quo is not satisfactory, it is not timely, and the earnings management phenomenon is widespread, even there is information distortion situation. At the same time, the listed companies are more inclined to think it is the obligations, they lack of initiative. Cannot be denied, however, is the listed company information disclosure quality continues to improve. But compared with western developed countries, our country listed company information disclosure quality is lower, the quality of information disclosure has a lot of room to improve, the marginal benefit through improve the quality of information disclosure of listed companies to reduce the cost of equity capital is greater. Therefore, research the relationship between disclosure quality and cost of equity capital has very strong practical significance.Based on asymmetric information theory as A research starting point, choosing OJ model to calculate the cost of equity capital, choosing the shenzhen stock exchange information disclosure of the evaluation results to measure the quality of information disclosure of listed companies, and controlling the macroeconomic factors, corporate finance, corporate governance, research how the information disclosure quality impact on equity capital costs. The empirical analysis shows that the equity capital cost is negatively related to the quality of information disclosure. According to the nature of the property, the total samples will be divided into state-owned and non-state-owned listed companies, the empirical analysis shows that in the non-state-owned listed companies, information disclosure quality’s influence on the cost of equity capital is more significant.This paper have six parts, including introduction, literature review, the basic theory, research design, the empirical analysis, conclusions and policy recommendations.The first part is the introduction, mainly introduced the research background, research purpose and significance and methods. Based on the current status of information disclosure and related research results both at home and abroad, puts forward the importance of information disclosure quality affects the cost of equity capital.The second part is the literature review. From two aspects of theoretical research and empirical research, reviewed the research of how disclosure quality affects cost of equity capital, both at home and abroad.The third part is the basic theory. This part introduces the connotation of information disclosure quality, and the index which is used to measure the disclosure quality, is commonly used at home and abroad. Meanwhile, this part introduces the concept of the cost of equity capital, and the commonly used model of estimated costs. Then, illustrates the theoretical basis between disclosure quality and cost of equity capital, including asymmetric information theory, capital markets information transfer law and predict risk theory. Then, this paper expounds the mechanism about how information disclosure affects equity capital cost.Fourth part is the research design, on the basis of theoretical analysis and literature review presented in this paper, put forward the research hypothesis, introduces the explanatory variables, and control variables. At last, illustrates the sample selection process and the source of data and the model of the empirical research.The fifth part is the empirical analysis, including descriptive statistics analysis, correlation analysis and regression analysis. Descriptive statistical analysis shows that the basic characteristics of the variables, and through the annual analysis proved the stability of the data points. Through correlation coefficient and variance coefficient of expansion table preliminary verified the relationship among different variables, and prove that there is no serious multi-collinearity among variables. Finally, the first hypothesis is verified by regression analysis with the whole samples, that is the information disclosure quality and cost of equity financing is significantly negative correlation. And according to the nature of ultimate control person, the sample is divided into state-owned enterprises and non-state-owned enterprises, through regression analysis showed that in non-state enterprises, information disclosure quality’s influence on the cost of equity financing is more significant.The sixth is divided into research conclusions and policy recommendations. Based on the current situation of information disclosure in China, combined with empirical research and analysis, puts forward some policy Suggestions from the listed company internal and external:modify relevant laws and regulations system, standardize information disclosure of listed companies; Perfect the information disclosure quality evaluation system, to guide the listed company information disclosure behavior; Strengthen the internal governance of listed companies, to improve the quality of information disclosure; Strengthening education to investors, sets up the correct investment concept.There is some contribution and limitations. The contribution is:Enrich the research achievements of this field how information disclosure quality affects the cost of equity capital. The second is introducing the macroeconomic factors, extend the model for empirical analysis. The research shows that Macroeconomic environment significantly negative correlation with equity capital cost. The better economic environment, companies are more likely to raise funds, equity financing cost is lower. The limitation is: As a result of the limitation of sample size, not considering the influence of industry factors in the process of study. And because the use of the shenzhen stock exchange information disclosure of the evaluation results, so the sample company includes only shenzhen which has the qualification of refinancing of listed companies. Finally, the control variables in the model is not comprehensive, and other factors that affect the cost of equity financing does not take into account, the future research can expand in these respects, further verify the information disclosure quality’s influence on the cost of equity financing.