Research On The Relationship Between XBRL And Capital Cost Of Listed Companies

Financial accounting information contained in the report is a window perspective business for people, but also people carried out according to investment decisions. How can the resulting financial statements more accurately reflect the real situation of enterprises to provide a solid foundation for the effective operation and long-term development of the capital market. To achieve this goal it has been unremitting efforts, XBRL(Extensible Business Reporting Language) came into being in the process. XBRL-based financial reporting the biggest advantage is that it can more accurately reflect the financial position of enterprises, and is compatible with different systems. With the rapid expansion of XBRL in the world, more and more countries recognize its superiority and forward-looking. China is the application of XBRL earlier country, our government is also actively promote the development of XBRL in 2004, I launched a pilot in Shanghai and Shenzhen listed companies in XBRL financial report submitted. Thus, the impact on the company’s cost of capital after the listing of the introduction of XBRL research is necessary.In this paper, the standard research and the empirical research to the implementation of XBRL affect our cost of capital of listed companies were discussed. First, based on the analysis of the relevant literature, this paper reviews the researches related concepts XBRL financial reporting and network superiority, XBRL impact on the cost of capital. Then introduce XBRL relations and accounting information, and information and capital markets, and based on this analysis of the role of XBRL on the cost of capital. Finally, select the Shanghai Stock Exchange listed company in 2005- 2014 data sample, the financial data and stock transactions were consolidated and analyzed separately from the cost of debt capital and equity capital both from the company and property the company’s overall governance angle obtained herein six assumptions and empirical research by way of its implementation testing, and data through the regression results confirm the hypothesis of this paper six.Based on this, we come to the conclusion that the mandatory use XBRL, reducing the cost of debt and cost of equity capital of listed companies, while the overall level of corporate governance and property companies have played an important role in influencing XBRL on the cost of capital in the process, the performance of state-owned enterprises cost of capital declined more than the non-state-owned enterprises, the company dropped the high cost of capital is greater than the magnitude of the low level of governance in governance of the company. In this paper, the effect of the application of XBRL empirical research, not only to enrich our research, but also give the regulators, investors get to know XBRL, but also makes the company’s management to understand, recognize and apply XBRL, helps to improve business management’s attention XBRL, companies use XBRL to enhance the enthusiasm and hope in order to promote the development of XBRL in China.