The Effect Of Information Disclosure Quality Of Li Companies To The Cost Of Equity Capital-Research Based On Data Of Shenzhen Stock Market From 2012 To 2014

Throughout China’s stock market, the information disclosure has been showi chaotic and nonstandard situation. In terms of content, the quality of whether regular announcement or temporary announcement is not high since most compa are more interested in "putting a pitch". In terms of time, although the supervi organization has made a clear deadline requirement to regular announcement anc listed companies have few overdue disclosure phenomenon, the vast majority companies choose to disclose in the last moment. It is not timely. In addition, temporary announcement, the disclosure quality is low and random. Especi several months after the "stock market disaster" of June 2015, there are it. companies publishing false information about stop trading or reply to deal, and tl are many companies breaking their promises.If it can be proved that the information disclosure quality of listed company h negative correlation relationship with the cost of capital, it will fully show China’s capital market investors have enough ability to draw a distinction betw companies which have different information disclosure quality and treat th differentially through public channels. It helps to stimulate the enthusiasm initiative of management to improve the quality of information disclosure. Meanwl it helps to force the related supervision organization to further strengthen information disclosure management. It is helpful to the legal system construction of information disclosure and is beneficial to regulate the behavior of capital market participants and optimize allocation of resources.After reviewing and combing the domestic and foreign related research results, this paper expounds the main channels and mechanisms of how the theory of information disclosure quality affect the cost of equity capital based on the information asymmetry theory, the agency cost theory, signaling theory and other related theory. Furthermore, the paper establishes the econometric model using the data of Shenzhen stock market from 2012 to 2014 as the research sample. The information disclosure evaluation result of Shenzhen stock market is the explaining variable, and quantified by its assignment for grading. We use OJ model to measure the cost of equity capital, and use Eviews7.2 for linear regression.Through regression analysis, we found that the empirical results confirmed information disclosure quality and the cost of equity capital have negative correlation in the fitting model of the whole samples. But there are some variable coefficient of symbols contrary to expectations, and some variable is not significant also contrary to expectations. Then, we analyzed the difference that contrary to theory from the information asymmetry theory, agency cost, investment preference. In sample points fitting models, securities analyst attention higher regression results show negative correlation between information disclosure quality and the cost of equity capital, but in another group there is no correlation between them.Based on the above research conclusion, the paper give some suggestions from the perspectives of the information disclosure legal system, appraisal system, securities analysts and investors quality-oriented education. We should expand the scope of the disclosure of information, strengthen the information disclosure aging management, increase capacity for examination and assessment, refine the assessment results, and increase attention to the listed company.