Study On Nonfinancial Information Disclosure And Cost Of Debt

Non-financial information refers to corporate governance, internal control, the business performance of the discussion and analysis,the enterprise’s future development strategy,the next year business plan and corporate social responsibility information. It not only reflects the company’s internal operation condition but also reflects the expectations of the company’s future development ability. Non-financial information is the window that the capital market information users can have a comprehensive understanding of the enterprise now and the future,and have a vital role for the enterprise value evaluation.This paper focuses on the influence of non-financial information disclosure on the cost of debt Due to the development of securities market in China is not mature and equity financing cannot meet the demand of the financing of listed companies,debt financing is still China’s main sources of financing for listed companies. The cost of debt and corporate financing efficiency are closely linked. Whether in the theoretical and practical aspects,the study of the cost of debt has a big significanceThis paper selects two aspects,including internal control and social responsibility,as the representative content of non-financial information,and study on the relationship between the cost of debt non-financial information disclosure of the listed companies. This paper choose the internal control and social responsibility disclosure quality as the dependent variable. Choose the ratio of the sum of interest expense and capital expenditure to the average liabilities to measure cost of debt,which is the independent variable. Choose firm size,profitability,debt asset ratio,TBQ,equity structure as control variables. The regression result shows that non-financial information disclosure can reduce cost of debt,that is,there is a positive economic consequence of non-financial information disclosure. But the effect is not very ideal,the correlation coefficient is low. The reasons for this result may be interpreted from two aspects,on the one hand,the effectiveness of the capital market in China is not high,the overall effectiveness of capital market in China is so weak that non-financial information disclosure can’t be fully use;on the other hand,from the listed companies in our country,the quality of non-financial information disclosure should be improved.Contributions and innovations of this paper is mainly manifested in the following: firstly,this paper shows whether non-financial information disclosure will affect the cost of corporate debt, which expand the non-financial information economic consequences research to the cost of debt,and has made the incremental contribution to the non-financial information disclosure research. Second,the era of big data has arrived,we should take the advantage of it to build information interaction platform, increase the content of non-financial information disclosure and improve the disclosure form.