A Examination Of Carbon Accounting Information Disclosure Level And The Expected Cost Of Equity Capital Basing On The Electric Enterprises

The smoggy weather and global-warming attract lots of the public attention which requires the development of low-carbon economy. What’s more, the enterprises and investors may concern about the carbon emissions. However, with the implementation of the Energy-saving emission reduction plan in "12th Five Year Plan" and the " Coal-fired power plant of air pollution emission standards ", national electricity production industry become a low-carbon economy transformation object. This paper qualified 42 companies in the industry for the past three years and then take their annual reports as samples. The author, basing on the literature review, believes that the carbon information disclosure quality of electric enterprises shall affect the cost of equity capital and investment decisions. Therefore, the study on the relationship may achieve voluntary disclosure of carbon emission information, the reduction of the financial cost and improvement of the shareholder value effects. The next, score the level of carbon emission disclosure. After the variables correlation test, the carbon information disclosure level,stock liquidity and the cost of equity capital Finally,Firstly, the paper established the evaluation system of the carbon emission information disclosure quality, which based on the 2014 CDP questionnaire and the specific content of carbon accounting information disclosure of the electric power industry. And then, basing on the future data and the GLS model, the paper get the equity capital cost which would be reasonable. What’s more, all the variables had the correlation test; Finally, basing on the multiple regression model, we can get the relationship of carbon accounting information disclosure quality, stock liquidity and capital cost of empirical.The paper found that the electric enterprises’level of carbon accounting information disclosure quality is in average. What’s more, they mostly have the mandatory disclosure instead of voluntary disclosure. Therefore, empirical test finds that the relationship between carbon accounting information disclosure quality and the cost of equity is negatively related. In addition, the stock liquidity is the intermediate variable in the empirical test of the relationship before. The higher level of accounting information disclosure quality, the enterprises would get the more frequent stock trading. What’s more, the stock liquidity have the negative relationship with the equity capital cost. Consequently, the quality of accounting information disclosure affects the cost of equity capital through the stock liquidity. Finally, the author gives the electric enterprises basing on the empirical research and the latest politics, The advice are from the macro policy formulation, implementation of the main recommendations and enterprise oneself expecting the improvement of electric enterprises’ carbon accounting information disclosure level. Only the improvement of disclosure level could help the electric enterprises become the sustainable development enterprise.