Media Attention、the Disclosure Level Of Corporate Social Responsibility Information And The Cost Of Equity Of Capital

Since the beginning of the new century,China’s economic development has made unprecedented achievements,The living standards of residents and the development of the national economy showed a steady growth trend.However,behind the rapid economic development there are many problems,Cadmium rice incident,stained bread incident,the original oil pipeline explosion in Dalian,gold mining pollution,fake vaccine,poison playground events,etc.It can be seen that the phenomenon of disregard of corporate social responsibility still exists in our country.In recent years,the importance of corporate social responsibility has aroused the enthusiasm of scholars to study the information disclosure of corporate social responsibility.Financing problem is also the focus of the academic and practical circles.However,the current situation of China’s worrying social responsibility and disclosure shows that the practical sector is still in doubt about the economic consequences of the disclosure of corporate social responsibility.Therefore,we study the relationship between corporate social responsibility information disclosure level and the cost of equity financing,In order to obtain the empirical evidence about the information disclosure of corporate social responsibility can effectively reduce the cost of equity capital,and improve the financing efficiency of enterprises.In addition,due to.the special national conditions in our country,and deepen the reform in economy stage,asset market is not mature,the market mechanism is not sound,the traditional legal system can’t completely cure and eliminate the phenomenon of lack of social responsibility,So,seeking outside the legal system is a kind of trend.Now,The news media is not only the transmission channel between the enterprise and the market,but also has the function of supervision by public opinion,The social media has the responsibility to effectively restrain the bad behavior of the manager,reduce the probability of the occurrence of violations of enterprises,improve the level of corporate govemance.Then,whether the media will play a governance function on the loss of corporate social responsibility,and the role of the equity financing effect on the disclosure of social responsibility,it is worth to study and explore.This paper takes the listed companies of China’s Listed Companies in Shanghai and Shenzhen two cities in China as the research sample in 2009-2014,PEG model and OJN model were used to calculate the cost of equity financing,The rating score of the corporate social responsibility report of the listed company as a measure of the level of social responsibility information disclosure,After controlling the related influence variables,using Stata software to carry on the multiple regression,the media attention,the information disclosure level of corporate social responsibility and the equity financing cost have carried on the empirical test.Research results show that:(1)the higher the media attention,the higher the level of corporate social responsibility information.The greater the number of media reports,the more able to reduce the asymmetry of information,the greater the pressure on the company to receive external supervision,and then prompting enterprises to improve the level of social responsibility information disclosure.(2)improving the information disclosure level of corporate social responsibility can reduce the information asymmetry risk and cognitive risk and let investors have a positive signal to release social responsibility,in the while it could enhance investor confidence in the future development of enterprises.(3)With the introduction of media attention and the disclosure level of social responsibility information,further study found that with the increase of media attention,the level of social responsibility disclosure of equity cost reduction effect is stronger.