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Research On The Impact Of Related Party Transactions And Information Disclosure Quality On Equity Capital Cost

Posted on:2018-04-02Degree:MasterType:Thesis
Country:ChinaCandidate:X L XiongFull Text:PDF
GTID:2359330542974811Subject:Accounting
Abstract/Summary:PDF Full Text Request
The related party transaction behavior is prevalent in Chinese capital market and has become an important issue which investors pay more and more attention to.On the one hand,the related party transactions is a kind of internal market transaction,which can reduce the information asymmetry between the two sides of the transaction,help to realize the increment of the enterprise value.On the other hand,the related party transactions facilitates the process of interests transportation and the whitewash of financial statements,not conducive to the healthy development of the securities market.However,investors in the securities market are not just passive bearers of risk,because they can change their own investment decisions to increase or reduce the influence of related party transactions on their own interests.This paper focuses on two issues,First,how the related party transaction behavior affects the enterprise's equity capital cost.Second,Whether the occurrence of related party transactions will have an impact on the quality of information disclosure.What the role does the quality of information disclosure play in the relationship between related party transactions and equity capital cost?This paper takes the A-share non-financial listed companies of Shenzhen Stock Exchange from 2011 to 2015 as the research object,and analyzes the influence of related transaction and the quality of information disclosure on the cost of equity capital.The results show that the related party transactions is positively related to the cost of equity capital.The quality of information disclosure have a partial intermediary impact on the relationship between the related party transactions and the cost of equity capital.Further examination finds that the related parties both buying or selling goods and providing funds affects the cost of equity capital of listed companies.The overall impact of the related party transactions on the cost of equity capital is stronger than the impact of related parties buying or selling goods and providing funds on the cost of equity capital separately.The results of this paper can provide specific policy recommendations to regulate the supervision of related party transactions and reduce the capital cost of the enterprises.
Keywords/Search Tags:related party transactions, information disclosure quality, equity capital cost, mediating effect
PDF Full Text Request
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