Research On Relationship Between Environmental Information Disclosure And Cost Of Equity Capital

Recently,environment-pollution incidents have occurred frequently in china,The main reason of these incidents is that heavy polluting enterprises discharge large amounts of emissions without disposal in the process of production.So,pollution industry-the special industry-should take responsibility for environmental protection For enterprises,one way to fulfill their social responsibility is to disclose environmental information actively;At present,the Chinese government has mainly adopted an "encouraging" attitude toward corporate environmental information disclosure,Under this condition,what is the level of environmental information disclosure of heavy pollution industry in China?what is the relationship between equity capital cost and environmental information disclosure?Dose it change? What does it has some specific features? Therefore,this paper research on the relationship between equity capital cost and environmental information disclosure,it can help to explore the above issues and improve the current situation of environmental information disclosure of heavy pollution industry in China.In this thesis,the relationship is mainly demonstrated from two aspects:theoretical analysis and empirical analysis.Firstly,from the perspective of theoretical analysis:the thesis use efficient market hypothesis,the information asymmetry theory,signal transmission theory and other theory to explain the close link between equity capital cost and environmental information disclosure,and explore the mechanism that environmental information disclosure influence cost of equity;This thesis selected 334 listed companies in the heavy polluting industries in 2015 as the research sample,collected the financial data,used the capital asset pricing model to estimate the cost of equity capital,established the evaluation system of environmental information disclosure and scored according to the environmental information of each sample company.Curve model and multiple regression model were compared and analyzed.This thesis analyzes the present situation of environmental information disclosure of heavy pollution industries by analyzing the four aspects of disclosure:disclosure approaches,industry difference,ownership difference and regional difference.When analyzing the effect of empirical model,the thesis firstly analyze the results of multiple linear regression model,and then analyze the results of the curve model,Finally comparing the results of curve model with the results of linear model,we can get some conclusions as follows:Firstly,the relation between environmental information disclosure and cost of equity capital presented obviously the cubic curve;Secondly,the present situation of environmental information disclosure is not optimistic;Finally,the relation between cost of equity capital and the scale of company is significantly positive correlation,but the relation between the cost of equity and return on equity is negative correlation.