Media Attention,Investor Confidence And The Cost Of Enterprise Equity Capital

The cost of equity capital has always been the core object of concern in the field of finance,which has an important impact on the investment decision-making and business development of enterprises.Therefore,the research on the factors affecting the cost of equity capital and the ways to reduce it has always been of great significance.In the past,scholars at home and abroad mainly studied the cost of equity capital from the aspects of corporate governance efficiency,earnings management,information disclosure and so on.As an important role in the external governance mechanism of enterprises,media can supervise the business behavior of enterprises by virtue of its strong public opinion pressure and unique reputation mechanism.It can also influence the cost of equity capital by boosting investor confidence.Based on this,this paper studies the relationship between media attention and the cost of enterprise equity capital from the external factor of media concern,and probes into the specific influence mechanism of the two by introducing investor confidence.It not only enriches the relevant literature research,but also expands the research ideas about the cost of equity capital.It not only enriches the related research,but also expands the research ideas of capital cost.Based on the information asymmetry theory,reputation theory and behavioral finance theory,this paper selects China's A-share listed companies in 2013-2017 as the overall sample,aiming at the media attention.The relationship between investor confidence and equity capital cost is discussed in this paper.Through the regression model,the influence of media attention on investor confidence and enterprise equity capital cost is discussed,and the relationship between investor confidence and equity capital cost is discussed.The paper also makes an empirical study on whether investment confidence plays an intermediary role in the relationship between media attention and the cost of equity capital.The conclusions of this paper are as follows:(1)there is a significant negative correlation between the media attention and the cost of equity capital,that the higher the media attention,the lower the cost of equity capital;(2)the degree of media attention plays a significant positive role in promoting the confidence of outside investors,(3)the confidence of outside investors plays an intermediary role in the relationship between media attention and the cost of equity capital,and it is also a partial intermediary.Combined with the above conclusions,at the end of this paper,from the perspective ofmedia,investment environment and listed companies,this paper puts forward some policy suggestions on giving full play to the role of media in external governance and effectively reducing the cost of equity capital,and exentually realizing the practical significance of this study.