Research On The Impact Of Stock Exchange Inquiry On Debt Costs

In recent years,in order to improve the information disclosure quality of listed companies and promote the supervision of disclosure,the inquiry letter system implemented by the two stock exchanges in Shanghai and Shenzhen has become an important regulatory that means to improve the quality of information disclosure.After the implementation of the supervisory system,the number of inquiry functions issued by listed companies on the Shanghai and Shenzhen Stock Exchanges has increased year by year.This regulatory approach not only enhances the relevance and completeness of information disclosed by listed companies,but also sends warning signals to the capital market.Signaling theory and reputation mechanism believe that creditors who is risk-sensitive external stakeholders will inevitably pay great attention to the existence of “hidden” risks in listed companies that are inquired by the exchange,and then carry out risk assessment and use the assessment results affect the company's financing costs.This paper selects Chinese listed companies from January 1st,2014 to June 30 th,2017 as research samples,and studies the impact of the company's debt financing cost,which was issued by the exchange on the basis of the OLS model.The study found that compared with companies that have not been issued inquiries by the exchange,the cost of debt financing for companies issued by stock exchanges will increase.Further inspections found that the greater the number times of issuance,and the inquiry letters issued by the “Information Disclosure Issues” regulation,the greater impacts on the company's debt costs.In addition,relative to the underdeveloped regions of the financial market,the positive correlation between the two developed financial markets is more pronounced;Significantly,and compared with state-owned enterprises,non-state-owned companies which are issued inquiry letters will increase the cost of debt more significantly.Finally,using propensity score matching(PSM),Tobit regression,and increasing control variables to verify that the above results are still robust.This research conclusion means that the exchange inquiry plays an important role in protecting the interests of external stakeholders who are at a disadvantage in information,and has important policy implications for the model innovation of information disclosure quality supervision.