Research On The Impact Of Innovation Information Disclosure On Financing Cost Based On The Chinese Listed Company

In our new strategy of 'development driven by innovation',whether a company has enough incentive for innovation is directly influencing its survival and development,as well as the strength of innovation of the country.With the increasing importance of innovation,the revelation of innovation actions of companies should improve as well.Not only does the revelation of innovation actions has impact on decision-making of companies,but it also influence in-vestment decisions made by outsiders who use this information to understand how well does a company operate.This paper tries to measure the revelation of innovation of Chinese companies,and the relationship between revelation of innovation and costs of financing,using basic theories from both China and overseas,and data from listed companies in GEM,in order to provide evidence for the improvement of revelation on innovation for listed companies and also for the future research.This paper is divided into five parts.Part I is introduction,which states the background and objective of this paper,as well as a summary of the methodology used in this paper.Part II is the basic concepts and theory of revelation of innovation and financing costs.Part III is the assumptions and theorems that explain how revelation of innovation is related to financing costs.Part IV is the empirical results of the extent to which revelation of innovation affects financing costs of a company.Part V is conclusion,policy suggestions,and limitation of this paper.This paper uses panel data from Chinese GEM listed companies in 2012-2016 to measure how revelation of innovation affects financing costs.My empirical re-sults show that:(1)there is a significantly negative correlation between the level of revelation and cost of capital and cost of equity,which implies that investors fully considered companies' revelation of innovation before making investment;(2)revelation of innovation has a bigger impact on cost of equity than on cost of capital.There is a significant difference in information between shareholders and professional finance institutes;(3)there is a significant mediation effect in both cost of equity and cost of capital,which shows that high level of revelation of innovation revealed the design,process and results of companies' innovations during their operation,and that gave investors valid expections on companies' development and Potential growth.