Media Converge,Information Disclosure Quality And Equity Cost

Equity financing is the most preferred financing method for listed companies in China,but it is relatively low in the overall external financing of Chinese enterprises.The cost of equity financing is generally defined as the cost of equity.How to control the cost of equity will determine whether equity financing can be used.Maximum utility,in addition to the study of equity costs,is not only related to the manager's management policy,but also affects the investor's investment approach.In this regard,the industry and the academic community have conducted extensive discussions and considered the influencing factors of equity costs from different perspectives.In particular,the advancement of Internet technology has accelerated the speed of media transmission of information.The popularity and wide application of mobile terminals has not only increased the channels for people to obtain information,but also reduced the cost,which further highlights the power of public opinion generated by the media in society.After investors receive information through media reports,they will raise their investment rationality and change the required return on investment,thus affecting the changes in the cost of equity.Based on this,this paper takes the core content equity cost of corporate governance as the foothold,and studies the influence of this external factor on the cost of equity in the media report,trying to expand the discussion scope of the factors affecting the cost of equity.On the other hand,information disclosure as a link can link market participants such as investors,financiers,and regulators.The quality of information disclosure will affect the ability of the entire capital market to operate in an orderly manner.To this end,this paper considers the quality of corporate information disclosure as an internal influencing factor and studies its relationship with equity costs.This paper takes the A-share listed company of Shenzhen Stock Exchange as the research sample from 2012 to 2017,and uses PEG model to measure the cost of equity.It empirically infers the impact of media reports and information disclosure quality on the cost of equity,as well as media reports and the interaction of information disclosure quality on equity costs.The study found that the number of media reports and positive reports are negatively correlated with the cost of equity,and negative reports are significantly positively correlated with the cost of equity.The quality of information disclosure is negatively related to the cost of equity.The higher quality of information disclosure is,the lower cost of equity may be.Moreover,further research has found that media reports and information disclosure quality have complementary interaction effects on equity costs.As the quality of information disclosure increases,the increase in the number of media reports will affect the cost of equity.Similarly,when the number of media reports is higher,the cost of equity is more sensitive to the quality of information disclosure.Finally,the paper uses the CAPM model to redefine and measure the cost of equity.After regression,the conclusion is found to be unchanged,and the robustness test is passed.Based on the above empirical analysis results,in order to further improve China's media governance mechanism,information disclosure environment and investment market,this paper proposes three suggestions from the perspective of investors,regulators and listed companies: 1.Strengthen the norms of media reports and Identify;2.Improve the information disclosure system;3.Improve the equity financing system.