Research On The Impact Of Information Disclosure Quality On The Cost Of Equity Financing Of Listed Companies

The need for listed companies to profit from investing in high-yield projects,or for their own development,such as the need to expand the scale of operations,often encounter the problem of insufficient funds,when the lack of funds,companies need to pass a variety of ways To raise funds,equity financing is an important way for listed companies to finance,the cost of equity financing is the necessary rate of return required by investors,but also listed companies to raise funds to consider the important factors,the main factors affecting the cost of equity financing Is the investor’s estimate of the risks and benefits of the future of the investee company,and the investor’s forecast is based on its analysis and use of known information.Each investment decision is based on a large number of public information Therefore,high-quality information is important to investors’ investment decisions.There are many scholars on the relationship between the quality of information disclosure and the cost of equity financing and the impact of the mechanism to start the study,this paper to A-share listed companies as a source of information on the quality of information on the cost of equity financing to play a role in the way,From the indirect and direct two aspects of the relationship between the two to verify.This paper adopts the research methods of literature review,descriptive statistics and empirical analysis.First of all,review the relevant research at home and abroad,from the theoretical disclosure of the quality of information disclosure mechanism of equity financing costs were analyzed.And the status of stock financing of A-share listed companies in recent years is described,and the information disclosure quality of Shenzhen A-share listed companies is analyzed statistically.The empirical part is studied from two aspects.The conclusions are as follows:(1)In recent years,the cost of equity financing of A-share listed companies has risen.Through the analysis of the horizontal and vertical analysis of the cost of the average equity financing of the industry,it is found that the average equity financing cost of the same industry has increased obviously in recent years.(2)Shenzhen A-share listed companies in different sectors of the information disclosure quality evaluation of outstanding rate of difference is greater.Through descriptive analysis,it is found that the evaluation results are divided into four grades,and the results of the information disclosure of the listed companies are concentrated in the good stage.The difference between the evaluation and the qualified is not very different,While the evaluation results for the non-compliance ratio is very low,the proportion of the various stages of the evaluation results vary widely;from different industries,the assessment of the outstanding rate between the various industries is also very different.(3)The quality of information disclosure through the impact of stock liquidity,thus affecting the cost of equity financing.The quality of information disclosure is positively related to the stock liquidity of listed companies.The higher the quality of information disclosure,the greater the liquidity of the stock,and the lower the quality of information disclosure,the worse the stock liquidity will become.Moreover,the liquidity of stocks is negatively correlated with the cost of equity financing of listed companies.The higher the stock liquidity,the lower the cost of equity financing.Through the study of stock liquidity and stock liquidity,the research on the cost of equity financing shows the way to improve the quality of information disclosure to reduce the cost of equity financing.(4)To improve the quality of information disclosure can reduce equity financing costs.Under the influence of the variables such as the market value of the control variables,the total assets growth rate,the net assets profit rate and the asset-liability ratio,the research shows that the quality of information disclosure is inversely related to the cost of equity financing,that is,the higher the quality of information disclosure The lower.Based on the above conclusions,this paper puts forward the suggestion that by strengthening the construction of the relevant system of information disclosure,the government will actively lead the construction of the evaluation system of information disclosure,and enhance the information disclosure awareness of the listed companies,the quality of information disclosure of listed companies in order to achieve the purpose of reducing the cost of equity financing.