Environmental Uncertainty,Accounting Conservatism And Equity Financing Cost

In modem enterprises,equity financing cost is the key to investment and financing decisions,and it is related to the operation and security of enterprises.Therefore,what factors will affect the cost of equity financing?Foreign scholars have analyzed and discussed the influencing factors of equity financing cost from 1960s.In the early stage of equity financing based on capital asset pricing model,the decisive factor of its change was market risk.Then the academic community found on the basis of in-depth research,that factors affecting the changes in equity financing cost also included corporate characteristics and macro factors.The former such as liquidity,financial leverage and so on,the latter such as government intervention,policy environment and so on.With the deepening of global economic integration,China's capital market has become more mature,and domestic research results have gradually enriched.In recent years,the research on environmental uncertainty has begun to increase,and has become a new research focus.Enterprises are in a dynamic environment,and their operation and growth are inevitably affected by the environment.Among them,for the macro environment,the micro environment from the aspect of the enterprise itself,can transmit more specific and effective market information to the enterprise,and its potential risks are also easier to prevent and avoid.Nowadays,the external environment of enterprises is becoming more and more complex and changeable,and the competition in the market is more intense and frequent.Most enterprises are threatened by uncertainty,all kinds of black swan events occur frequently,and environmental uncertainty restricts the development of enterprises to a great extent.As an important quality requirement of financial information,accounting conservatism emphasizes the timely recognition of losses,and holds that enterprises should fully estimate all kinds of risks and losses in daily accounting,and makes corresponding accounting records,so as to transmit more true and accurate financial information to investors in order to reduce information asymmetry,so that investors can have a more objective understanding of the business situation of enterprises.Based on the above analysis,firstly,this paper introduces the research background,research significance,research methods and innovation,etc.Secondly,it combs the existing literature at home and abroad,summarizes the research status,finds out the shortcomings,and defines the main concepts involved.Based on the theories of resource dependence,information asymmetry,signal and principal-agent,the paper carries on the logical analysis and puts forward the research hypothesis.Then this paper takes the Shanghai and Shenzhen A-share listed enterprises as the research object,selects the financial operation data from 2008 to 2017 as the analysis sample,uses the Stata 14.0 software to test the relation of environmental uncertainty,accounting conservatism and equity financing cost,adds the property right nature for further analysis,and the robustness methods are designed to ensure the reliability of the conclusion.Finally,the paper summarizes the conclusions and puts forward the suggestions.On the basis of in-depth analysis,the following conclusions are drawn:environmental uncertainty will lead to the increase of equity financing cost,and this effect is more significant in non-state-owned enterprises;accounting conservatism will lead to the reduction of equity financing cost,and this effect is more significant in non-state-owned enterprises;accounting conservatism can alleviate the impact of environmental uncertainty on equity financing cost,and this effect is more significant in state-owned enterprises.The innovation points of this paper are as follows:on the one hand,more and more scholars have begun to pay attention to the external environment and realize its importance,in the context of existing studies,some scholars have examined the impact of internal control quality,the diversification strategy and the concentration of the customer.In this paper,accounting conservatism can provide investors with more accurate accounting information and reduce the degree of information asymmetry,which can alleviate the impact of environmental uncertainty.Therefore,the paper,based on the combination of micro-environment uncertainty and accounting conservatism,discusses the mechanism of the environment uncertainty,the accounting conservatism and the equity financing cost in the aspects of the internal and external of the enterprise.This paper analyzes the influence of environmental uncertainty on equity financing cost under different accounting conservatism levels,and expands the scope of research on the influencing factors of equity financing cost.On the other hand,based on the special national conditions of our country,this paper carries on the further analysis according to the property right nature,discusses the difference situation of the three major variables in the function relation under the different property right nature more deeply,which is not only helpful to perfect the research content of the relationship between variables,but also helps managers to take relevant measures based on the specific degree of influence,so as to make the research conclusion more referential.