Analysts’ Coperate Site Visits And The Cost Of Equity Capital

In recent years,analysts have been a hot topic in the academic field.The external information quality environment of China’s capital market is poor,and the level of information disclosure is low,which aggravates the degree of information asymmetry between the management and shareholders.As one of the important means to alleviate the agency problem,analysts can use their professional ability to provide investment advice to investors as a way of information supplement.Collecting information is the foundation of analysts’ work.The interpretation of public information requires analysts’ information interpretation ability,while the mining of private information requires analysts’ information mining ability.When the public information can not get excess information,for the seller analysts,field research is an important way to get private information.Through on-the-spot investigation,analysts can witness the real production and operation of enterprises,so as to alleviate information asymmetry and reduce capital cost.Based on principal-agent theory,information asymmetry theory,efficient market theory and signal theory,this paper explores the impact of analysts’ field research on the cost of equity capital.On this basis,it discusses the differences in different property rights and different information environment quality.Considering the difference of professional competence among analysts,this paper further tests the heterogeneity of analysts.In addition,considering the impact of external governance environment,the market-oriented process as a grouping variable is studied.Shenzhen Stock Exchange has included field survey data since 2012,and the actual roe of the next two years and the financial data of the past five years are required for GLS to calculate the cost of equity capital.Therefore,this paper takes Shenzhen Stock Exchange 2012-2015 as the research sample to investigate the impact of analysts’ field survey on the cost of equity capital.The results show that:(1)analysts’ field research can effectively alleviate agency problems and reduce the cost of equity capital;(2)compared with state-owned enterprises,non-state-owned enterprises’ field research cost of equity capital is lower;(3)compared with enterprises with high transparency of accounting information,the cost of equity capital is lower in the sample group with low transparency of accounting;(4)because star analysts and non star analysts analyze There is a huge gap between teachers.In further research,this paper studies according to the analyst rating,and finds that the role of field research in star analysts is more significant,but in non field research,there is no significant difference between star analysts and non star analysts.The results show that star analysts have stronger ability of field research;(5)taking market process as an indicator to consider the impact of external governance factors,it is found that in the grouping of market-oriented process,the group with higher market-oriented process has stronger governance role of field research.This paper uses the following methods to test the robustness of the research results: first,change the explanatory variable and the interpreted variable,replace the explanatory variable with dummy variable,and re measure the cost of equity capital with OJ model,then use PSM tendency score matching method and double difference method to test the endogenous,the results are still significant at the level of 1% and 5%.Finally,based on the theoretical analysis and empirical results,this paper puts forward conclusions and relevant policy recommendations,and puts forward the shortcomings and future prospects of this paper.