High-Risk Industry Differences,Safety Information Disclosure And Cost Of Equity Capital

Safe production is an important symbol of economic development and the upgrading of science and technology,and it is the need for sustainable development of enterprises in the increasingly fierce competition.While the Industrial Revolution has facilitated the production and operation activities of enterprises,it has also caused enterprises to ignore many safety issues.At present,the safety situation of Chinese enterprises is not optimistic,and major safety accidents occur from time to time,especially in high-risk industries,such as mining,transportation,metal and non-metal processing industries,which frequently occur in safety production,and should also attract the attention of enterprises and the public.The occurrence of security accidents will not only bring direct losses to people’s own lives and property,but also cause serious indirect losses to enterprises and the country,affecting the stable development of the economy and society.Due to the short time required for the promulgation and implementation of related documents,many policies and regulations have not yet been fully implemented,and there is no uniform and compulsory requirement for enterprises to disclose safety information to the outside world,resulting in many problems in safety information disclosure.The security information disclosed by various companies is uneven,and there are great differences in content and form.There are even many companies that do not disclose security information to the outside world and ignore the importance of security information disclosure.At present,domestic scholars’ research on safety accounting and safety information disclosure mainly focuses on the theoretical research level,and there are few studies on the impact of safety information disclosure on economic consequences.Under such circumstances,it is necessary to conduct more in-depth research on security information disclosure,and urge enterprises to improve the level of security information disclosure.Based on the above reasons,this paper takes listed companies in high-risk A-share industries for three years from 2016 to 2018 as research objects to examine the impact of the level of safety information disclosure on the cost of equity capital,and examines the degree of industrial accident hazards and industry competition two perspectives.The effectof industry differences on the relationship between the level of safety information disclosure and the cost of equity capital.The study found that,on the whole,the level of security information disclosure and the cost of equity capital showed a significant negative correlation.Further,industry differences significantly affect the relationship between the level of safety information disclosure and the cost of equity capital.The specific performance is as follows: Among enterprises with a high degree of industrial accident hazards,safety information disclosure has a more significant impact on reducing the cost of equity capital;compared with industries with more intense competition,the level of safety information disclosure in low-competition industries has an impact on equity.The impact of capital costs is more significant.After further dividing into state-owned and non-state-owned enterprises according to the nature of the enterprise,it is empirically found that increasing the level of disclosure of safety information has a more significant effect on reducing the cost of equity capital of state-owned enterprises.Compared with the mature industry,the negative correlation between the level of safety information disclosure and the cost of equity capital in the growth industry is more significant.Finally,Propose policy recommendations on strengthening safety information disclosure from research conclusions.At the same time,the shortcomings of this research and the future research prospects are pointed out.