Does Risk Warning Information Affect Enterprise Capital Cost?

The cost of capital not only directly affects the investment returns of investors and creditors,but also affects the development prospects of the company itself,and reflects the resource allocation efficiency of the entire capital market.The 2019 government work report will alleviate problems such as difficult and expensive financing for enterprises.Listed as key tasks.Therefore,exploring the influencing factors of capital cost plays an extremely crucial role in effectively guiding corporate investment decisions and capital market capital flows.As an important factor affecting the cost of capital of enterprises,information disclosure has attracted the attention of scholars.Unstructured risk warning information with decision support value is playing an increasingly important role in the ups and downs of the capital market,and has attracted much attention from market participants.s concern.However,the current academic research on the factors affecting the cost of capital lacks attention to risk warning information.In 2007,my country first clearly stated in the "Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.2-Annual Reports" that listed companies are required to disclose their own risks in the MD&A in their annual reports,which are sufficient,accurate and specific.In 2012,2015 and 2016,the institutional supervision of risk information disclosure was continuously strengthened.How does this external institutional change play a moderating role between risk warning information and capital cost?At the same time,internal control is an important part of corporate governance.How does it affect the relationship between risk warning information and capital cost?How will external supervision and internal governance play a linkage effect?Furthermore,through what mechanism does risk warning information affect the cost of capital?Do different types of investors have different attitudes to disclosed risks,with different economic consequences?These are all very real issues.Based on the above considerations,based on the text information of the annual reports of A-share listed companies from 2010 to 2019,this paper adopts text mining technology to examine the impact of risk warning information on the cost of capital of enterprises,and puts the internal and external factors of the enterprise into the same framework to explore information disclosure.The joint moderating effect of institutional change and internal control.Further,consider the influence of investor heterogeneity on the relationship between risk warning information and capital cost andthe mediating role of analyst forecast accuracy,divergence and audit opinion.The study found that the more risk warning information disclosed in the annual report,the higher the cost of capital.This effect is achieved through the intermediary effect of analyst forecasts and audit opinions.Compared with the cost of equity capital,risk warning information has a greater impact on the cost of debt capital.The increasing effect is more obvious,but the strengthening of information disclosure supervision inhibits the enhancing effect of risk warning information on the cost of capital.When the internal control of the enterprise is poor,the inhibiting effect is more obvious.Based on the above conclusions,this paper puts forward relevant suggestions from the perspectives of investors,listed companies and regulatory authorities:First,investors should increase their attention to risk warning information,increase the learning of relevant knowledge,and improve the ability to interpret annual reports.Second,listed companies should strengthen corporate governance,improve the quality of internal control,and disclose risk information in a timely,accurate and standardized manner.Finally,the regulatory authorities need to formulate a reasonable information disclosure system and strengthen the supervision of listed companies according to the development of the capital market.