Empirical Research Of Listed Companies Polluted Seriously On The Relation Of Environmental Disclosure And The Cost Of Equity Capital

The improving of Environmental accounting information disclosure level contributes to reducing the information asymmetry between investors and managers, and between investors, enhancing the predictability of future for investors and enhancing the liquidity of shares, which lowers the cost of equity capital. So, at this stage in our securities market, will environmental accounting disclosure levels of listed companies help reduce the cost of equity capital, the extent to which lower the cost of equity capital? Whether is the impact of different types of environmental accounting information disclosure on the cost of equity capital different or not? These studies are of important significance for enhancing the initiative of disclosing environmental information for listed, reducing financing costs for listed companies and increasing shareholder value.This essay outspreads analysis and comment firstly, puts forward the problems Which need to be investigated. Then the essay introduces the theories of environmental information disclosure and the cost of equity capital, and analyses the relationship in-depth. Empirical research is a major part of this paper. The author calculates the cost of equity capital using the model of remaining proceeds. Taking into account of the form, content and scope of China's listed companies'information disclosure, this essay chooses environmental information disclosure index. And also four control variables. The author chooses 141 listed companies from China's Shanghai and Shenzhen stock markets as samples. This paper, using correlation analysis and multiple linear regression analysis, verifies that improving the quality of environmental information disclosure can reduce the cost of equity capital.At last, according to the results of this study and combining the unique environment of China's stock market, the essay proposes the relevant recommendations from Academia, government, listed companies.