The Research Of The Relation Between Disclosure Quality And The Cost Of Equity Capital Of Listed Firms

In capital market, information has become another risk to drive the cost of capital. And as an important manifestation of information risk, the relation between information disclosure and the cost of equity capital has become the important issues in the field of accounting and finance. Beginning from the discussion among information disclosure quality, investors' prediction of risk and the flow of the stock, we found that in recent years a large number of scholars all over the world have done a lot of research about information disclosure quality and the equity capital cost, including theoretical analysis and empirical testing. In this paper, the writer studied the relationship and applies different in Shenzhen and shanghai markets.In this paper, at first, to analyze and comment the status quo all over the world, summed up the results and research have been and the problems wanted to solve; And then, respectively the disclosure quality and the cost of equity capital's meaning and methods of measurement, after comparing the advantages and disadvantages of different models, the authors choose the method of economic growth (OJN) to measure the cost of equity capital and the establishment of evaluation system to describe the disclosure quality; Followed by the theoretical analysis; Empirical research is a major part of this article, selecting Shanghai and Shenzhen markets'562 listed companies as samples, the use of descriptive statistics, correlation analysis and multiple linear regression analysis and other methods to verify the information that improving the quality of listed companies' disclosure quality may reduce the cost of equity capital. Finally, for the empirical results, combined with Chinese actual conditions, put forward some relevant policy recommendations from different points of views.This study extends the empirical research, for improving the disclosure quality of listed companies, and improving China's securities market, it has an important guiding significance and is conducive to improve market's efficiency, and safeguard a fair market.