Voluntary Information Disclosure Of The Cost Capital

Voluntary information disclosure is the information which is outside of the mandatory information disclosure; listed companies take the initiative to disclosure information to the public. Voluntary information disclosure is conducive to reducing the capital market problems of asymmetric. So that can save transaction costs and protect the vital interests of stakeholders; what's more, it can avoid "adverse selection" and managers of the "moral hazard" and opportunistic behavior as well, hence the voluntary disclosure of information has great significance for stakeholders and the entire stock market。China began to disclosure voluntary information in recent years. Although the disclosure of the contents has an upward trend year by year, but the level of information disclosure is still very low, there is still considerable room for growth. So far, the study between voluntary information disclosure and the capital cost is mainly from foreign countries, and most research is aimed at disclosure of information In general, and studies on Specific information disclosure are seldom, such as studies about Mandatory information disclosure,voluntary disclosure of information's impact on the cost of capital。Although some scholars in China have been began a number of exploratory research on relationship between voluntary information disclosure and the cost of capital, but research still needs to expand and in-depth。Because of China's stock market has special environment,and the impact of economic development, social systems and social and cultural, research results in Developed countries whether suit China's listed companies is still a matter which need verification, Therefore, in China's capital market which is not mature enough, the study of voluntary disclosure of information on China and the capital cost has great significance in practice。If through the study found that the level of voluntary disclosure of information has significant impact in reducing the cost of capital of listed companies, Then the conclusion will play a guiding role for the management in company making decision about voluntary disclosure。So as to improve the level of voluntary disclosure information in China's listed companies, and reducing the company's cost of capital。Our study is based on the related research of professional between home and aboard。First, the article introduced the theory and the definition about voluntary disclosure of information systematically, At the same time, we also give a brief description of the cost of capital theory and several cost of capital rate calculation method。Then under this solid foundation, we established a hypothetical model and put forward the voluntary disclosure level as the explanatory variable and the cost capital as being explained variable in our study, at The same time,we also choose the company size,βcoefficient, growth ofcompany, profitability of company, asset management, equity multiplier, book value ratio as the control variable, Select the data of listed companies in real estate which listing in shanghai and Shenzhen's securities exchanges. The data in our study is range from 2006 to 2008, and we chose 165 listed companies in total。Finally, through regression analysis, Reveals the impact of the special extent between voluntary disclosure of information and the capital cost, and come to an conclusion that there is a significant negative correlation between the overall level of voluntary disclosure and capital cost。...