The Research On Transparency Of Accounting Information To The Captial Cost Of Listed Companies In China

The research on transparency of accounting information on capital costs in the capital market is an important accounting and finance issues. I based on the views of Predict Risk and Liquidity Perspective and used comprehensive theoretical analysis and empirical test methods to study the correlation of the transparency of accounting information and the the cost of capital.In this paper, I choose 372 companies in the Shenzhen Stock Exchange as the samples. First, I used all the 1116 samples to test the correlation between the Transparency of the Accounting information and the cost of the capital. Besides, according to the nature of equity I divided the samples into two groups, that is the state-owned shares of listed companies and non-state-owned shares of listed companies in order to studied the difference of the Accounting Transparency and the cost of capital.This paper estimates the cost of equity capital using the expected cost of capital OJ model, for the transparency of accounting information I used the information disclosure of evaluation results of the Shenzhen Stock Exchange to measure it. When controlled the related indicators of the financial index and corporate governance index, I found that it has a significant negative correlation between the cost of equity capitaland the information transparency. Shareholders in the distinction between the nature of the study found, and the nature of state-owned shares of listed companies compared to the private nature of the accounting information transparency of listed companies on the cost of equity capital is more significant. Finally, I puts forward some policy recommendations based on the above findings, while the limitations of this paper and prospect follow-up study were also explained.