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

Information and capital are the two basic elements of capital market. So as to achieve the most basic function of financing of the capital market, information leads capital flow from the majority of investors to the listed companies, Information disclosure, as the behavior foundation of the" open" principles, is a fundamental belief and power source of modern capital market's development. As an important manifestation of information disclosure's economic results, the relation between information disclosure and the cost of equity capital has become the important issues in the field of accounting and finance. Information disclosure is the key factor to ensure the financing efficiency of the capital market, and the cost of equity capital has become the direct embodiment of financing efficiency. The relationship between them has become particularly important. Most foreign scholars have researched from two paths: increasing the liquidity of the capital market and reducing the prospective risk of investors. They have come to the conclusion: raising the quality of information disclosure can reduce the cost of equity capital. But the application of the foreign theoretical model and research findings to China's securities market is worthy of study and exploration.In this essay, we first analyze and summary the documents all over the word, and bring up the problem to be resolved. And then we choose the method of economic growth (OJN) to measure the cost of equity capita, the evaluation system of information disclosure made by Shenzhen stock exchange. Empirical research is a major part of this article. The author chooses 390 listed companies from China's Shenzhen stock markets as samples. This paper using correlation analysis and multiple linear regression analysis, verifies that improving the quality of information disclosure can reduce the cost of equity capital. At last we bring up some proposals from the results of the empirical research.This essay is of great significance to improve the quality of information disclosure and financing efficiency. It will also accelerate to China's listed company governance and the development of market evaluation of the quality of information disclosure.