Company On The Impact Of Information Transparency On Equity Financing Cost Of Empirical Analysis

In essential, the capital market is an information market. In the market, the information is an important link which can connect the company and the capital market. As the result, the capital market becomes an effective market. The investors. as the participants, they will make decisions with the information disclosure by companies. At the same time, they will decrease the risk which is brought by the information asymmetry, through the information disclosure by companies. As a result, the information transparency can lead to low equity capital, because information transparency can low the information asymmetry, the expected risk and the stock liquidity.Based on the past study, This thesis selects the companies on the ShenZhen A board and SME board. This thesis analyze the connection between the information transparency and the equity capital. After analyzing several models, this thesis selects PEG model to measure the equity capital. At the same time, this thesis selects the scores by ShenZhen market to measure the transparency.This thesis finds that, on the A board when the information transparency is high, the equity capital will be low; but on the SME board when the information transparency is high, the equity capital will be high. So on the A board, the information transparency will affect the investors, but on the SME board, the information transparency will not obviously affect the investors.The innovation is that this thesis compares the A board and SME board, and analyze the connection between the information transparency and the equity capital. So this thesis improve the relative study to some extent.