Social Responsibility Information Disclosure Of Listed Companies With Equity Capital Cost Correlation Studies

As our country were paid more and more attention to the corporate socialresponsibility， the information disclosure of corporate social responsibility will beinereasing.However, so far China has not yet stipulated that China’s listed companiesmust disclose social responsibility information clearly. The corporate socialresponsibility information still belongs to the voluntary disclosure scope.But on thewhole, the sense of corporate social responsibility in China is weak, the contents ofcorporate social responsibility information disclosure is still not standardized,thedisclosure model also waits to be unified,the information anthenticity has yet to beelegant. In view of this, this thesis from the reality of our country, seeing theinformation home and abroad on corporate social responsibility informationdisclosure and the cost of equity capital relationship research, strives to explore therelationship between the corporate social responsibility information disclosure and thecost of equity capital in the China’s socialist market economy. The purpose of thisthesis is to draw on corporate social responsibility information disclosure has apositive effect on the cost of equity capital, to enable enterprises to realize that toactively fulfill their social responsibility can bring economic benefits to themselves, toenable enterprises to initiatively take the social responsibility.Firstly,this thesis reviews the relevant literature and introduce the concepts andcalculation methods of information disclosure of social responsibility and cost ofequity capital.Then, based on efficient market theory and asymmetric informationtheory explains the information disclosure of social responsibility on the cost ofequity financing，this thesis analyzes the mechanism of the effect of disclosure ofinformation disclosure of social responsibility on the cost of equity capital.This thesisalso introduces our country’s present situation of information disclosure of socialresponsibility.Seeondly,in the empirical part, It takes412listed companies fromShenzhen and Shanghai city as research samples and use the GLS ratio method toestimate the cost of equity capital that is the dependent variable.Third party agenciesRankins CSR Ratings (RKS) released the information disclosure of corporate social responsibility evaluation index as the independent variables and the company size，business risk, financial risk and profitability as control variables. whereby sets up aregression model to make a descriptive analysis and multiple regression analysis onthe relationship between information disclosure quality of social responsibility andcost of equity capital.From the research results we can find that our companies’information disclosure of social responsibility can greatly reduce the cost of equitycapital, and it also has significant effect on the risk and liquidity of stock. Additionally,it affects cost capital through reducing the risk and improving the liquidity of stock.Finally, according to the social responsibility information disclosure status and relatedresearch conclusion,the author raises some recommendation to improve theinformation diselosure system of social responsibility. Generally speaking, this thesisdoes think that good information disclosure system of social responsibility will bepropitious to development of the market, and companies will gain more and morefrom the enhancement of information quality.