Information Disclosure, Market Intermediaries, And The Cost Of Capital

China’s capital market has developed for20years, which has established perfect information disclosure system, but a lot of insider tradings tells us that the market has still information asymmetry problems. How to better solve the capital markets asymmetric information, which is the focus of this study. It is Well known, the effective disclosure of information is an important way to solve market information asymmetry, which directly reflects the reduction in the cost of equity capital of the listed company; at the same time,the market intermediary analysts and media are made attention,does the external governance have valid. Therefore, the study of the above two kinds of relationships to reduce the entire capital market information asymmetry has important practical significance.The paper Selects the Shenzhen Stock Exchange A-share listed companies all in compliance with the refinancing conditions in2005-2007,then we will use GLS method to calculate the cost of equity capital of the listed company, and multiple linear regression with level of information disclosure. The results verify that China’s capital markets are efficient, which raising the level of information disclosure of listed companies to reduce the cost of capital, And this article further examines the breadth and depth of this negative correlation, from the time point of view, the empirical results do not support that it has significantly lagged effects,and also prove that this negative correlation has U-shaped, Finally, for the regulation of market intermediaries, the empirical results are also consistent with this paper target.the higher the analysts’ attention, the lower its cost of equity capital, the same time that the higher the degree of concern and to reduce the equity capital reliance on information disclosure of listed companies, the cost of reducing market information asymmetry; media because of its reputation supervision and Communication functions in the same level of information disclosure is possible to increase the sensitivity of the cost of capital to the level of information disclosure, thereby reducing market information asymmetry.Therefore, this paper suggest that,on the one hand the government continue to deepen the policy reforms,and strengthen policy guidance to enhance the level of information disclosure, on the other hand the government should be concerned about the market intermediaries, esspecally external governance function should be more use of development and specifications.