Research On The Influence Of Quality Of Information Disclosure On Cost Of Debt

Information is a very important tool for the communication among corporatestakeholders, its quality directly decides whether the resource allocation in the whole capitalmarket can be effectively optimized and whether the capital market manages to develophealthily. Due to the existence of information asymmetry, internal and external financingcannot substitute for each other and external financing costs higher than the internal financingdoes. The current global economic downturn and the bank credit tightening have resulted thefinancing difficulties of most enterprises. In order that the enterprises can have a sustainableand effective development and that the capital chain can operate continuously, it has becomethe priorities of the enterprises to reduce the constraint and the cost of financing. One of theimportant methods of solving the problem of information asymmetry is to improve the qualityof enterprise information disclosure.On the basis of reference from the existing research results, having selected real estatecompanies listed on the A-Share market of Shenzhen Stock Exchange in2008—2012assamples, considered them with information asymmetry, soft budget constraint and the theoryof agency, this article examines the influence of the quality of information disclosure on thecost of debt and then having furtherly considered those with the economic background of ourcountry, national policy, the degree of marketization and the ownership of property, itfurtherly observes and studies the differences of the influence of the quality of informationdisclosure on the cost of debt.The research results show that in the control of the debt to capital ratio, the size ofcompany, the turnover rate of the assets, the growth rate of enterprise, the yield rate of netassets, the quality of information disclosure is an important factor to affect the cost of debt oflisted companies, and improving the level of information disclosure can reduce theinformation asymmetry between Banks and enterprises, thereby significantly reducing thecost of debt of enterprises. Further studies have found that this is still effected by theownership of enterprises, the degree of marketization and the national policy factors:compared with the quality of information disclosure of the state-owned enterprises, that of the non-state-owned enterprise has more significant impacts on the cost of the debt; comparedwith that in less developed areas, the quality of information disclosure has more significantimpacts on the cost of the debt in developed areas; compared with that during the period ofthe national inflationary policy, the quality of information disclosure has more significantimpacts on the cost of the debt during the period of the national deflation policy.The research conclusion of this article has a certain reference value for promoting thestandardization of information disclosure of real estate companies, improving the quality ofinformation disclosure and thereby reducing the cost of debt.