The Study Of The Effects Of The Quality Of Informative Disclosure On The Cost Of Equity Capital Of Non-State-Owned Pharmaceutical Enterprises

The capital market paly a great role in configuration of the social resource, and as a key factor for both sides of a business the information decides the level of efficiency. As a focus problem, the equity capital cost gets high attention of the decision-makers who need to think how to reduce the equity capital cost. Whether or not the true, effective and timely information disclosure will influence the equality capital cost and the impact mechanism are what the decision-maker need to think. Base on this reason, we discuss the relevant problems of the information disclosure and their connection with the equity capital cost.Different business has different characteristics and as a key business to the national economy and the people’s livelihood, the attention to the pharmaceutical manufacturing has improved a lot. Because of the systems and "relationship", the non-state-owned enterprises develop more hardly than the state-owned enterprises. Among the listed pharmaceutical manufacturing companies in China, there’re more non state-owned enterprises than the state-owned enterprises, which brings about a chance to study the problem of the non-state-owned enterprises in pharmaceutical manufacturing. Our essay will study the non-state-owned pharmaceutical manufacturing to analyze the condition of the information disclosure to let readers learn more about the non-state-owned enterprises of the pharmaceutical manufacturing and we want to take some help to improve the better equity financing of the non-state-owned pharmaceutical manufacturing listed enterprises.The author is about to a non-state-owned pharmaceutical manufacturing listed enterprise’s investment and financing department. This company have emerged the problem of inadequate financing in the process of refinancing of the previous several times. So, the author hopes to find out if the increase of the information disclosure can help refinancing. Moreover, this company is in the GME. The author also want to compare GME with other companies and analyze in-depth the relationship of the quality of information disclosure and the equity capital cost.Our essay analyzes the information disclosure of the Shenzhen Stock Exchange companies and the non-state-owned enterprises of the pharmaceutical manufacturing. Then, taking the non-state-owned pharmaceutical manufacturing companies listed in Shenzhen A shares market from 2007-2014 as a research object, taking the ShenzhenStock Exchange information disclosure as an independent variable, taking the PEG model of the listed companies quality capital as the dependent variable, we will control the variables and select the BETA coefficient, the financial leverage, the operating leverage, the scale of company, the rate of return on common stockholder’s equity, the total assets growth rate, the total asset turnover to analyze the relationship through the multiple linear regression model. The empirical results show that the increase of the information disclosure of the listed non-state-owned Shenzhen A shares market pharmaceutical companies will obviously reduce the cost of equity capital, and the relationship of two factors of the companies listed on GME is more sensitive. In the end, we will raise some improvement suggestions based on the conclusion.