The Research On The Effect Of The Cost Of Equity Capital By The Transparency Of Accounting Information

The level of transparency of accounting information helps investors determine the risk faced by the company and the minimum required rate of return on investment that the cost of equity capital.The cost of capital is critical to the development of enterprises,so studying the impact of accounting information transparency on the cost of equity capital has become the focus of current research,With the empirical research and normative research combined,the paper study the impact accounting information transparency on the cost of equity capital based on data from the Shenzhen Stock Exchange listed company 2011-2013 for a comprehensive study.First,the concept of accounting transparency is defined in the literature review on the basis of domestic and foreign research.Second,assumptions is made on the basis of relevant theories.The paper measures the transparency of accounting information from manifestation and disclosure.The Shenzhen Stock Exchange of information disclosure is measured manifestation and disclosure is measured by earnings aggressiveness and earnings smoothness.The study found that the relationship the manifestation of accounting information transparency and the cost of equity capital is not significantly negative and earings aggressiveness and earnings smoothness have a positive influence on the cost of equity capital.Finally the policies and proposal about how to improve accounting and reduce the cost of equity capital are raised on the basis of empirical research.The paper has one figure,thirteen tables and eighty-four reference.