| As a foundation of market “open” principles, information disclosure has been the core values and the power source of modern capital market development, and also one of the theoretical fronts in the development of modern financial economics. Disclosure theoretical model and empirical research has increasingly become an important component of modern financial theory part and also is priority areas of concern of the modern theory of corporate finance. One of the most central issues is the relationship between the cost of capital and disclosure. Cost of capital is one of the core concepts in financial management, which is the minimum required rate of return investors, directly affecting business investment and financing decisions, deciding whether to achieve the goal of maximizing shareholder wealth. High level of information disclosure can help listed companies obtain favorable financing options, which have a major impact on the cost of capital.Research on the relationship between the cost of capital and information disclosure is the key problem of the study of modern finance, but existing research about the information disclosure and the cost of capital relationship did not exist a complete and comprehensive theoretical system, and inspection experience test has not yet reached the same conclusion. Foreign scholars have perform a lot of researches on the relationship between information disclosure quality and the cost of equity financing, which have shown that in the United States as the representative of the mature stock markets have higher quality of information disclosure while lower equity financing costs. Our quality of information disclosure of listed companies has been widespread concerned. But the theoretical study between of information disclosure and the cost of capital started late, relatively few studies, most empirical tests. However, due to sample selection and surrogate markers, the conclusions have not yet agreed.Continue to regulate the securities market as well as the continuous development of the capital market and improve the level of information disclosure of listed companies in China’s listed companies is to help reduce the cost of capital and enhance enterprise value? And what is the impact mechanism? The study of these problems, not only can evoke a listed company initiative to improve the quality of information disclosure with conscious awareness, but improve the transparency of the securities market information; On the other hand can reduce the cost of capital of listed companies to improve corporate value and protect the interests of investors and maintain market fairness and justice so as to improve the efficiency of capital markets.Based on system theory and empirical testing, the paper excavation mechanism between which information disclosure of listed companies impacts on the capital cost, explore the relationship between information disclosure and the cost of capital, and build the comprehensive and integrated theoretical framework on the research of the relationship of information disclosure and the cost of capital. This paper studies the following conclusions:1.Information disclosure influencing on the cost of capital primarily through two channels: First, to reduce the expected risk of investors, and second, to improve stock liquidity.2.Under the framework of the traditional analysis, the paper pulls in risk factors, constructs a theoretical model to analyze, and prove with the improved quality of information disclosure, the risk of stock will decrease and the cost of the enterprise’s capital will decrease.3.Under the framework of the traditional analysis, the paper pulls in liquidity factors, constructs a theoretical model to prove with the improved quality of information disclosure, the liquidity of stock increase, the premium of liquidity decrease, the part in capital cost produced by information asymmetry gradually decreased, the cost of the enterprise’s capital will decrease. |
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