Information Disclosure、Cost Of Equity Capital And Enterprise Investment

Investment is the important premise of enterprise survival and development premise. It’s the indispensable conditions of an enterprise to gain profit and grow in strength, therefore, investment decision-making is the core problems of enterprise finance. On a macro level, investment is one of important factors that effects China’s economic development, however, the efficient investment behavior has become a universal phenomenon in China’s enterprises, and has a negative impact on the sustainable development of economy. According to the research of the previous scholars, the level of enterprise efficient investment behavior mainly caused by asymmetric information and agency problems, while the high quality of accounting information can effectively improve the influence of the above two aspects to the enterprise investment. In addition to the disclosure of information, capital cost, especially the cost of equity, can also affects the firms’ investment efficiency. On the financial side, China’s listed companies have the excessive preference of equity financing in recent years. The cost of equity capital largely determines the scale of the enterprise investment, meanwhile, the cost of equity is the minimum return of shareholders, so, it is also an important choice criteria to enterprise project investment. For information disclosure, the cost of equity capital and the enterprise investment, the previous scholars mostly researched the relationship between information disclosure and the cost of equity capital, information disclosure and enterprise investment, but the relationship of above three was rarely involved. Therefore, this article begin with information disclosure, combining with the cost of equity capital to analyze the action mechanism of enterprise investment in China.First of all, through the definition of Information Disclosure, Cost of Equity Capital a nd business efficiency investments, refer to the related research Information Disclosure at h ome and abroad, the Cost of Equity Capital and business investment, as well as summarizi ng for Information Disclosure Index, Equity Capital Cost Estimation Methods and Business Investment Efficiency Model, selecting a surrogate marker for the article as explained var iable; Using the method of theoretical analysis to expound the theory of asymmetric information, agency theory and corporate investment theory.Providing the theoretical foundation of proposing and creating models by succcessively analyzing the mechanism,which Inform ation Disclosure,the Cost of Equity Capital impact to the investment efficiency of listed co mpany.Then, using the method of empirical research to study the data analysis,which put liste d companies of Chinese Shenshi as for research object. Firstly, in order to inefficient inves tment companies as the dependent variable, in order to information disclosure index as ind ependent variables, controlling related variables to build regression model,testing the inhibi ting effect of the quality of information disclosure to improve corporate investment levels o f inefficient inhibition; secondly, in order to business investment expenditure as the depend ent variable, in order to the cost of equity capital as independent variables, controlling relat ed variables, building multiple regression model to examine the effect of the cost of equity capital for business investment spending; thirdly,in order to inefficient investment compan ies as the dependent variable,in order to the cost of equity capital and information disclosur e cross term as independent variables, controlling related variables,building multiple regres sion model to examine if the improvement of the quality of Information Disclosure play an inhibitory effect onthe cost of equity capital and non-efficiency of investment companies.Finally, based on these empirical results,I put forward suggestions to improve the effic iency of our country’s investment behaviorfrom three aspects that are standardizing financi al information disclosure system, optimizing financing structure and strengthing the interna l corporate governance three suggestions.