| In the modern financial system, information and capital has become scarce resources in the capital-market. On the one hand, investors take information as the basic basis to make decisions; on the other hand, in order to obtain capital, the public-traded company has to provide more information to attract investors. Foreign scholars focus on the relationship between company information and the cost of equity earlier, always more deeply. Their research shows that the increase of company information disclosure would be helpful to decrease the cost of equity. Further research shows the company information disclosure mainly through affecting the company’s expected risk and stock liquidity to impact on the cost of equity. The domestic research on information disclosure and the cost of equity capital is relatively backward, and the relevant empirical test also has not yet formed a unified conclusion. However, with the constant improvement of China’s multi-level capital market system, the protection for investor become more and more attention and the obvious equity financing preference of public-traded companies make it more urgent to clarify the relationship between public-trade company information disclosure and the cost of equity.In this paper, we analyzed the situation of financing of public-traded companies firstly, and found the public-traded companies have obvious equity financing preference, on the basis of the research at home and abroad for reference. We also estimated the equity financing cost of public-traded companies which listed on the Shenzhen stock exchange, under the capital asset pricing model CAPM and OJ model. The annual average in the CAPM model is 9.72%, as well as 13.14% in the OJ model. Although there are differences on the numerical between CAPM model and OJ model, but the annual trend of the both model are basically identical. Further analysis shows the sensitivity under OJ model to the market volatility is higher than the CAPM model. In the analysis of information disclosure of public-traded company in order to obtain the more comprehensive and accurate evaluation of the information disclosure of public-traded companies, we statistics and analyzed the situation of information disclosure and information disclosure violations of public-trade company, which on the Shenzhen stock exchange Shanghai stock exchange. The results showed that (1) information disclosure of public-traded companies in China still exist the problem such as false disclosure, delayed disclosure and so on. But (2) the longitudinal comparison indicates that quality of the public-traded company information disclosure is improving year by year. At the same time, the proportion of information disclosure violations also decline year by year.On the basis of theoretical research, the article took the Shenzhen stock exchange issued information disclosure as the company’s information disclosure level for examination and assessment of indicators. At the same time, took the amount of value under OJ model as the company’s equity cost alternative, examined the relationship between the listed company information disclosure level and cost of equity. The empirical results show that (1) there is negatively correlated between the public-traded company information disclosure levels with equity capital cost, (2) but in the case of disclosure of information lag issue, this relationship is not significant. In the further research, we found the level of information disclosure and company’s expected risk (beta) there exist a significant negative correlation relationship. But (4) the level of information disclosure and stock liquidity in the relationship was not significant. This may be due to excessive speculation in our stock market, thus weakening the influence of information disclosure of stock liquidity. |
PDF Full Text Request