The Affect Listed Companies Information Disclosure Quality On Equity Capital Cost

Information is the core of the connection capital market transactions, informationdisclosure is to address the important institutional arrangement of informationasymmetry in capital market. The quality of information disclosure of listed companiesbecause of the capital market gradually perfect and investor behavior, has receivedextensive attention in recent years. And quality of information disclosure and its changeon the impact of the stock market and the equity capital cost, also become the focus offinancial accounting theory and practice research. Information disclosure rules of listedcompanies constantly improve in recent years in our country, the progress in the lawsand policy perspective is there for all to see. Under the condition of the current capitalmarket, whether the information disclosure quality impact on equity capital cost, what isthe mechanism of the effect, the study of the subject for listed companies, investors, andregulators have a strong reference.In this paper, by adopting the combination of normative research and empiricalresearch method. In the normative research part review domestic and foreigninformation disclosure quality affect the cost of equity capital, on the basis of relatedliterature, the key comparison shows the quality of information disclosure and theconnotation of equity capital cost and the measure method, and on the basis of criticalevaluation set selected in this paper, the main variables in the empirical research. Then,the article using the efficient capital market hypothesis, information asymmetry theory,principal-agent theory and corporate governance theory, analyzes the mechanism ofinformation disclosure quality affect the cost of equity capital, which holds thatinformation disclosure quality affected by influencing the stock liquidity and investors’risk prediction two aspects of impact on equity capital cost, thus forming a hypothesis inthe empirical research. Empirical research part in2011and2013, shenzhen motherboarda-share listed companies in our country as the research sample, according to the information disclosure quality evaluation results on the shenzhen stock exchange,evaluate the quality of information disclosure of sample companies. According to thebasic financial data of the taian data given, use can be estimated considering the marketprice of the stock, surplus and earnings growth rate PEG model to estimate the sampleof the company’s equity capital cost, beta coefficient, the company scale, market risk,financial risk and profitability as control variable, the in-depth study of the relationbetween. Article theory and the empirical analysis showed that: investors’ investmentdecision is affected by the quality of information disclosure of listed companies, thequality of information disclosure of listed companies in China are negatively relatedwith the equity capital cost. Based on the research conclusion, this article from theconstruction of the rule of law, management, capital to optimize and improve auditquality, etc, put forward policy suggestions.The biggest innovation of this article is to stand in the Angle of the investors, usecan be estimated considering the market price of the stock, surplus and earnings growthrate PEG model to estimate the sample of the company’s equity capital cost, theinvestors in evaluating the quality of information disclosure and the valuation of thestock in the future of the enterprise, how to better reflect the quality of informationdisclosure by influencing the investor’s risk/reward to predict the future of the enterpriseand the impact on equity capital cost.