The Relationship Between Disclosure Transparency And Cost Of Equity Capital Of The Listed Company

Timely,full and true disclosure of information is the effective guarantee of the capital market. However, nowadays a lot of information disclosure of listed companies is based on offering, performance, or by a regulatory requirement. For the purpose of information disclosure of listed companies lead to the emergence of a large amount of illegal divulgence phenomenon. The existence of the phenomenon of illegal divulgence caused a major blow to the confidence of investors, the impact to the overall effect of information disclosure of listed companies, hindered the orderly development of China’s securities market. So the information disclosure of listed company of the general public has increasingly become the focus of attention, investors to improve the transparency of the listed company information disclosure requirements also more and more intense. Scholars at home and abroad in the disclosure of information transparency and do some research on the relation of equity capital cost, and the current study results, the disclosure of information transparency and the relationships between the equity capital cost does not make a conclusion, and the majority is for main board listed companies, the study of listed on the gem companies are few. So for the gem companies have their own characteristics, the disclosure of information transparency and the cost of equity capital relationship whether in accordance with the law of the main board listed companies remains to be studied.Based on the 2011-2013 GEM listed companies in shenzhen stock exchange market in China as the research object, using income radical degrees to measure information disclosure transparency equity capital cost, and the historical average method to select the size of the company, corporate governance structure, financial risk, profitability, asset turnover and the carrying value than the six indexes as consideration, examines the disclosure of information transparency and the relationship between the equity capital cost. First in this paper, on the basis of reviewed the related literature, from the perspective of liquidity risk and stock market two analyzes the mechanism of information disclosure transparency effect on equity capital cost.Then use the EXCEL analysis tools and SPSS statistical software for data to carry on the multiple regression analysis.Through the analysis, we found that in the shenzhen stock exchange listed company information disclosure and transparency in the equity capital cost were positively correlated;In addition the company size, profitability, asset turnover negative correlation with the equity capital cost, while the top five holdings, financial risk, the carrying value than relationship with equity capital costs were positively correlated.In this paper, on the basis of these conclusions put forward the relevant policy recommendations, and limitations on research at the same time in the future was prospected.