Research On The Effect Of Listed Companies’ Non-financial Information Disclosure On The Cost Of Capital

The accounting information disclosure of the listed companies plays an important role in maintaining the normal operation of the stock market, protecting the interests of investors and other stakeholders. Currently more research results that the effect on the cost of capital by the accounting information disclosure are obtained. But most of them are about the effect on the cost of capital by the financial information disclosure, related research that the effect on the cost of capital by the accounting information disclosure is still lacking. With the development of the capital market, the disclosure of non-financial information is increasing. It not only reflects the current operating conditions of enterprises, but also is an important indicator to predict the future development of enterprises. Investors get more non-financial information may be able to reduce the risk of investment and to reduce the company’s financing costs are the study of this paper.This paper tries to analyze the effect on the cost of capital by the non-financial information disclosure from both theoretical and empirical aspects. In theoretical aspect, this paper is a systematic literature review of non-financial information, at the same time, based on the relevant theories this paper makes in-depth analysis on the effect mechanism of non-financial information disclosure on capital cost, and put forward the hypothesis of this study. In the empirical aspects,this paper selects the companies listed in Shanghai and Shenzhen main board from 2012 to 2014 as the research sample and uses SPSS software for the descriptive statistics and correlation analysis, at the same time makes the multiple linear regression analysis in order to test the hypothesis one by one. According to theoretical analysis and empirical results, it can be concluded that:First, non-financial information disclosure has negative correlation with the cost of capital through empirical research. It means that the increase of non-financial information disclosure helps to reduce financing costs; second, the industry factors play an important role in the effect on the cost of capital by the non-financial information disclosure. Also the non-financial information disclosure effects on the cost of equity capital in different industry and there is a big difference; third, the model is established based on the empirical test shows that non-financial information disclosure have different impact on the cost of equity capital and debt capital cost,the performance is that the impact of non-financial information disclosure on the cost of debt capital is greater than the impact on the cost of equity capital. This paper enriches the research on non-financial information in theory, and providing empirical support for further research. At the same time, it also provides some enlightenment and reference for the practice of non-financial information disclosure of listing Corporation. It provides the theoretical basis for the market supervision department to further standardize and supervise the information disclosure of the listing corporation, and effectively promote the capital market stable and healthy development.