A Study Of The Relationship Between Carbon Disclosure And Cost Of Equity

2016 is the first year of the Chinese " 13th Five-Year" plan.China's economic development has entered a new normal,while the economic downward pressure increasing.Under the environment of tightening situation,the majority of enterprises has to be faced with financing difficulties,especially for high carbon value enterprises which facing the disadvantage of capacity surplus and the low prices of energy product,so how to reduce financing costs has become the key for business development.Then how to raise the level of carbon information disclosure and reduce the cost of financing equity capital will become an urgent problem at the same time.Therefore there will be a great meaning for the study of the relationship between the two parts either the national level or the enterprise level.Therefore,this paper mainly studies the relationship between the level of carbon information disclosure for listed corporation in high carbon value industry and the cost of equity capital.First of all,the paper summarizes the related literature and makes the definition and theoretical basis.According to the classification of CDP report and the characteristics of Chinese high carbon value industry,the paper designs the evaluation index system of carbon information disclosure.So as to put forward the corresponding four assumptions based on the composition of the index system,a sample source is selected from high carbon value enterprises in Shanghai and Shenzhen between 2013-2014.After multiple regression testing,the following conclusion has be built:The carbon disclosure for Chinese high carbon value listed companies,in both total level and sub-index aspects(low carbon strategy disclosure levels,carbon emission reduction management mechanism of disclosure level,CO2 emissions disclosure level),have a remarkable negative correlation with their cost of equity capital.On the basis of empirical research,this paper proposes the corresponding countermeasure and the suggestion from three angles including the listed company,the policy making institutions and the external investors in order to improve the level of Chinese high carbon value carbon disclosure,develop low carbon economy and reduce investment risk for investors.