Research On Media Attention,Corporate Governance And The The Cost Of Equity Capital

The cost of capital as an important reference index of investment and financing decision in the enterprise has attracted the attention of many scholars.The cost of capital is not only what the enterprises have to pay in financing,but also the minimum rate of return on investment.From the point of view of corporate financing,the cost of capital reflects the financing efficiency of enterprises directly,what's more,it affects the value of the project and the value of the enterprise.Generally speaking,the cost of capital can be divided into the cost of equity capital and the cost of debt capital.Compared to the cost of debt capital,the research in the cost of equity capital is much more important in the research of scholars at home and abroad.The research in the cost of equity capital includes two aspects:the measure of the cost of equity capital and the factor which affects equity capital costs.The research in the factors affecting the cost of equity capital initially focused on characteristic information of enterprise,and then,the research changed into the impact of corporate governance on the cost of capital,and the focus is the impact of internal governance factors on the cost of equity capital.Only a few scholars have studied the impact of external governance factors on the cost of equity capital,and it is not comprehensive.They mainly focus on the impact of legal system,marketization level and government intervention on the cost of equity capital.They pays little attention to the impact of the media attention on the cost of equity capital and the study on the influence mechanism is less.What's more,the interaction effect on the cost of equity capital between media attention and corporate governance shouldbe further investigated.To solve this problem,this paper theoretically deduces the impact of corporate governance and media attention and the interaction effect in this influence mechanism on the cost of equity capital combined with the institutional background of China.Controlling the company characteristics variables,this paper adopts balance panel data of 825 manufacturing listed companies from 2011 to 2012 in Shanghai and Shenzhen Stock Exchange(1650 samples in all)and applies OLS to empirical examine how corporate governance and media attention influence the cost of equity capital of listed companies and the interaction effect on the cost of equity capital between media attention and corporate governance.the company focus on the cost of equity capital in.The results show that corporategovernance and media attention do affect the cost of equity capital of listed companies,and the impact of corporate governance and media attention on the cost of equity capital has a significant interaction effect.