Timeliness Of Annual Report Disclosure, Analysts Coverage And Debt Financing Cost

Annual report as the main form of information disclosure of listed companies,it is the principal way that investors and creditors and other stakeholders take enterprise information of operating and financial performance during the reporting period.Annual report information for investors and creditors and other stakeholders to provide decision-making basis,the information quality is associated with quality of decisions.The usefulness of information also need to be on the premise of timeliness,not timely information its effect will sell at a discount greatly,even have no effect at all.In view of the major effect of the timeliness,the FASB(America's Financial Accounting Standards Board),IASC(International Accounting Standards Committee)and the relevant regulations of the ministry of finance to develop are to make the rules.The expression of timeliness is different,but all included in the accounting information quality feature system,so we can draw a conclusion that timeliness is significant.The timeliness is one of the general principles of the accounting information quality,also received extensive attention of scholars both at home and abroad,especially the annual report disclosure timeliness problem by many scholars have extensive and in-depth analysis and discussion.In terms of the impact factors of annual report disclosure timeliness,the early research involve scale,the number of subsidiary company,industry characteristics and other factors which influencing the annual report preparation work and complexity of audit,then scholars on the issue of research has focused on the influence of company's performance and audit opinion.In the process of research on annual report disclosure timeliness,"the good news early disclosure,bad news late disclosure" information disclosure rule,in the foreign and domestic as the research background of related literature are confirmed.In terms of annual report disclosure timeliness economic consequences,the present study is focused on two aspects of its surplus quality and market reaction,the disclosure of information is not timely company earnings quality is relatively low,market reaction to timely disclose also were more positive.Research on the economic consequences,not only research Angle is relatively limited,and ignore the creditors,this also leave some space for the research of this paper.Therefore,this article discusses the economic consequences of the annual report disclosure timeliness relative with creditor,and we study the impact of the annual report disclosure timeliness on debt financing cost,we want to realize whether creditor can effectively identify the signs behind the annual report disclosure timeliness and its risk.Recent year,securities analyst industry development greatly,along with our country securities market flourishing,the function of analysts also caught the attention of academic circles.Existing related studies have shown that analysts in both two aspects of information intermediary and external supervision work effectively,the information intermediary role can effectively improve information transparency,and its external supervision effect also increases the cost and difficulty of "opportunistic behavior".Thus this research study the impact annual report disclosure timeliness on debt financing costs,at the same time,also want to explore whether analysts play a positive and effective role in the relationship between annual report disclosure timeliness and debt financing costs.Therefore,using Chinese a-share listed companies from 2007 to 2014 as sample,both specification and empirical method in the study process.This paper first review and combing the existing research results at home and abroad,in order to help us accurately grasp the research status.Secondly,combining with the related basic theory,logic analysis,with the purpose of this article studies the problem of corresponding hypotheses are proposed.In addition,build the model and propose the hypothesis,tested,and analyzes the empirical test results.Finally,we draw a conclusion and corresponding lesson.In this paper,the study conclusion can be listed as follow.Firstly,the annual report disclosure not in time will lead to enterprise pay a higher cost of debt finance;analyst coverage can reduced the positive relationship.What is more,before the deadline(April 30)disclosure of annual reports will increase debt financing costs,analysts focus also can play an effective role in the relationship.Last,the latter leads to the increase of higher than the former.Results above show that the creditor,especially banks and other financial institutions,can effectively identify the risk behind the annual report disclosure not in time and relative signal,and can distinguish the signal and risk is difference.Analyst coverage both plays a positive role in the process.This article research,we can get some enlightenment,the annual report disclosure is not seasonable behind the complex and profound "story",securities regulatory commission and other market regulators should further standardize information disclosure of listed companies.The annual report disclosure not in time also contains a lot of risks,stakeholders should be more attention.Securities analyst play positive and effective role in such aspects as information intermediary and external supervision,should vigorously promote the development of the industry analysts,to increase the efficiency of the market,promote the optimal allocation of resources.