Correlation Analysis Of Environmental Information Disclosure Quality And Equity Financing Cost Under Environmental Protection Verification

With the increase of environmental problems,the government,companies and the public pay more and more attention to the prevention and control of environmental and ecological protection.Companies environmental information disclosure is the important approach to understand the situation of companies for government and the public,it is also the way to incentive or forced companies to handle the relationship between environmental and financial management properly.In recent years,the government issued a series of regulations of environmental information disclosure to specified the companies,the guidelines on strengthening the supervision and administration of environmental protection of listed companies which carries out from 2008 to 2014,requires for heavy pollution industry company must be conducted according to the regulation of environmental protection administration of environmental protection for verification when apply for IPO or secondary equity offering.Investors become more and more attention to corporate environmental information disclosure,in order to reduce their investment risk,improve the investment quality.Therefore,listed companies in our country,especially the listed companies of heavy pollution industry,need to regulate the behavior of their environment,to disclose their environmental performance and environmental risk information in a timely manner.This paper measures environmental information disclosure quality by content analysis method and entropy weight theory,measures equity financing costs through OJN model and PEG model,and using multiple linear regression model,empirical analyzes the environmental information disclosure and equity financing costs,and the adjustment role of IPO or equity refinancing for the two aspects by using the samples of Shanghai A-share listed company of highly polluted industry from 2013 to 2014.In this paper,the study found that the sample quality of environmental information disclosure of corporate environmental report can significantly reduce the company's equity financing cost;For the companies that influenced by environmental protection examination,the relationship between environmental information disclosure quality and cost of equity financing is more significant negative.The results show that the capital market investors in China,has been focused on the company's environmental performance and environmental risk through environmental information disclosed by the environmental reports;Market can adjust the environmental behavior and investment behavior effectively,reduce the equity financing cost ofcompany which has a better quality of environmental information disclosure;Related policies formulated by the relevant government departments and supervision function,can enhance the reliability of the environment report,strengthen the trust of investors about the environmental report released company,adjust the relations between environmental information disclosure quality and cost of equity financing.