A Research On The Effect Of Information Disclosure Qualiy On The Cost Of Equity

The impacting of information disclosure quality on the cost of equity financing has been get the close attention of theoretical and practical circles.Most scholars believe that promoting the quality of information disclosure can reduce the cost of equity financing,but there are still some scholars don't agree with this conclusion.These different results caused by a key reason whether considering a prerequisite for“whether investors to focus on market information”.Based on the perspective of investors limited attention,this passage studies that the introduction of investor attention variables will whether affect the relationship of the quality of information disclosure and the cost of equity financing.And on this basis,further analyze that different types of investors' attention to the influence of the relationship between information disclosure quality and cost of equity financing is whether obvious difference or not.In order to guide the optimization of information disclosure behavior of the listed companies and provide a certain amount of empirical evidence for better development of our capital market institutional investors and individual investors.This paper starting from the existing research results at home and abroad,analyzes theoretically the relationship of information disclosure quality and the cost of equity capital and investors limited attention,uses the following quantity of analysts and Baidu search as investor attention index,and based on the data of listed companies,empirical the relationship of the information disclosure quality and the cost of equity capital ?investor attention impacting on the relationship between the both and different types of investors' attention influencing on the relationship between the both.And put forward policy Suggestions based on the data analysis results.The results proved that: the quality of information disclosure is negatively related to the cost of equity financing and the listed companies can improve the quality of information disclosure to reduce the cost of equity financing.The attention of investors of listed companies in our country is low,and the number of institutional investors is lack in china.Those lead to the substitution effect of comprehensive investor attention and quality of information disclosure of is not significant;Because of congenital advantage and external pressure,institutional investor's attention is higher to the information disclosure of listed companies.The substitution effect that investor's attention and quality of information disclosure is significant.Institutional investors' attention can produce positive effects on the equity financing cost.Because of the limitation of time,energy,cultural level,individual investors' attention is low to the information disclosure of listed companies.The substitution effect that investor's attention and quality of information disclosure is not significant.Individual investors' attention cannot produce positive effects on the equity financing cost.We need to be further to improve the quality of information disclosure,build a scientific and reasonable evaluation system of the information disclosure of enterprises,develop the institutional investors,strengthen the investment risk education of individual investor,better play the function of the market price discovery.