A Study On The Influence Of The Cost Of Equity Capital Of Managerial Capacity And Analysts' Attention

Equity financing is one of the main sources of capital to listed companies,so how to control the cost of equity capital in the ideal level,has become the focus of attention of listed companies.In recent years,with the economic environment changes,investors' information needs are increasingly diversified.They not only concerned about the financial information,but also attaches great importance to the non-financial information,including managerial capacity.The managerial capacity will have a great influence on the choice of the company's development strategy,the determination of the investment plan and so on.So it is necessary to research the relationship between the managerial capacity and the cost of equity capital.At the same time,introduce the variable of analysts,attention to examine the changes in the cost of equity capital under the dual influence of internal managerial capacity and external analysts' attention.The study of the relationship between the three not only help the company managers to build capacity,but also to promote the rapid development of our analysts.This paper mainly discusses the impact of managerial capacity and analysts'attention on the cost of equity capital respectivel,and the relationship between managerial capacity and cost of equity capital under the analysts' attention.Based on the theory of principal-agent,effective market theory,information asymmetry theory and signal transfer theory,this paper analyzes the relationship between managerial capacity,analyst's attention and cost of equity capital.Secondly,based on China's Shanghai and Shenzhen A shares 2011-2015,using a variety of statistical methods to analyze the collected data,this paper analyzes the relationship between the managerial capacity,the analyst's attention and the cost of the equity capital.And further analyzes the differences of the three relations under different property rights.The study found that managerial capacity are negatively related to the cost of the equity capital.After considering the analyst's attention which act as external oversight mechanism,the analyst's attention not only reduces the company's cost of the equity capital,but also promotes the positive impact of managerial capacity on cost of the equity capital.Further analysis of the nature of the distinction between property rights,compared to non-state-owned listed companies,managers in state-owned listed companies to reduce the cost of equity capital is more significant,and analyst's attention is concerned with the positive role of managerial capacity and the cost of equity capital.Based on this,this paper puts forward some policy suggestions to strengthen managers' ability construction,perfect manager market and actively play the role of analyst's management.