Performance Forecast Disclosure System,Performance Forecast Message Type And Cost Of Equity Capital

Accounting information is the main Information Sources for investors to capture the company's situation and plays a crucial role in the capital market.The performance forecast is the management's pre-estimation and disclosure of accounting earnings before the regular financial report.As a useful supplement to the annual report,the performance forecast can effectively alleviate the information asymmetry brought by the lagging of the annual report and provide investors with timely and useful decision-making information.Whether the performance forecast has effective information will directly affect stock price and the investor's judgment on the company's risk,so that the investor bears varying degrees of risk,thus affecting the required return rate of investors.In addition,due to China's semi-mandatory disclosure system,management has the motivation to manipulate the type of news,and the different types of news bring different economic consequences,including the cost of equity capital.At the same time,with different nature of equity,performance forecasting also has different effects on the cost of equity capital.This article takes the 2012-2016 data of A-share listed companies in Shanghai and Shenzhen stock markets as samples,and excludes financial and insurance companies,ST companies,companies that issue B-shares and H-shares,and companies with missing data.It uses SPSS statistical software for regression analysis.The relationship between performance forecast news types and equity capital costs was studied from the perspective of favorable degree,and the regulatory effect on its relationship by Performance Forecast Disclosure System was examined.The study finds that the favorable degree of performance forecast news is negatively related to the cost of equity capital.Under the mandatory disclosure system,this negative correlation is even more pronounced.Under the mandatory disclosure system Compared with non-state-owned enterprises,the negative correlation between the favorable degree of the performance forecast news and the cost of equity capital is even more significant in state-owned enterprises.This paper believes that the performance forecast information includes effective information and can influence investors' decision-making behavior,which in turn affects the cost of equity capital.The higher the favorable degree of performance forecast news,the lower the cost of equity capital,especially when the mandatory disclosure system is adopted.The government should further improve the performance forecast disclosure system and make it play an active role in performance forecasting in the capital market.Enterprises should also abide by the system,timely and accurately disclose performance forecast information,provide investors with timely and useful decision information,thereby reducing the cost of equity capital.