Research On The Social Responsibility,Fiscal Transparency And Cost Of Equity Capital Of Listed Companies

The enterprise that is in the equity trading market,its production and operating activities must bring to a certain of negative externality.Moreover,it is bearing social responsibility that can turning the negative externality into positive effect.Therefore,the publishment of social responsibility report has become the effective means which can supervise and investigate the enterprise,as well as eliminate the negative business consequence.Meanwhile,as the traditional information disclosure method,financial information disclosure has also caused the unsatisfactory of information disclosure because of the inside and outside pressure.The cost of equity capital represents the economic consequences of the implementation of information disclosure by companies.Only a high level of information disclosure quality can provide effective guarantees for enhancing the liquidity of information and promoting the trading volume of stocks,and reduce the demand for stock risk premiums.However,judging from the relationship between the two countries,no scholars have conducted an in-depth study on the mechanism of information disclosure that affects the cost of equity capital,which has resulted in a relatively weak study.Looking back at past research at home and abroad,most scholars respectively discussed the financial information disclosure and social responsibility information disclosure,instead of expounding their common influence on the cost of equity capital.For this purpose,it builds the logic model of the cost of equity capital affected by information disclosure based on the existing study,as well as by selecting the listed company that issued the social responsibility report from 2012 to 2016 as the basic research sample,the content analysis of the social responsibility report will be used as a starting point.Besides,it chooses the companies that have published the social responsibility reports as the fundamental research sample.On this basis,it screens sample data of listed companies to examine the social responsibility and financial transparency of listed companies,as well as the influence of the joint product term on cost of equity capital.Finally,it explores the potential relationship between social responsibility and financial transparency,and optimize equitable distribution of resource between financial information and non-financial information.The study shows that high-quality social responsibility of information disclosure and financial transparency can both contribute to reduce the cost of equity capital.Meanwhile,their joint product also has a complementary effect on improving the cost of equity capital.With the improvement of the quality of social responsibility,the optimizing of financial transparency can promote the weakening of cost of equity capital to a greater extent;on the contrary,if the financial information disclosure of a company is more public and transparent,the high-level social responsibility disclosure quality can also reduce the cost of equity capital more greatly.On this basis,this paper give some advice from the aspects of social responsibility,accounting standard,information disclosure,enterprise scale and financial leverage.It tries to provide the development direction for the follow-up study.