Study On Business Aspiration Gap,Nature Of Property Right And Cost Of Equity Capital

The cost of equity capital is one of the core factors in the financial activities of enterprises,and it is also a key factor to be considered when enterprises conduct financing activities.At the macro level,the cost of equity capital reflects the evaluation and expectation of the capital market on enterprises and plays a key role in resource allocation.At the micro level,the cost of equity capital,as the evaluation standard for enterprises to choose equity financing,is also particularly important for the formulation of financial policies.The research on the factors influencing the cost of equity capital has always been one of the academic hot spots.But at present most of the research is based on internal and external objective factors,for example,the quality of information disclosure and internal control,enterprise scale,the uncertainty of market environment,and so on,very little involves managers to subjective factors.Enterprise behavior theory and performance feedback theory,through the comparative analysis on the time dimension and industry dimension and experience learning,managers can produce a psychological satisfaction point,namely the expectation level of enterprise management performance.This point of satisfaction will become an important reference point for managers to make production and operation decisions.When the actual operating performance reaches or exceeds the water level,managers will think that the company is in a "profit" state.On the contrary,when the actual performance is lower than that of water,the manager will think that the enterprise is in a state of "loss".Under different states,the manager will make different production and operation decisions.However,at present,the domestic research on operation expectation gap is less,and focuses on managing expectations drop impact on enterprise investment decision,without further consideration to the impact of financing activities.In addition,enterprises with different property rights have significant differences in internal governance mechanism,performance evaluation system and other aspects,which will undoubtedly have an important impact on managers' decision-making behavior.Therefore,the paper based on the theory of enterprise behavior and performance feedback theory and information asymmetry theory to discuss the following two questions: one is whether business expectation gap will affect the rights and interests of the cost of capital;The second is what kind of the adjustment function will the nature of property rights do to this kind of influence.For the test management expectation gap influence on equity capital cost,and further analysis of property rights to the expectation gap and the regulation of relationships between equity capital cost effect,this paper choose the Shanghai and Shenzhen A-share listed companies from 2009 to 2014 as research samples,with reference to the research achievements of predecessors,from two dimensions of history and industry to measure samples of expectation gap in the management of the firm,with PEG model to measure the equity capital cost of the sample company.The relationship between the difference of business expectation and the cost of equity capital was tested by means of mean test and multiple linear regression model.At the same time,in order to test the regulatory role of property rights,this paper conducts panel regression and group comparative regression analysis for enterprises with different property rights.Finally,three stability tests were carried out on the empirical results by re-measuring the explanatory variables,re-measuring the explained variables and controlling the corporate governance variables.This study found that: first,the business between expectation gap and equity capital cost was significantly positively related to.This is because,the emergence of expectation gap will lead to enterprise managers are more likely to make strategic change,even for earnings management,and strategic change and earnings management will make the enterprise management risk and the degree of information asymmetry increases,resulting in the rise of equity capital cost;Second,relative to the non-state enterprises,business expectation gap in state-owned enterprises positive adjustment effect is more significant for equity capital cost.This is because,relative to the non-state-owned enterprises,state-owned enterprises pay more attention to the stability of the operation,and has abundant social resources and more forceful policy support,making it in the face of the business is not favours the expectation gap more strategic change and earnings management.The research results of this paper have certain guiding significance for the investment and financing decisions of enterprises in the business expectation gap.At the same time,it has certain reference value for enterprises with different property rights to improve the management evaluation and supervision mechanism.