| In recent years,corporate social responsibility is widely concerned because of the environmental pollution,food safety problems caused by the rapid development of enterprise whose goal is pursuing with the wealth maximization.Since 2006,the report guide of the listed company social responsibility was issued by the Shanghai stock exchange and Shenzhen stock exchange.At the same time,the State Asset Regulatory Commission(SASAC)required the state-owned corporations to compile the corporate social responsibility according to the report guide of Chinese state-owned corporate social responsibility.the corporate social responsibility issues once again be put forefront due to the serious haze problems occurred in 2015.On the 2th,June,China General Administration of Quality Supervision and Inspection and the National Standard Committee jointly issued the social responsibility guidelines,social responsibility report guide and the social responsibility and the classification guidelines which standardize the national standard of social responsibility information disclosure.At the end of 2015,a total of 1601 social responsibility reports were published in the territory of China.Along with the increasing of social responsibility reports,the influences of quality of social responsibility information has become a research hotspot.Equity capital cost is refers to the return rate required to get by shareholders who invested enterprises,the higher risk of enterprise,the more investors require to get the return rate form the investment.According to the capital market efficiency theory,information asymmetry theory,principal-agent theory,the liquidity premium theory,signaling theory and stakeholder theory,enterprise social responsibility information disclosure affects the equity capital cost through Reducing the information asymmetry and the principal-agent risk,improving corporate reputation and consumer of the product recognition,fulfilling social responsibility to increase enterprise financial risk.However,there is no unified conclusion on the relationship between the two variables.Life cycle theory indicates there is some difference in each life cycle phase for enterprise on the entrusted agency cost,business risk,financial risk and corporate reputation.The difference may lead to the relationship between rights and interests of the cost of capital of disclosure quality of social responsibility information having a dynamic effect as the enterprise life cycle.Therefore,this paper discusses the impact of disclosure quality of social responsibility information on the cost of equity capital and its role in the mechanism in the different life cycle with the 2645 data of the Chinese listed companies which release social responsibility report from 2009-2014.Discusses the impact on equity capital cost and its mechanism of action of disclosure quality of social responsibility information in different life cycle stages.The results shows that:(1)in initial period,disclosure quality of social responsibility information has no significant effect on the cost of equity capital;(2)in growth period,improving disclosure quality of social responsibility information can decrease the cost of equity capital;(3)in maturity period,the negative correlation between this two variables is strongest;(4)in decline period,this two variables are significantly positive correlation.Further study findings that:in non heavily polluting industry,the relationship between this two variables comply with the above dynamic effect,however,the influence of life cycle factors on the relationship between the two variables is weakened in heavily polluting industry.The conclusions of this paper support the policies of encouraging social responsibility information disclosure issued by Shanghai Stock Exchange,Shenzhen Stock Exchange and SASAC.It also provides a theoretical reference for enterprises taking different information disclosure measures in different life cycle to reduce the cost of equity capital effectively. |
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