Financial Marketization, Food Safety Information Disclosure And Cost Of Capital

The biography of the book of han lishi:"the king regards the people as heaven,while the people regard food as heaven." In our country,the food industry is the key to the relationship between the national living standard and quality,in the national economy also occupies the important position,in 2017 China's food industry output value as high as 10.52 trillion.However,food safety issues such as "sanlu melamine milk powder","cadmium rice" and "shuanghui clenbuterol”are affecting the most sensitive nerve of the public at all times.The study found that it was information asymmetry that caused these serious consequences.The information asymmetry among the government,food manufacturers and consumers is one of the important factors leading to this series of events.Therefore,it is necessary to understand and pay enough attention to the food safety information disclosure system.As a traditional industry,food industry has a long history of financing difficulties,and there is a large space for financing planning.It is an inevitable choice to discuss the capital cost of food industry.Based on the theory of corporate governance,social responsibility theory,value management theory and signaling theory as the foundation,from the characteristics of the food industry listed companies in China and the present situation,taking 117 a-share listed companies as the research object,the selection of six years of 2011-2016 data,build the empirical index system.For the food industry to strengthen food safety information disclosure of listed companies can reduce the cost of capital,financial marketization level can reduce the cost of capital,financial marketization is for information disclosure level and the cost of capital between regulation for research,explore the effects of food safety information disclosure on enterprise cost of capital.At the same time,for food manufacturing companies,scientific theoretical support and effective empirical data can be provided to effectively reduce capital costs through information disclosure related to food safety.Through data analysis,it is concluded that improving the level of information disclosure related to food safety can effectively reduce the capital cost of the company.The corresponding capital cost will be lower in areas where the financial market develops rapidly.At the same time,the negative correlation between the level of food safety information disclosure and the cost of capital is more obvious in areas where the financial market develops rapidly.According to the conclusion,in this paper:first of all,should be encouraged to food manufacturing companies for information disclosure,for the food manufacturing industry listed companies,the government and various social organizations should actively promote and advocate the food safety information disclosure,in particular to encourage companies to more security for the directly related to their own product production process,production standards,the preservation and transportation methods,supervision and production system,and so on the detailed introduction,so as to help investors to understand the status of the company.Secondly,we should improve the food safety evaluation mechanism and improve the disclosure of information to help investors know more about the company,which is also in line with investors' intention to reduce investment risks.Therefore,relevant departments should take active actions to further improve and refine the existing evaluation standards related to food safety.Finally,we should actively improve the level of financial marketization and play its regulatory role between information disclosure and capital cost.