Research On The Impact Of Risk Information Disclosure On The Cost Of Equity Capital

Timely and sufficient information disclosure is the core of investors' investment decisions,the basis for market valuation,and the only way to improve market order.The disclosure of risk information can increase the information content of investors to a certain extent,meet the information needs,and reduce the information asymmetry between the supply and demand sides.On the other hand,due to the risks contained in the information disclosed,in theory,the disclosure of risk information has increased the risk sensitivity of investors to a certain extent,which in turn affects investment decisions.China's Securities Regulatory Commission mandates that the company disclose risk information related to business management in its annual report.Does it affect whether the impact of corporate equity financing costs is good or bad,and whether the impact will change when the information environment of the enterprise is different? Further research is needed.This paper explores its mechanism of corporate equity financing costs from the perspective of risk information disclosure in China,and attempts to analyze the impact of mandatory policy implementation on corporate financing capabilities.The data in this paper mainly selects the 2010-2017 data of listed companies of A-shares in China's two major board stock exchange markets,and excludes some samples that do not meet the requirements.The final sample is 2120.On the basis of collating relevant literature and establishing a theoretical analysis framework,descriptive statistics and regression analysis are used as empirical research tools.Through analysis,this paper draws the following conclusions: The risk information disclosure in the annual report has the information value,which can reduce the information asymmetry,thereby reducing the investment cost,and this effect is less tracked by institutional investors and the degree of marketization in the region where the enterprise is located.The effect is more obvious in the higher sample companies,further indicating that the implementation of the policy has positive significance for promoting the improvement of the enterprise information disclosure mechanism,and benefits the financing ability of the enterprise,and the construction of a sound information disclosure mechanism can weaken the information environment of the enterprise.Negative impact.The innovations in this paper include:Different from the scholars' research on the US market,the risk informationdisclosure in China reflects the commonality of information,and after the market's overall information disclosure environment changes,the sufficient degree of risk information disclosed by the company is Financing behavior has a significant impact,expanding relevant research.