The Transparency Of Accounting Information,Internal Control Audit And The Cost Of Equity Capital

Under the conditions of today's economy,an increasing number of enterprises hope to raise funds in the capital market at a lower cost to gain wider development space and more lastever development power.In this market environment,when investors and management authorities have unequal information,it will bring adverse selection and moral hazard to external investors,increase the risk factor of investors' investment,and thus increase the company's equity capital cost.Information can play a role in the capital market primarily by improving the information environment of the market and reducing the cost of market transactions.The higher transparency of accounting information is conducive to the healthy and orderly operation of the capital market,which is conducive to external investors to make accurate economic decisions.Therefore,for reducing the information gap in the capital market,reducing the cost of equity and improving the effectiveness of the capital market,This paper expects that companies can achieve by increasing the transparency of accounting information.In recent years,the successive promulgation of policies and regulations such as the“Basic Norms of Internal Controland”and“Guidelines for Enterprise Internal Control”has led to the progress of the internal control system of listed companies in China,and the form of information disclosure has gradually been standardized.Internal control audit can urge the company to improve the quality of internal control and ensure the reliability and authenticity of corporate information disclosure,to reduce the information resource gap between managers and investors and the cost of equity capital.In view of this,link the transparency of accounting information,internal control audit and equity capital cost to study the relationship between the three,in order to find the role path to reduce the cost of equity capital,reduce the project risk of investors,and maintain the steady development of the market.This paper takes the 2012-2017 ShenHu A shares listed companies as a sample,analyzes statistically the characteristics of accounting information transparency,internal control audit and the cost of equity capital,The empirical test examines the relationship between accounting information transparency and the cost of equity capital,and analyzes the role of internal control auditing in the relationship between accounting information transparency and equity capital cost.explores the relationship between accounting information transparency and the cost of equity capital,and analyzes the role of internal control audit on the relationship between accounting information transparency and the cost of equity capital.Thestudy found that improving the transparency of corporate accounting information can effectively reduce the cost of equity capital,and there is a significant negative correlation between the two.When you add internal control audit factors for group discussion,it will have an impact on the negative correlation.This shows that the strong transparency of accounting information can reduce the cost of equity capital,and the disclosure of internal control audit report is transmitted to investors as incremental information of internal control,which can help them make judgments,and then act on the relationship of accounting information transparency and the cost of equity capital.The research in this paper can not only help enterprises find a good channel and method to raise equity funds,but also provide data support and theoretical advice for enterprises to improve the transparency of accounting information and strengthen internal control audit.