Research On Compulsory Information Disclosure And Cost Of Equity

With the further development of China's capital market and the increasingly perfect financial system,investors are increasingly concerned about the quality of information in the internal control of enterprises.In April 2010,the Ministry of Finance and other five ministries jointly released 18 guidelines for internal control of enterprises to regulate issues related to the construction of internal control systems and disclosure of internal control information.The guidelines officially put China's internal control information disclosure system into the mandatory disclosure stage from voluntary disclosure,requiring enterprises to pay more attention to the design of their internal control system,improve the quality of internal control information disclosure,and deliver a good signal to the market.In this way,investors can reduce the expected risks of enterprises and stimulate investment.Then,whether the mandatory disclosure of internal control information can further reduce the information asymmetry and protect the interests of investors than the voluntary disclosure.On this basis,this paper discusses and analyzes the impact of mandatory disclosure of internal control information on the cost of equity capital.This paper reviews and summarizes the related literatures on the relationship between mandatory information disclosure and equity capital cost,and combs the concepts and theories related to mandatory information disclosure and equity capital cost,selects appropriate basic factors,and chooses Shanghai A.As a research object,the stock examines the relationship between the company's mandatory information disclosure system and the cost of equity capital,and on the basis of the assumption that the mandatory disclosure of the internal control self-evaluation report can reduce the cost of equity capital,using the double difference model(Difference-in-Difference,DID)),PEG model to construct an econometric model of equity capital costs.Finally,taking A company as an example,it analyzes the composition of equity capital and information disclosure of A company,tests the empirical results through cases,verifies the conclusion,and makes recommendations for improving mandatory information disclosureThe study found that there is a negative correlation between mandatory disclosure and the cost of equity capital.There is a significant negative relationship between the compulsory disclosure of the internal control self-assessment report and the cost of equity capital in the sample of state-owned enterprises,but this conclusion is not significant in the sample of non-state-owned enterprises.At the same time,the law enforcement is strictly enforced,and the mandatory disclosure policy has a more positive effect.