Information Cost,Disclosure And Financial Market Quality

As a channel for listed companies to communicate information to investors and social work,information disclosure of listed companies is not only a necessary link to ensure the efficiency of the financial market,but also an important part of the financial market supervision system.In recent years,the regulatory provisions of governments on information disclosure require listed companies to disclose their information to the public accurately and timely,and take it as a means to protect the rights and interests of investors and improve the quality of financial markets.Relevant empirical literature also proves that information disclosure can promote the efficiency and liquidity of financial markets.Therefore,in order to better play its guiding role in financial market transactions,reduce the cost of enterprise capital and protect the rights and interests of investors,it is necessary to investigate the impact of information disclosure more comprehensively.This thesis adopts the way of theoretical research,provides a theoretical basis for standardizing the form of information disclosure and reducing the cost of investor information processing,which helps the regulatory authorities to improve the regulatory system of information disclosure and the operation efficiency of the financial market.From the perspective of investors’ information processing cost,based on the noise rational expectation equilibrium model,this thesis constructs an information asymmetry model in which investors need to pay the cost to obtain the public information of stock fundamentals in the financial market,and studies the impact of information disclosure on investors’ information selection behavior,the quality of financial market and the actual investment efficiency of companies.Firstly,under the condition of exogenous information,this thesis analyzes the impact of the proportion of informed investors on the efficiency of financial market and the cost of capital;Then,the information acquisition behavior of investors is internalized,and the impact of the processing cost of information disclosure on investors’ information selection,financial market quality indicators and the actual investment efficiency of the company is analyzed.The research of this paper draws the following conclusions:first,for investors,reducing their information processing cost to improve the availability of disclosed information will have two effects.On the one hand,more investors choose to obtain disclosure information,which increases the total amount of price information.But on the other hand,this will cause disclosure uninformed investors to obtain less private information,which will reduce the amount of private information aggregated in the price and the amount of information that informed investors can learn from the price.Second,for the quality of financial market,it can improve market efficiency,reduce the cost of corporate capital and improve market liquidity,so as to improve the quality of financial market.Third,for listed companies,reducing the information processing cost of investors will also reduce the amount of information managers learn from the price,and then reduce the efficiency of their actual investment.Fourth,for the government,if regulators want to limit the influence of companies on the market,it is not enough to make mandatory disclosure and disclosure requirements for companies.They must also standardize the specific forms of corporate information disclosure,improve the availability of disclosed information and reduce the information processing cost of investors.