Research On The Influence Of Annual Report Inquiry Letter On Corporate Financing Cost

After learning from the experience of foreign system implementation,the CSRC put forward the inquiry letter system,which is an innovation in line with the demands of the times.Especially after the stock exchange promotes the reform of information disclosure through train,the inquiry letter system has gradually become an important path of capital market supervision.Among all kinds of inquiry letters issued,the inquiry letter of financial report is the most Under the background of strengthening the regulatory responsibility of the stock exchange and more and more annual inquiry letters,all market participants also pay more attention to and pay more attention to the annual inquiry letter,which has a certain information effect.The operation and sustainable development of the company are inseparable from the financing of funds.Insufficient funds will reduce the company’s performance and even face the risk of bankruptcy.Therefore,the financing cost has a vital impact on the production and operation of listed companies.It is worth studying whether creditors and investors will consider the annual report inquiry letter when making decisions,and whether the company receiving the annual report inquiry letter will significantly increase the company’s debt financing cost and equity financing cost.After combing the recent research situation at home and abroad,based on the information asymmetry theory,signal transmission theory,principal-agent theory and reputation mechanism,this paper believes that after receiving the annual report inquiry letter,the company will promote creditors and investors to increase the risk premium,reduce future expectations,and then increase the financing cost of the company by transmitting the negative signal of high default risk and reducing the company’s reputation.In order to test the hypothesis of this paper,taking the data of China’s A-share listed companies from 2016 to 2020 as the research object,this paper explores the relationship between the annual inquiry letter and the financing cost of listed companies by constructing a multiple regression model.Regression data show that the company has significantly increased its debt financing cost and equity financing cost after receiving the annual report inquiry letter.At the same time,the number of questions in the annual inquiry letter,whether to delay the response and the impact of the number of days of delay on the company’s financing cost are studied in detail.The results show that the more questions covered in the annual inquiry letter,the longer the response is delayed and the longer the period is,the higher the company’s debt financing cost and equity financing cost are.Finally,the impact mechanism of this paper is further verified.The study found that the company receiving the annual report inquiry letter will transmit the signal of default risk,reduce the company’s reputation,and investors and creditors will increase the risk premium,which will lead to the increase of debt financing cost and equity financing cost of the receiving company;In addition,the effect of annual report inquiry letter on debt financing cost and equity financing cost is more obvious in companies employing small-scale audit institutions.In order to ensure the robustness of the results,PSM regression,PSM-DID regression,alternative variable measurement and Tobit regression are used to test the robustness,and the conclusion is consistent with the previous main regression.The above conclusions expand the relevant research on the economic consequences of the annual inquiry letter and the influencing factors of debt financing cost and equity financing cost.On the basis of enriching the relevant research,verify the effective role of the supervision mode of the annual inquiry letter,help to promote the stock exchange to further improve the supervision,enhance the attention of market participants to the annual inquiry letter,and promote the rational allocation of resources.