Relationship Between Information Disclosure Quality and Cost of Equity Capital
Zhou Hui-qi · Beijing Youdian Xueyuan xuebao · 2016
In the technology-intensive age,in order to deal with more and more important enterprise's financial information disclosure,Shenzhen Stock Exchange takes information disclosure rating as the evaluation of information disclosure degree. Related data from the year of 2009 to 2012 is selected in Shenzhen Stock Exchange and by using PEG index to estimate the cost of equity capital,the relationship between the information disclosure quality and cost of equity capital has been explored through theoretical analysis and empirical test. Results show that if market risk,company size,profitability,asset turnover and other factors are controlled,the variable of information disclosure quality rating can reduce the cost of equity capital. At last,based on the research conclusion,some suggestions are put forward from both macro and micro economics.