Relation research between information disclosure and capital cost of Chinese listed company

Abstract

A strong stock market must follow fair, public and equitable features, and the foundation of public is the information disclosure. Improving the quality of the information disclosure to some extent can help corporation financing, so as to impact the capital cost. This paper expounds the present situation of information disclosure and the specific situation of the capital cost; it draws the conclusions by using regression analysis method to inspect the relationship between the information disclose and capital cost that (1) the information disclosure mainly influences the capital cost by lower investors' risk and improves the stock liquidity;(2) the information disclosure quality has a significant negative effect towards capital cost, which is to say, quality improvement of information disclosure can effectively reduce the enterprises' capital cost.