Information Disclosure Regulation by Industries and Financing Cost of Corporate Equity
Information is the foundation for the efficient operation of the capital market,thus the construction of information disclosure system plays a key role in improving the functions of the capi-tal market.Taking the Industry Information Disclosure Guidelines issued in batches by Shanghai and Shenzhen Stock Exchanges as exogenous shock events,this paper examines the impact and mechanism of information disclosure regulation by industries on the financing cost of corporate equity.The results show that the information disclosure regulation by industries can significantly reduce the financing cost of corporate equity.The mechanism analysis reveals that the information disclosure regulation by in-dustries can alleviate information asymmetry between internal and external parties of the company,re-duce the operational risks of companies,optimize corporate governance structures,and ultimately re-duce the financing cost of corporate equity.The economic consequence analysis shows that the infor-mation disclosure regulation by industries can increase the actual earnings and expected values of companies.Therefore,the regulatory authorities should improve the regulatory system for indus-try-based information disclosure,the company management should actively disclose the industrial oper-ating information,and the investors should take the non-financial information disclosed by firms as an important basis for decision-making.
information disclosure regulation by industriesfinancing cost of equityvalue screen-ingoperating riskcorporate governance
万方数据
维普
