Abstract With the perspective of bounded rationality of investors, this study takes A-share entity listed companies during 2009～2019 as examples and examines the cost of equity capital effect under the big data background based on the text analysis of management discussion and analysis (MD&A) in annual reports. The conclusions are as follows: firstly, the big data background is proved to reduce the cost of equity capital; secondly, the decrease of the cost of equity capital for the companies with the big data background is mainly due to the improved corporate governance(rational factors) and transmission of positive emotions from management(irrational factors); thirdly, the big data background improves the overall accounting information quality of listed companies, which indicates that rational factors dominate the relationship between the big data background and the cost of equity capital; finally, the negative relationship between the big data background and the cost of equity capital is more significant in the companies that are state-controlled, located in the area that implemented “Broadband China”, and audited by Big4 for their annual reports.
ZOU Ying,HUANG Qiqing,CHEN Rui. Research on the Cost of Equity Capital Effect under Big Data Background[J]. Chinese Journal of Management, 2022, 19(10): 1468-.
