The research results of Assistant Professor Cai Guilong and Professor Lu Rui were published in Management World
With the rapid development of Internet communication technology, the dilemma faced by investors is no longer the high cost of information acquisition, but the problems such as excessive difficulty and high cost of information integration caused by information explosion and overload. However, most of the existing research and information disclosure systems are from the perspective of traditional information supply, ignoring the possible heterogeneity of information needs of investors who are the information demanders.
The research found that investors' strengthening of information interaction with companies can help reduce the company's cost of equity capital; for companies with higher information asymmetry, lower institutional shareholding ratios, and larger stock trading scale of retail investors, investors-listed companies' interaction has a stronger effect on reducing the cost of equity capital; furthermore, when the listed companies have higher response ratio, higher quality of response, more timely response, and investors pay more attention to accounting information and financing matters, the companies' equity capital reduction effect is stronger; the above conclusions are still robust after adopting fixed effects model, PSM, second-pass regression of instrumental variables, and constructing a difference-in-difference model based on the time difference between the launch of investor interaction platforms in Shanghai and Shenzhen to alleviate the endogeneity issue.
The research results were published in the economics and management journal "Management World", Vol.8, 2022, under the title of "Investors-Listed Companies Interaction and Capital Market Resource Allocation Efficiency: Empirical Evidence Based on the Cost of Equity Capital". The School of Business, Sun Yat-sen University is the first correspondence unit, Assistant Professor Cai Guilong is the first author, and other collaborators are Zhang Yanan of Lingnan College, Sun Yat-sen University, Xu Yue of the School Of Economics and Management, South China Normal University, and Professor Lu Rui of the School of Business, Sun Yat-sen University.
