Internet financial reporting and the cost of capital

Many studies found significant different extent of Internet financial reporting among different firms. Then, what are the economics consequences of different extent of Internet financial reporting among different firms? However, there is no empirical evidence like this. Through empirical data from China, this paper aims to investigate the influence of Internet financial reporting on the cost of capital and finds that the cost of capital is significantly negatively related to the extent of Internet financial reporting. The finds can not only make up the blankness of the like studies, but also suggest that the higher extent of Internet Financial Reporting can enhance the transparency of capital market and mitigate information asymmetry of capital market, which result in lower cost of capital.