Research on the Influence of Listed Companies' Strategy on Financing Cost

Abstract

The strategy of companies is related to the survival and development of enterprises. Listed companies with different strategies have different business characteristics, and the difference will affect the comprehensive judgment of investors on the company, thus affecting the efficiency and cost of absorbing external funds. The development strategy disclosed in the annual report of listed companies is an important channel for external investors to understand strategy and analyze value of the company. This paper makes a textual analysis of the development strategy of listed companies, and explore the influence of it on the cost of equity financing. This paper studies the influence of text readability, text intonation and strategic differences of listed companies on the cost of equity financing, taking the Shanghai and Shenzhen A-share listed companies from 2015 to 2020 as samples. This paper studies the influence of listed companies' strategies on the cost of equity financing from the perspective of text analysis, which expands the channels for studying the strategic characteristics of companies, and provides some reference for listed companies to disclose their development strategies in the future.