Stock Pledge of Ultimate Owner Information Transparency and Construction Projects Cost

摘要

In recent years,with the rapid development of China's capital market,strong shareholders'stock pledge activity has occurred frequently and has received increasing attention.The disclosure of company's information is the main way for investors to know about the enterprise.The company's information transparency will also affect the enterprise construction project cost.Based on this,the paper selects all a-share construction enterprises from 2006 to 2016 as samples to study the impact of stock pledge of ultimate owner and information transparency on construction project costs.First of all,the article examines the impact of the stock pledge on project cost.Then,referring to Bhattacharya's research,this paper used earnings aggressiveness and earnings smoothing as the measurement of transparency.The relationship between the transparency and the construction project cost discussed when the transparency is taken as the moderator variable.The research found that the stock pledge of ultimate owner will constrain construction project expenditure and that transparency is positively correlated with construction project cost.The research also found improving firm's transparency can alleviate the cost constraints which was caused by pledge.