Auditor's Reputation, Quality Of Accounting Information Disclosure And Debt Financing Costs

The debt financing is one of the most important ways to corporate financing in China.The cost of the corporate debt financing has always been the hot topic in finance research.The quantity of the cost of the debt financing not only influence the financing effective,but also has an important impact on business development.Over cost of debt financing will probably result in business burden and operation difficulty impact the ability of surplus of corporate and the potential of development.In order to the corporate to be able to develop better,it is the most important how to reduce the cost of debt financing in business management.So the research of the influence factors of debt financing cost has became very significance.Previous studies have shown that agency conflicts between creditors and corporate and information asymmetry result in adding corporate debt cost.Accounting information disclosure mechanism is a most important component in corporate governance structure.Accounting information with high quality is able to reduce information asymmetry between creditors and debtors and risk of creditors and supervision cost,then to reduce debt cost.Therefore,it is very profound significant how to improve accounting information quality to reduce debt financing cost.After anran event at the beginning of 21 st century,The U.S.Securities and Exchange Commission has stressed that auditors should be more cautious in their audits,to ensure the quality of financial report and to improve the quality of accounting information disclosure.So,this article combine auditor reputation to study the effect of accounting information quality on debt financing cost.This article makes an argument by combining theoretical analysis with empirical analysis.In the theoretical analysis part,review the relevant literature at first,then basis of information asymmetry theory,reputation theory and signal transmission theory to theoretical analysis and put forward research hypothesis.It uses the A shares of Shenzhen stock Exchange 2012 to 2016 as research object,construct the model and carry out descriptive statistical analysis,correlation analysis and regression analysis.The empirical result show that:(1)The auditors with high reputation are seeking a reputation premium,to keep high reputation,need to improve audit service quality,and to ensure the authenticity and reliability of statements,thereby to promote the accounting information quality improvement.(2)The less information asymmetry between the management and creditors and the lower debt financing cost if the accounting information disclosure quality is higher.(3)The reputation of auditors is able to strengthen the negative correlation between the quality of accounting information disclosure and the debt financing cost.(4)Compared to the low growth companies,in the high growth companies the reputation of auditors is significant on the quality of accounting information disclosure and debt financing regulation.Further,in order to ensure the research accuracy,this article carries on the robustness test,and it is still true.