Study On The Impact Of Accounting Conservatism On The Debt Financing Of Small And Medium Enterprise Board Listed Companies

Accounting Conservatism as the important quality of accounting information requirements been long time. Because there is a dispute, FASB and IASB canceled robustness quality requirements in a joint conceptual framework in 2010, but China’s accounting standards have been never abandoned conservatism in accounting practice in the application. Systematic study of prudence is only rise in the past decade, and mainly concentrated in four areas: the existence, causes, measurement methods, and the economic consequences. In recent years, research on the economic consequences of accounting conservatism began to gradually rise. This study belongs to accounting conservatism economic consequences.The cost of debt capital and debt maturity is an important part of the debt financing. Borrowers who want to obtain a lower debt financing costs and longer-term loan, you need to provide more protection for creditors. If the creditor can identify prudent accounting information and believe it can bring benefits to themselves, the debtor will give more confidence. Small plates of capital markets is our efficient financing platform for SMEs to grow and develop. This paper selects 2010 to 2013 small board listed company data for the study, designed to detect whether the use of accounting conservatism will bring small and medium enterprise board "returns". In this paper, I use accruals method to measure the accounting conservatism level, the results show that China’s small and medium plate market exist accounting conservatism, but accounting conservatism has no significant impact on the cost of debt, which shows small plates enterprises offer soundness of accounting information but did not receive compensation for the cost of debt, one might that the creditor did not recognize the soundness, and second, the creditor may not have the need of robustness information. And accounting conservatism have a negative impact on access to long-term debt, which is due to the higher the conservatism the lower the corporate reporting earnings and net assets, resulting in low rating on the company, in order to protect their own interests, the creditor will reduce long-term loans.