The Study On The Relationship Between Accounting Information Quality And Credit Financing

Credit financing is a significant source of funding for enterprise development, and is also one of the main ways of enterprise financing. Banks evaluate the enterprise’s credit status and solvency according to their accounting information. Therefore, Accounting information is very important to banks. It can help banks understand the enterprise’s credit and reduce the risks from asymmetric information. The quality of accounting information will affect the credit financing decision-making for the fund provider. From the three aspects of the credit financing which includes the probability of obtaining, cost and term, and choosing reliability and caution to measure the quality of accounting information, we study the relationship between the quality of accounting information and credit financing, and we also study the company’s data of China’s Shanghai and Shenzhen Stock Market from 2002 to 2014.Our results show that the quality of accounting information will influence the credit financing decision; the enterprise who provide high quality accounting information will obtain high probability of credit financing and its credit financing cost is relatively low; the enterprise who provides lower quality of accounting information, the bank tends to provide short-term loans; the ownership of the enterprise will affect the usefulness of the quality of accounting information on the credit financing decision.