The Study On The Influence Of The Quality Of Accounting Information On Debt Financing

Bank lending has been the mainstream form of debt financing for enterprises. As an important economic resource, accounting information help banks in making decisions correctly and evaluate the enterprise asset quality, solvency, profitability, operation efficiency and the amount of future cash flow, time and risk etc. The existing domestic and foreign literature are basically basically in favor of the view that the accounting information is useful for debt financing decision. And there have been literature began to mention that the quality of accounting information could affect transaction costs in the financing process, high quality accounting information have contribute to the formation mechanism of debt covenants. But the relationship between the quality of accounting information and debt financing is not static, due to the impact of many factors in the external environment and the national system, the relationship between the two is dynamic. Only a few scholars would consider country-specific institutional factors from a dynamic perspective. However, because of data samples and the methods used are different, the conclusion is not entirely consistent.On the basis of above, based on the peculiar background of enterprise ownership properties in China, taking the influence of the quality of accounting information in debt financing as the research subject, this paper conducted the empirical study, using the data of A-share listed companies in Shanghai and Shenzhen Stock Markets during the year 2009 and 2013. First of all, starting from the theoretical analysis, expounded the theory related to the quality of accounting information and debt financing, and puts forward the hypothesis of this paper. Secondly, combined with China’s unique institutional factors, this paper introduce interaction terms of the nature of ownership and the quality of accounting information, establish the regression model to test the relationship between the quality of accounting information and debt financing, as well as the influence of the nature of ownership on the relationship between them.Research results show that enterprises will benefit from the high quality of accounting information in the process of debt financing. For specific performance, high-quality accounting information can increase the likelihood of obtaining bank loans, extend the repayment period and reduce financing costs. The system of ownership will affect the relationship between the quality of accounting information and debt financing, The nature of state-owned ownership will undermine the role of the quality of accounting information, and reduce the degree of association between the quality of accounting information and debt financing.This paper aims to enrich the empirical research on the relationship between debt financing and accounting information, at the same time provide some theoretical basis for the debt financing decision, and provide some reference for the enterprise financing, especially for enterprises facing difficulties in financing, and even those can not get financing will be able to get some enlightenment from this paper.