Accounting Conservatism And Private Enterprise Debt Financing Research

Debt financing is the main way of private enterprise financing, if private enterprise can get debt financing in a timely manner,which is very important for private enterprise to expand production and improve the competitiveness. In this paper,using the method of accruals measurement to measure accounting conservatism and using the Panel Data of China A-shares in Shanghai and Shenzhen stock markets private listed companies as samples. Analyze the results of how accounting conservatism impacts debt financing in private listed companies, whether to adopt prudent accounting policies in private listed companies will have a positive effect on debt financing.From the empirical results of this paper, we can get these conclusions: the higher the private listed companies accounting conservatism extent, the larger the debt amount of the debt financing and the lower the cost of debt, private listed companies can use reasonable accounting conservatism to optimize debt financing.Higher accounting conservatism means that greater debt amount and lower debt cost of debt financing. Compared with the overall market companies, accounting conservatism has a greater effect on the amount and cost of debt financing in private listed companies. We hope that through the analysis, we can help private listed companies to solve the problems when using accounting principles of conservatism in the debt financing; Reducing the risk of asymmetric information system to meet the lending bank established evaluation criteria by strengthening accounting conservatism.Improving accounting conservatism which is a new idea for private enterprises to obtain debt financing and solve the problem of financing.