Research On The Impact Of Accounting Conservatism On Debt Contract

The sound performance of accounting plays an important role in corporate debt financing because it serves as an important aspect of the quality of accounting information and can help companies to enter into more favorable debt contracts when performing debt financing activities such as bank borrowings.After the financial crisis,although the economy is recovering slowly,under the background of enterprise transformation,financing is still difficult and costly.On the other hand,the business difficulty also aggravates the bank's loan risk,and for the bank,the non-performing loan is usually more than one year's long loan.Therefore,reducing the amount of long term loan becomes an important means to reduce the risk of the bank.In order to obtain lower financing costs from banks,enterprises often make earnings management behavior overestimating profits and ignore the role of accounting conservatism in reducing debt financing costs and obtaining long-term debt financing.In order to study the effect of accounting conservatism on debt financing term structure and debt financing cost in debt financing contracts,this paper expounds separately from the perspective of two types of robustness.At present,most of the studies on the role of soundness of investment and financing are based on the overall accounting conservatism perspective,and there are few analysis from the perspective of two types of accounting conservatism.In the further study,no scholars have studied the difference in the different types of accounting conservatism between state-owned enterprises and non-state-owned enterprises after introducing property rights.Therefore,compared with the existing literature,this article is characterized by the introduction of the nature of property rights as cross terms,based on two types of robustness perspectives,and a more in-depth study of the impact on debt maturity and cost of capital when there are different types of robustness and this difference between non-state-owned enterprises and non-state-owned enterprises.Affected by the financial crisis,China's economic environment and monetary policy have undergone major changes in recent years.In particular,the country's“Deleveraging”policy has made many companies face a more unfavorable financing environment.This paper uses the data from 2010 to 2016 for a total of 7 years,and divides the explanatory variable debt financing contract into two parts:the debt financing cost and the debt financing term.The explanatory variable uses the conditions and non-conditions of the accounting conservatism divided according to different production mechanisms.Finally,perform multiple regression.The expected conclusions are:(1)The higher the accounting conservatism,the lower the cost of debt financing,and the easier for companies to obtain long-term loans.(2)Compared with conditional stability,non-conditional robustness is more effective in reducing debt financing costs and obtaining long-term debt.(3)When the accounting information of enterprises is non-conditional and stable,the debt capital cost and debt maturity structure of non-state-owned enterprises are more strongly influenced by accounting conservatism.There is no significant difference between the debt capital cost and the debt maturity structure of the enterprises when the accounting information of enterprises is performance conditional robustness.This paper adds two different types of robustness research on corporate financing function,can remind enterprises improve their accounting information quality,focus on robustness,so as to lessen their due to information asymmetry between Banks and other creditors of agency conflicts,thus achieve at a relatively low cost access to bank loans,or to sign long-term loan contracts.