Policy Uncertainty、Accounting Conservatism And Financial Distress

The financial predicament that the listed companies in our country face in the fiercely competitive market environment has always attracted the attention of scholars and is the focus of academic research.As a positive accounting policy,accounting conservatism has an important impact on the economic activities of enterprises.Whether the improvement of accounting conservatism plays an active role in the financial distress faced by enterprises? This paper chooses the annual data of 9777 companies in Shanghai and Shenzhen A shares during 2008-2016 as a sample to study the relationship between the policy uncertainty,accounting robustness and financial distress.The results show:(1)Accounting conservatism is negatively correlated with financial distress,that is,the higher the accounting conservatism,the less likely the enterprises are in financial distress.(2)The test results that distinguish whether the party secretary is changed show that the policy uncertainty weakens the negative relationship between accounting conservatism and financial distress.This paper,for the first time,explores the relationship between corporate accounting robustness and financial distress from the perspective of accounting policy choice and finds that there is a significant negative correlation between them and enriches the existing literature on the influencing factors of financial distress.To further expand the new perspective of policy uncertainty,the paper studies the mechanism of accounting firmness affecting financial distress under the policy uncertainty and gives corresponding empirical data to enrich the existing relevant research literature.