Accounting Conservatism,Nature Of Property Right And Financing Cost Of Bonds

Accounting conservatism is one of the basic principles of accounting information quality requirements.China’s basic accounting standards require enterprises to maintain a prudent attitude to carry out accounting confirmation,avoid overestimating assets and income and other transactions,or underestimate liabilities and losses and other business transactions.At present,the research on the economic consequences of accounting conservatism is mainly focused on the investment and financing of enterprises.In the aspect of financing,the accounting information disclosed by the enterprise under the premise of accounting conservatism also shows a certain degree of stability.Therefore,the accounting conservatism can effectively solve the information asymmetry in the capital market.It reduces moral hazard and adverse selection,thus affecting the financing cost of enterprises.For most Chinese enterprises,with the tightening of bank credit,debt financing,especially bond financing,has become a preferred way of financing by enterprises.Through the study of the correlation between the accounting conservatism and the cost of corporate bond financing,and the impact of the different property rights on the related degree,the accounting conservatism is used as a breakthrough and new idea to reduce the cost of financing.This provides some suggestions and references.From the perspective of accounting conservatism,based on the theory of information asymmetry,principal-agent theory and signal theory,this paper analyzes the influence path of accounting conservatism on the cost of corporate bond financing,and takes the corporate bonds issued in 2013 in-2017 as the research object to carry out the above effects and to distinguish the property rights of the above mentioned above.The conclusions of the empirical study include the following two points:First,there is a significant negative correlation between the financing cost of the corporate bonds and the accounting conservatism of the main body,that is,the higher the prudent degree of the accounting,the lower the cost of the corporate bond financing.Second,the difference in property rights has an impact on the above related relationship strength,which shows that the lower the state-owned shareholding ratio,the stronger the negative correlation between the accounting conservatism and the cost of the bonds issued.Finally,according to the conclusion of the study,this paper proposes that the debt enterprises and the bond investors should increase their attention and attention to the accounting conservatism in order to reduce their respective costs and risks.And the market regulators should also actively guide the accounting conservatism to play a more active role in the bond issuance and investment market in order to achieve the cost reduction.To reduce risks and improve the efficiency of the capital market,the three parties will win together.