Research On The Identification And Disclosure Of Financial Factors Of Local Government Debt Risk

The promotion of the reform of government financial reporting is the result of the combined action of internal and external factors.Internal fa ctors mainly include the financial pressure of local governments,governm ent officials' performance demands,and external factors mainly include th e change of financial market and the improvement of system standards.Fr om a global perspective,the European debt crisis has made countries real ize that government information disclosure under the cash basis is not co nducive to risk identification and control.Therefore,timely discovery of l ocal government debt risks has become an important driving factor for go vernment financial report information disclosure worldwide.In order to pro mote economic development in China,local government debts are high.A t the same time,local government financial data disclosure is incomplete,analysis is weak,and comprehensive,reasonable and effective financial i nformation is not provided in time.In this context,based on the motivatio n of local government debt risk monitoring,it is of great significance to study and improve the information disclosure of Chinese government fina ncial reports.This paper is mainly divided into three parts.The first part summari zes the meaning and characteristics of local government debt risk,and th eoretically analyzes the influence and role relationship of government fina ncial report information on debt risk.The second part is the empirical anal ysis of financial report information on debt risk impact coefficient.Includi ng two aspects: Firstly,the index system of government debt risk,govern ment financial status,operation status and development capacity should be constructed.And then using the simultaneous equation model analyze the relationship between financial report information and debt risk is analyzed.The third part,based on theoretical and empirical analysis,puts forward suggestions on the disclosure of financial risk factors of local government debt,including asset and liability information disclosure,income expense information disclosure and off-balance sheet information disclosure.By analyzing the relationship between financial report information an d debt risk through simultaneous equation model,it is found that the fina ncial information provided by different financial statements has different e xplanatory power to different types of debt risk.In order to reflect and co ntrol the liquidity risk,the local government should focus on the disclosu re of asset liquidity and disposable information,debt and debt structure in formation;In order to reflect and control the credit risk,the local governm ent should strengthen the balance of assets and liabilities and income exp enses;Although market risk is widely affected by financial report informati on,the interpretation of financial report information is much lower than li quidity risk and credit risk.