Research On The Effect Of Non-financial Information Disclosure On Creditor Protection

The study of creditor protection has always been a topic of common concern in both theoretical and practical circles.The understanding of creditor protection mechanism can be carried out along the two dimensions of information and resources:"rigidity" and"softness".In the information dimension,there are "rigid" financial reporting information and "soft" non-financial information.On the resource dimension,there are rights and obligations under the formal law and system,as well as the rights and obligations based on the informal system.The existing research is mainly from the angle of rigid financial information and formal institutional arrangement,and there is still a lack of systematic research on the role of soft non-financial information and informal institutional arrangement in the protection mechanism of creditor's rights and interests.However,this perspective is an important part of the theory of creditor rights protection mechanism under the background of understanding and developing China's system.Therefore,this paper begins with the influence of non-financial information on the protection of creditor's rights and interests,and then discusses the effect of the relationship between non-financial information and social capital,non-financial information and institutional environment on the protection of creditors' rights and interests.Through empirical research,the following conclusions can be drawn:First of all,non-financial information disclosure has a certain impact on the protection of creditors' rights and interests.Specifically,the higher the quality of social responsibility information disclosure and internal control information disclosure,the more conducive to listed companies to obtain short-term loans,and also help to reduce the cost of borrowing.In addition,the higher the quality of social responsibility information disclosure,the more helpful for listed companies to obtain bank loans.These correlations are more significant in non-state-owned enterprises.Secondly,non-financial information disclosure and social capital have effects on creditor protection.Specifically,in the case of listed companies with political connections,the higher the quality of social responsibility information disclosure,the more conducive to listed companies to obtain bank loans,the higher the quality of internal control information disclosure,the more conducive to reducing the cost of borrowing.Finally,non-financial information disclosure and institutional environment have effects on creditor protection.Specifically,the higher the quality of social responsibility information disclosure and internal control information disclosure,the more conducive to listed companies to obtain short-term loans;in the low degree of marketization,the higher the quality of social responsibility information disclosure and internal control information disclosure,the more conducive to reducing the cost of borrowing.Under loose monetary policy,the higher the quality of internal control information disclosure,the more conducive to listed companies to obtain bank loans and short-term loans;under tight monetary policy,the higher the quality of social responsibility information disclosure,the more conducive to reducing the cost of borrowing.The possible innovations in this study are as follows:Firstly,this paper enriches the research on the usefulness of non-financial information disclosure to creditors.With the increase of investor information demand,the proportion of non-financial information occupied by enterprises is increasing.However,the evidence on the impact of non-financial information on the signing of the debt contract and debt contract terms is relatively weak.This paper systematically studies the impact of non-financial information on creditors'rights and interests protection.The results show that disclosure of high-quality non-financial information by listed companies is conducive to the credit decision-making of bank creditors,enhances the ability of listed companies to obtain short-term loans,and reduces the cost of debt financing.This discovery enriches the research on the impact of non-financial information disclosure on the development of real economy.Secondly,this study provides evidence for the effect between the non-financial information and social capital.When the law is insufficient for the protection of investors,social capital,including political connection and relationship between bank and enterprise,as an informal institution,may become an alternative mechanism to promote the economic development of a country and a region.In bank credit,this social capital can satisfy the information needs of banks through special channels.By discussing the different influences of non-financial information disclosure on creditor protection under different political-enterprise relations and bank-enterprise relations,from the perspective of social capital,it has enriched the research on non-financial information disclosure and creditor rights protection.Thirdly,this study also provides evidence for the effects of non-financial information and institutional environment.By studying the role of non-financial information in loan availability and financing cost under different marketization or different monetary policy environment,it can enrich the role of non-financial information and market process,macro monetary policy and other institutional factors in the protection of creditors.The conclusion of this paper has important practical significance for the capital market supervision department,listed companies and creditors.The specific performance is as follows:(1)For the capital market supervision departments,this study can provide evidence for further improving the construction of non-financial information disclosure system and standardizing non-financial disclosure behavior of Listed Companies in China.(2)For listed companies,especially listed companies with financing demand,this study can make it more aware of non-financial information disclosure,and make the listing more focused on the content,form and quality of non-financial information disclosure so as to win more financing opportunities.(3)For creditors,this study provides strong evidence for the protection of its own rights and interests,which provides an important reference for the creditor to assess the validity of the debtor's credit risk.