Political Connection, Bank Loans And Accounting Conservatism

Based on the background of Chinese special system economic transformation period, perspective as the starting point of political relevance, the thesis studys the influence of the political association of private listed companies to its bank loans, and as well the influence of bank loans to the accounting conservatism driven by political interests.We use a sample of Chinese listed firms from 2007 to 2009 to investigate the relation between the political association of private enterprises and the influence of bank loans. Research shows that different kinds of political association of private listed companies get different sizes of bank loans. Representatives of the background of the bank and political association significantly increased the private listed companies of bank loan ability, and government officials'kind of bank loan influence is not significant. Otherwise, use of Basu's robustness model, this paper further has studied that the influence of the different political connection mode private enterprise of bank loan to accounting conservatism. We find that the accounting conservatism is belower in the private enterprise of political associated than there is no political association on the whole, and that there is no political association of private enterprise with the increase of total bank loans than its accounting conservatism has improved significantly. But for different political connection way of the enterprise, the effect of bank loans to accounting conservatism is different. There does not have government official's kind of private enterprise accounting conservatism with total bank lending and long-term loans than the increase of the increased significantly, and the existence of representatives of the enterprise, its accounting conservatism is not with the increase of the proportion of bank lending increased significantly. Investigation on the loan period, we find that accounting conservatism of no political connection is significantly raised with the increase of long-term loans, but the regression results of short-term loans is not significant.