The Impact Study Of Debt Financing On The Scale Of Corporate Investment Under The Accounting Conservatism

The financing and investment,the two basic financal activities of a company and determinants of firm value,are interrelated. Borrowing process affects a firm's performance mainly though affecting its investment scale and investment effect.Therefore,the debt governance ought to be implement according to the affections of debt on investment. In recent years, accounting conservatism and coordinating the contract as a mechanism for the parties to a conflict of interest,it can effectively reduce the agency cost of the contracting parties, to effectively improve the efficiency of debt management as well as corporate governance. This paper attempts from an accounting point of view of prudent debt management to verify the effect of the improvement of governance theory for the debt building blocks, understand the relationship between investment and financing for the debt financing arrangements for different enterprises to provide advice and can help to improve the financial structure of companies to play the governance role of debt financing to make up for lack of equity governance.Based on reviewing the relevant research literature at home and abroad, this paper firstly uses empirical data to research on the relationship between enterprise debt and accounting conservatism, the study found that the high debt corporatian's accounting earnings of the "bad news" response than "good news" strong negative profitability the company, the reditors will be asked to adopt a more prudent fiscal management policies. For high project risk enterprises,there exist an on-linearity relationship that the investment scales increase first as the debt financing rises and then decreases after some degree of debt financing.Meanwhile,for low project risk enterprises,there existsa simple linearity relationship that the investment scales decrease as the debt financing rises.For high project risk enterprises, Short-term debt rate and the investment scale of a significant negative correlation, long-term debt rate and the investment scale of a significant positive correlation; for low project risk enterprises, Short-term debt ratio and investment, significant negative correlation scale, long-term debt rate and the investment scale were significantly positively correlated, but not significant.The correlation between commercial credit and investment, the correlation between bank loans investment and investment have significant difference. And the bank loans has a greater impact on investment. Therefore, to give full play of the governance role of debt financing,we should improve the external environment and debt financing as far as possible to weaken its own shortcomings, accelerate the development of corporate bond market, the establishment of effective national corporate insolvency mechanism, promote the corporatization of state-owned commercial banks reform, regulation, bank-enterprise borrowing of funds, and also improve the commercial credit system, according to project risk enterprises choose different ways of debt management.