Empirical Study On The Influences Of The Debt Structures On Accounting Conservatism In Different Fields On Agreements

Stirred up by the subprime loans in the United States in 2008, the worldwide financial storm had extremely serious influences on the global economy. A lot of people agreed that the banking underestimating potential risks of the subprime loans was the source of the worldwide financial storm and talked about banking lending at their leisure during that period. There are four risks to creditors in Lending Practices: asymmetric information, profits transferred by debtors, monitoring cost is extremely high and the special relationship between creditors and debtors. As a developing country, due to the history, tradition and growth, China's debt financing market haven't entirely been circulating, so do the functions. Banking is the chief actor in the market and takes the risks. In order to control the risks, the attention of banking focuses on the financial statements issued by enterprises, which is also the most important and direct way. One important feature of the statements is accounting conservatism which is also regarded as one of the most influential accounting principles. Though there are many factors, only contracts are able to improve the level of accounting conservatism greatly which is documented in an extensive number of publications.The object of this research is the financial figures of China A share listing companies. I make an empirical analysis about the influence of debt structure index and the style of property on accounting conservatism and the conclusion is as follows.First and foremost, all China A share listing companies overall have a feature of accounting conservatism, which is different from industries, and manufacturing is the most obvious. Second, the higher debt levels, the more prudent accounting policies the sample companies tent to select. Except the construction and Dissemination culture industries, the rest have the same pattern as mentioned. Third, the higher short debt levels, the more prudent accounting policies the sample companies tent to select. However, the higher long debt levels, the less the sample companies tent to. Only Agriculture, fishing, Transportation and warehousing, Communication and cultural industries, Electric and Comprehensive industry have the same pattern as mentioned. Fourth, different styles of properties have different influences on accounting conservatism debt structures factors. Debt level has much bigger influences on accounting conservatism in the private asset holding enterprises to state-owned ones.As an Endogenous factor, debt agreements have great influence on accounting conservation. According to the conclusion, I think persisting in and accelerating the rate of marketization of debt financing market, enhancing the restrain to state-owned enterprises, converting into marketizational ways when state-owned enterprises encounter financial crisis can help safeguard the safety and productiveness of properties, and have an important role in the development of China's economy, nice, fast and continuous.