Accounting Conservatism Research On The Growth Enterprise Market Enterprises

Accounting conservatism is main index measuring listed company's accounting information quality, and as China's capital market is developing, the growth enterprise market get more and more investor's attention. It should be discussed that whether the GEM's accounting treatment is steady, and what's the similarities and differences between the GEM and motherboard market and SME board, and the cause of it.Domestic and foreign scholars has been studied the accounting conservatism and points out that the contract is the most important factors for it. Domestic scholars have verified the existence of the main board market's accounting conservatism, but so far there's no research in China's GEM. This paper will study the GEM's accounting conservatism based on the study of the domestic and foreign scholars from contract angle. The Basu inverse regression model and the time section model will be used to prove existence of the three markets, and further studies will be taken to the factors of the GEM's accounting conservatism in the contract relationship.This paper verifies the existence of accounting conservatism in all of them, the motherboard's and the SME's is greater than the GEM's. And same as the main board market, the asset-liability ratio and short-term borrowing proportion is positive related, but the difference is that the long-term loans and equity nature of the SME and GEM are not related. In addition, operating cash flow variation coefficient and operating income variation coefficient are also positive related.This paper proves that the GEM's accounting conservatism is exist, and make a comparison with the similarities and differences of the motherboard market and the SME, this paper also analyzes the influencing factors from the contract side, and to investors and creditors reveals it's making sense.