Property Rights，Accounting Information And Debt Contract

Debt contract is the terms that require the debtor to act according to a certainpurpose, these restrictive terms are generally based on accounting data.debt contract isconsidered as the best representation for the combination of accountingand contract. Because of the limitations,accounting information can not serve as thesufficient information on the debt contract. Once other variables can provide usefulinformation about debt, debt contract will reduce the demand for accountinginformation. The usefulness of accounting information to debt contract is easily influencedby property rights and the system environment relate to it. This paper selects the A-sharelisted companies of Shanghai and Shenzhen between2007and2010as the research object,and analyses the relation between property rights and the usefulness of accountinginformation to debt contract. According to China’s specific national conditions,this paperfurther distinguish research object between the different degrees of competition andmarket,and analyses the degree influence on the usefulness of accounting information todebt contract by property rights. The results show that accounting information is lessuseful to the debt contract in State-owned enterprise than Non-State-Ownedenterprises. Compared with the industry with a low degree of competition，in the industry with a high degree of competition, the usefulness of accounting informationto debt contract is not easily influenced by property rights. Compared with the region with alow degree of market， on the region with a high degree of market, theusefulness of accounting information to debt contract is not easily influenced by propertyrights.