The Study On The Influence Of Accounting Information Quality To Credit Finance

Credit financing has always been a significant source of external funding for corporations.However, the asymmetry of information between the two transaction credit parties of financing market may lead to such anomalies as high percents of relational financing, shorter debt maturity, and universalized credit loan and so on. Referring to accounting information is an important means for borrowing enterprises to transmit information to other participants in the market, thus it plays an unique role in mitigating information asymmetry. Existing documents show that accounting information will affect creditor’s decision-making and the property rights protection strategies on condition that it is based on high accounting information quality. In this paper take Chinese A-share listed firms from2004to2010as the research object, and then study the relationship between accounting information quality and debt contracting, combining with the study the analysis of China’s Ownership System and the reason for the asymmetry of marketization lever of all areas. We also study the action mechanism of the influence accounting information quality on credit policy.The research shows that, the high accounting information quality lead to positive effect on credit financing. In the credit market, Creditors which provide high-quality accounting information would enjoy looser restricts of the price terms and non-price terms compared with those with low information quality.. Latter ones would face a shorter debt term, a higher cost and a higher proportion of guarantee in debt contracting. The specific institution background would affect the relationship between accounting quality and credit policy. The ownership property of state owned enterprises will weaken the influence mentioned above. And a higher marketization level would strengthen the influence mentioned above. The reason why accounting information quality can influence on credit policy is that it can impact the debt-contracting value of accounting.