Research On The Effect Of Accounting Information For Hi-tech Enterprise’s Access To Credit Support

The competition of the comprehensive national strength among all the worldeconomies is in essence a competition of scientific technologies and the relevantproductivity. Acting as the representatives of the advanced productivity, hi-techindustries have been occupied an extremely important strategic position in thenational economy. Over the past several years, the national government had beenintensified its support to the hi-tech industries, and a number of hi-tech enterpriseshad made substantial progress in business. However, there are yet a large amount ofhi-tech enterprises----especially the small and medium-sized hi-tech enterprises----facing great difficulty with funding problems in particular inhibiting theirdevelopment. How to help the hi-tech enterprises obtain the credit support in variousperiod of development and thus effectively solve this problem is of high theoreticalvalue and realistic significance.Starting with the characteristics of the hi-tech enterprises and their fundingdemand, the paper illustrates the decision-making process of the banking credit, andthen highlights how the accounting information affect the hi-tech enterprises foracquiring the credit support, based on the analysis of the main funding channels of thehi-tech enterprises and the impact of the bank’s decision making. In order to explainthe role of the accounting information in the credit support process in a more directand systematic way, the paper selects the samples of some hi-tech enterprises whichwere listed on Growth Enterprise Market in2009-2011as research objects. The paperanalyses the earnings quality and soundness description of the accounting informationquality, and anatomize the relationship between these two elements and the actuallevel of the bank credit, combined with the multiple linear regression equation. Withthe theoretical and empirical analysis, the paper finds out that accounting informationplays a critical role in the banks’ credit decision-making process, i.e., banks will tosome extent refer to the main elements regarding the quality of the accountinginformation, including the earnings quality and soundness of the accountinginformation. Therefore, high-quality accounting information has positive impact onthe hi-tech enterprises’ efforts to obtain the banking credit. Last but not least, thepaper raises a series of policy suggestions to elevate the level of accountinginformation application of the hi-tech enterprises to improve the situation of the funding problems.