Research On Effect Of Quality Of Accounting Information On Financing Cost Of Debt

Nowadays, as an important economic resource, the accounting information attracts great attention of stock market participants. In the listed companies, accounting information is important reference materials for investment analysis. The role of the accounting information is to help investors to evaluate the companies effectively and influence investors’investment decisions. What’s more, the accounting information can affect the listed company’s financing costs deeply.Based on the quality of accounting information as well as the cost of debt financing theories, this article analyzes the disclosure quality of accounting information, the cost of debt financing and the relationship of them theoretically. And then, based on those analyses, the article advance the hypothesis that the quality of accounting information of listed companies could reduce its financing cost of debt. In addition, based on the consideration of the nature of the ownership of listed companies in China, the article introduces a manipulated variable of controlling nature of listed companies. And the article puts forward different hypotheses for listed companies under the different controlling natures.The article selects all normal A-share listed companies those listed in Shenzhen during2008to2011as the research object. In the article, the descriptive statistical analysis, correlation analysis and regression analysis will be put on the sample data. In order to prove the quality of accounting information has different debt financing costs in different holding natures companies, the article introduces a interaction variable about controlling nature of company and quality of accounting information. Besides, the article selects the small and medium-sized information companies those listed in Shanghai and Shenzhen A-share in2008-2011as a small sample and makes a comparative analysis with the total sample to test the hypotheses.The results show that the higher quality of accounting information, the lower financing cost of debt. And the influence of the quality of accounting information on the cost of debt financing in state holding companies is stronger than other companies.This article is designed to reveal the main factors which affect the cost of debt financing of listed companies and to guide the listed companies in China to develop a comprehensive corporate accounting management methods. Strengthening the supervision of accounting information disclosure, improving the quality of accounting information and reporting accounting information actively can not only reduce the company’s cost of debt financing but also improve the efficiency of the debt financing of listed companies. What’s more, it safeguards the interests of investors and creditors as well.