Accounting Standards Reform, Non-discretion Of Accounting Information And Debt Cost

In2006the Ministry of Finance issued the new accounting standards. The listedCorporation began the implementation of the promulgation of the new accountingstandards since2007. The new accounting standards has been widely use of fair valuemeasurement attribute, emphasizing the concept of balance sheet, in the past theaccounting standards laid stress on the concept of balance sheet. Then how the newenterprise accounting standards reform bring the economic consequences? Anysystem reform is a double-edged sword, whether the advantages outweigh thedisadvantages, or more harm than good, which are yet to be researched? Thisimportant verification is the effect of changes in accounting standards on debtfinancing cost. Therefore the discussion from the following two aspects: could thereform of the accounting system have impact on debt financing cost? Compared to thereform of accounting system,what is the cost of debt capital? Our country has notestablished completely effective market economy rules, the lack of perfect managermarket situation is very difficult to obtain reliable fair value, how to achieve fair andequitable real, evaluation mechanism is crucial. We are very concerned about the useof fair value, which can bring the policy efficiency and the effect we expected.Thensince enterprise’s accounting criterion was implemented from2007,is the economicconsequence brought from?Any reform of system is like a coin with two sides.This isthe question that this text will verify.This paper examines the effect of the changes ofaccounting stardards on debt cost.Taking listed companies’ financial data in the2003-2006、2008-2011years forexample,this paper investigates the effect of the changes of accounting standards ondebt cost.Firstly,based on the analysis of the reform of accounting standards and debtfinanance,reviewing the achievements from abroad and domestic which are about therole of accounting information in the debt finance.Then,on the basis of reviewing theliteratures,this paper bring up two hypothesis. In the empirical research, this studyuses the experience research method of China’s securities market research in everyrespect. From the perspective of debt capital,I adopts the public data of listedcompanies to examine the two assumptions in this article. Those data were mainlycame from China Securities Markets and Accounting Research Database and the other data were collected by hand. In this paper,study found that after the reform ofaccounting the debt possess more debt cost.This means the reform of accountingstandards makes the accounting information more uncertain and increases the debtand risk of debter. And the robustness examination wae made after the experiencestudy. The robustness examination found the results of sensitivity analysis wereconsistent with the results of empirical research. This suggests that the results ofempirical research are robust. This further verifies the results were reliable. At last,on the basis of the empirical studies, this paper proposed the limitations and futureresearch directions.