Empirical Study On The Influences Of Accounting Conservatism On The Debt Financing Of Private Listed Companies Of China

Accounting information is an important way to understand the financial condition, results of operations, solvency of listed companies. It can provide sufficient guarantees for the effective development of debt contracts. Accounting conservatism is an important method to improve the quality of information of listed companies. Listed companies began to focus on the use of accounting conservatism increasingly and show increasing trend. Under the adverse effects of asymmetric information, in order to protect their own interests, creditors will require listed companies to provide true and reliable financial information and increase the demand of accounting conservatism.To distinguish the nature of property rights, state-owned enterprises and private listed companies have different management systems and the relationship between banks, this paper will narrow down the area of study to private listed companies, to exclude interference from external advantages of policy factors in state-owned enterprises. In private listed companies with a high degree of market, how accounting conservatism impacts the debt financing, whether accounting conservatism is good for the debt financing of private listed companies.In this paper, we use the latest data after the financial crisis to analyze the results of how accounting conservatism impacts debt financing in private listed companies, whether to adopt prudent accounting policies in private listed companies will have a positive effect on debt financing. We hope that through the analysis, we can help private listed companies to solve the problems when using accounting principles of conservatism in the debt financing, to reduce the risk and cost of information asymmetry by strengthening accounting conservatism, to ensure safety and proper implementation of debt contracts.Firstly, this paper reviews current researches and summarizes existing research results. Then on the basis of theoretical analysis, we suppose research hypotheses and establish multiple linear regression model, using the method of accruals measurement to measure accounting conservatism. By comparing the results of correlation and regression analysis, we examine the role of accounting conservatism on debt financing.To improve the degree of accuracy of conclusions, we compare the data of private listed companies to the data of all listed companies, and finally put forward reasonable proposals to optimize debt financing of private listed companies from the perspective of different subjects overall comparison of data.From the empirical results of this paper, we can get these conclusions:the higher the private listed companies accounting conservatism extent, the larger the debt amount of the debt financing and the lower the cost of debt, private listed companies can use reasonable accounting conservatism to optimize debt financing. Higher accounting conservatism means that greater debt amount and lower debt cost of debt financing. Compared with the overall market companies, accounting conservatism has a greater effect on the amount and cost of debt financing in private listed companies.