Comparability Of Accounting Information And Debt Financing

Business as a force for social progress, plays an irreplaceable role in promotingeconomic growth, promote employment in baking. However, support for enterprisedevelopment is inseparable from the funds, our financial markets and the developed countriesin this stage is not perfect, coupled with the presence of asymmetric information beforecorporate and capital providers, contract risks and other factors affecting such as theborrower’s corporate difficult to obtain financing from outside, or even made loans but haveto pay a high cost. So the financing problem has become an important obstacle to thedevelopment of enterprises in China.How to enable enterprises to obtain the desired amount of financing? How to reduce thecost of financing brings the financing process? How to maintain a reasonable debt structure?States have become scholars to explore the hot topic. With further research, the study of debtfinancing has formed a relatively complete theoretical system. Due to incomplete informationasymmetry and debt covenants, corporate moral hazard occurs through bank loans and bondfinancing, and adverse selection problems, banks and bond investors through variousoversight mechanisms to guard against moral hazard and adverse selection. Wherein theinformation about the financial business by reducing the risk of the two is an important way.Creditors and investors through the company’s financial information to understand thefinancial situation of enterprises operating results. One of the comparability of the quality ofaccounting information as an important requirement for accounting information, it can notonly expand the usefulness of accounting information and decision-making relevant, it isbeneficial to investors creditors and other information users on the financial position ofdifferent enterprises, operating results and future prospects to make a comparison, analysis,identification and prediction, thereby improving the efficiency of investment decisions.Due to difficult to measure comparability reasons, his research has been stuck inaccounting standards or practices coordinated through coordination perspective to indirectlyobserve the comparability of accounting information problem until De Franco, Kothari andVerdi (2011) based on earnings-earnings regression model proposed measurement method,which makes corporate level comparable to calculated. Through the surplus-revenuecomparability regression model, the use of theoretical analysis and empirical researchmethods and the comparability of corporate debt financing together, on the one hand analyze the impact the comparability of corporate debt incurred in financing through theoretical,combined with theoretical hypotheses related, on the other hand through the use of relevantempirical data of listed companies on the hypotheses. Through empirical analysis, we did findthat the comparability of accounting information will affect corporate debt financing in orderto prove our hypothesis that: relative low relative to comparable companies accountinginformation, comparable listed companies to get more high, lower interest rates of corporatebonds; relative to comparable low corporate accounting information, comparable listedcompanies to get more high, lower interest rates on bank loans, but significantly weaker thanthat of corporate bonds; relative to the internal control bad the company, a good companyinternal controls, comparable listed companies to get more high, lower interest rates on bankloans.