A Research On Accounting Quality Of Listed Companies And Bank Loans

This thesis studies the relationship between accounting quality of listed companies and bank loans in China, considering the nature of the company. The existing research based on accounting information, relationships, company governance and other characteristics of companies to study the factors that could affect bank loan decisions. Researches on the relationship between accounting quality of companies and bank loans are scarce in China, especially on how accounting quality affects bank loan decisions for each specific nature of company. Under special political and economic background in China, state-owned enterprises have better access to bank loans, compared with non-state-owned enterprises. This article studies how accounting quality affects long-term and short-term bank loan decisions for different nature of companies.Results show that controlling for other factors, SOEs have more long-term loans and less short-term loans compared with non-SOEs. Accounting quality has a negative effect on short-term loans for both SOEs and non-SOEs. For SOEs, accounting quality has a positive effect on long-term loans, while accounting quality is not a significant factor in determining long-term loans for non-SOEs. This result proves the difference between SOEs and non-SOEs in terms of bank loans, finds the relationship between accounting quality and bank loans, at the same time, implies that the nature of company affect the relationship between long-term banking decisions and accounting quality. This paper fits the gap in relevant researches, and provides suggestions for companies that seek to acquire bank loans.