Research On The Real Estate Industry Earnings Manangement Impact On The Cost Of Debt Financing

The real estate industry is an important part of national economy and plays a decisive role in the national economy in our country. The real estate industry has its own industry characteristics. For example, a big demand for money, poor liquidity, obvious regional differences with close links to the commercial banks. Eighty percent of capital depends on bank lending, strong sensitivity to macroeconomic policy. As a result, debt financing ability of the real estate industry development is very important. To obtain debt financing, the real estate industry largely depends on the foreign enterprise financial and accounting information, especially information surplus, which makes real estate debt financing associated with earnings management inevitable. Therefore, the research on the debt financing cost of real estate industry earnings management effect has certain theoretical and practical significance.The author bases on the capital market motivation, debt contract effective capital market and economic consequences of accounting information and other related theory, the scholar about earnings management summary on the study of the impact of debt financing cost analysis, Use the deferred revenue Jones model measuring the degree of surplus management of real estate industry earnings management effects on debt financing costs, list Shanghai and Shenzhen two cities’real estate enterprises from2009 to 2013 as the research sample. The real estate enterprise’s debt financial cost as explanatory variables, Asset-liability ratio, the multiple of interest safeguard and so on five indexes as explained variable. The author uses the SPSS statistical software and coordinate the use of Excel divided into annual descriptive statistics, then correlate and multiple linear regression analysis was carried out on the sample data. The empirical study result show that the existing earnings management behavior of listed company of real estate in our country. The higher the degree of earnings management and real estate companies, the lower the cost of debt in harmony. Finally, according to the result of the study, the author put forward a series of opinions.