Research On The Relationship Between The Accounting Conservatism And Financing Contract Of The Listed Companies

In the background of the rapid development of China’s capital market and the New Accounting Standard convergence of the International Accounting Standard, conservative accounting information plays a more important role in business finance. However, debt financing and equity financing are the main financing channel for the listed company. Accounting information conservatism can release the interest conflict of enterprise contract, to reduce the risk of agency cost and information asymmetry, so as to realize the governance mechanism of investor protection and the protection of the creditors. As different body of enterprise contract, both financing party and contracting party will product the demand of accounting conservatism. Research on the relationship of accounting conservatism and financing contract form the point of improving the accounting conservatism of the companies, to discuss the mechanism of both sides, enrich and refine related research contents, and use multiple research method to improve the reliability of the results. Put forward feasible suggestions of improving accounting conservatism of the listed companies through research, improve coordinative relationship of the financing part and contracting party, to cultivate a conservatism and high-grade accounting information. to promote the healthy development of listed company financing.Contract is one of the factors that produce the demand of accounting conservatism, in the financing contract relationship, for the sake of their own interests protection, all parties have produced the demands for conservatism. While we have to find out which projects in the contract affected by the accounting conservatism and what with will impact the the financing contract with the enhancements of Accounting conservatism.Therefore, through the collection of research achievements of scholars at home and abroad, research on the influence relationship of listed companies’accounting conservatism and financing contract. Use normative research and empirical research method, based on the agency theory.. information asymmetry theory> stakeholder theory and pecking order theory, analysis from the relationship between equity financing contract and accounting conservatism and the relationship between debt financing contract and accounting conservatism. After the research analysis, the article selects2009to2013main board listed companies data as sample, make the empirical analysis towards the relationship between financing contract and accounting conservatism. Analysis the existence of accounting conservatism and the influence relationship between the amount of financing contract,deadline and accounting conservatism. The research found, there is a positive relationship between accounting conservatism and debt financing contract, and there is a negative relationship between accounting conservatism and equity financing contract, and the higher the company conservatism is, the easier to conclude long-term debt financing.Hereby, combine the background of currently capital market system and the conclusion of empirical research, give suggestions on improving listed companies’external environment and enhancing listed companies’internal governance.