Reserch On The Impact Of Fair Value Measurement On Debt Financing In China

The global financial crisis has made people doubt the use of fair value, but those can’t stop the international trend of accounting standards which is characterized by fair value. In particular, in the most concern of the enterprise financing, the fair value of the use of the pros and cons, many scholars have different perspectives.In enterprise financing, the higher the stability of the financial information will undoubtedly get the favor of the bank, and the fair value measurement is more and more applied to the report, which will have a negative impact on accounting conservatism, and whether it will further affect the enterprise debt financing costs? Based on this, the article through empirical research on the above problems, to provide some empirical evidence for the management of Chinese enterprises.This paper first introduces the background and significance of the research, and describes the research ideas and the main content of the arrangement; the paper puts forward the innovation points of the research. This paper is based on the debt contract theory, asymmetric information theory, principal-agent theory,then based on the analysis of domestic and foreign related research results, selects 6407 samples from A shares market of China from 2010 to 2014 as the research object, and analyzes the relationship between fair value measurement and accounting conservatism. We analyses this problem from two parts:first is the relationship between debt cost and the proportion of the assets measured by fair value,second is the relationship between debt cost and the proportion of the change of fair value in profit and loss accounted for the proportion of total profit. This paper regard the accounting conservatism as perspective, accounting conservatism as a debt cost and fair value of the intermediary variables, reveal the implied relationship between them.This paper finds that there is positive correlation between the debt cost and fair value measurement of assets of total assets, there is some different between debt costs and fair value changes in profit and loss accounted for the total profit in the long-term debt based companies and short-term debt based company. In the long-term debt based company, debt costs is no related to fair value changes in profit and loss accounted for the total profit, short-term debt based company debt costs and fair value changes in profit and loss accounted for the total negative correlation. The reason is that when the bank consider the issuance of long-term debt and short-term debt. For short-term debt, fair value changes can affect short-term solvency, so that the company’s fair value changes in profit margins, and for long-term loans based companies, corporate earnings ratio and debt costs are not related, because the bank is more concerned about the long-term development of long-term loans, and fair value changes in the future period of stock and bonds and other securities, which are very unstable factors, so banks do not consider this part of the profit and loss, so not relevant.