The Influence Of Debt Maturity Structure On Accounting Conservatism

With the rapid development of China’s capital market and the new accounting standards that is also moving towards internationalization in this background, insisting on Accounting conservatism consistently for coping with the future more uncertainty and risk factors, is very important. Fundamentally speaking, accounting conservatism is the inner demand of providing high quality financial reporting information, and it is the inevitable choice to decision usefulness on use of the financial reporting information. Adopting prudent accounting policy can help to improve financing environment of the enterprise, especially in China’s securities market, not in developed and perfecting stage, debt financing has become the main financing way of the listed companies. Due to conflicts of interest between creditors and shareholders, the shareholders tend to be of concern the development of the company and the profit level, and don’t care about the potential risks, but the creditor is more focused on the degree of safety and risk premium for lending money. Therefore,if creditors want to understand the operating conditions and the risk level of the enterprise, it is necessary to acquire the enterprise financial statements released.As a result, the steady accounting information for creditors plays a very important role with signal transferring function.It is not only can alleviate the interests of differences of all parties of contract, reduce the information asymmetry and agent cost, but also creditors can make effective identification of enterprise risk to make rational decisions, shaping to protect the creditor governance mechanisms.Especially the financial crisis represented by the United States,causes various nations’ attention to credit risk. China, which has a special backgroundof the economic system, should pay more attention to the bank credit problems to avoid the huge response of consequences. Banks as an important creditors,should fully understand and assess the hidden risk of lending money in enterprise.It is indispensable to improve the bank’s soft budget constraint environment, reducing the production of bad loans and government relations loan, otherwise possibly breaking the normal operation of the financial market of our country. Therefore, the sides of the contract will have demand for accounting conservatism. Making full use of accounting conservatism to govern the market economy, not only can help the creditor in recognition of the borrowing enterprise with the actual situation of the actual control of people to make accurate position and reduce risk out of control,but also play an role in protecting the creditors interests from losses, improving the efficiency of capital market.Based on relating data from A-share of main board of the listed company in Shanghai and Shenzhen in China’s two stock exchanges in the 2009-2014,from the perspective of contract, this paper has carried on the comprehensive analysis and research for influence of debt maturity structure on accounting conservatism. In order to the deep discussion of Robustness motivation, this paper chooses firstly two dimensions,such as the short-term borrowing rate and long-term borrowing rate. Combined with the particularity of the capital market in our country, the nature of property rights is an important factors. Then the sample overall is divided into state-owned enterprises and non-state-owned holding two parts, respectively producing short-term loans rate and long-term loans rate, forming four dimensions. From various angles, this paper measures the influence of the level of debt maturity structure on accounting conservatism,and makes comparative study on the reaction of these dimensions, discovering that the creditors play the role of corporate governance for the borrowing enterprise with empirically SPSS 21.0 statistical software.Research results show that: 1. The influence of debt maturity structure and accounting conservatism have significantly negative correlation, that is, the shorter debt term is, the higher accounting conservatism levels of company is.And the longer debt period levels is, the weaker its accounting robustness is. 2.Considering the influence of the nature of property right to the debt maturity structure on accounting conservatism have difference. This paper finds, in non-state-owned holding companies, the influence of short-term structure on accounting conservatism is more sensitive, and short-term loan was positively related to the accounting conservatism; For the state-owned holding enterprises,the influence of long-term structure on accounting conservatism is more sensitive, and long-term loans ratio is negatively related to the accounting conservatism. Finally, according to the empirical results, this paper puts forward the related enlightenment policy, and proposing further research suggestions for the future research on direction of accounting robustness.