Research On The Influence Of Acounting Conservatism And Financial Constraints On Firm Value

With the development of economy,Chinese enterprises are facing more and more uncertain factors,which are also opportunities and challenges for them.The market competitiveness of enterprises and the overall value of enterprise will be improved,if enterprises can effectively deal with the risk caused by the uncertainty factors.The major difficulty that the enterprise faces in the development is the financing problem.In recent years,with the development of Chinese securities and other financial markets,although more and more financing channels are available for enterprises,unreasonable resources allocation is also existed,which makes our country financial market development imperfect.Due to the increase of production costs caused by various reasons,it leads to the lack of funds for enterprises,which has made Chinese industrial upgrading and economic transformation face greater difficulties and challenges.Financing is difficult for most of enterprises,which restricts the development of enterprises.Information asymmetry and principal-agent cost are the fundamental reasons for financing difficulties.A series of problems caused by the information asymmetry and agency cost make the demand for accounting conservatism.At present,accounting conservatism,financing constraints and firm value have not yet been studied together,so it is necessary to study the relationship of the three.This paper takes the four years' relevant data of Chinese listed manufacturing companies as a sample.The firm value is measured by the Tobin Q value model.The accounting conservatism is measured by C-SCORE model and the financial constraints are measured by SA index model.The relevant hypotheses on the basis of theoretical analysis are also provided.First,the existence of accounting conservatism in Chinese listed manufacturing companies is empirically verified,which is the basis of the research.Second,the influence of financial constraints on firm value is empirically tested.Finally,this paper tested accounting conservatism's regulating effect on the relationship between financial constraints and firm value.The empirical results show that: Financial constraint have a negative effect on firm value,but accounting conservatism can significantly reduce the impact of financial constraints on the firm value.According to the result of empirical test,the paper proposes some suggestion on how to improve the level of accounting conservatism of Chinese enterprises to make it play a positive role.