The Impact Of Accounting Standards International Convergence On The Cost Of Enterprise Financing

The economic development is the eternal theme in human society,and the majority scholars take delight in talking about the related researches.Accounting standards is the standard of accounting practice field,a suit of complete accounting standards is necessary for economic healthy development,and accounting standards convergence with International Financial Reporting Standards(IFRS)is the pass way for economic globalization.Study on accounting standards,especially on contemporary accounting standards convergence with IFRS will have significance for both macro-economic development and enterprise micro-finance.Does the implementation of any economic system will have a certain impact on the economic base? Does the international financial reporting standards convergence will influence accounting practices and corporate financial decisions? Under the background of economic globalization,corporate financing decisions have become more cautious.Any factors that may affect the financial decisions of enterprises are worth of considering and studying.This paper analyzes and examines the impact of accounting standards international convergence on the cost of equity financing for companies from two different paths: principal-agent theory and information-asymmetry theory.Specifically,the main contents of this paper will be show as the following aspects:In the introduction mainly introduces this paper from the aspects of research background,research significance,research contents and research methods.At the end of this chapter,we introduce the innovation of this paper.Then literature review mainly categorizes the existed literatures on the accounting standards international convergence and corporate financing costs.By reviewing of the existing relevant literatures,we found that the impact of accounting standards international convergence on the cost of corporate equity financing has yet to be improved,which leads to the theme of this paper.The third chapter mainly analyzes the impact of accounting standards international convergence on corporate equity financing costs,from the perspective of principal-agent theory.Firstly,this part describes the pathway base on principal-agent theory,then makes empirical tests and analyzes the empirical test results,and finally considers the different influence under the equity structure;and finds that the accounting standards international convergence will have more influence on equity dispersion companies in China.The fourth chapter mainly analyzes the impact of accounting standards international convergence on the cost of equity financing,from the perspective of information asymmetry theory.This part uses the DA variable as the proxy variable of accounting information quality,considers the impact of information changes on the cost of equity financing after accounting standards international convergence.Then we use the pay by item of CAS and DA to study the regulating effect of DA to the CAS with Equitycost.The empirical test results show that changes in the quality of accounting information caused by the convergence of international accounting standards can reduce corporate equity financing costs,and can have a greater impact on non-state-owned companies in China.In the end that is the research conclusion and policy recommendations.In the first,this part mainly summarizes the research conclusions of this paper;then,this part makes policy recommendations from the perspectives of enhancing the discourse power of IFRS,improving the accounting standards setting mechanism,and strengthening the implementation and supervision of new accounting standards;finally,this paper looks forward to the future research in this field.