| The nineteen Party Congress report pointed out that finance is the core of modern economy,we must deepen the reform of the financial system,to enhance the ability of financial services in the real economy,improve the proportion of direct financing,and promote the healthy development of the multi-level capital market.With China’s reform and opening up,the private enterprises began to enter into the golden period of development.Now there are a large number of private enterprises which grow rapidly,have large proficiency of development and have become the main source of economic growth intrinsic vitality and power in China.The private economy can make a great contribution to the people.It will be an important driving force of China dream which is the great rejuvenation of the Chinese nation.But the financial system reform of our country is relatively backward,the financial constraints of private enterprises has not been solved.They still face many obstacles and constraints.One of the biggest bottleneck faced is the financing constraints.In order to improve financing ability,some private entrepreneurs will be keen to participate in politics,they always gain "the NPC,CPPCC members" of the title.The political connection can bring a lot of resources for enterprises,such as more loans,more preferential tax rate,higher market share.Therefore enterprises tend to seek to establish and maintain good relationship with government departments or government officials in order to obtain more resources.Others enhanced the company’s accounting conservatism,as an important principle of accounting recognition and measurement.In nearly a century,the robustness of the rationality of the existence of scholars questioned,even some scholars and standard setters should be neutral and accounting information give up.But conservatism in accounting practice is not reduced,showed a gradual increasing trend.It has become an enduring accounting practice.Therefore,how political connection influence on financing capacity of private enterprises? What is the internal mechanism of that influence? How accounting conservatism influence on financing capacity of private enterprises? What is the internal mechanism of that influence? Between the impact on financing constraints on interactive effect,the alternative effect or synergy effect? The answers for questions cannot only give reasonable explanation for internal mechanism of relationship between the accounting information and political connections,but also give suggestions to private enterprises for increasing financing capacity reasonable.So there are significances from both theory and practice points of views.In this paper,the research object is the Chinese private listed companies,using China’s Shanghai and Shenzhen A shares data from 2011 to 2015,conducts an empirical study on the relationship of political association,accounting conservatism and the financing constraints.After this analysis,the main conclusions are as follows:(1)he financing constraints of private listed companies will be inhibited the political connections.In the underdeveloped areas,the political association will inhibit the financing constraints of private listed companies.In the economically developed areas,political connection on financing constraints of private listed companies had no obvious inhibition.(2)Accounting conservatism can inhibit the financing constraints of private listed companies,accounting conservatism is higher,the lower the degree of financing constraints.Both the underdeveloped areas and the economically developed areas,accounting conservatism can inhibit private listed companies financing.(3)The political connections instead of accounting conservatism which has inhibitory effect on the financing constraints of private listed companies.In the underdeveloped areas and developed areas,there are political connections instead of the inhibitory effect of accounting conservatism on the financing constraints of private listed companies. |
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