Research On The Influence Of Accounting Conservatism On Corporate Financing Cost

The principle of accounting conservatism has a higher standard for the confirmation of profit than the confirmation of the loss.It can disclose the "bad news" in the process of production and operation in time to the investors in the form of financial report,and then reduce the expected risk and expected return of the investors.For modern enterprises,how to effectively reduce financing costs,improve the efficiency of corporate fund-raising,and promote the healthy and orderly development of the capital market is particularly necessary.At present,China's stock ownership structure has a large share in China,and the internal equity of the enterprise is concentrated to a few large shareholders,so it is likely to cause the large shareholders to use their control advantage to manipulate profits,even to gain private profits,sacrifice the interests of the large investors,and thus lead to the financing costs of the enterprises.This paper mainly adopts the method of combining theoretical analysis with empirical research.Combing the relevant concepts of accounting conservatism and financing costs,combined with the principal-agent theory,asymmetric information theory and contract theory,this paper puts forward four hypotheses.Taking the data of the A shares listed companies in two cities of Shanghai and Shenzhen in-2016 in 2014 as the sample,the C-Score model is used to measure the accounting conservatism,the interest cost method is used to measure the debt cost,and the capital asset pricing model is used to measure the cost of equity financing.And build multiple regression model to study the impact of accounting conservatism on corporate financing costs.Considering the high concentration of equity in the capital market of China,the concentration degree of equity is added to discuss the influence of the ownership concentration on the relationship between the accounting conservatism and the financing cost.Finally,according to the conclusion of the empirical study,we compare the current economic situation and put forward the policy recommendations of this paper.The results of this paper provide a clear empirical evidence for the relationship between accounting conservatism and financing capital cost.The results of the empirical analysis are of great practical significance to the selection and application of Chinese accounting policies and the reduction of the cost of financing.