Credit Policy, Accounting Conservatism And Corporate Investment

The research on the economic consequences of the accounting conservatism has come under heated discussion in academia in recent years.Meanwhile,more researches on what effect the accounting conservatism has on the investment utility have been conducted with much attention drawn to the investment efficiency by scholars.The efficient investment activities of enterprises can not only improve the development and value of the enterprises,but also optimize the allocation of resources in the market.However,inefficient investments appear easily when the enterprises make investments in real,among which the underinvestment is more common and overinvestment is more serious in China,which is not only detrimental to the value of the enterprise,but also has a negative impact on the development of the national economy.Therefore,find the relationship between them is significant.In addition,the macro credit policy also affects the micro behavior of the enterprise.The change in credit policy,for example,will affect the credit scale of commercial banks.However,for enterprises,their internal and external funds,bank loans and other forms of external funds can not be completely replaced.Therefore,during the credit crunch,it is quite important how the internal mechanism of the enterprise should be adjusted to cope with the financing constraints that are generally faced.Meanwhile,it is worth studying whether the credit crunch will regulate their relationship.Using the A stock market listed company in 2008-2016 as research sample,this paper,based on the theoretical research,has conducted an empirical study by adopting Richardson model residual measurement method to calculate the inefficiency investment of enterprises,using KW index method to measure accounting conservatism and establishing the multiple regression model.First,the author encompasses the accounting conservatism under one analytical framework with the investment efficiency of enterprises and studies the relationship of them,which is expected,for one thing,to explore the ways to improve the efficiency of investment from the perspective of accounting conservatism,and for another,can provide a new basis for the value of accounting conservatism.Furthermore,the author studies the differences in the effect of accounting conservatism on investment efficiency in enterprises with different cash holdings by dividing the subjects into groups taking the cash holdings as a standard.Finally,the change of accounting conservatism during the credit crunch and the moderating effect of credit crunch on accounting conservatism and investment efficiency are studied by including the credit policies of macroeconomic policies.The study finds that accounting conservatism is a double-edged sword,which can not only inhibit the loss of enterprises in a timely manner,or inhibit excessive investment behavior of enterprises,but also can increase the investment shortage of enterprises due to the delayedrecognition of earnings.Accounting conservatism,in enterprises with high cash holdings,doesn't play a role in restraining investment overinvestment;instead,it exacerbated the investment shortage,which has not played a positive role in the investment efficiency of enterprises.During the credit crunch,enterprises will improve accounting conservatism to win more credit funds,but at the same time,accounting conservatism will exacerbate the degree of underinvestment.Therefore,according to the current investment efficiency and the risk types of managers,enterprises should find a proper balance point of accounting conservatism,and on this basis,reduce cash holdings appropriately so as to play an active role in accounting conservatism to investment efficiency.When making credit policy,credit policy makers should take into account the influence of the micro body's internal reaction mechanism on policy making effect,and pay attention to the effective development and implementation of debt contract while paying attention to the change of policy operation to the financing environment of enterprises.