Research On The Relationship Between Development Level Of Financial Market,Fair Value Measurement And Cost Of Debt Financing

One of the main reasons for the difficulty in financing difficult financing is the information asymmetry between the debtor and the creditor.In 2014,the “Accounting Standards for Business Enterprises No.39 – Fair Value Measurement” promulgated by the Ministry of Finance of China further standardized the disclosure of fair value measurement.The introduction of the fair value measurement method can enhance the correlation of accounting information,improve the efficiency of resource allocation in the capital market,and effectively weaken the phenomenon of information asymmetry.At present,the imbalance of the development level of China's financial market is relatively serious,leading to the implementation of fair value measurement standards and the limitation of valuation techniques,and the problem of corporate debt financing cannot be solved.Therefore,based on the macro-environmental factors,this paper studies the impact of changes in fair value on corporate debt financing costs based on the level of financial market development.This paper reviews the previous literature and proposes research hypotheses based on the analysis of information asymmetry theory,signal transmission theory,debt contract theory and financial development theory.In the empirical test,2165 listed companies from China's A-share listed companies from 2012 to 2016 were selected as research samples,and the financial eco-environment scores in the China Financial Center Index(CDI CFCI)report compiled by Fan Gang were used to measure financial markets.The development level,the final construction of the data model,verified the impact of changes in the fair value of the “fair value change gains and losses” account on the corporate debt financing costs,and combined with the financial market environment background,studied the financial market development level to this relationship The impact of the situation.The study found that:(1)There is a significant negative correlation between changes in fair value and corporate debt financing costs.The higher the proportion of fair value changes in profit and loss,the lower the debt financing cost of enterprises.(2)The effect of fair value on corporate debt financing costs is inseparable from the impact of the financial environment.In the more mature financial markets,the negative correlation between the change in fair value and the cost of debt financing is more significant.Finally,combined with the research conclusions of this paper,the paper puts forward some policy suggestions from the aspects of optimizing the market environment,attaching importance to the implementation of the standards and improving the valuation techniques,in order to improve the financial market environment to improve the application of fair value in China's accounting practice.