Corporate Integrity Culture,Earnings Management And Cost Of Debt

During the forty years of reform and opening,China's economy has developed rapidly and now it has become the second largest economy in the world.However,due to the short development time of the capital market,imperfect laws and other formal systems,there has been a lack of integrity in the society,such as financial fraud,fake and inferior products produced by enterprises,etc.,which seriously restricts the healthy and orderly development of China's market economy.So the government has clearly proposed to build a social integrity system,and enterprises have increasingly attached importance to the construction of integrity culture.More and more enterprises regard integrity as their core values.In the academic area,many scholars have paid attention to the empirical research related to the integrity culture,but most of the existing research focused on the impact of integrity culture on the internal aspects of enterprises,such as corporate performance and information disclosure quality.There are few studies on the external effects of integrity culture.Theoretically,corporate integrity should have positive externalities,but there is no empirical support for this at present.In order to fill the gap in relevant fields,this paper studies the impact of integrity culture on the cost of the company's debt and proves the positive externality of integrity culture from the perspective of creditors.The main body of the paper is divided into six chapters,including: Chapter I introduces the research background,significance and main innovations of this paper;Chapter II reviews and combs the relevant literature about corporate integrity culture and debt cost;Chapter III introduces cultural management theory,information asymmetry theory and put forward the hypothesis of this study;Chapter ? is the research design,the model is proposed and the samples are screened;Chapter ? is the empirical analysis,which verifies the hypothesis of this study by descriptive statistics,correlation analysis and multiple regression analysis.Chapter ? summarizes the research results,puts forward suggestions,and summarizes the shortcomings and prospects of this paper.In this paper,the study found that the culture of corporate integrity can help Chinese listed companies get lower debt financing cost and also has significant positive influence on the earning quality.What's more,the paper also found that the integrity culture to a certain extent,is by influencing the earning quality to exert influence on the cost of the company's debt.This paper makes an in-depth study of the relationship between corporate integrity culture,earnings quality and debt financing cost of listed companies.On the one hand,it is the same with previous studies and proves that integrity culture can play a positive role in guiding and regulating the behavior of internal organization,reducing corporate violations and improving earnings quality.On the other hand,it proves innovatively from the perspective of creditors that the corporate integrity culture has positive externalities,which can convey the signals of corporate integrity and gain the recognition of creditors.At the same time,it is found that earnings quality is one of the ways that the integrity culture influences debt financing.