Research On The Relationship Between Financial Connections,Transparency Of Accounting Information And Corporate Risk-taking

With the advancement of international economic integration and China's economy entering a new normal phase,Chinese enterprises are facing increasingly severe market tests.In order to maintain survival and development in a complex and changeable operating environment,companies must accelerate capital accumulation and establish competitive advantages through risk-taking activities,thereby increasing the market value of enterprises and enabling them to remain in the fierce market competition.From a social perspective,high-level risk-taking can speed up technological progress,improve the efficiency of overall resource allocation in society,and promote the transformation and upgrading of China's economic structure.However,as a whole,the level of risk-taking of Chinese enterprises is generally not high,and there is a large gap compared with the level of risk-taking of other countries.How to effectively improve the level of risk-taking of Chinese enterprises needs further study.The existing literature has studied the impact of risk preference of management,the motivation of shareholders' risktaking and board governance on risk-taking.In view of the resource consumption attributes of risk-taking behaviors,this paper explores the role of financial linkages in promoting corporate risk-taking from the perspective of financing,analyzes the relationship between accounting information transparency and corporate risktaking,and discusses how accounting information transparency affect the impact of financial connections on risk-taking.The relationship between the three is tested through empirical research.The study takes China's A-share listed companies from 2011 to 2018 as a sample and uses the standard deviation of the return on assets within three years to measure the level of corporate risk-taking.The multiple regression model is used for empirical analysis and the following conclusions are obtained:(1)financial linkages can alleviate the problem of financing constraints caused by information asymmetry,enhances the investment capacity of enterprises in high-risk high-yield projects,and thus improve the level of corporate risk-taking;(2)the transparency of accounting information can have a positive impact on corporate risk-taking and the reason is that accounting information transparency can improve risk-taking capacity by helping enterprises with external financing and reduce risk aversion by alleviating the internal agency problem of shareholders and management;(3)increased transparency of accounting information can replace financial connections to promote corporate risk-taking.In the further analysis,the financial linkage mechanism test and property right heterogeneity test were carried out separately.The specific mechanism of financial connections affecting corporate risk-taking is tested by constructing a mediating effect model,and the results show that financing constraints play a part of the mediating role in the process of financial connections to enhance corporate risk-taking.In the test of heterogeneity of property rights,the sample companies are subjected to group regression and intergroup difference coefficient tests.The results show that,compared with stateowned enterprises,financial connections have a stronger role in promoting nonstate-owned enterprises' risk-taking,and there is no significant difference in the effect of accounting information transparency on risk-taking and its substitution effects on financial connections.It is of great theoretical and practical significance to study the relationship between financial connections,transparency of accounting information and corporate risk-taking.On the one hand,it can complement and improve related theoretical research on risk-taking.On the other hand,it can help enterprises enhance their understanding of the impact of the financial connections and transparency of accounting information,which provides new ideas for enterprises to improve their level of risk-taking.