Management Risk Appetite,Accounting Conservatism And Debt Financing Costs

Enterprise debt financing cost has been widely concerned by academic circles.The accounting subject of enterprise proposed by traditional economic theory is completely "rational",and the personal characteristics of enterprise managers cannot affect the decision-making behavior of enterprises subjectively.However,with the rise of modern economic theory,more scholars have proposed that complete "rationality" is too idealized,because enterprise managers are always affected by emotion,they will inevitably make irrational behaviors.Considering the managers as the makers of decision-making behavior,in the aspect of debt financing behavior has the primary responsibility and position,so the modern economic theory began to realize enterprise management perfectly rational existence lost fair,started from managers subjective irrationality to in-depth study of modern enterprise investment and financing decision is very necessary.Some scholars argue that managers’ attitude towards risk will have an impact on corporate decision-making.After examination,they have found that managers’ personal traits such as risk preference,overconfidence and over-optimism are closely related to corporate decision-making behaviors.Due to the limitation of writing time,this paper only studies the impact of management risk preference on debt financing cost.Therefore,after summarizing the research results in this field,this paper also believes that debt financing cost will be affected by the risk preference of management.After reading relevant research articles,it is found that in-depth research on this aspect can enrich the existing research content.Therefore,it is feasible to further study the impact of management risk preference on debt financing cost.In present document,the existing research results are sorted out.From the prospect theory,debt contract theory,the optimal sequence financing theory,signaling theory,information asymmetry theory this five aspects to explain the theoretical foundation for the research,and then put forward theories to theoretical analysis and the deductive reasoning mechanism,and puts forward the hypothesis of this article.Then it introduces the definition of relevant variables and the definition of linear regression model in order to better carry out empirical analysis.With the help of subjective method,present document study that the influence of management risk preference on corporate debt financing cost,and further analyzes the intermediate transmission path of the relationship between the two.The empirical results show that management risk preference significantly increases debt financing interest and accounting prudence is the intermediary transmission variable that affects the correlation between the two.Given the management risk preference of the negative impact of debt financing cost,the paper further analyzes the monetary policy,property rights property all risk appetite can be used as a management factors affecting the debt financing cost control,to strengthen in the process of debt financing decision of listed company fully considering the external macro monetary policy and own properties of cognition,Combining internal and external factors to make targeted and rational decision-making behaviors,so as to reduce the financial consequences of management risk preference.On further analysis,the results show that monetary policy can effectively alleviate the promotion effect of management risk preference on debt financing cost;For state-owned enterprises,the impact of management risk appetite on debt financing costs is weaker.After that,the stationarity test of the empirical analysis results was carried out to improve the reliability of the data results.In the end,the research conclusions and policy recommendations and prospects.