TITLE:
Accounting Conservatism and Private Enterprise Debt Financing Research
AUTHORS:
Weihua Zhang
KEYWORDS:
Empirical Analysis of Accounting Robustness, Corporate Debt Financing, Property Rights Perspective
JOURNAL NAME:
Open Journal of Accounting,
Vol.12 No.2,
April
14,
2023
ABSTRACT: Under the current situation that the debt financing
market has not yet been marketized, the close relationship between state-owned
enterprises and the government reduces the utility of accounting information on
debt contracts, but the accounting information of private enterprises plays a
greater role in debt contracts, and can clearly show the economic effect of accounting
robustness on debt contracts. To study the impact of accounting soundness on corporate debt financing from the perspective of
property rights, we can combine the characteristics of China’s institutional
environment and corporate governance to supplement theoretical analysis and
empirical evidence on the economic consequences of accounting soundness. The
research conclusion proves the positive
correlation between accounting soundness and debt financing of private
enterprises, and hopes to provide an empirical basis for private enterprises in urgent need of external financing. Improving the soundness
of accounting is a new idea for private enterprises to obtain bank loans to
solve the problem of financing difficulties.