Accounting Conservatism and Private Enterprise Debt Financing Research

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.