Author(s)

Yan Zhang, Xueyin Weng, Linting Huang

Corresponding Author

Yan Zhang

Abstract

In the face of the COVID-19 epidemic, enterprises are more or less short of cash in operation. Debt financing is a major source of funds for enterprises at present, so the cost of debt capital has become the focus of enterprises. This paper mainly studies whether the improvement of accounting information quality can effectively reduce the cost of enterprise debt capital. This paper selects the data of 4033 domestic A-share listed companies from 2010 to 2019 to construct multiple linear regression analysis. The empirical analysis shows that the quality of accounting information has a significant negative correlation with the cost of debt and capital. Therefore, this paper suggests that enterprises should improve corporate governance and internal and external control mechanism, strengthen the communication mechanism with stakeholders to improve the quality of accounting information, so as to achieve the goal of reducing the cost of debt capital. Especially in the context of the impact of the epidemic, this study has certain practical significance and it can provide some guidance for the subsequent development of enterprises.

Keywords

COVID-19 epidemic, Big Data, Accounting Information Quality, Cost of Debt Capital, Corporate Governance