Does Financial Reporting Quality Affect Optimal Capital Structure？ Evidence from China  

作　　者：Bo Zhang Hanze Wei Lijun Ma 

机构地区：[1]School of Business, Renmin Unive.rsity of China, Beijing 100872, China

出　　处：《Frontiers of Business Research in China》2016年第3期432-450,共19页中国高等学校学术文摘·工商管理研究（英文版）

摘　　要：In this study, we investigate the association between financial reporting quality and a firm＇s deviation from its optimal capital structure. We find that a firm＇s deviation from its optimal capital structure is decreasing in financial reporting quality. The results suggest that high-quality financial reporting helps to reduce a firm＇s deviation from its optimal capital structure. In addition, we document that the relationship is intensified in non-SOEs, in which financial reporting quality plays a more crucial role. Furthermore, we find that bank connections diminish the role of financial reporting quality in optimal capital structure. Our results hold when we control for potential endogeneity in financial reporting quality and capital structure decisions. Our study contributes to both financial reporting quality and capital structure literature. We also contribute to the literature on informal contracts in organizational decision-making.In this study, we investigate the association between financial reporting quality and a firm＇s deviation from its optimal capital structure. We find that a firm＇s deviation from its optimal capital structure is decreasing in financial reporting quality. The results suggest that high-quality financial reporting helps to reduce a firm＇s deviation from its optimal capital structure. In addition, we document that the relationship is intensified in non-SOEs, in which financial reporting quality plays a more crucial role. Furthermore, we find that bank connections diminish the role of financial reporting quality in optimal capital structure. Our results hold when we control for potential endogeneity in financial reporting quality and capital structure decisions. Our study contributes to both financial reporting quality and capital structure literature. We also contribute to the literature on informal contracts in organizational decision-making.

关 键 词：optimal capital structure financial reporting quality state-ownedenterprises bank connections 

分 类 号：F275[经济管理—企业管理] F275.1[经济管理—国民经济]