This paper examines the impact of vertical interlock on accounting conservatism from the perspective of financing constraints.Using sam-ples of Chinese listed companies from 2007 to 2018 in China,this study finds that:Vertical interlock significantly reduces the accounting conservatism,and compared to CEOs interlock,only the vertical chairmen have a significant impact on accounting conservatism.Mechanism tests show that vertical inter-lock mainly reduces the accounting conservatism by alleviating corporate financing constraints,specifically,companies with vertical interlock have higher activity in internal capital markets,are more likely to obtain loans guaranteed by related parties within the group,have more frequent guarantees,and lar-ger guarantee amounts.Further research indicates that only in non-state-owned enterprises does vertical interlock have a significant impact on accounting conservatism,and the decrease in accounting conservatism caused by vertical interlock does not exacerbate controlling shareholders'tunneling.This study expands on the economic consequences of vertical interlock and factors influencing accounting conservatism,and also provides insights for improving corpo-rate governance and strengthening government regulation.
Vertical InterlockAccounting ConservatismTypes of Vertical InterlockFinancing Constraints
万方数据
维普
