Research of Accounting Conservatism of The Listed Company Financing Cost

Accounting conservatism is "the oldest and most influential principle in accounting measurement". In practical application, its influence is very huge, and it has a very high guiding significance for the implementation of accounting practice and accounting system. In recent years, China's securities market has developed rapidly, and the pursuit of accounting stability is getting higher and higher day by day. With the deepening of accounting system, financial departments, securities regulatory departments and other enterprises should follow the principle of accounting conservatism when choosing accounting policies. Only when the regulatory authorities pay more attention to accounting stability, can Chinese enterprises pay more attention to stability and promote the healthy development of China's economy.This paper mainly starts with the connotation of accounting conservatism to discuss the development of theoretical research on accounting conservatism, and then further focuses on the impact of accounting conservatism on debt cost, as well as the impact of accounting conservatism on the cost of equity, and finally draws a conclusion and puts forward relevant policy recommendations.