Abstract：Extant studies suggest that accounting conservatism reduces the information asymmetry between firms and the outside investors. However,there is little evidence on whether accounting conservatism reduces information asymmetry differentially for shareholders and debtholders. Nowadays,uncertainty has become a major challenge for firm operation,it is meaningful that we focus on the different effects of accounting conservatism on different types of external investors.Based on information asymmetry theory and principle-agent theory,this study examined the relationship between accounting conservatism and corporate financing choices when a firm pursues external financing and the moderating effect of information asymmetry. We also tested the difference of moderating effect by focusing on firms' high-tech attribute which contained great uncertainty. We used no-financial firms listed in the A-share market of Shanghai Stock Exchange and Shenzhen Stock Exchange from 2007 to 2016 as our research samples. Logistic method is used in multivariate regression to test the hypotheses. Besides,we used instrumental variable method and treatment effect estimation to mitigate the endogeneity issue. Then,we further explored the potential mechanism that accounting conservatism affects corporate financing choices and the impact of capital market environment.A series of robust results suggest that when firms raise external financing,the use of debt( equity) increases with the level of accounting conservatism. In addition,the information asymmetry between the firm and its shareholders weakens the positive relationship between accounting conservatism and debt financing. Finally,the moderating effect of information asymmetry is only pronounced in non-high-tech firms. It means that accounting conservatism works better in alleviating the information asymmetry between the firm and its debt holders. Results in the additional tests show that the effect of accounting conservatism on reducing the cost of debt is more pronounced in firms that prefer debt financing,and accounting conservatism induce long-term debt financing more rather than short-term debt financing. What's more,the positive relationship between accounting conservatism and debt financing is more obvious when the capital market environment is better.By comparing shareholders and debt holders,this study extends the previous literature that explores the effects of accounting conservatism on firm equity financing or debt financing independently. The research conclusions provide important management implications for managers to understanding the internal logic of corporate financing choices and pursuit the optimal capital structure,and generate practical significance for them to finance more efficiently by grasping the differentiated demands of external investors for firm accounting conservatism.

Keyword：accounting conservatism; equity financing; debt financing; information asymmetry; non-high-tech firms;