Abstract:With the help of model of asymmetric information, and from the view of contract designation and signaling, the paper analyzed the impact of accounting conservatism on debt contract. It dedicates that, only on the condition of serious information asymmetry, accounting conservatism could play an important role in protecting the behalf of debtor. Thus, it can harmonize the agent problem between insiders and outsiders of the company. So, the efficiency of debt contract is enhanced.