Study On The Impact Of Financial Leasing In China's Equipment Manufacturing Industry

In recent ten years,especially after financial crisis,more and more equipment manufacturing industry begin to do leasing business.Because of the promotion function,financial leasing has a direct influence on sales revenue,and also on accounts receivable.In this research,using the listed equipment manufacturing companies from 2008 to 2014,we discuss the impact of financial leasing on sales revenue,accounts receivable and the quality of accounts receivable.In this paper,we use theoretical analysis and empirical analysis to research,including panel regression model and factor analysis.Firstly,we summarize the related literatures,containing the basic theories of financial leasing,the relationship between financial leasing and sales revenue,as well as accounts receivable.And then,we generalize the background of financial leasing and equipment manufacturing industry in China.Furthermore,with the regression model,we analyze the relationship between financial leasing and sales revenue.Constructing a series of evaluation index of accounts receivable,we use factor analysis to measure the quality of accounts receivable,and compare the quality between companies with leasing and without leasing.Based on the results,we provide some suggestions and policies.The main conclusions are as follows:Firstly,financial leasing has a positive and significant impact on sales revenue in China's equipment manufacturing industry,which means financial leasing has a good promotion effect on the industry.From the results of sub-sectors,financial leasing has a positive and significant impact on the manufacture of computer,communication and other electronic equipment,manufacture of railway equipment,ships,aerospace Equipment and other transport equipment,manufacture of general purpose machinery,but it is not significant in manufacture of metal products,manufacture of motor vehicles,manufacture of special purpose machinery,and manufacture of measuring instrument and meter.Secondly,financial leasing has a positive and significant impact on accounts receivable,which means when equipment manufacturing industry use financial leasing as a promotion tool,it will increase the accounts receivable.From the results of sub-sectors,financial leasing has a positive and significant impact on manufacture of computer,communication and other electronic equipment and manufacture of general purpose machinery,but not significant in other sub-sectors.Thirdly,we build a series of index to measure the quality of accounts receivable.The results show that the companies with leasing business have a worse quality of accounts receivable than the companies without leasing business in consolidated statement.Comparing the quality among the sub-industries,we can get the result that the quality of accounts receivable in manufacture of motor vehicles and manufacture of measuring instrument and meter is better than other sub-industries.