Research On The Financial Effect Of Enterprise Asset Securitization In China

Under the financial system of separate operation and separate supervision in China,asset securitization is divided into enterprise asset securitization,credit asset securitization and asset-backed notes according to different regulatory agencies.In 2017,the stock balance was 1119.945 billion yuan,676.695 billion yuan and 67.306 billion yuan respectively.Enterprise asset securitization is a very important asset securitization market in China because of its large issuance scale and various types of basic assets.Therefore,this paper takes the securitization of enterprise assets as the research object to analyze its operational effectiveness.On the basis of reviewing relevant literatures of domestic and foreign scholars,this paper firstly gives the definition of enterprise asset securitization from the perspective of supervision in China,introduces the general transaction structure and four basic principles of enterprise asset securitization,and also analyzes the characteristics of enterprise asset securitization from three aspects: financing threshold,credit review basis and impact on the entity capital structure.At the same time,this paper reviews the development process of enterprise asset securitization in China,and analyzes the development status of enterprise asset securitization from the perspectives of primary market issuance,secondary market transaction,stock situation and policy support.Then,based on qualitative analysis of the financial effects of enterprise asset securitization,this paper proposes research hypotheses,and uses the latest data of listed companies to construct an individual fixed effect model for regression analysis.It shows that enterprise asset securitization has improved the company’s operating performance in general,which has a significant positive impact on the company’s profitability and liquidity.The reduction of financial leverage is not significant.And because the assets are not divested from the balance sheet,it has a weak negative impact on the total asset turnover capacity.Then,this paper selects the enterprise asset securitization products issued by OCT and JOINTOWN as cases to study the impact of the issuance of enterprise asset-backed securities on the company’s financial situation.By comparing and analyzing the changes in the financial status of OCT and JOINTOWN before and after the implementation of enterprise asset securitization,it is found that enterprise asset securitization can improve the profitability of the company,as well as the short-term liquidity level,and actively reduce the equity multiplier.But the impact on the turnover rate of assets is uncertain.At the same time,in the process of operation,the asset-backed securities of enterprises have also exposed the problems such as the underlying assets are not stripped from the financial statements,the risk isolation is not complete,and the information disclosure is not perfect.Finally,this paper puts forward four policy Suggestions: making rational use of enterprise asset securitization financing,optimizing product design,improving laws and regulations,and strengthening the construction of professional team.