A Study On The Driving Force And Effect Of Asset Securitization In Central Construction Enterprises

Construction industry as a traditional secondary industry,by macroeconomic influence in recent years,the market imbalance between supply and demand,the enterprise recovery speed decline,which impacted the cash flow of upstream and downstream enterprises,and led to its leverage scale,receivables and surplus inventory continues to increase,the asset-debt ratio is high for a long time,hinder the healthy development of the industry.In particular,construction companies with state-owned enterprises have larger capital occupation scale and higher asset-liability ratio,which must be strictly managed.In addition,the evaluation of the core competitiveness of construction enterprises is more and more attention and review,reduce the asset-liability ratio,control the task of controlling leverage is more and more difficult,as a central enterprise should take responsibility in the pressure of two gold,it can leverage through asset securitization,optimize the capital structure,so as to promote the healthy development of the construction industry.As a form of financing,enterprises ’ asset securitization has the advantages of reducing financing costs,promoting asset flow,increasing financing channels and making up for capital demand.Most of the central construction enterprises have large-scale and better quality basic assets,long recovery period of accounts receivable and high corporate credit,which have become a good foundation for their asset securitization.For the enterprise itself,understanding whether the effect of asset securitization financing can achieve the financing purpose is the premise of determining whether its use and how to use this financing method.This paper is by analyzing the motivation and effect of asset securitization in case enterprises,obtaining relevant conclusions and enlightenment,and provides some reference for other enterprises to make relevant decisions on asset securitization.The paper combines qualitative and quantitative,theoretical and case methods to analyze the internal and external driving factors of asset securitization.External factors include policy changes brought by industry characteristics and market environment;internal factors include saving financing costs,cooperating with enterprise development and promoting asset flow.The financial and non-financial effects are analyzed from the aspects of cost,cash flow,financial index and market response.This paper selects China Railway 2018 as the object,calculates the capital cost of the financing and compares it with its comprehensive capital cost,analyzes the changes of the profit,operation,debt repayment and risk resistance of the enterprise asset securitization,quantify financial risk using Z-Scorre model and analyzes the market response by event research method.The analysis of the case enterprises: on the one hand,the asset securitization financing saves its own financing costs;meet the national policy requirements to promote leverage pressure reduction,improve the long-term solvency of the enterprise;improve asset liquidity,improve profitability;meet the capital demand,relieve the borrowing pressure,promote the implementation of the enterprise strategic layout;and reduce the financial risk of the enterprise in the short term.On the other hand,through the risk analysis of China Railway asset securitization financing,it can be concluded that asset securitization only brings a series of positive effects,but also promotes the rapid expansion of enterprises to bring short-term debt repayment risk and cash flow risk,and finally draws relevant enlightenment based on the case conclusions.