Research On The Choices And Efects Of Accounts Receivable Financing Mode For Electrical Eauioment Manufacturing Enterprises

In recent years,the Chinese electrical equipment manufacturing industry has entered a mature stage,and enterprises need to invest a lot of money to turn to high-quality products under the fierce industry competition.At the same time,the backlog of accounts receivable in the industry has become a common phenomenon.Although accounts receivable belongs to the current assets on the accounting books,it does not bring the real capital inflow for the enterprise,and the liquidity is poor in the actual use process.Therefore,electrical equipment manufacturing enterprises are troubled by the management of accounts receivable.In 2016,the executive meeting of the State Council clearly proposed to"vigorously develop accounts receivable financing",and more and more enterprises use accounts receivable financing to accelerate the realization of accounts receivable.Under the background,the selection of accounts receivable financing mode by electrical equipment manufacturing enterprises will help to solve the problem of accounts receivable management and provide more abundant financial support for the transformation and upgrading of enterprises.This paper is based on Stakeholder Theory,Information Asymmetry Theory,Pecking Order Theory,and the literature on the motivation,the influencing factors,and the effect for enterprises to introduce accounts receivable financing mode is reviewed.In the theoretical mechanism part,this paper first analyzes the background of the introduction of accounts receivable financing mode in electrical equipment manufacturing enterprises from the perspectives of industry,customers,and accounts receivable.Then,starting from different types of financing entities—SMEs and large-scale enterprises,this paper explores which type of accounts receivable financing is more suitable for their own needs and the advantages acquired by the different types of accounts receivable financing.This paper conducts a case study of TGOOD,and the results show that:first,the downstream of the electrical equipment manufacturing industry is mostly large customers with a government background,and their strong bargaining power lengthens the commercial credit period,making it necessary for upstream enterprises to introduce accounts receivable financing model;the customers’ good reputation guarantees the recovery of accounts receivable,enabling upstream enterprises to use the accounts receivable financing model.Second,accounts receivable pledge financing has the characteristics of low requirements for financing entities and revitalizing existing accounts receivable.SMEs are suitable to choose this financing mode based on the motivation of alleviating financing constraints and reducing risks and opportunity costs.Third,the securitization financing of accounts receivable has the characteristics of large financing amount and"true sale" of accounts receivable.Large-scale enterprises have a large demand for funds,solve large-scale accounts receivable and improve relevant financial indicators.The motivation is suitable for choosing this financing model.Finally,it is hoped that these findings can provide some inspiration for the Chinese electrical equipment manufacturing enterprises to improve the efficiency of accounts receivable management and choose a more suitable financing method for their own accounts receivable.