Research On The Financial Motivation Of Enterprise Asset Securitization

The asset securitization business first originated in the U.S.capital market in the1970 s,as a result of the continuous shift to direct and securitization financing.For China,the business related to asset securitization started relatively late,but its development speed cannot be underestimated.In recent years,the market scale of asset securitization in China has been expanding,and there is great room for development.The current market scale is second only to the stock scale of the asset securitization market in the United States.In addition,the size of China’s asset securitization market is also ranked first in Asia.In China’s asset securitization market,the market share of corporate asset-backed securities is also increasing,with the stock of corporate asset-backed securities reaching about RMB 2,263 billion at the end of2020,up 27% year-on-year,and accounting for 44% of the total market.Thus,it can be seen that enterprise asset-backed securities have become the largest variety of the capital I domestic securitization market,and have also become an important tool and effective choice for China’s real enterprises to expand financing channels,improve asset liquidity and enhance resource allocation efficiency,and their importance in the capital market cannot be ignored.Based on this,the study of this paper focuses on the corporate asset securitization business of listed companies.With the continuous progress and development of China’s capital market,the financing methods available for listed companies are becoming more and more abundant.For the stock market,public issuance of new shares is an important way to refinance the equity of listed companies,and the issuance of A-shares has been very active since 2006,with the average annual number of listed companies completing issuance reaching about 10%.However,in recent years,more and more listed companies prefer to issue corporate asset-backed securities for financing.What are the financial factors related to the financial motivation of listed companies to raise funds by issuing corporate asset-backed securities or by public issuance of new shares? This is the main question that we want to study and solve in this paper.In this paper,we have sorted out the types,operating principles and basic processes of asset securitization according to the regulatory system and rules.The core principle of asset securitization is the cash flow analysis principle,and the other three basic principles are the asset restructuring principle,the credit enhancement principle and the risk isolation principle.Through combing,we can learn that corporate asset securitization has the advantages of expanding the financing body,improving the liquidity of assets,reducing the asset-liability ratio and lowering the financing cost of issuers.Based on these characteristics and advantages of corporate securitization,this paper proposes a hypothesis to explore whether solvency,profitability or growth ability are related to the financial motivation of corporate securitization of listed companies in China.Based on the above hypotheses,the empirical research methods chosen in this paper include logistic regression analysis model,principal component analysis and time fixed effects.In terms of data selection,listed companies that have issued corporate asset-backed securities from the first quarter of 2004 to the fourth quarter of 2020 and A-share listed companies that have issued additional shares through public offerings between 2004 and 2020 are selected as the research objects,and financial companies are excluded from both sets of data due to their special characteristics.data for empirical analysis.Using these data,this paper carries out correlation tests and KMO tests on these sample data,and after passing the tests,principal components are extracted using principal component analysis,and covariance analysis is conducted to conclude that there is no covariance problem among the data indicators selected in this paper.After passing the above tests,this paper mainly uses the logistic regression analysis model to carry out an empirical study from the perspective of the main financial influencing factors affecting financing choices including corporate solvency,profitability,and growth,and compares the choice of issuing corporate asset-backed securities with the public issuance of new shares by listed enterprises in China,in order to explore which financial characteristics of enterprises are more inclined to issue corporate asset-backed The study compares the choice of issuing corporate asset-backed securities with the issuance of new shares.A time fixed effect is also included to exclude the effect of time effect on the regression results.It is finally concluded that the stronger the long-term solvency,the weaker the short-term solvency and the worse the profitability of listed companies,the higher the possibility of listed companies to carry out corporate asset securitization business;while listed companies carry out corporate asset securitization business independent of their growth ability.At present,most scholars’ researches mainly focus on the theoretical and practical researches related to the securitization of credit assets of commercial banks,while the researches on the securitization of corporate assets are not only relatively few in number,but also limited to theoretical analysis,institutional exploration and case study,while the empirical researches on the securitization of corporate assets are less.The research in this paper is not only helpful to enrich the research on corporate securitization,but also an important empirical supplement to the current theoretical research on corporate securitization.Comparing the issuance of corporate asset-backed securities with the public issuance of new shares provides a new research perspective and has certain theoretical support significance for enriching the theory of capital structure of A-share listed companies in China.