Short-term financing bill is a kind of portfolio which is issued by enterprise in accordance with the conditions and procedures of "short-term financing bills Management Measures" and traded in the inter-bank bond market, and agreed to a certain period of debt-service. In the circumstances of system reform and enterprise refinancing limited, with its convenient, low-cost access to the inter-bank bond market, Short-term financing bills provide a direct financing channel for enterprises, especially for listed enterprises, and are popular with a large number of enterprises. But while we get the return, the potential risks can not be ignored.In this paper, we conduct a comprehensive, systematic analysis to Chinese enterprises short-term financing bills. Firstly, we analyze the status quo of the issuance of short-term financing bills and summarize its characteristics. We analyze its potential risks in which the major risks are credit risk and financial risk based on its characteristics. Empirical research component mainly refers to enterprises financial risk, including over-indebted risk, Solvency falling risk and putting short-term funds into long-term investment risk. We use Paired T-test method in the research of over-indebted risk and solvency falling risk, The results show that the liability level rises and the solvency drops after enterprises issuing short-term financing bills through the analysis of yearly data and seasonal data. We empirically analyze the use of funds raised by short-term financing bills in those listed companies which have issued short-term financing bills. The empirical results show that there is a significant negative relationship between the amounts of short-term financing bills and the increment of working capitals, and a significant positive relationship between the amounts of short-term financing bill and the cash flow out of the long-term investment and the amounts of debts return. This gives the evidence that listed companies tend to use short-term financing not only to makeup working capitals but also invest in long-term items and restructure the debt structure. |