Research On The Financial Effect Of Short-term Financing Bond Of China Merchants Securities

It is inevitable for enterprises to face funding problems in order to the further development.A great many of enterprises give a hot pursuit of the short-term financing bonds since it was issued,which has become an important part of the Chinese bond market.China Merchants Securities issued short-term financing bonds which are in the forefront of the scale and quantity.This provides a new way of financing in order to solve the problem of liquidity,and diverse the funding sources of the enterprise.However,the risk of this kind of financing method is also evident,which will affect the sustainable development of the enterprise.As an important way of financing of China merchants securities,what financial effect will short-term financing bonds produce,and what it will ultimately affect the enterprise performance is quite important.It is not only to test whether this method is effective,but also provides the empirical data to evaluate the overall performance of the financing method of the enterprise.Based on the comprehensive review of literature,this paper use the case analysis method to study short-term financing bonds of the China Merchants Securities from the positive and negative financial effects: Firstly,we study the analysis of the positive effect of improving effect of profitability,optimization effect of capital structure and supplementary effect of cash flow,then use the DuPont analysis for the comprehensive evaluation;For the negative effect,we study from thefinancial liquidity risk,solvency risk and future return risk,then use F score model for the comprehensive evaluation.The study shows that,after the issuance of short-term financing bonds of China Merchants Securities,the financial positive effect of the whole company has been improved,and the negative effect of finance is within the controllable range.Therefore,the choice of short-term financing bonds of China Merchants Securities is effective,which improves the operating performance and enhance the competitiveness of the enterprise.In order to a further promotion of the short-term financing bonds in the China Merchants Securities,this paper put forward the positive effects of the optimization of financial measures according to profitability,capital structure and cash flow;It also put forward some countermeasures to prevent the negative effects of the financing according to liquidity risk,solvency risk and future return risk.We make some useful explorations to make sure short-term financial bonds playing a positive financial effect in the enterprise.