An Empirical Analysis On Therelationship Of Issue Size Of Short-term Financing Bonds And Assets And Liabilities Maturity Match And Financial Difficulties

Compared to the bank short-term loans,short-term financing bonds have many advantages,such as low cost,easy to issue with filing system,a single issue can be large,and thus it is widely welcomed by the enterprise.However,there are some problem in the use of raise funds of short-term financing bonds by enterprises,that is invested to the long-term assets.Long-term assets turnover is slow and the funds were backlog in the assets,however short-term financing bonds expire quickly and need a lot of cash on the expiry date.Therefore,the behavior of use the raise fund of short-term bonds invest to long-term investments can have a greater adverse impact on the enterprises maintain a normal operating state,and it also will increase the probability of financial difficulties faced by enterprises.It also can lead to a series of serious consequences,such as the main reputation of the issuer been hit,the issuers can be regulated or even corporate bankruptcy,and so on.Based on this,this thesis studies the relationship between the issue size of short-term bond and assets-liabilities mismatching of the issuer as well as the relationship between the latter and the financial distress,and discusses the differences between different types of enterprises.In this thesis,we use the asset and financing maturity index MMI to measure the degree of asset-liability maturity matching of the issuers and use the result of Z-value model to measure the financial distress of the firm.We use descriptive statistics,correlation analysis and multiple regression to quantitative analysis.It is found that the larger the size of short-term bond issuance,the higher the degree of mismatching of the asset-liability of the issuer.And the different degree of mismatching of the assets and liabilities are existed in different enterprises.The non-state-owned enterprises,listed companies and small-scale issuers have a more serious imbalance of asset-liability mismatching.Different types of enterprises due to the mismatching of assets and liabilities face different degree of financial distress.The risk of financial distress faced by non-state-owned enterprises,listed companies and small-scale issuers will increase more than others when the mismatching of assets and liabilities are the same.Enterprises invest the raise funds of short-term financing bonds to long-term investments,on the one hand it means that the management of their own business is not rigorous,on the other hand shows that there are loopholes in regulation of raise funds.It needs to take measures,such as clearly define the usage of funds raised,improve the credit rating system and strict information disclosure of the distribution subject.