Research On The Effect And Risk Of Receivables Securitization Financing In The Securitization Of Construction Machinery Industry In Construction Machinery Industry

As an emerging financing tool,Asset Securitization quickly became popular in Europe after the rise of the United States.Asset Securitization started late in China,and its development is not mature enough.However,in recent years,China’s exploration of Asset Securitization has made great progress,and the conditions for implementing it is gradually improving.The construction machinery industry provides an important foundation for the development of China’s national economy and is the focus of the national “2025 Strategy”.In recent years,China’s construction machinery industry has grown rapidly,but the product homogeneity in the industry is high,the accounts receivable account for a high proportion of total assets,and the asset flow rate is slow.The construction machinery industry should optimize the industrial structure and upgrade products.Therefore,how to accelerate the liquidity of corporate assets,improve the efficiency of asset utilization,raise funds with lower financing costs,and make enterprises invest in innovation as soon as possible,to become a problem faced by the construction machinery industry.The use of accounts receivable securitization financing can provide a new way for enterprises to solve the problem of improving asset utilization efficiency and financing.This paper uses case analysis,literature analysis and comparative analysis,based on the theory of superior order financing,signal transmission theory,enterprise value maximization theory and risk management theory,and selects Xugong Machinery’s accounts receivable securitization financing as a case study.First of all,this paper analyzes the current situation of accounts receivable and financing of China’s construction machinery industry and the necessity and feasibility of implementing the securitization financing of accounts receivable in the construction machinery industry.Secondly,it analyzes the motivation of Xugong Machinery to implement the securitization financing of accounts receivable from both internal and external aspects.This paper also sorts out the whole process of Xugong Machinery’s implementation of accounts receivable securitization financing,and introduces the participants and transaction structure.Thirdly,this paper analyzes the solvency index,operational capability index and profitability index of Xugong Machinery before and after the implementation of accounts receivable securitization financing,and finds that accounts receivable securitization financing can improve the short-term solvency and operational capacity of enterprises.But it is not significant for improving the long-term business performance of the company.After analyzing the free cash flow of the company before and after the securitization of Xugong Machinery’s accounts receivable,it is found that the receivables securitization financing can increase the company’s free cash flow in a short period of time,but unable continue for long-term.The small scale of financing can not fully meet the long-term cash demand of enterprises,and the effect on improving long-term free cash flow of enterprises is not obvious.In addition,this paper also analyzes the announcement effect of Xugong Machinery’s accounts receivable securitization financing,and finds that the incident of securitization of accounts receivable has produced a positive announcement effect in the market,indicating that investors are optimistic about Xugong Machinery.Securitization financing.On the whole,Xugong Machinery’s implementation of accounts receivable securitization financing has brought positive effects to the company.Xu Machinery’s implementation of accounts receivable securitization financing was successful.Finally,this paper analyzes the risks of the original equity,plan manager and investor in the process of implementing the securitization financing of accounts receivable by Xugong Machinery,and puts forward corresponding countermeasures.The research conclusions of this paper hope to provide reference and experience for other enterprises in the construction machinery industry to carry out the accounts receivable securitization business,and promote the prosperity and development of China’s construction machinery industry.