Research On Asset Securitization Of A-share Listed Company And Its Market Effect

Asset Backed Securitization(ABS)originated in the U.S.financial market.China’s ABS business began in 2005,suspended in 2008 and restarted in 2012.Since 2014,with the support of national policies,ABS has surged.As of the end of 2019,the stock of ABS has reached 76.14 billion yuan,with a total of 3,856 issued.The reason of ABS’s rapid expansion is as follows.Firstly,it can revitalize the existing assets and enhance the efficiency of the capital turnover.Secondly,it can improve the issuer’s financial structure as an off-balance’s source of finance.Finally,it has a lower financing cost.This essay can be mainly divided into three parts.Firstly,this essay introduces the research background and significance of the article,and then diversifies previous studies which shows that ABS can affect the initiator’s stock price from two aspects.It believes that ABS can theoretically bring wealth effects.However,there are many uncertain factors in actual ABS operation.Therefore it is necessary to conduct an empirical analysis on the wealth effect of ABS.Secondly,this essay illustrates the Event Method and Fama-French Model which will be used in the following analysis.Finally,this essay finds that the result is significantly positive which means the operation of ABS do increase the issuer’s wealth.The test is consistent with the theory.The analysis further shows that s the wealth effect of Corporate ABS is more significant than Credit ABS,and ABN is the weakest.