Research On Financial Risk In Perpetual Bonds Financing

Since 2013,Wuhan Metro issued China’s first perpetual bonds,more and more enterprises choose to issue perpetual bonds.By the end of 2019,state-owned listed companies had issued 276 perpetual bonds,raising a total of 710.9 billion yuan,accounting for 5.06%of total assets at the end of the third quarter of 2019.At the same time,the application of perpetual bonds in the practical field has also attracted extensive attention from the academic circle.Most of the existing researches start from the accounting attribute of perpetual bonds and analyze its accounting treatment method,but seldom analyze the motivation and economic consequences of enterprises issuing perpetual bonds from the perspective of policy supervision.For this reason,this paper proposes to pay attention to the accounting treatment of enterprises after issuing perpetual bonds,analyze whether there is leverage adjustment behavior,explore the economic consequences of perpetual bonds financing,expose the hidden financial risks of enterprises,and propose relevant risk control measures.This paper takes Beijing BBMG GROUP CO.LTD as the research object,and adopts case study method and standard study method comprehensively.The research results show that in order to reduce the pressure of repayment,BBMG GROUP has issued perpetual bonds since 2015 and classified them as equity instruments,reducing the corporate leverage ratio outwardly.However,enterprises still bear great pressure to pay interest after dividing perpetual bonds into equity instruments,and their financial risks increase year by year during the duration of perpetual bonds.Therefore,it can be seen that enterprises may have improper accounting treatment for perpetual bonds.The duration of perpetual bonds is more like the debt attribute,while enterprises divide it into equity instruments to reduce the disclosed leverage ratio.Combined with the deleveraging policy,it is reasonable to speculate that there may be a suspicion of leverage adjustment.Therefore,it is suggested that the accounting treatment of perpetual bonds should be standardized,the early warning model of financial risk should be established for the financial risk in the financing process of perpetual bonds,the relevant financial risk should be identified and prevented in time,and the reasonable financing method should be selected.In this paper,through the perspective enterprise lever reduction process and means,rich capital structure research in the field of dynamic adjustment,clear perpetual bonds related accounting treatment,reveal the enterprise real asset-liability ratio,implicit financial risk,to explore perpetual bonds financing for the enterprise financing decision,supervision department regulation,the accounting information users to understand financial statements provide relevant advice.