Analysis On The Financial Effect Of The Receviables Securitization Of Guang Tian Group

Compared with foreign countries,asset securitization started relatively late in China.At the end of 2014,the application system of asset securitization changed from approval system to record system.With the support of national policies,asset securitization developed vigorously,and the types and scale of asset securitization made an unprecedented breakthrough.Receivables securitization takes accounts receivable as the basic asset and uses the risk isolation mechanism to isolate the main risk of the enterprise from the risk of the underlying asset,with the help of the credit enhancement mechanism company can upgrade the credit rating of the underlying asset.Asset securitization can reduce information asymmetry,so that it can obtain a lower financing cost,while using asset securitization for financing can optimize the capital structure and enhance financial liquidity.This paper takes asset securitization of Guang Tian Group as a case study.On the one hand,due to Guang Tian Group’s operation strategy of "big customer",the core enterprises of real estate have strong payment collection ability,Guang Tian Group has a large number of accounts receivable,which increases operating costs.On the other hand,Guang Tian Group,as a large enterprise group in the construction and decoration industry,took the lead in carrying out asset securitization,which broadened the financing channels and enhanced the financial liquidity.Based on this background,this article takes the financial effect as the angle,analyzes the key asset securitization transaction link,including the underlying asset pool,participant in the main body and credit enhancement,use the qualitative method to analyze the positive financial effects and potential financial risk which asset securitization brings,and then combining enterprise financial data from the year of 2016 to 2019,use the longitudinal comparison to analyze early,middle and late period on business performance,financial risk,and market value.By combining qualitative and quantitative methods,it is concluded that in the year of asset securitization,the operating capacity,profitability and net cash flow of the enterprise are improved,the financial risk of the enterprise is reduced,and the rise of stock price brings positive wealth effect to the enterprise.Two years after the launch of asset securitization,due to the downward economic pressure and the restriction of the scale of asset securitization,the business performance of enterprises has not been continuously strengthened,and the corresponding financial indicators have deteriorated compared with the year of asset securitization.Based on the characteristics of the receivables securitization initiated by GuangTian group,this paper analyzes the financial effect of receivables securitization,put forward some suggestions for the subsequent development of receivables securitization in Guang Tian group as well as other enterprises in the industry.