Study On The Impact Of Accounts Receivable Securitization Of Pharmaceutical Distribution Companies On Corporate Performance

Asset securitization,a financing method that began in the 1990 s,has not been developed in China for a long time,and has only entered a rapid development phase since the reform of the securities business in late 2014.During the "13th Five-Year Plan" period,China’s policy reform in medical care,medicine and health insurance is very strong,and during the five-year period from 2015 to 2020,China’s pharmaceutical industry has developed rapidly,and in this rapid development process,pharmaceutical distribution enterprises have accumulated more accounts receivable,which has brought negative impact on the development of enterprises.The asset-backed notes issued by Jiuzhou Tong Pharmaceutical Group in2016 is the first receivables asset securitization product in China’s pharmaceutical industry that adopts a circular transaction structure,and its transaction structure is innovative.In addition,Jiuzhou Tong Group is the private pharmaceutical distribution enterprise with the largest market share,which is attributed to the integration strategy implemented by Jiuzhou Tong since 2015 and its long-term commitment to building an industry-leading digital pharmaceutical supply chain service platform,and its logistics system and online platform are leading in the industry in comparison with its peers,so this thesis chooses to take the asset-backed notes of Jiuzhou Tong Pharmaceutical Group as a case study for this thesis’ s analysis.This thesis uses the relevant studies on securitization of accounts receivable assets by domestic and foreign scholars as the theoretical basis,and uses the literature review method,case study method,and event analysis method to investigate the impact of the first issue of asset-backed notes issued by Jiuzhou Tong Pharmaceutical Group in 2016 on corporate performance.Firstly,the literature review method was used to summarize the concept of asset securitization,the motivation of implementation,and the financing effect of securitization of accounts receivable by reading and organizing domestic and international literature,which provided theoretical support for this thesis.Secondly,we collected and organized the industry policies during the study period and briefly introduced the basic information of the company,and sorted out the transaction structure and basic operation process of this asset securitization of accounts receivable of Jiuzhou Tong.Based on bankruptcy segregation,information asymmetry theory and financing priority theory,and taking into account the external policy environment,internal financing conditions,the operation of the enterprise and the current situation of the enterprise’s accounts receivable,we analyzed the impact of the issuance of asset securitization products on the enterprise performance of Jiuzhou Tong.Based on the external policy environment,internal financing conditions,business operation,and the current situation of accounts receivable,a comprehensive analysis was conducted on the financial cost,financial risk,market effect,and financial performance of accounts receivable securitization.The final conclusion is that the securitization of accounts receivable has broadened financing channels,improved asset turnover and revitalized operating assets,and optimized the capital structure and enhanced the market value of the enterprise to a certain extent;furthermore,the analysis of the securitization of accounts receivable of Jiuzhou Tong Pharmaceutical Group provides recommendations from four perspectives: financial cost,financial risk,market effect and financial performance.In addition,the analysis results of the asset securitization case of Jiuzhou Tong Pharmaceutical Group give relevant suggestions from four perspectives,which provide some references for other private pharmaceutical distribution enterprises with financing needs.