Research of account receivable securitization--Case study in Taiwan

• Main Authors: Ru-Ping Liu, 劉茹萍
• Other Authors: 游張松
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/786z2y

碩士 === 國立臺灣大學 === 商學研究所 === 94 === The importance of the account receivables as enterprise asset can’t be overestimated. It is not surprising that transferring account receivable rights to working capital quickly and effectively becomes the core of enterprise financial planning. In the past, national enterprises used to raise money from the debt side. Besides issuing corporate bonds to get money from capital market, they also using account receivable discounting and accommodation loans to borrow money from the bank. However, as time went by, the economic structure has been gradually changed. Nowadays, in order to low down financing cost and enhance overall competitiveness, enterprises need to better manage trade risks and seek more than one financing methods. As a result, raising money from the asset side like account receivable factoring and securitization becomes more and more popular. After exploring four major loan methods of account receivable rights, this research presented here reaches some conclusions. First, account receivable securitization should bring many benefits to the enterprise. Among them, the obvious ones include: Improving enterprise financial structure, enhancing the risk management, boosting operating performance and corporate governance. The originator (the enterprise), the financial institution and the investor are three major participants of the account receivable securitization structure. So this research first analyzes all of them thoroughly. In addition, we also look into environmental influences such as trade condition, financial methods evolution, government regulations and taxation, etc. By doing so, we discover the key successful factors and essential conditions of account receivable securitization structure. Second part of this research is the case study. Different enterprises develop different account receivable financing strategies. This research describes their motivations and cost-benefit considerations. In the future, we hope to introduce multiple financing channels. At the same time, this research also explains why account receivable securitization and other similar financial products fail to make much new progress here. By the way, Taiwan market has its uniqueness. In conclusion, account receivable securitization is a good financial and asset management tool. It can transfer corporate assets to working capital effectively. This research has seven major points as follows: （1）Corporation has four major ways to raise money from account receivable right—discounting, accommodation loan, factoring and securitization. （2）By account receivable securitization, corporation no longer borrows from the debt side. It can borrow from the asset side instead. （3）Account receivable securitization is also beneficial to all three of the originator (corporation), the financial institution and the investors. （4）To make account receivable securitization work, large economy scale of the underlying asset and health trade platform which was contributed by government regulations, policies and taxation are necessary. （5）The electronic retailing industry has large scale of account receivable rights, high debt ratio and huge needs of working capital. Naturally, it has more motivations and will be the best candidate for putting account receivable securitization as the financial method into practice. （6）From the aspect of asset scale, the large economy scale of underlying assets of account receivable securitization is more than necessary. When the corporation in the electronics related industry moves the core operating business to Mainland China, its adopted account receivable scale shrinks at the same time. During this period of time, if the government refuses to enforce free and open cross-strait policy, there is no way to create globalization market. As a result, the securitization case study in this research should be the last successful one we ever saw. （7）From the aspect of invest environment, government should provide suitable taxation policy and boost secondary market. On the other hand, the credit of the original debtor decides the quality of the account receivable. It also influences the overall risk of the securitized financial products. All the above-mentioned will influence the investors’ willingness.