Research on investment and financing of small and medium-sized enterprises based on enterprise asset securitization

As one of the important financial instruments of direct financing in the capital market, Enterprise’s asset securitization plays an important role in optimizing enterprise financing structure, invigorating assets, improving liquidity and reducing financing cost, etc. It is an effective measure to solve the problem of "difficult financing and expensive financing" of small and medium-sized enterprises (SMEs). This project focuses on the design, pricing, and influence of securitization products of SMEs on their investment and financing decisions. First, based on the classical real-options theory, this project constructs a model of the optimal risk retention ratio of the asset securitization of SMEs and the investment and financing decisions of SMEs. Second, This project builds a model on asset securitization of SMEs and financial policies by game theory. Last, the project incorporates an incomplete market into the model and then explores the impact of the risk aversion of entrepreneurs on the pricing of asset securitization and financial decisions. This project is originated from the practical financial problems in China, and it has a great theoretical contribution to expanding and enriching the financial research of SMEs. At the same time, it also provides theoretical reference and practical guidance for SMEs and financial institutions to implement asset securitization to solve financing difficulties.

National Natural Science Foundation of China (NSFC)
Awarded funds: £32,350 (RMB 280 000)