PPP Investment, Resource Allocation Efficiency And Corporate Performance

As a new way of resource allocation,the public-private partnership(PPP)has been advocated by government to promote the efficiency of resource allocation for both government and firms.With the sample of PPP investment projects of Chinese listed companies from 2014 to 2018 and using the empirical test and case study,the paper finds that the performances of enterprises are significantly improved after participating in PPP projects.Especially,the investment amount of PPP projects has a positive influence on the financial performance of enterprises.The further mediating effect test shows that the allocative efficiency of enterprise resources plays the complete mediating role in the above effect,which the enhanced efficiency of investment and financing lead to the improved performance.Therefore,our paper has theoretical contributions and practical value in promoting enterprises to participant in the PPP project and realize profit.Based on the results of comprehensive empirical test and case study,PPP investment will give the rise to incremental growth of corporate performance.On one hand,the government’s support in recent years has increased,which will help social capitalists participate in more infrastructure construction,then improve their own performance;on the other hand,companies boost their performance by improving investment efficiency and financing efficiency.Therefore,this paper concludes that enterprises’ performance will be improved through resource allocation after participating in PPP investment.According to the research conclusions of this paper,it is necessary for the government departments to strengthen the design and planning of PPP projects,which will help to absorb more social capital in PPP projects.Also,the government should input more supports in PPP projects and social capital individuals participating PPP investments,which will Increase the supply of social public infrastructure and promote the performance of social capital individuals.That is,PPP projects will improve the efficiency of resource allocation throughout society.Hence,the conclusions of this paper have certain theoretical contributions and practical suggestions for micro-enterprises to participate in PPP projects and realize value.