Research On Tiehan Eco-financial Risk Management Under PPP Model

Since 2014,our government has widely implemented PPP model in infrastructure and other fields,and established a large number of PPP projects.PPP mode is a financing way for the government to introduce social capital for the construction of public sphere.On the premise of local government deleveraging,it can effectively reduce the financial pressure of local governments,and the participation of private enterprises in PPP projects has gradually increased.However,the extensive application of PPP model in China is not perfect,there are shortcomings in the actual operation,and some PPP projects are not standardized.At the same time,PPP project has the characteristics of large investment amount,long payback period and uncertain investment income.Social capital blindly pursues the number of PPP projects and blindly enlarges the scale of PPP in the process of participating in PPP projects,which easily leads to financial risks for enterprises.Under the PPP model,the financial risk management of enterprises needs the attention of investors.In this paper,Tiehan Ecology of Listed Companies in China is taken as a case study,and its financial risk is analyzed from four aspects:financing risk,investment risk,operation risk and income distribution risk.In the research,firstly,this paper reviews the relevant research at home and abroad,combs the financial risk management of PPP model;secondly,based on the theory of risk management and capital structure,establishes the theoretical basis for the following research;thirdly,it briefly summarizes the general situation of Tiehan Ecology's PPP project development,and analyses the financial risk faced by Tiehan Ecology after adopting PPP model to carry out business.Topics and their causes.It is found that the financial risk of Tiehan Ecology has increased under the PPP model.The problems of financing risk include increasing debt scale year by year,increasing financing cost and high proportion of current liabilities;investment risk is mainly reflected in large investment expenditure of PPP project and integration risk after investment of PPP project;operation risk includes three aspects:overexpenditure of PPP project cost,unpredictable operating income of PPP project and government credit;and cash share is the main risk of income distribution.Finally,this paper puts forward relevant suggestions on Tiehan Ecology's financial risk management from four aspects:financing risk,investment risk,operation risk and income distribution risk,which provides a reference for improving the financial risk management of enterprises under PPP mode in China.