A Study On The Economic Effect Of The Acquisition Of Municipal Big Bills By Listed Companies

In recent years,with a series of policies issued by government to encourage social capital to enter public utilities construction,more and more listed companies begin to cooperate with government to undertake municipal orders to join in municipal utilities construction.Enterprises,especially listed companies hope to obtain such large orders to obtain higher returns and enhance business performance since the large-scale investment in municipal facilities.This paper chooses the government as the customer group to study the influence and economic effect of obtaining the municipal big orders to the listed company,in order to provide a new perspective for the study of the relationship between the government and enterprises to provide suggestions for enterprises to choose investment direction.The paper mainly adopts the method of case analysis and statistical analysis to analyze the present situation and the effect of obtaining municipal big orders from government of our listed companies combining the existing literatures as well as the principal-agent and rent-seeking theories on the relationship between government and entrepreneurs and the influence of clients on enterprises,including:(1)studying and analyzing present situation and problems of listed companies participating in the construction of municipal administration through the statistics of the public contracts obtained from the listed companies during 2010 to 2015.(2)discussing the contribution of listed companies obtaining municipal big orders to their growth and describing the growth of enterprises by the growth rate of revenue and profit based on the data of statistical analysis.(3)detailed analyzing of economic effect of listed companies obtaining municipal big orders though typical cases.The following conclusions are drawn through analysis of relevant statistical data and concrete case analysis:(1)the listed companies obtaining municipal big orders develop rapidly in our country,but there are also some problems,such as the implementation of individual orders and information disclosure,as well as widespread deferred payment from relevant government departments performing contracts and other credit risks;(2)most roads,bridges and rail traffic and other large municipal orders are almost obtained by the state-owned enterprises while landscaping and other small sewage treatment and other small orders are usually obtained by the private enterprises,and the effect of obtaining municipal orders is much bigger to private enterprises than state-owned enterprises;(3)we can draw a conclusion through the case of Yunnan Yuntou Ecology and Environment Technology Co.,Ltd.,a state-owned enterprise,the government's long-term deferred payment causes problem on enterprise operation capital flow,thus affecting the whole business.At the same time,shareholders on behalf of the government give capital to enterprises by purchasing and entrusted loan,indicating that government can show the plundering effect to enterprises and also give financial support to them in the execution of the municipal orders.(4)by analyzing the cases of non-operating,operational and different types municipal projects of PPP,we discover that non-operating municipal projects are generally delayed in terms of payment,taking up a large amount of enterprise funds and making enterprise's profit become unhealthy.While due to the operational municipal projects can obtain stable cash flow from users through the operation,making corporate's income sustained stable.PPP project cases reach the win-win cooperation between government and enterprises by the model of collaboratively development of municipal construction and corporate's real estate business.At last,the paper puts forward suggestions on terms of contract,risk aversion and benefit-sharing between government and enterprises in order to establish a better investment environment.