Research On The Financial Effect Of PPP

From China's first attempt at BOT infrastructure project in 1995 to the government's vigorous promotion in 2013,the PPP model develops rapidly in China.Since the rise of the PPP model in China,governments at all levels of the country have also vigorously promoted the construction of PPP projects in local areas according to the instructions of the central government.PPP mode is favored in the fields of water supply/sewage treatment,energy,garbage incineration and power generation,water environment treatment and other environmental protection fields in municipal engineering.As one of the 13 fields of PPP encouraged and promoted by the state,environmental protection projects are playing an increasingly important role in the PPP model.The entry of social capital can avoid the problem of capital shortage,and it also has a good effect on reducing the cost and improving the efficiency of the project.At the same time,due to the characteristics of large investment amount,long capital recovery period and difficult landing of environmental protection PPP projects,the application of PPP mode will have positive and negative financial effects on the financial status of environmental protection enterprises.At present,there are few researches on multiple participants of PPP at home and abroad,among which the impact on private enterprises is even less,and most of them focus on the analysis and research of some projects.Therefore,this paper takes the private sector,an important participant in the PPP model,as the research object,and combined with the characteristics of PPP projects,deeply explores the financial effect brought by the application of PPP model.This paper reviews the relevant literature at home and abroad and has a preliminary understanding of the research status of PPP model.Then the relevant concepts of the research are defined and the theoretical basis of the paper is summarized.On the premise of literature review and theoretical basis,an overview of the lofty environmental group in the financial effects caused by application of the PPP mode,using the factor analysis method to build the enterprise's financial effect evaluation system,evaluation of enterprise financial effect comprehensive score,observe and analyze the lofty environmental protection enterprise financial effect composite scores before and after the application of the PPP mode change,in order to further explore the specific characteristics of its financial effect,the paper in the same application of PPP model of environmental protection type of state-owned enterprises as samples as a reference object,from the asset scale,the cost of debt tax shield effect,development capacity,and assets operation ability from four aspects,The financial effect of Shengyun Environment-Protection Group Co.,Ltd.after participating in PPP is analyzed in depth.The comparison results show that the financial effect of the application of PPP mode on Shengyun Environment-Protection Group Co.,Ltd.company shows a change process from rise to fall,and the financial effect performance of the company is not as good as that of the control sample company.Then,from the external and internal factors,the reasons for shengyun's deteriorating environmental protection financial status are analyzed in depth,and five factors affecting the financial effect of shengyun'sapplication of PPP mode are obtained :(1)the economic downturn and cyclical business pressure;(2)the standardized rectification of PPP projects increases the debt risk;(3)the competition pressure of environmental protection industry increases sharply;(4)aggressive investment strategies increase operational risks;(5)weak internal management is not conducive to governance and control.Finally,Suggestions are put forward to improve the financial effect of Shengyun Environment-Protection Group Co.,Ltd.application PPP model.The research observation period of this paper is only up to 2018,which is the latest year of the annual report of the enterprise.As most of the PPP models have the characteristics of long engineering period and slow implementation,the observation period is relatively insufficient.Therefore,the long-term financial effects of the application of PPP model in environmental listed enterprises need to be further studied in a longer period.