Research On The Financing Efficiency Of The Listed Companies In Water Environmental Protection Industry

Since the Eighteenth National Congress of the Communist Party of China,the development of ecological civilization has been included into the plan of advancing socialism with Chinese characteristics.In 2014,the cooperation between the government and the social capital,defined as Public-Private-Partnership(PPP)was vigorously promoted in China.However,since the promulgation of “water 10” in 2015,the water environmental protection industry in China has come to huge opportunities.But before,it had the “historical outstanding loans” of the water environmental protection industry mainly because of a lack of the construction investment.Fortunately,with the policy supports,the water environmental protection enterprises began to get the favor of social capital.The development and financing scale of these enterprises was coming into “the fast lane”.The listed companies in water environmental protection industry has become the main force in China.Therefore,the financing efficiency of the water pollution prevention and control enterprises has important implications for the development of the industry.Taking the financing efficiency as focus,the paper,based on financing theories,combs the financing modes and characteristics of the listed companies in water environmental protection industry,further analyzes the financing efficiency of the listed companies in the water environmental protection industry through two ways: the financing efficiency and the evaluation methods,and finally concludes the existing problems and the suggestions on increasing the financing efficiency for the listed companies in water environmental protection industry.Firstly,following the financing theories,the paper defines the development of the water environmental protection industry and companies and deeply analyzes the financing modes,the financing characteristics and the influencing factors.Secondly,taking the listed companies in water environmental protection industry as samples,the paper evaluates the financing efficiency and the influencing factors of the selected samples 2015-2018 by means of DEA and Tobit.The results show that:(1)the average financing efficiency of the listed companies in water environmental protection industry is high,but the number of the listed companies reaching efficient DEA is low and the financing efficiency tends to go down.It still has room to improve.(2)The listed companies in water environmental protection industry are on developing with scale benefits.(3)There is a positive correlation among the asset scale,the equity structure,the development of the financing market and the financing efficiency.There is a negative correlation among financing mode,the enterprise quality and the inflation.In view of the above conclusions,this paper puts forward the following suggestions: First,to expand the scope of the enterprise.The scale effect of a company is beneficial to increase the financing efficiency.Second,to expand financing channels but not only to depend on bond financing.Third,to enforce internal controls to increase internal finance efficiency.At the end,as the external factors,to improve the domestic financing market,to innovate the financing channels and to offer a fair financing environment.