The Analysis Of Motivation And Economic Consequences For Private Environmental Protection Enterprise Introducing State-owned Capital

As an important part of the market,China’s private enterprises are facing developing problems such as difficulties in financing and shortage of resources.With more knowledge of mixed ownership reform,many private enterprises expect to achieve their development needs through introducing state-owned equity to reduce operating risks and improve operation performance.It has practical meaning to study whether the injection of state-owned capital can bring a positive impact on private enterprises and help them realize their motivation and objectives of the mixed ownership reform.In this paper,Beijing Origin Water Technology Co.Ltd,which is the leading enterprise in the environmental protection industry,is taken as the case company to study the motivation and economic consequences of its introduction of the China Communications Construction Company(CCCC)Group.The paper shows the theoretical foundation of the mixed reform and reviews literature based on motivation and effects of the injection of state-owned capital to private enterprises.Given the current situation and problems of the case company,the paper analyses that the motivation for the introduction of CCCC Group by Origin Water is the pressure of financial liquidity under the PPP project,the expectation of gaining more financing advantages and the ability to obtain orders to achieve business transformation and development.Through the analysis of the influence path of this case,it is found that the introduction of CCCC has improved the cash flow capacity,the capital structure,the revenue capacity and the gross profit margin of Origin Water.With regard to the consequences of the introduction of CCCC,this paper measures the market reaction through event studies and Tobin’s Q,and the results show that investors are basically positive about the introduction of CCCC.Some indicators such as the rate of return are also measured.In addition,some recommendations are proposed for the possible problems that may arise in the mixed reform of private companies introducing state-owned capital,in order to promote the maximization of the interests of both parties in the mixed reform.Based on the findings of the case study,this paper finds that the introduction of shareholders with a state-owned background can improve the governance structure of a company by influencing its shareholding structure and governance mechanisms,strengthen the company’s cash flow management,enhance the company’s financing capacity,and create strategic synergies through complementary resources,which can help private enterprises ease the pressure of investment and financing to focus more on R&D and innovation,and then promote the transformation of the enterprise strategic goal of asset-light operation.With the further deepening of the mixed reform,"The introduction of state-owned capital into the private enterprises" will become a new trend of the mixed reform,and this paper expects to provide a reference for the subsequent mixed-ownership reform of private enterprises.