Study On Reverse Mixing Reform Of Environmental Protection Industry And Its Effect

At the Third Plenary Session of the 18th Party Central Committee,it was proposed for the first time that state-owned enterprises could make equity investments in non-state-owned enterprises in various ways.At the same time,General Secretary Xi Jinping,in the 19th National Congress Report and the 2022 Government Work Report,also clearly pointed out the need to deepen the reform of mixed ownership,enhance fair competition in the market,and support the development of private enterprises.Under the influence of the above policies,a large number of state-owned enterprises have actively responded to the call of the state,not only through the strategy of "bringing in" and implementing mixed ownership reform to introduce private capital for the purpose of improving the operational efficiency of state-owned enterprises,but also through the strategy of "going out" and implementing reverse mixed reform to allow private enterprises to develop.At the same time,through the "going out" strategy,we also implement the reverse mixed reform,so that the state-owned capital can enter the private enterprises to improve their financing ability and resource acquisition ability.In the past,studies have mainly focused on the forward hybridization,i.e.,the introduction of private capital in state-owned enterprises,but less research has been done on the reverse hybridization of state-owned capital in private enterprises.Therefore,this paper focuses on the reverse hybridization of private enterprises and selects the typical enterprise of reverse hybridization,Energy-saving Guozhen,as the research object,in an attempt to provide more experience for the reverse hybridization of private enterprises in China in the future.This paper analyzes the internal and external motivations,performance impact paths and effects of the reverse hybrid reform of Energy Conservation Guozhen using case study,event study and factor analysis methods.First,we analyze the factors considered in the reverse hybrid reform of the environmental protection industry and its current situation,including the factors considered by both environmental protection companies and state-owned capital for the target company;then we analyze the motivation for the reverse hybrid reform of the case company,including both external and internal motivation;finally,we analyze the performance impact path,as well as the market and financial effects of the reverse hybrid reform.The above analysis can provide experience for private environmental companies in their subsequent equity reform,operation and governance mechanism reform.The conclusions of this paper are as follows:First,the reverse hybrid reform of Energy-Saving Guozhen is based on both external policy and internal development motives,with the external motives mainly including the tightening of financial regulatory policies and the promotion of the Yangtze River protection strategy and the national hybrid reform policy,while the internal motives are mainly due to Energy-Saving Guozhen’s own development needs,hoping to obtain political resources and achieve strategic synergy through the hybrid reform.Second,by analyzing the performance impact paths of the reverse hybrid reform,we found that the reverse hybrid reform improved the governance structure of Energy-Saving Guozhen and improved its resource acquisition and innovation capabilities;third,based on the results of the event study method,we found that the reverse hybrid reform brought a good market response to Energy-Saving Guozhen;fourth,based on the results of the factor analysis method,we found that the reverse hybrid reform improved the overall performance of Energy-Saving Guozhen in a cross-sectional and vertical analysis.The innovation of this paper is that,on the one hand,the focus of the study is shifted from "forward mixed reform" to "reverse mixed reform",taking private enterprises,an important part of China’s economy,as the research object,providing a new research direction for China’s mixed ownership reform and a richer interpretation of the content of mixed ownership reform.On the other hand,we adopt a combination of research methods rather than a single empirical study.In-depth analysis of the motives and effects behind the mixed reform of the case enterprises aims to provide relevant suggestions for the reverse mixed reform of private enterprises in China and enrich the case studies of the reverse mixed reform of private enterprises.