Research On The Effect Of Reverse Mixed Ownership Reform In Private Environmental Protection Enterprises

In 2013,the Third Plenary Session of the 18 th Central Committee of the Party clearly pointed out the need to adhere to an economic system in which public ownership is the mainstay and a variety of ownership systems develop together.At the same time,the introduction of the 12 th Five-Year Plan for the Development of National Strategic Emerging Industries has brought the energy conservation and environmental protection industry to the attention of the world,and the environmental protection industry has developed rapidly as a result.However,China’s private enterprises are faced with market discrimination,financing difficulties and a shortage of human resources and other realities,production and operation of enterprises are difficult.Some private environmental protection enterprises have chosen to reverse the mixed ownership reform and take the initiative to join hands with state-owned capital,expecting to use the resources and platform of state-owned capital to get rid of the capital problem and achieve strategic expansion of the enterprise.In this context,it is particularly important to explore whether the reverse mixed ownership reform of private enterprises can promote corporate development.This paper takes the case of Fuchun Environmental Protection’s introduction of the Watersky Group into the reverse-hybrid reform as the object of study.After studying and summarising relevant domestic and international literature and theoretical foundations,this paper firstly summarises the status of the reverse-hybrid reform of China’s private environmental protection enterprises and sorts out the process and motivations of Fuchun Environmental Protection’s reverse-hybrid reform;Secondly,through the event study,financial index analysis method and non-financial index analysis method,the paper analyzes and evaluates the effect of the reverse mixed ownership reform of Fuchun Environmental Protection from three perspectives of market effect,financial effect and innovation effect,summarizes the successful experience and existing problems in the process of reverse mixed ownership reform of enterprises,and puts forward corresponding suggestions for deficiencies;Finally,five research conclusions were drawn: Fuchun Environmental Protection chose to introduce the reverse mixed transformation into Shuitian Group based on the dual motivation of external environmental factors and internal self demand;Enterprises have expanded their market territory through reverse mixing reform;Introducing Shuitian Group has enhanced the company’s financing capabilities;The innovation ability of enterprises has been improved after the reverse mixing reform;Private environmental protection enterprises should reasonably choose state-owned assets for mixed transformation in the process of reverse mixed transformation.At a time when the landscape of the environmental protection industry is in flux,Fuchun Environmental Protection has chosen the Shui Tian Group to take a mixed stake in the company in the hope of further development.The analysis suggests that while the reverse-hybrid reform may have contributed to some aspects of Fuchun environmental protection,it remains to be seen whether the company will be able to integrate with the state capital in the long term and fundamentally improve the company’s operations.In conclusion,this paper hopes to add to the gap in research on reverse-hybrid reform in private environmental firms by examining the effects of reverse-hybrid reform at Fuchun Environmental,as a way to provide lessons for other related firms.