Study On The Motivation And Economic Consequences Of Environmental Protection Private Enterprises Introducing State Capital

Along with our country accelerating promotion of industrialization,urbanization,marketization,extensive mode of economic growth has aggravated environmental pollution,in order to alleviate this problem,development environmental protection industry is imminent.However,since 2018,the country began to strengthen financial regulation,and affected by Sino-US international trade friction,some environmental protection private enterprises have faced operational crisis,cash flow crunch,debt default and other events.Some environmental protection private enterprises choose to rescue through reverse mixed ownership reform.Based on the above background,this thesis selects the case of Guozhen Environmental Protection,a private environmental protection enterprise,makes a comprehensive analysis of the process of its introduction of state-owned capital,explores the introduction motivation in combination with the operating financial status and strategic development planning of Guozhen Environmental Protection,and analyzes the root cause and adverse impact of the shrinking capital flow of Guozhen Environmental Protection.Finally,this thesis explores the economic consequences of environmental protection private enterprises introducing state capital from six aspects: market investor reaction,corporate internal governance,corporate operating performance,financing performance,business scope and corporate cash flow.The results show that:(1)The motivation of Guozhen Environmental Protection to introduce state-owned capital includes seeking synergistic effect,enhancing core competitiveness,and establishing political connection to bring financing convenience to the company;It is also the company’s helpless move to deal with the decline in operating performance and the shortage of cash flow.(2)In terms of economic consequences,after Guozhen Environmental Protection introduced state capital,market investors responded well,the company’s operating performance rebounded,business scope expanded,equity structure optimized,cash flow improved,and received more support from the government,which provided more subsidies and financing facilities.The case study shows it can alleviate the current operating difficulties and inject new momentum into the development of enterprises,the government should issue industrial policy support to create favorable conditions for the mixed reform,to promote the growth of environmental protection private enterprises.