Research On The Nationalization Of Private Enterprises From The Perspective Of Financing Constraints

Forty years has passed since reform and opening up,private enterprises have developed rapidly.In our country "One Belt And One Road" construction,with their advanced technology and production capacity,private enterprises play an active role in expanding employment,improving people’s livelihood and developing economy.In the international market,private enterprises gradually expand their international competitiveness and expand the international market with their own advantages.Behind these remarkable achievements,there are still some problems and challenges,among which the investment and financing problems have a greater impact.Compared with state-owned enterprises and foreign enterprises,private enterprises lack the ability to identify and deal with risks,especially in the face of large capital needs,the lack of adequate funding sources,which is always an obstacle to the rapid development of private enterprises.At the 19 th national congress of the communist party of China(CPC),the importance of mixed-ownership reform was clearly emphasized.Later,at the central economic work conference at the end of 2018,general secretary xi made specific proposals to solve the difficulty and high cost of financing for private enterprises.Since then,governments at all levels and related units have successively participated in and completed the transaction of control rights of a number of listed companies.The original intention of nationalization of private enterprises is to solve the problem of capital financing with the help of the powerful strength of state-owned enterprises,but what impact will this move have on the serious financing constraints inherent in private enterprises? Can all nationalized private enterprises take this opportunity to get out of financing difficulties? Taking this as the direction,this paper selects dongjiang environmental protection as the research object to explore the impact of nationalization of private enterprises from the perspective of financing constraints.This paper adopts the case analysis method.First of all,from the aspects of financing and financing constraint theory,the purpose of nationalization and the influence of private enterprise nationalization on financing constraint,this paper classified and summarized domestic and foreign literatures,introduced the relevant theoretical basis of nationalization reform and financing constraint,and found the relationship and influence between the above two.Based on the existing theoretical basis,Dongjiang Environmental Company Limited,a case Company,was introduced to explain the reasons for the nationalization of Dongjiang and the reform process.In this paper,we refer to a measure of financing constraints formula of two-Baker(2003)and ya-qin li(2019)defined KZ index and Whited and Wu(2006)defined WW index,combined with the single variable indicators,using the two methods of quantitative research and qualitative analysis,comprehensive discussion before and after the nationalization of case enterprise financing constraints metrics change trend and whether to widen the financing channels,financing is the diversity,whether to raise the financing scale.Through the analysis of this case,this paper aims to provide similar private enterprises in China with Suggestions and inspiration in the nationalization reform.The research shows that Dongjiang alleviates its financing constraints through the nationalization reform.Therefore,we can preliminarily draw a conclusion that the nationalization reform can relieve the financing constraints of private enterprises to some extent.At the same time,in view of the problems in the case company nationalization reform,the corresponding suggestions are put forward for similar private enterprises to learn from,so as to contribute to the sustainable development of China’s mixed ownership economy.